As debate stirred through Regina’s city council chambers last Monday, the approval of a $6.8 million tax incentive for Costco’s second location marked a turning point for east end development. It’s a decision that comes after months of community consultation and no small amount of controversy.
“This isn’t just about a big box store,” said Ward 3 Councillor Andrew Stevens during the heated council session. “It’s about what kind of development priorities we’re setting for our city’s future.”
The 6-4 vote in favor of the incentive package clears the way for construction at the intersection of Aurora Boulevard and Victoria Avenue East, where the retail giant plans to build a 160,000-square-foot warehouse and gas bar. The project represents one of the largest commercial developments in Regina’s east end in recent years.
For many residents like Eileen Kowalchuk, who spoke during the public consultation period, the decision brings mixed feelings. “We need the jobs and the economic boost, no question,” she told me after the vote. “But you have to wonder if a company as profitable as Costco really needs this kind of tax break when our roads need fixing.”
The incentive structure offers Costco a five-year graduated tax exemption, starting at 100% in year one and decreasing by 20% annually until the company pays full property taxes in year six. City administration estimates the company will ultimately contribute approximately $1.2 million annually in property taxes once the exemption period ends.
Mayor Sandra Masters, who voted in favor of the deal, defended the decision as strategic investment rather than corporate favoritism. “When we look at the long-term revenue generation and the creation of approximately 200 jobs, the initial incentive pays for itself many times over,” Masters said during a post-vote media scrum.
The Regina & District Chamber of Commerce has thrown its weight behind the development. CEO Tony Playter pointed to broader economic impacts beyond the store itself. “What we’re seeing is a catalyst effect,” Playter explained. “Where Costco goes, other businesses follow, creating a clustering effect that benefits the entire commercial sector.”
According to the city’s economic impact assessment, the project is expected to generate $28 million in construction activity and create approximately 75 construction jobs during the development phase, in addition to the permanent positions once operational.
Yet opposition to the deal remains fierce among some residents and council members. Councillor Dan LeBlanc, who voted against the proposal, questioned whether tax incentives should go to established corporations rather than local businesses.
“Every dollar we give away in corporate tax incentives is a dollar not spent on community services,” LeBlanc said. “We need to ask ourselves if this is the best use of our limited resources when many Regina businesses are struggling to keep their doors open.”
The decision follows similar incentive packages offered in municipalities across Saskatchewan, including Saskatoon’s $7.3 million tax abatement for their second Costco location in 2018. According to Statistics Canada data, Saskatchewan municipalities provided over $42 million in commercial property tax incentives in 2022 alone.
Urban planner and University of Regina professor Dr. Emily Eaton believes these incentive packages reflect a troubling trend in municipal governance. “Cities are increasingly caught in a race to the bottom, competing with each other to attract big commercial players,” she told me. “The question is whether this model is sustainable when these companies can play one municipality against another.”
For east end residents like Tom Barkwell, who lives just three kilometers from the proposed site, the practical benefits outweigh theoretical concerns. “I’ve been driving across the city to shop at Costco for years,” he said. “Having one nearby means less traffic congestion overall and more time with my family.”
The city’s planning department indicates the new location will include enhanced sustainability features, including electric vehicle charging stations, energy-efficient building design, and improve
