Costco is buying the land from Arthur Gladstone, a longtime WestPalm Beach property owner, for an estimated $7 million or $100,000per acre ($2.30 per sf). At least two other Fortune 500 companiesare interested in buying 40 acres adjacent to the Costco site whichwill create a new tax revenue base for West Palm Beach. The 45thStreet location is 60 miles north of Downtown Miami.

Costco decided to build its own distribution hub to consolidateseveral rented facilities throughout Palm Beach county. The companywould ship merchandise from the distribution center to 15 statewideretail outlets with a staff of 300.

Costco anticipates opening the first phase of the project at anundetermined date in 2001, depending on when the city commissionand review boards approve the venture over the next three months.The second and final phase would be opened in 2003.