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The Murfreesboro City Council has approved a development agreement for Costco and received information from a consultant on development fees for possible future implementation.

Carson Bise, president of TischlerBise of Bethesda, Md., gave a presentation about impact fees at the council’s Nov. 12 meeting.

Such fees are a one-time payment by a developer to offset a project’s need for capital resources like police, schools or sewer, Bise said. Impact fees are not considered a tax; they cover the cost of a specific service for a particular need. They must be shown to benefit a certain area of the city.

Bise said Murfreesboro’s population is projected to increase by just more than 48,000 over the next 10 years. An estimated 6,649 jobs will be added during that time, as well as about 4 million square feet of non-residential square feet.

The council talked about discussing the matter further after the first of the year, perhaps at the January workshop meeting. Stakeholder meetings may be held before then.

In other business, the council approved a number of agreements with Costco Wholesale for the company’s planned store on Warrior Drive.

The Rutherford County Industrial Development Board previously approved the project for a PILOT economic development incentive, which graduates the city property tax due on the 20 acres for a five-year period, council documents say. To enact the PILOT program, the city agreed to fund the IDB with $2.4 million to purchase the property. The IDB will hold the property for the PILOT period after which the property will be transferred to Costco.

The city expects to recoup that amount in less than two years from sales tax revenue, city documents say. City Manager Craig Tindall told the council the payback could come between two-three years.

Road improvements are part of the agreements, according to documents. The developer will complete the improvements to Warrior Drive and Beasie Road. Within one year after Costco’s opening, the city will complete improvements to the intersection of Warrior Drive and New Salem Highway. The city will work with the Tennessee Department of Transportation to finish improving the eastbound Interstate 24 off-ramp.

Within three years of the store’s opening, the city will build a road from River Rock Boulevard to Beasie Road with a bridge over the West Fork of the Stones River. This will be Phase One of a River Rock-New Salem Overpass. This is already in the city’s 2040 Major Transportation Plan.

Costco came back before the council on Thursday, Nov. 19 for a second reading of a rezoning request for a Planned Signage Overlay District (PSO) to enhance its signs. The council also held a public hearing.

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