By JARED KATZ
katz@du2.byu.edu
Construction of a new Costco store is set to begin at University Mall in Orem.
Nina Jensen of the Committee for Economic Development in Orem said groundbreaking will be in June. She said the exact date has not been specified. The store will be built in an empty field adjacent to Mervyn's Department Store. Jensen said the store will be attached to the mall.
Jenson said the company specializes in bulk items and volume discounts.
According to the company's web page at www.costco.com, Costco is a warehouse chain that requires a membership. Among other things the store sells household items, electronics and clothing.
The Web site listed two other Utah locations. One is in Salt Lake city and the other is in Midvale. Besides selling items at discount prices, the company also offers travel benefits and automobile sales to its members, the Web site said.
Lynn Woodbury, vice president of development for the Woodbury Corporation -- the development company that owns University Mall -- said the Costco Wholesale Corporation will handle the construction. He said he did not know if the company has chosen a contractor.
Woodbury said the store should open next November. The building will have an area of 155,000 square feet, he said.
Woodbury said Costco officials looked at several different locations in Utah County before deciding on building at University Mall.
'We got them to come here through lots of hard work,' Woodbury said. 'We showed them the dynamics of the Orem marketplace--the central location and traffic. They wanted to be in a central location. The other malls are in a peripheral position and it's easier to get here.'
Rob Callas, manager of University Mall, said the mall negotiated with the Costco Corporation for about one year.
He said the company planned on coming during most of the negotiations, but made their final decision about one month ago.
Officials at the corporate headquarters in Issaquah, Washington said they could not give specific information on this particular store.
The store will be in competition with Sam's Club in south Provo. Store managers at Sam's club said they could not comment on whether or not the new Costco store will adversely affect their business.