Olson said he believed Costco had a backup plan with another site outside Duluth and asked if difficulties with the city or unions were really responsible for the company`s change of course. “The entire New Life Church community is disappointed that the deal hasn`t passed,” said Brad Jenson, a church member who had discussed plans to move or build elsewhere. Whoever is to blame, Costco seems to have moved on. Speculation has already begun that the chain could start from construction sites near places outside Duluth. Despite the termination of the sales contract, Noah Schuchman, Duluth`s chief administrative officer, said the city has never stopped working with Costco. According to the Duluth News-Tribune, the company terminated a sales contract for the purchase of land at the corner of West Arrowhead and Haines Road, where they wanted to build the 161,000-square-metre store. Craig Olson, chair of the Duluth Building and Construction Trades Council, said Costco`s recent tender reflects a much more reasonable timeline for the project than previously envisioned, particularly given some of the challenges at the proposed site, including wetland containment. He said the compressed nature of the initial project schedule would likely have driven up costs. The retail chain has re-signed its sales contract “primarily due to exceptionally high project offerings that have far surpassed others we`ve seen recently in the Midwest region,” said Mike Stratis, Costco`s site picker.
Dave Holappa, of Holappa Commercial Real Estate, the company that orchestrated the potential land deal, said Costco hasn`t spoken to him since the sale contract was terminated in March. But he said the company`s recent decision to solicit bids was encouraging news. A request for an opinion on the status of the Duluth project went unanswered Wednesday by Costco, but the company`s website said that “Costco cannot comment on new sites unless they are soon open,” and it defined “soon” as being within three months. The city appears to have played a key role in the development of the so-called “project employment contract,” which defines the working conditions and conditions of union artisans in the construction of the huge camp. Somewhere on the line, Dave Holappa, of Holappa Commercial Real Estate, told the Duluth News Tribune that Costco had had enough and was canceling the huge project. Asked if the company`s decision seemed final, Holappa told the News Tribune: “I think you never know, and we still hope that one day they may reconsider it in the future. But for now, a cancellation agreement is in effect. It`s about as definitive as in real estate. Costco`s site manager told Star Tribune that the deal went south, “primarily due to exceptionally high project offerings, which far surpassed others we`ve seen recently throughout the Midwest.” An obvious sore point was the prospect of having to conclude a project employment contract. Ross said the company`s recent tender “provides tangible evidence that Costco`s decision-makers are still interested in following the Arrowhead Road site.” Dave Holappa, of Holappa Commercial Real Estate, confirmed that the store`s highly anticipated arrival was canceled after Costco terminated a contract to sell the property earlier this week. .
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