The City of Houston wants to subsidize construction of a Katy area Costco.
It sure seems strange until you run the numbers. Because of annexation rights Houston controls the land where Costco plans to build at I-10 and the Grand Parkway. An annexation deal gives Houston a half percent of sales tax revenues on everything that will be sold by Costco.
Costco would get $2.5 million in tax breaks to fund infrastructure costs, and the city expects to generate
$8-million in taxes over the life of the deal.
Why would Houston enter into this deal? Because Costco had planned to locate just one mile away near the Katy Mills Mall where Houston would not be entitled to any tax revenues.
Houston City Council takes up the issue at its meeting Wednesday July 10, 2013. City Council has the final say on the deal.