Costco and the City of Oconomowoc have now set the brick-and-mortar stage for the wholesale retailer’s entry into a 23.7-acre section of Pabst Farms.
With the signing of a trio of development agreements — detailing road improvements, public utilities and the city’s easement and access rights to private roads tied to the new store — Costco can begin construction once it settles its own private contracts and plans, including closing on the land’s acquisition.
The company revealed its plans for Oconomowoc in April 2025. The new 161,500-square-foot store, just west of Sawyer Road and a stone’s-throw north of Interstate 94, will be built within a neighborhood that already includes a 218,000-square-foot Fleet Farm store, creating a district that city officials hope will attract both shoppers and more businesses.
At least at the Aug. 19 meeting of the Oconomowoc Common Council, no further details were provided about the construction timeline. Some documents referenced earlier signals that Costco plans to begin construction this year and open in 2026. Costco officials did not address officials during the meeting.
Regardless, the move from the planning stage to the construction stage was dependent on those three public agreements, though none of them amounted to anything unusual for a major project, city officials said during that evening’s meeting of the Oconomowoc Plan Commission.
The first agreement, for improvements of Pabst Farms Boulevard between Village Lane and Sawyer Road based on a traffic impact assessment, formalizes a plan in which Pabst Farms Development and Costco will pay for road costs. The agreement includes two new driveways into the property from the road.
Under the other agreements, Costco will also be responsible for sewer and water utility lines within the development area and will make the property accessible to the city through its private roads, which must be maintained to city standards.
First District Alderwoman Karen Spiegelberg said those agreements are key to Costco adhering to responsible development standards.
“I’m sure they are going to be a great neighbor and a great financial benefit to our community, but now that the majority (of the council members) have wanted to push this (development) forward, we want to make sure that it’s done right, and a lot of these aspects are getting into the weeds and details on making sure things are done right,” Spiegelberg said.
The city previously approved an overlay district (which allowed special exemptions from zoning ordinance standards), a certified survey map and other planning elements.
Contact reporter Jim Riccioli at james.riccioli@jrn.com.
This article originally appeared on Milwaukee Journal Sentinel: Development agreements push Costco closer to construction phase in Oconomowoc
Reporting by Jim Riccioli, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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