Costco Planning  New 158,000 SF Vail Store at Old Vail & Houghton

TUCSON, AZ (January 12, 2026) — Plans are moving forward for a new Costco Wholesale on Tucson’s Southeast side at 9748 E. Old Vail Road, near Houghton Road, on a 22.35-acre vacant site at Rita Ranch Commerce Center.

City documents describe the project as a “destination retail store”,  a 158,000-square-foot Costco warehouse, and an associated fueling station. A pre-application filing for the site is already on record in the City of Tucson’s Property Research Online (PRO) system, described as “New Costco coming to the Area.”

Publicly circulated construction timelines indicate work could begin in January 2027 and be completed between June and September 2027.

On the public side, the City of Tucson has been evaluating a site-specific sales tax economic development incentive tied to the project. A Mayor & Council memorandum states that the incentive discussion is intended to provide the retailer’s site-selection team with “assurance of local support” through a sales tax reimbursement to offset public improvement costs associated with the development. The City materials describe the incentive as potentially reimbursing construction sales tax for qualifying public infrastructure improvements.

Early review notes indicate that substantial infrastructure and entitlement steps are needed. City engineering review comments state that a Traffic Impact Analysis will be required, along with a Private Improvement Agreement for additional lanes and potential right-of-way dedication for widening. Zoning review comments also note the site is zoned I-2 and that a large retail establishment in this zoning district requires approval through the City’s Mayor and Council Special Exception procedure, along with Design Review Board review.

Job estimates vary by source. The City memorandum anticipates approximately 250 full-time employees upon completion, while other City documents indicate possibly 173 full-time and 147 part-time positions.

Diamond Ventures is the current landowner and developer of Rita Ranch Commerce Center at this site.