Castle Rock, CO

Costco could open in Castle Rock

Mike McKibbin

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By Mike McKibbin/NewsBreak Denver | Aug. 5, 2022

[CASTLE ROCK, COLO.] — The massive Dawson Trails development project could include a Costco for residents of Castle Rock and surrounding areas, according to the town website.

The more than 2,000-acre development proposed for the town’s southwest corner could also solidify funding for the Crystal Valley interchange project. It has been the town’s top transportation priority.

Dawson Trails is a planned development west of Interstate 25 and primarily south of Territorial Road. The area was annexed into the town in 1984 and zoned for a mix of residential, commercial, office, restaurant, and industrial uses for more than 35 years.

Town asked for $10 million, could see up to $6 million annually

Developers have asked the town to provide up to $10 million in infrastructure cost relief to help locate a Costco in the project. The big box discount store is estimated to generate $4 to $6 million in sales tax revenue annually. That would make it the single-largest sales tax generator in Castle Rock.

That tax revenue from Costco could allow the town to hire 18 fire and police employees in 2025-2027. Without Costco, the town does not currently anticipate having enough money to add fire or police positions during those years.

Castle Rock officials note municipalities typically offer incentives to get Costco to locate within their jurisdictions. Parker paid $8 million in 2007 for Costco, and Longmont this year paid $10.9 million to attract Costco.

If Costco agrees, the store could open in 2025, the same time as the Crystal Valley interchange, if construction begins in 2023.

Costco would be part of the project’s proposed 3.2 million square feet of commercial, office, restaurant and industrial uses.

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The Dawson Trails planned development in Castle Rock, shown in blue, could include a Costco. |Town of Castle Rock

Interchange gets $50 million

The plan, submitted by Westside Property Investment Co., calls for $50 million to be contributed toward a new interchange at I-25 and Crystal Valley Parkway/Territorial Road.

The town, Douglas County, grants and other sources would fund the rest of the estimated $118 million project.

In addition to providing access to Dawson Trails and the Crystal Valley area, the interchange will relieve traffic at the failing Plum Creek Parkway interchange.

The proposed agreement also requires developers to contribute $4 million toward a future fire station to serve the area.

If Dawson Trails is approved, the developer would decide, based on market conditions, when to build residential units and which stores and other amenities to include.

Three meetings planned

The Dawson Trails planned development plan, including the interchange funding plan and a Costco infrastructure assistance agreement, will be considered by the town planning commission on Thursday, Aug. 11.

The town council will consider the commission’s recommendation on Dawson Trails on Tuesday, Aug. 16, and Tuesday, Sept. 6.

Visit the town website more information on the meetings and the town’s Dawson Trails page.

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