Costco intends to develop a 150,000-square-foot retail store within five years at the northwest corner of I-35 and Lakeway Road in Georgetown, Georgetown Economic Development Director Michaela Dollar said.

City Council approved an economic sales tax incentive agreement with Costco at its Dec. 10 meeting. According to that agreement, upon completion of the project the city shall reimburse 50% of the sales taxes paid to the city’s general fund by Costco back to Costco annually.

The reimbursement will be paid from the city’s general fund with a maximum of $2 million or 10 annual reimbursements, whichever occurs first, city documents said.

The agreement requires Costco to make a minimum capital investment of $20 million, including facility and public improvements, adhere to city codes and standards, and see completion of construction within five years.

Costco is expected to be one of the largest sales tax producers for the city with a 10-year net benefit of about $11 million, according to Dollar.

She said along with the retail store, the Costco development will include two public roads and the creation of multiple out-lots that could serve as potential restaurant pad sites.

The item passed 5-1 with District 3 Council Member Mike Triggs voting against it.