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The public incentive is the largest afforded to a private company in exchange for setting up shop in Elk Grove. Last year, then-mayor Gary Davis said Costco had made it clear that the company would only locate in cities where 100 percent of impact fees are reimbursed through sales-tax sharing. Councilman Pat Hume said the deal made sense because Costco would generate more sales tax than other potential retailers. Mayor Steve Ly did not respond to a request for comment. Doan played down the impact to city coffers because “there’s no upfront check that the city has to write.” “The beauty of a sales tax sharing agreement is there’s absolutely zero risk to the city’s finances or taxpayers,” he said, adding that the city is expected to net nearly $28 million during the first 25 years. “If nothing is ever generated, we don’t remit anything.” The project has encountered opposition from some residents who have complained about the planned store’s proximity to residential housing. Others have criticized the public subsidy. “It’s a rip-off,” said Michael Monasky, an activist who ran for mayor last year. He warned that the agreement may set a precedent for other businesses coming to town.
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