After years of scouting for a suitable location, big-box retailer Costco has decided to retract its plans to establish a new store in Asheville. The decision was communicated to city officials through an email from City Manager DK Wesley, which was later shared with Asheville Watchdog.
Wesley explained that the project’s withdrawal was due to escalated costs and complexities associated with necessary on-site and off-site improvements at the proposed Enka Commerce Park location. The city was informed of this development on Wednesday.
“As is not uncommon in large or complex projects, development applications are occasionally withdrawn for business reasons, including those unrelated to the city’s review process,” Wesley noted in the email.
The decision has been met with disappointment by local officials. Asheville Mayor Esther Manheimer described it as a significant loss for the city, stating, “It is a tragedy, and I’m very disappointed.” She added that she is working to understand the challenges and address them where possible.
Additionally, Councilmember Sage Turner expressed regret over the withdrawal, highlighting the community’s strong support for the new store. “The community was incredibly vocal in their support and desire for this new option,” Turner remarked. She plans to follow up with Costco to gain further insights.
Costco’s search for a Buncombe County location has been ongoing for decades, with residents often traveling approximately 70 miles to shop at the nearest Costco locations in Spartanburg or Greenville, South Carolina. Last year, the retailer submitted an application to build a store with 839 parking spaces on a 25-acre site within Enka Commerce Park, which required a conditional zoning amendment from the city.
The withdrawal letter, authored by Nettie Boyle, a project manager at BL Companies, detailed that increased project scope, timeline, and costs were factors in the decision to pull the application from the current review process. BL Companies, which handled design and architecture for the project, had formally requested the withdrawal of the application from the review before the Planning & Zoning Commission and City Council.
During a community meeting held in August, local residents expressed both excitement about Costco’s potential arrival and concerns about traffic increases on nearby roads.
Costco’s Director of Real Estate, Renee Rutherford, explained that the store could attract around 600 vehicles per hour during peak times. The proposed site is adjacent to the Biltmore Lake neighborhood, which consists of over 800 homes, and is close to several other commercial entities.
Despite the enthusiasm, the Economic Development Coalition for Asheville-Buncombe County opposed the Enka site for Costco, citing issues related to wages, property taxes, and the use of the last industrial development area for retail purposes. The site, a former American Enka rayon plant, had received over $15 million in public funds for infrastructure improvements aimed at supporting industrial jobs.
Costco, known for offering wages significantly higher than the retail norm, did not respond to the coalition’s concerns last year but did share information about its competitive wages and benefits. The retailer’s fact sheet indicated that average annual sales per warehouse are approximately $260 million globally.
Hourly wages in the U.S. at Costco vary by position, with service assistants earning $20 to $30.20 per hour, service clerks earning $21 to $31.90 per hour, and meat cutters earning $21.50 to $33.40 per hour, translating into annual salaries ranging from the low $40,000s to nearly $70,000.
Though Costco had made significant progress in planning, including submitting plans and holding a community meeting, it had yet to complete the necessary steps with Asheville’s Planning and Zoning Commission and City Council.
