Tucson Mayor and City Council Meetings, February 3, 2026
Approves Acquire right-of-way for Prop 101 Fifth Street, Alvernon to Wilmot Pavement Rehabilitation Project, 7-0
What happened
The Tucson Mayor and Council directed staff to formalize a site-specific sales-tax development agreement with Costco Wholesale for a 158,000-square-foot warehouse with fuel facility on 22 acres at Houghton and Old Vail, with the incentive capped at $7.3 million over five years (a…
- Jurisdiction
- Tucson, AZ
- Governing body
- Final authority
- Date
- February 3, 2026
- Decisions
- 8 zoning decisions
- Outcome
- Approved, 7-0
Projects in this meeting (2)
Each is its own project; some span multiple hearingsCostco Wholesale
ApprovedHousing and Homelessness Emergency Declaration
Approved 7-0Free sample: decision 1 of 8
Costco Wholesale development agreement / sales tax incentive at Houghton and Old Vail
Council directed staff to formalize a development agreement with Costco Wholesale for a 158,000 sq ft warehouse with fuel facility on 22 acres at Houghton and Old Vale. Incentive is reimbursement of city sales tax capped at 2% rate to offset eligible on/off-site public improvements, impact fees, permit fees, and workforce training. Projected value of incentive is $7.3 million over five years (avg $1.46 million/year). Project projected to create 320 full and part-time jobs. Next steps: notice of intent then development agreement for final consideration. Passed by voice vote.
- reimbursement capped at 2% city sales tax rate
- reimbursement only for eligible on/off-site public improvements, impact fees, permit fees, workforce training
- city reimburses no more than actually paid, verified after project complete
The other decisions are listed below by title. The full write-up, verbatim conditions, and the audio at each vote are in Pro.
Meeting Summary
The Tucson Mayor and Council directed staff to formalize a site-specific sales-tax development agreement with Costco Wholesale for a 158,000-square-foot warehouse with fuel facility on 22 acres at Houghton and Old Vail, with the incentive capped at $7.3 million over five years (a…
Key Decisions (8)
Costco Wholesale development agreement / sales tax incentive at Houghton and Old Vail
FY2026 budget update and FY2027 budget discussion
Executive session and administrative directive on non-disclosure agreements
Revision to City Ordinance 21.4 allowing free distribution of prepackaged food in parks
Housing and Homelessness Emergency Declaration
Acquire right-of-way for Prop 101 Fifth Street, Alvernon to Wilmot Pavement Rehabilitation Project
Appointment of City Clerk (Ordinance 12228)
Liquor license applications
Development Activity (4)
Costco Wholesale warehouse at Houghton and Old Vail
Commercial
Tucson Inn and Marketplace Hotel retail and event space project
Mixed-Use
El Ritual spa and wellness center
Commercial
Star Village safe sleeping site
Residential
Market Signals (6)
Commercial Demand
Costco reports strong regional retail demand at Houghton and Old…
Sentiment
City general fund revenues trending 1.5% below prior year amid…
Housing Demand
Council declared a housing and homelessness emergency to expedite shelter,…
Meeting Intelligence Preview
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