As Costco rumors swirl, Botetourt OKs agreement

Roanokers have long yearned for a Costco with the kind of monomaniacal obsession Captain Ahab harbors for a singular white whale.

For now, the closest Costco Wholesale in Virginia to Roanoke is Harrisonburg, more than 100 miles away.

On June 16, 2025, a post in a Roanoke Facebook group speculated that Costco planned to build a store in the Star City.

“I just let out a scream!!!!” one commenter wrote.

“OMG. That’s what I was hoping for for a long time ago. I am so excited,” wrote another.

The post also attracted skeptics who labeled it fake news. “I’ll believe it when I see it!” another commenter wrote.

The rumors are getting easier to swallow these days.

The Botetourt County Board of Supervisors Tuesday unanimously approved a performance-based economic development agreement to “support a potential national destination retailer” at the Gateway Crossing site, which sits near Daleville and Interstate 81‘s Exit 150.

The agreement was a walk-on item, not originally on the board’s meeting agenda. However, Botetourt County Administrator Gary Larrowe said Tuesday that the agreement had “been worked on for some time.”

“The county has sought to redevelop the Gateway Crossing area for at least 15 years, and this project would potentially provide a catalyst toward that redevelopment effort,” Larrowe said.

Tuesday’s agreement allows the county and its Economic Development Authority to enable an entity known as Gateway Circle Properties, which formed in 2023, according to the Virginia State Corporation Commission, to pursue development “that would create jobs, increase the tax base and provide desirable amenities to the county’s citizens,” a news release the county distributed Wednesday stated.

The retailer’s name was not disclosed at the developer’s request.

“It is anticipated that this would transform the Interstate 81 interchange at [Exit] 150 into a regional economic hub that would likely attract additional business and investment for decades into the future,” Larrowe said.

Botetourt County defines a destination retailer as a retail business sourcing 80% or more of its sales from outside of the county and one that has no other locations within 90 miles. Destination retailers also bring in $100 million or more in annual sales, according to the news release.

“I wish to make you keenly aware that if you choose to approve the performance agreement today, this does not mean that anything will happen with the project,” Larrowe said. “The approval today is limited to the point to allow the developer to seek appropriate financing for the project.”

The Gateway Crossing site, according to the county, requires extensive site preparation and infrastructure improvements, including grading, road access, stormwater management and utility upgrades.

“This agreement is the tool required to potentially land a major national destination retailer that would otherwise not locate in our community due to the high cost of the preparation, overcoming site challenges,” Larrowe said.

The agreement approved Tuesday allows for synthetic tax increment financing where tax revenue, such as sales, meals and personal property taxes, generated by a development is used to reimburse eligible project costs. That method allows the county to avoid borrowing money, according to Botetourt County Attorney Mike Lockaby. The reimbursement cap will be $69 million.

Once eligible costs are repaid, or after 20 years, the county would keep all tax revenue generated by the project.

However, Neal Keesee, a Roanoke attorney who represents Gateway Circle Properties, said Tuesday that number may need to go higher.

“We are unsure if $69 million is appropriate? We don’t think it is,” he said. “So we would ask the Board to consider $80 million.”

The board stuck with the original cap on Tuesday. However, Brent Watts, a spokesperson for the county, explained in an email Friday that “once the developer has secured financing, the board will consider any additional costs.”

David Sane, a resident of the Amsterdam district, pushed back Tuesday on the idea that a performance agreement should be a walk-on item at a board of supervisors meeting.

“This is major issue for the county, and I think more notification should have been given to the broader community,” he said. “Now there’s a rumor that this is a Costco, and a lot of people will be likely in favor of this. Nevertheless, this is going to look to the general population like Google 2.0 — that that that they were left out of the loop.”

County officials announced June 24, 2025, that Google had purchased land to build a data center at the Botetourt Center at Greenfield. Because the land is already zoned for industrial use and data centers, Google will not have to go through a county zoning process.

On Friday, a spokesperson for Costco declined to comment about whether a $1.50 hot dog combo will one day be able to be purchased in Botetourt County, stating it is “company policy to not comment regarding future Costco warehouses or construction until we are ready to share details about the new location.”

In 2020, North Carolina-based Pavilion Development pulled the plug on plans to build a Costco and a Top Golf on a site in Evans Spring in Roanoke after facing resistance from city officials.

Editor’s note: This story has been updated.