Catoosa County will spend an additional $49,000 this year in interest payments on the $4.9 million it borrowed to develop the site for the new Costco.
The interest rate charged by Northwest Georgia Bank will increase to a minimum of 3.25 percent — up almost 1 percent from the previous 2.275 percent and bringing the county’s annual interest payment to $159,000.
But county officials are pleased with the Costco project because the store, located at Interstate 75 and Cloud Springs Road in Fort Oglethorpe, reportedly had $75 million in annual sales since opening more than a year ago. That translates into $2.25 million in annual sales tax revenue split among Catoosa County, its cities and the school district, according to Catoosa Chief Financial Officer Carl Henson.
“It was a good project,” Henson said. “Sometimes you have to have an incentive package to get these businesses. This was a good one.”
The county’s interest payments went up because the one-year temporary financing it arranged to pay for the site work expired in January and had to be renewed for a year.
