Loveland City Council approves Costco deal

8-1 vote clears way for 160,000-square-foot warehouse in exchange for tax-sharing arrangement and $13 million roadway project

Published on Feb. 21, 2026

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The Loveland City Council has approved a business assistance agreement with developer Realberry that will bring a 160,000-square-foot Costco warehouse to the city. The deal includes a 25-year tax-sharing arrangement and a $13 million roadway project funded by the city.

Why it matters

The Costco deal is expected to generate significant new tax revenue for Loveland, which has been facing budget shortfalls. However, some residents have raised concerns about the city offering incentives to a large developer and whether the project could impact existing businesses.

The details

Under the agreement, Realberry will sell around 19 acres to Costco for a nominal price and build an 850-space parking lot and extend utility infrastructure to the site at a cost of $10.6 million. The city will fund the $11 million construction of Kendall Parkway from Sky Pond Drive to U.S. 34. In exchange, the city will receive 1.75% of Costco's sales tax revenue, which is projected to generate up to $125 million over 25 years. The city will also collect property taxes, fuel taxes, and permit fees from the project.

  • The City Council approved the deal in an 8-1 vote on February 18, 2026.
  • Costco is expected to open in early 2028.

The players

Loveland City Council

The governing body of the City of Loveland, Colorado that approved the Costco deal in an 8-1 vote.

Realberry

The developer that owns the 83-acre parcel where the Costco warehouse will be built and has agreed to sell 19 acres to Costco and fund $10.6 million in infrastructure improvements.

Costco

The global retail warehouse chain that will be building a 160,000-square-foot store in Loveland as part of the deal.

Pat McFall

The Mayor of Loveland who voted in favor of the Costco deal.

Vince Junglas

The Loveland City Attorney who emphasized that the Costco deal is a standalone agreement separate from the Centerra urban renewal plan.

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What they’re saying

“The only way we grow our general fund is to grow the taxes we get, and the only way to do that is to bring businesses in.”

— Pat McFall, Mayor (reporterherald.com)

“I can understand how, certainly, members of council or members of the public, may conflate the two, but they're very different. And this agreement does not rely upon tax increment financing as an urban renewal plan would.”

— Vince Junglas, City Attorney (reporterherald.com)

“We just can't proceed with the project from a math standpoint. We have no upfront revenue, but significant upfront cost. So from a developer standpoint, we can't move forward with the project unless we have an investable project that can cover its costs to actually build the project out.”

— Jeff Breidenbach, Director of Development for Northern Colorado, Realberry (reporterherald.com)

“We consider that retail gravity effect, because other companies and other businesses want to locate near a Costco.”

— Marcie Willard, Economic Development Director, City of Loveland (reporterherald.com)

“We are very proud of the jobs that we provide. They have great benefits. There's a lot of upward mobility. Everybody is hired from within. All of our executives pushed carts at one time in their life.”

— Jenifer Murillo, Real Estate Director, Costco (reporterherald.com)

What’s next

According to city staff, the anticipated opening for Loveland's Costco is early 2028.

The takeaway

The Costco deal represents a significant economic development opportunity for Loveland, but some residents remain skeptical about the city offering incentives to a large developer. The long-term benefits of new tax revenue and job creation will have to be weighed against concerns about the impact on existing businesses and the city's relationship with the Centerra developer.