Costco planning distribution center in area city

OWATONNA, Minn. (KEYC) - Owatonna is close to finalizing and breaking ground at a site for a 354,000 square foot distribution center.

City officials say the new business would greatly help Owatonna's manufacturing sector and provide a boost to the local economy, adding about 200 jobs.

The company has been researching an ideal location for the building.

“To get a project of this size, a new business to come to town that did not exist in Owatonna and to build a building of this size, 354,000 square feet, is really rare," said Owatonna Community Development Director Troy Klecker. "Really it helps us diversify our industrial base and will help us grow into the future.”

The process is similar to how the Walmart Distribution Center was landed in Mankato.

They were looking for a good location, highway or interstate access preferably, that was a nice regional hub for many of its stores.

“Having a major employer come into the marketplace is definitely going to have economic impact across the region. We saw wages increase since the opening of the distribution center. That impacted a lot of businesses here locally, really challenging them in some cases to see what they could do as far as retention,” said John Considine from Regional Business Intelligence.

If all goes according to plan, groundbreaking for the distribution center is slated to begin in September.

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