Costco completes land deal in Galway, store set to open in the fall

They've got the land and now Costco has a plan for when it will open the doors to its Galway location.

In a news release sent out on Wednesday, Plaza Retail REIT the company tasked with recruiting businesses for the new development on the outskirts of St. John's announced it had finalized atransactionwith the wholesale giant.

"We are pleased to welcome Costco to our Galway development," saidMichael Zakuta, Plaza president and CEO. "We believe their relocation withinSt. John'swill have a significant impact on shifting the retail focus to the west end of the city."

We are delighted that one of the biggest wholesale retailers in the world are moving intoGalway.- Danny Williams

Former Newfoundland and Labrador premier Danny Williams, the developer behind Galway, told CBC's St. John's Morning Show that work on the new Costco location began about a month ago, thanks to a winter with little snowfall.

"If you go in, you can see it's a beehive of activity," he said.

"There's dozens of pieces of major, heavy equipment in there. So all the site preparation now is actually being done, and then the building hopefully will start in May with completion in the early fall.

Williams wasn't certain on an official opening target date, saying that would be Costco's decision, but he believed it should be open by Halloween at the latest.

"We are delighted that one of the biggest wholesale retailers in the world are moving intoGalway," he said. "It's a big event for us."

Lots of construction activity

The original target date for opening the new location was November 2017, but Williams said the new location which will be much larger than the currentStavangerDrive site went through several stages of design and redesign.

That, paired with city approvals and increasing gas production, Williams said, means there's a lot of work to be done.

"Theywere aiming for last year, but once they missed that Christmas window last year then things seemed to expand into this year, and that's why we are where we are now."

Costco making the move will also help spur on interest from retailers in andconstruction of the Shoppes at Galway, the development's retail area, said Williams.

"You'll see a lot of activity. We'll start construction for other stores out there during this year with the view to opening up early in 2019," he said.

"Things are really going to start to pop."

Asked about the sluggish Newfoundland and Labrador economy, Williams said he's a "long-term player."

"I'm the eternal optimist," he said. "I feel good about the prospects for Newfoundland and Labrador."

The release said more construction on the Shoppes at Galway the development's retail area will begin in the summer, with businesses opening in the spring of 2019.