In Depth · November 12, 2026

Oro Valley Confirms Ongoing Contact With Costco

The town first reached out about four and a half years ago. The company that owns the corner at Oracle and Tangerine roads says it's open to a large-format retailer.

The Town of Oro Valley first reached out to Costco about four and a half years ago and is still in contact with the company, the town told Tucson Daily Brief on Nov. 5.

Asked whether the town has been in contact with Costco about a store in Oro Valley, Public Information Officer Phillip Cantrell answered by email: "Yes, as part of developing its retail lead pipeline development." Asked who made the first move and when, Cantrell wrote: "The Town initially reached out approximately 4.5 years ago and reengaged two years ago and contact is ongoing."

That doesn't mean a Costco is coming to Oro Valley. Asked whether Costco has expressed interest in a location there, the town said it "doesn't have anything definitive to report yet." Costco has not announced a store in Oro Valley.

What the town told us

The town answered two rounds of written questions. It also said:

• The corner is still a candidate. The northwest corner of Oracle and Tangerine roads, the site the town called Tang/Oracle in February, remains one of its candidate sites for large-format retail. "Town staff are working directly with Bourn to identify potential Large Box retail users," the town said.
• One lead is a large store. Asked about the four qualified retail leads the town described in February, Paul Melcher, the town's community and economic development director, answered through Cantrell: "One is a Large Box Retail use, and I've provided site identification assistance for the so-called corner site and an additional site on Oracle Road." The town said that other site is south of Linda Vista Boulevard. Asked whether the lead is Costco, Cantrell wrote: "I can't say at this time."
• No requests for the corner. Asked whether a developer or retailer has sought a pre-application meeting, a General Plan amendment or a rezoning for the corner, the town said: "No, not yet."
• Rezoning by the town isn't scheduled. In February, staff proposed that the town start land-use changes itself on suitable parcels, a step it calls pre-entitlements. "This concept is not yet included on a future agenda," the town said.

Why that corner

The town council took up the subject in public on Feb. 18, in an item titled "actions that could possibly attract a Costco or similar retailer." It was requested by Melanie Barrett, then vice mayor and now mayor, and then-Councilmember Josh Nicolson. The council discussed it and took no vote.

"It seems to me that we're generally supportive of something like a Costco in the town of Oro Valley," Barrett said at the meeting. Barrett also cautioned against "short-circuiting the public input process."

Staff's presentation listed the Costco on West Costco Drive in Marana among its top 10 "sources of leakage," the places where town residents' retail spending goes. It said stores like Costco need at least 18 to 20 acres, and 20 to 40 acres with fuel stations, outlots and room to expand.

Staff listed the corner, labeled Tang/Oracle, as five parcels of 7 to 30 acres. The largest, Parcel A at 30 acres, "needs GPA and RZ, underground electric relocation," the presentation said. GPA and RZ mean a General Plan amendment and a rezoning, and both go through public hearings.

Much of the corner changed hands this summer. County records show BP Innovation Partners LLC bought about 335 acres in 30 parcels for $21.25 million, in a deed recorded July 22. Arizona Corporation Commission records trace that company to Bourn Properties LLC. The land overlaps the town's Tang/Oracle site.

When the sale was announced in August, Bourn Companies described plans for a "world-class mixed-use business park" at Innovation Park, with planning in its early stages. The announcement didn't mention retail.

Why the town doesn't name retailers

Town officials said in February that they keep retail recruiting confidential. Melcher told the council that to protect developers and leads, the presentation wouldn't cover "any specific projects or properties."

Melcher said the town's goal was to keep about three qualified leads going, "and right now, we have four." Melcher described a qualified lead as one with "a high likelihood that they would locate here within three years."

"It is a standard practice to not publicly announce or speculate about specific retailers," then-Mayor Joseph C. Winfield said at the same meeting. Winfield said early discussion can affect negotiations, land values and expectations.

What Costco and Bourn say

Costco declined to comment. The company said its policy is not to comment on future warehouses until it's ready to share details about a new location, "usually 2-3 months in advance."

Bourn Companies, which owns the corner, wouldn't discuss tenants either. "We're not in a position to comment on any specific businesses or prospective tenants that we're in discussions with," McKay Stevens, a development principal at Bourn, said in a Nov. 10 phone interview.

Stevens said Bourn is in regular communication with the town about what it would like to see, and is interested in the opportunities the town's economic development staff come up with.

On large stores, Stevens was more direct. "We're certainly open to a large format retailer," he said. "We think the property along Oracle Road is well positioned for commercial development." Large-format retail "is certainly something we would consider," he said, though he couldn't commit to any specific users or types.

Bourn is exploring a rezoning of parts of the property, which would also require a General Plan amendment, Stevens said. The company has had preliminary discussions with the town and is still working out what to ask for. He called it about a 12-month process that could start toward the end of this year. "There certainly isn't gonna be resolution in '26," Stevens said. "It's likely something that bleeds into 2028."

Stevens said Bourn didn't buy the land with a set plan in mind. "We didn't acquire the property with a predetermined development plan," he said. Asked whether the company had considered a data center there before the town banned standalone data centers in October, he said: "Short answer is no."

Costco elsewhere in Pima County

Oro Valley isn't the only place Costco has come up. KGUN reported in April that the city of Tucson was offering a $4 million incentive tied to a planned store at 9748 E. Old Vail Road on the southeast side. Pima County signed a nonbinding letter of intent in September to sell Costco 56 acres near Sunset Road and Interstate 10 for $15 million. AZPM reported that sale is likely several months away, pending tribal consultations and feasibility reports from Costco.

Reported and written by Nicholas De Leon, with research and drafting assistance from Claude Opus 5.5; published at 8:56 AM MST on November 12, 2026. Read more about how this is made.