A 164,000-square-foot Costco store could come to Chaska in the spring. An application is expected to be submitted in the fall.

A Costco may come to Chaska next spring, located east of Lake Jonathan, off of Highway 41, according to developer Robert Atkinson with Atkinson Investments.

"It's all going forward," he said, noting construction could begin as soon as spring 2021 at the site.

The 164,000-square-foot retail building would sit on 17 acres, Atkinson said. It would include a parking lot and gas station.

Kevin Ringwald, Chaska's planning and development director, said Oak Ridge Hotel & Conference Center has made an application for redevelopment, which includes the Costco. Nothing is official yet.

"As we have just received the application, we are still in the process of reviewing the application and understanding the potential impacts of the project as proposed," Ringwald said. 

In the same area would be senior living homes, a hotel, and 56 acres of future residential property on the west side of the lake.

Atkinson said a proposed traffic light and roundabout should ease any traffic concerns. The city, the state's transportation department, and the county are reviewing a traffic study for the project, Atkinson said.

"It makes it easy in-and-out access over there," he said.

Muriel Cooper, with Costco's communications department, said the company could not comment until the project timeline is closer.

Kevin Wright, Chaska communications manager, said the official application to the Chaska Planning Commission and City Council should come "later this fall" and details would follow.


The Costco building would be located close to the Highway 41 and Peavey Road intersection.

Parking lots would account for most of the block, with the building in the southern portion of the lot.

The senior housing would be to the southwest of Costco, while the hotel would sit just to the east. Directly northwest of Costco would be more retail or housing.

Future homes could sit even farther northwest across the lake, and future multi-family units would be to the southwest across the lake.