St. George • Costco has sparked excitement ever since St. George officials announced a second store was coming just over a year ago. Now, nearly a month before the store’s grand opening, the new location is already fueling vehicles.
Even as workers rush to apply the finishing touches on the new Costco store located just off Interstate-15 at 4700 S. Desert Color Parkway, a steady stream of vehicles are already gassing up at the five-lane fuel center that features 40 fueling positions.
City officials say the fuel center is a sign of great things to come for Costco South St. George’s formal debut, which is slated for March 13.
“Most cities would salivate at the opportunity to have just one Costco, but we are going to have two,” said Chad Thomas, the city’s economic development director.
The city’s first Costco opened nearly a quarter-century ago in east St. George. The 154,000-square-foot second location — about 6,000 square feet larger than the first — will not look dramatically different from others in the big-box warehouse chain. Still, Thomas said, each Costco often carries a few unique products.
“So some residents will likely be super excited about going on a treasure hunt to look for any new items the store might carry,” Thomas said.
Russ and Candy Hurlbut, who live in nearby Sun River, said Costco’s berries and chicken pot pie are two staples they look forward to buying. But the new store’s main selling point is its convenience.
“It’s much closer than the [other] Costco, which is more than 12 miles away,” Russ Hurlbut said. “The new one is literally three minutes away from our house.”
Cashing in
Even though city officials said they cannot release sales-tax data from private companies, they project the revenue St. George will gain from a second Costco could negate the need to increase property taxes for the foreseeable future.
“A second Costco helps us capture sales tax from I-15 travelers and shoppers outside St. George, keeping property taxes low. We’re already the third lowest among Utah’s 20 largest cities, with property tax making up just 11% of our general fund,” City Council member Natalie Larsen said.
Thomas said the extra revenue Costco will generate for the city will bolster the general fund, paving the way to hire more firefighters and police officers and keep pace with the city’s burgeoning growth. Another benefit, city leaders point to, is the second store will create between 150 to 300 well-compensated, benefit-eligible jobs for local residents.
Beyond recognition
To secure the second location, St. George offered Costco a $3.18 million incentive package that defers building permit and impact fees and certain public infrastructure-related costs over 10 years. If Costco meets performance-based standards, which city officials say includes operating two stores within city boundaries over the next decade, the deferred total is forgiven, according to Thomas.
Still, St. George officials say, the benefits Costco will bring far outweigh the costs the city incurs.
“When a company like Costco chooses to invest again in St. George, it sends a clear message of confidence,” Mayor Jimmie Hughes said in a text. “The growth in the southern part of our city reflects the strength and momentum of southern Utah’s leading economy. This second Costco location supports that expansion, strengthens our commercial base and reinforces St. George’s economy.”
Some of that expanding commercial base is already evident. A Smith’s Marketplace opened in Sun River in November 2024. An In-N-Out Burger, Hilton Hotel and Ace Hardware store are under construction. Thomas predicts Costco’s debut will spawn even more commercial investment in south St. George.
“You won’t recognize it in 10 years,” Thomas said. “It is going to look completely different.”
Once the new St. George store opens, Utah will have 15 Costco stores. Costco’s worldwide earnings from its 927 locations was just under $270 billion in 2025. Average yearly net sales at each location was roughly $276 million.