Carson City needs signatures before it can close Costco escrow

The final agreement that would clinch a deal between Carson City and Costco was postponed again Wednesday.

Escrow closing for the Costco deal was supposed to be final Wednesday but was postponed until next week. Escrow on about 16 acres of city-owned property has been delayed almost weekly since April.

City Manager John Berkich said there are still documents that need a signature from Gene Lepire, owner of the neighboring Comstock Country RV Resort.

In an agreement between the city and the Lepires, property lines were redrawn. Berkich said Lepire is out of town, so the signatures needed to settle the issue are unobtainable.

"It certainly is an issue that precludes a closing," Berkich said.

He said he wasn't aware of any other issues besides Lepire's signature that could hold escrow on the property.

"If there are other issues that aren't completed, they certainly should be by next week," he said. "We're not concerned. We're absolutely confident it will close. It's a complex transaction, and we know once we work through all the details it should close next week.

"The more important thing is that the project continues at a timely rate."

Contractors for Costco are grading and doing preliminary construction work on the site under an agreement with the city which allowed the company early entry to the property.

The city has sped through public meetings since December, bending over backwards to bring Costco to the capital. City supervisors added almost 18 acres of land to the city's redevelopment district, a move which allowed the city to deal with one entity rather than go through a public bid process for the land.

Costco is purchasing slightly more than 16 acres of city property for $3.6 million.

Plans call for the construction of a 148,385 square-foot warehouse with about 720 parking spaces and a six-pump gas station on Clear Creek Road just north of Fuji Park. The intersection of Clear Creek Road and Highway 395 will also be expanded and will include a stop light.