Rock Hill, South Carolina, October 24, 2025
News Summary
Costco is considering a $240 million distribution center in Rock Hill, South Carolina, which could create 165 jobs at an average wage of $26.66 per hour. The project relies on York County’s approval for $30 million in infrastructure tax credits. With an initial size of 541,000 square feet, the facility might expand to 898,000 square feet to serve around 20 Costco locations by mid-2027. The development marks a significant investment in the local economy and the first infrastructure tax incentives for warehouses in over a decade.
Rock Hill, South Carolina is set to potentially welcome a $240 million distribution center planned by Costco, which could create 165 jobs in the area with an average hourly wage of $26.66. However, the project is contingent upon York County’s approval of $30 million in infrastructure tax credits necessary for the development to move forward.
The York County Council has already passed the first of three votes needed for the incentive deal, highlighting the urgency and significance of this agreement. According to reports, Councilman Watts Huckabee referenced a Charlotte Business Journal article that identified Costco as the company put forward for this major project.
York County has not established infrastructure tax incentives specifically for warehouses and distribution centers in over a decade, marking this initiative as a significant step in economic development for the region. The distribution center will be constructed on 173 acres, starting with an initial building size of 541,000 square feet. There are plans for a future phase that could potentially expand the facility to 898,000 square feet, indicating a long-term commitment to the local economy.
Expected to be operational by mid-2027, this distribution center is projected to serve about 20 Costco locations across the Carolinas and parts of Georgia. In addition to the costs outlined for the distribution center itself, off-site infrastructure improvements—such as enhancements to roads and utilities—are estimated to cost around $44 million.
The proposed tax credit agreement would allow Costco to recoup $30 million in costs related to the infrastructure through reimbursed tax revenue. This financial strategy is not uncommon, as incentive deals typically involve tax credits and reductions aimed at attracting businesses to the region, especially to remain competitive with neighboring states like North Carolina.
York County, along with Rock Hill and the Rock Hill School District, relies on tax revenue for its operations. However, it is ultimately the York County Council that finalizes incentive agreements. Councilman William “Bump” Roddey has engaged with school board members to discuss the implications of the potential agreement, which includes approximately $18.6 million in credits from the school district’s share of tax revenue. The school district is projected to lose about $951,000 annually as a result of these tax incentives.
Some members of the council have expressed the need for transparency and public input concerning the project, given its size and potential ramifications. Previous projects, such as the Carolina Panthers headquarters, have undergone scrutiny related to negotiation processes. With two additional votes pending, the finalization of the distribution center agreement could occur as soon as November 17.
Key Features of the Costco Distribution Center Project
| Feature | Details |
|---|---|
| Investment | $240 million |
| Jobs Created | 165 |
| Average Hourly Wage | $26.66 |
| Tax Credits | $30 million |
| Initial Building Size | 541,000 square feet |
| Future Expansion Size | 898,000 square feet |
| Operational by | Mid-2027 |
| School District Tax Revenue Share Loss | $951,000 annually |
FAQ
What is the planned investment for the Costco distribution center in Rock Hill?
How many jobs will the project create?
What is the expected average hourly wage for the jobs created?
What are the necessary votes for the tax credit agreement?
When is the expected operational date for the distribution center?
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Connect CRE
- Charlotte Observer
- Greenville Online
- Wikipedia: Costco
- Encyclopedia Britannica: Costco Wholesale Corporation
Author: STAFF HERE ROCK HILL
The ROCK HILL STAFF WRITER represents the experienced team at HERERockHill.com, your go-to source for actionable local news and information in Rock Hill, York County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Come-See-Me Festival, Rock Hill Arts Festival, and motorsport events at the Rock Hill Velodrome. Our coverage extends to key organizations like the Rock Hill Chamber of Commerce and the Culture & Heritage Museums, plus leading businesses in manufacturing and technology that power the local economy such as 3D Systems and Comporium. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
