“This area has certainly weathered better than other parts of the country. I think that lots of the larger retailers are starting to focus on [the better-faring] areas because they want to get in and take advantage of the momentum. When the economy finally starts to hit on all cylinders again, they want to be positioned,” said Phil Brewer, Cedar Park’s economic development specialist.
Big-box development begets more development
Cedar Park Chamber of Commerce President Harold Dean said he is happy about the two developments and thinks they will have a positive impact.
“We’re pleased they’re coming to create jobs and create tax revenues for the city. So, all in all, it’s a good thing,” Dean said.
Wal-Mart already has a store in Cedar Park at Walton’s Way and Bell Boulevard. Brewer said the new store will be able to generate more sales tax without taking a bite out of revenues at the other location because it will serve new areas of growth in eastern parts of the city, as well as surrounding areas in Round Rock and Avery Ranch.
About half of the merchandise Costco sells is nontaxable, but even that is enough to generate a sizable amount of sales tax revenue for the City of Cedar Park.
“If you look at the average sales of a Costco, their average annual sales are about $130 million. So, if you say just 50 percent is taxable, $65 million is still taxable. At 2 cents [sales tax], that’s a nice revenue stream for the city and then you add on the property tax to that,” Brewer said.
Tim Redwine, owner of Austin Floor Store on RM 1431 near the future site of Costco, said he thinks it will draw traffic to the area and be a positive force for Cedar Park businesses.
“More people will come out here and see the store,” George Poe said, owner of Cedar Park Jewelry. His store, located at 601 E. Whitestone Blvd., Ste. 112, is near the future site of Costco. “Since I advertise everywhere, people will see the store, and then they will know where we are.”
Latest Comments
Need more entertainment venues!
Posted by Greg F February 16, 2012 09:37:37
Big Box
Posted by February 02, 2012 02:02:32
Seriously???
Posted by Mr. D February 01, 2012 10:51:06
Big box giants
Posted by Mr. R.T. January 30, 2012 17:14:42