Sask. government should pay City of Regina back over Costco bidding war, NDP says

The NDP says the province’s push to move a new Costco to the GTH sparked a costly bidding war, forcing Regina to offer $6.8M in tax breaks to keep the retailer.

The provincial NDP is calling on the Saskatchewan government to pay the City of Regina $6.8 million they say it owes after triggering a bidding war over the new Costco store.

Now going ahead for Regina’s Westerra neighborhood, NDP MLA Trent Wotherspoon says the Costco project was jeopardized when the government tried to redirect the development to the Global Transportation Hub (GTH) and competed against the city.

According to Wotherspoon, the city was then forced to offer nearly $7 million in tax concessions.

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“This is one level of government, the provincial government, competing against another level of government, the City of Regina. It’s completely wrong and inappropriate. This is a rip-off of the property taxpayers of Regina. Plain and simple. Today, the Saskatchewan NDP has launched a website, with a public petition demanding the Sask. Party government pay back the city of Regina, the people of Regina,” Wotherspoon said.

In response, the provincial government said it acknowledges and accepts the auditor’s review of the GTH Authority’s role in the Costco negotiations and will implement the recommendation to formalize collaboration methods.

“The audit confirmed that the Authority acted within its legislative mandate and complied with all applicable laws. The Auditor’s report also recognized that the GTHA made multiple attempts to collaborate with the City of Regina during these discussions,” the government statement read.

• Provincial auditor says better communication needed between GTH, City of Regina

According to the government, the GTH Authority will implement a “Stakeholder Collaboration Policy” that will formalize processes for engagement on major developments.

“The Government of Saskatchewan and the GTH will continue to work with all partners including the City of Regina to ensure that all of us continue to bring economic growth to our region and to the province,” the statement concluded.

Regina Mayor Chad Bachynski said at the end of the day, the City of Regina is still going to work together with the GTA.

“They’re in proximity to Regina. You know what’s good for the GTA in general as an industrial park is good for Regina,” he said.