Fort Oglethorpe officials conduct damage control on Costco deal, but quite optimistic
Jan 14, 2010 | 3534 views | 6 
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On Wednesday, he talked to Catoosa Utility District board chairman Jerry Lee, whose board discussed Costco in an open meeting, as well as officials with Costco.
Cobb said he expects a call from Costco officials later today.
“I hope this doesn’t sour anything,” he said.
While nothing can be officially confirmed — still — the mayor said he hopes an official announcement will be approved for next week.
“I feel optimistic about it possibly happening next week,” he said.
Previous reports about the mystery deal code-named “Project Hilltop” stated the company was a warehouse dealer with no competitors in the area.
The closest Costco to Chattanooga is over 75 miles away in Huntsville, Ala. There are two stores in Atlanta and one in Alpharetta and Kennesaw.
Cobb said corporations prefer to keep their identities secret in order to keep information from their competitors.
Costco’s website describes the company as a “membership warehouse club.” Gold Star and Business members pay $50. The highest membership is Executive, which costs an additional $50 and gives a 2 percent reward on most Costco purchases.
The company sells appliances, furniture, electronics, food and equipment for cars.
Years ago in Fort Olgethorpe, a deal with a car dealership was killed when a competitor learned of the company’s intention and brought up issues with coding.
“Those are the things you have to guard against,” the mayor said.
Cobb said he doesn’t think that will be the case this time, but until the contract is signed anything is possible.
“We’ve gone 99 miles, but we have to go 100,” he said.
He said “a whole lot of different little things” are still in negotiation. The mayor is waiting on the state Department of Transporation for curb details, easement surveys and traffic signal studies.
For the last two months, most of the dialogue has been through attorneys with the county, the Catoosa County Economic Development Authority, and the real estate company over conference calls.
The only deadline on the deal is for the land to be ready for construction on May 1. This date was given in the bidding announcement from the development authority.
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Snarky, I think you need to re-think and research your facts. Costco is a good company and you should be happy that they would come to your area. Have you ever even been in a Costco? Higher end?? I am guessing that you do most of your shopping at Dollar General. If that is true than "yes" Costco would be selling "high end" merchandise.
But, Catoosa County is NOT a depressed area by any stretch. That is absurd. Costco would not build a store in a depressed area because they sell higher end merchandise. You have obviously never traveled too far from here. We are doing pretty well compared to say , West Virginia , Kentucky or Mississippi.
Your attitude is part of the problem with this deal. You are willing to ignore the fact that these jobs are going to cost a lot more than you are being told because the money to bring them here is going to be BORROWED. That means that the lenders will want that money back with interest. Guess who will pay that interest and pay back the bonds ? ( hint - It will be the taxpayers)
Politicians deserve their high office and all the perks and benefits that they receive because they are smart enough to pick your pocket and make you think that they are doing you a favor.
One question - If this is such a good deal and Costco is such a stand-up company , why won't they pay their own way here ? Why do we taxpayers have to bribe them to set up shop for what should be a slam dunk ,financially speaking ?
Okay ,that was two questions.
Next point.. Jobs are far more important than worring about what freebies box stores may get. Catoosa county has been a depressed area for the 30 years that I've been here. It's about time something good happened so lets not look a 'great' gift horse in the mouth. Count your blessings! And as for advertising.. Costco does not need to advertise. Word of mouth will do just fine!
Mr. Sinegal has built a $70 billion retail giant and remains one of the lowest paid CEOs in the Standard and Poor's 500. He does this while his employees on average earn more than 40% more than the employees of their Sam's Club rivals and are some of the highest paid retail industry employees in the country.
I haven't checked on this year's statistics but as recent as 2007 the average Costco employee was earning over $17/hour. If that holds true, if and when they come to Northwest Georgia, that type of wage rivals what VW starting hourly pay is going to be.
Having been a raving fan of the Costco store while I lived in Atlanta, I can tell you that I have shopped my last day at Sam's Club and Wal-Mart once they open their door.
Good luck to the city officials working this. I hope you are able to bring Costco to town.
Your county government is setting a very dangerous precedent here. Let me tell you why:
If the taxpayers of Catoosa County finance the improvement (and possible giveaway) of this property , you can bet that every big box chain out there will soon beat a path to our door and demand the same deal. That means that instead of selecting a site and concept based on sound business principles , these companies will build because they get freebies (which are really subsidies that are not offered to existing businesses) and not because it makes any sense.
Every night at closing time ,the receipts from that day will be put in a bag and sent to Issaquah ,Wisconsin (corporate HQ). They are not going to be spent here.Costco won't buy any advertising in Catoosa County. They won't hire any workers that make good wages that will be re cycled into our roads ,schools and fire and police departments. They will collect sales tax for the state and the pittance that we keep locally and the rest will be saved and spent somewhere else.They won't use a local bank (except maybe for night deposits. The money will be wired out the next day). So what exactly will they put into the community ? Hard to say.
Never forget that your county officials are putting you in debt for the sake of about 125 low wage ,dead end jobs that have no benefits. This is being done behind closed doors for a reason. And it won't be the last deal like this that they do.