Friday, June 20, 2008

Costco expansion nears completion

The 30,000 sq.ft expansion of Vintage Oak's Costco is scheduled to be completed in August. According to the Novato Advance, the City is very excited to get its hands on the additional sales tax revenue that the expansion will bring. They estimate that this will amount to $150,000 each year; based on a sales tax rate of 0.75%, that means they expect the 30,000 sq.ft expansion to make $20m in annual sales, or $670 per square foot. I bet it does a lot better than that.
“The Costco project in its entirety will most likely be done by the end of August or early September, so that’s looking pretty promising,” said Kathy DeOchoa, general manager of Vintage Oaks. “We’re really excited to have it close to completed. It’s going to give people a great reason to come and stay, and shop in Novato, as well as in the shopping center, so we’re really excited to see them expand.”

The City will need every cent, given the current slowdown in consumer spending and the rocketing foreclosure rate in Novato.