It is increasingly likely that Costco — the membership-only wholesale retailer of groceries, appliances, and pretty much everything else — will open its second Chicago store next year at the south end of the Illinois Medical District.

A city council committee recommended last week that Costco should be considered for a tax break to build a store at 1440 S. Ashland Ave.

Costco means another mega retailer for the 2nd Ward, represented by Ald. Robert Fioretti, joining Target, Whole Foods and a new Trader Joe’s.

But while these national chains were built in the busy commercial area south of Columbia College, Costco would inhabit a 16-acre blighted property farther west.

Kirkland, Washington-based Costco Wholesale Corp has worked since 2007 with the Illinois Medical District and Fioretti to build a store of approximately 50,000 square feet.

Fioretti has touted Costco as a jobs creator, bringing 600 construction jobs as well as 125 full-time and part-time positions in retail and management positions.

The alderman’s office said that construction of the new store is slated to start in the spring of 2012 and finish June 2012.

Mark Jamil, the medical district’s lawyer, said Costco can fill a glaring vacancy in the eight-block stretch along Ashland Avenue, the largest concentration of medical facilities in the world.

“We’ve been enthusiastic about the project from the start,” Jamil said. “It will benefit the Medical District neighborhood and the people that work here.”

A new Costco has cleared all regulatory hurdles with the city, according to Susan Massel, spokesman for the Chicago Department of Community Development.

The only lingering issue, then, is if Costco gets a break in their property taxes.

The City Council Committee on Economic, Capital and Technology Development unanimously passed an ordinance Jan. 5 that recommended Costco be considered for a tax break. The ordinance has the support of Mayor Richard Daley and the full City Council is expected to approve it Jan. 13.

What the ordinance does is make the Cook County Assessor’s Office, led by Joseph Berrios, examine if Costco should get a reduced tax assessment because the new store will revive a blighted property.

The property tax break — which the assessor’s office said is “intended to encourage areas in need of commercial development” — would save Costco an estimated $2.5 million over twelve years.

Besides the possible property tax break, Costco would not receive additional assistance from the city or county government.

Store construction is expected to cost $48.5 million and will be managed by Oak Brook-based Intrepid Properties.

Costco is the third largest retailer in the U.S. and the ninth biggest in the world. Its only current Chicago location is at Clybourn and Damen Avenues in Lincoln Park. Even in the recession, its corporate profits have gone up while revenue for traditional grocers like Jewel-Osco have gone down.

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By Lynn from united center
Posted: 05/10/2012 8:41 AM

Claudeah - I love the idea of a cart in!! How do we organize and get the word out!??!

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By claudeah from united center
Posted: 05/09/2012 6:10 PM

Costco is scheduled to open June 28th. Also, an interesting note--you do not need a membership to get prescription drugs and Costco is by far the cheapest for those. Now I just have to figure out how to transfer my prescriptions.

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By claudeah from united center
Posted: 05/09/2012 6:08 PM

Amen to that Mike! South Loop and West Loop have lovely grocery stores and more are coming in, while we wait and wait. Once Mariano's opens up we should stage a cart in. Everyone goes grocery shopping at the same time and tries to get on the Madison bus with full carts. Now that would be an interesting protest.

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By Mike from East Garfield Park
Posted: 05/09/2012 4:29 PM

good news, but any update on the Pete's Market on Western and Madison? since the 'ceremonial' groundbreaking in February, i havent seen anything. i am ready to grocery shop in my neighborhood.

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By Mike from East Garfield Park
Posted: 05/09/2012 4:29 PM

good news, but any update on the Pete\\\'s Market on Western and Madison? since the \\\'ceremonial\\\' groundbreaking in February, i havent seen anything. i am ready to grocery shop in my neighborhood.

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By Mike from East Garfield Park
Posted: 05/09/2012 4:28 PM

good news, but any update on the Pete's Market on Western and Madison? since the 'ceremonial' groundbreaking in February, i havent seen anything. i am ready to grocery shop in my neighborhood.

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By Another SL Parent from South Loop
Posted: 05/09/2012 4:05 PM

"I'm just excited I won't have to drive to Lincoln Park and that madhouse anymore." Amen to that

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By claudeah from united center
Posted: 05/09/2012 2:46 PM

It will be opening June 20something (I forgot the exact date). There is a sign out front on employment opportunities. But if all else fails, go to the Costco website. http://shop.costco.com/About/Costco-Employment And no I don't work for Costco, I'm just excited I won't have to drive to Lincoln Park and that madhouse anymore. Yeah!

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By Nick from Pilsen
Posted: 05/08/2012 4:53 PM

Can I get a hand with figuring out where to apply? Thank you.

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By schmogan from uic
Posted: 09/20/2011 10:07 AM

is the costco still moving in area? what's the status?

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By WestLooper from West Loop
Posted: 03/12/2011 2:38 AM

Great news. No more trudging up north.

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By Charles from West Loop
Posted: 03/08/2011 1:09 PM

Check out this suntimes article. http://www.suntimes.com/4187804-417/ald.-beale-may-stall-west-side-costco-project. This site was originally for the 12th District police station. Now with it being a Costco, the medical district not the city is going to get the rent from Costco. Bad politics all around. I agree with Ald Beale. The medical district should not be getting the rent. How come Fioretti didn't disclose this?

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By Gabriel S. from Pilsen/Brighton Park
Posted: 03/04/2011 8:51 PM

Not of anything, but I think Costco will bring more color to the neighborhood and create more jobs. I know many employees who attend UIC and others who live in Pilsen, Little Village and surrounding areas so i know many will benefit from opening a store in the area. I can honestly and proudly say that the company does go above and beyond for members and employees unlike other retailers.

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By etfmaven from Fulton Market District
Posted: 01/20/2011 2:30 PM

Congrats to Costco. I'm looking forward to it. I've bicycled through that area a lot, mostly because it seems so completely empty. I don't know what used to be there but it's quickly reverting to prairie over there. So far all the big box entries seem like a good idea. I have to drive for most shopping mostly because transit is non-existant. Now i'll be able to bike for loads of my shopping.

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By bill from cross ashland
Posted: 01/19/2011 10:42 PM

what happened to all the people that used to live in that neighborhood? do they get to live in the costco? or are they collecting the tax break money?

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By Goose Me from Near West Side
Posted: 01/14/2011 11:04 PM

A Costco should not get any tax breaks. It will make money from the start just like the store in Lincoln Park on Clybourn. Somebody got paid off.