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Costco To Anchor "CityGate" Development

Updated: Friday, July 12 2013, 06:17 PM EDT

Rochester, N.Y. - The membership wholesale club Costco is coming to Rochester. 

The 150,000 square foot store will be the major tenant for the proposed CityGate mixed-use development project.  

"We were very lucky to have them, I think the community is very lucky to have Costco here," said Antony J. Costello, developer and owner of the CityGate site.

Anthony Costello & Son Development made the announcement Wednesday morning at the former Iola Tubercolosis Sanitarium, site of CityGate.

"We are confident that Costco will draw other high quality tenants to CityGate," added Costello.

Costello said he received word from Costco leadership two weeks ago that the company had chosen Rochester for its next warehouse. 

Costco will anchor the $250 million project and create 250 to 300 full time jobs.

The project also includes a hotel, 300 two and three bedroom residential units and additional retail and commercial space.

This will be the first Costco location in Western New York, though there are plans to build one in Camillus.

"It's always nice to get big business, especially around this area," said Raymond Fischer, a Westfall Road resident.

The president of the Upper Mt. Hope Neighborhood Association Dan Hurley doesn't expect much opposition.

"We're all positive about it here," Hurley said.

Hurley says traffic likely won't be an issue because the expansion of Westfall Road will end in a couple months.

He added, though, he and others will work to make sure the project is handled with care.

For example, he wants the elm trees on the corner of E. Henrietta and Westfall Roads are saved.

Terms of the deal are still in negotiation and the size of the tax deal Costco and Costello will seek remains unknown.

Rochester City Council must also approve the changes to the CityGate plan.  

Costco To Anchor "CityGate" Development


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