ROCHESTER, NY-City, county and state have reached an agreement that clears the way for construction of the area’s first Costco store. The 150,000-square-foot warehouse club will be the anchor tenant for the Costello Group‘s $200-million CityGate, a mixed-use project that will include apartment and hotel components along with office and additional retail.

In order to make the CityGate development possible, the New York State Office of Children and Family Services has granted authority for Monroe County to move its Children’s Detention Center facility from the future Costco site to the state-owned Industry Residential Center campus in Rush, just outside the City of Rochester. A county budget impasse had threatened to stall the CDC relocation project, but on Tuesday, Monroe County Executive Maggie Brooks and Rochester Mayor Lovely Warren announced a consensus agreement.

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