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Shakedown City - Pappas Investments Seeks $8 Million from Elk Grove For New Costco

March 30, 2017 |  

The Elk Grove City Council will consider awarding an $8 million incentive that could be paid back over 25 years to the landlord of the Costco store scheduled to open in the City.

According to the notice, "The agreement would provide for sales tax sharing between the City and the landlord/property owner in a present value amount of not more than $8,000,000, as escalated and adjusted over time, all as provided in the agreement. Payment would be made for up to 25 years, or until the entire economic development incentive amount of $8,000,000, as provided in the agreement, is paid, whichever occurs first."

The Costco, which will be located at the northwest intersection of Civic Center Drive and Babylon Drive in The Ridge Shopping Center is being developed The Ridge EG East, LP., which is owned by Pappas Investments. Louie Pappas, owner of Pappas Investments is long-term financial contributor of four of the five current Elk Grove City Council Members, including Mayor Steve Ly.

he development of that big-box store was opposed during the approval process by several nearby residents in adjacent neighborhoods in the Laguna Ridge area who expressed concern about noise and traffic effects.

The notice states that questions regarding the proposed incentive should be directed to the City's Economic Development Department at (916)478-3690. The City Council will consider the incentive at their April 12 meeting.

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