REGINA — Saskatchewan’s auditor says a $6.8-million subsidy the City of Regina is paying Costco could have been avoided had a provincial Crown corporation properly communicated with the giant retail company about its new location.

Tara Clemett says the Global Transportation Hub, the Crown agency operating an industrial park in Regina, didn’t collaborate with the city about negotiating with Costco.

She says the Crown should have had a procedure in place to talk with the city when Costco considered building in the industrial park, which operates its own property tax base.

Earlier this year, city council approved giving Costco the subsidy to ensure it builds elsewhere in the city.

Council heard that during the negotiations, Costco had nearly finalized its agreement with the city but backed out to look at cheaper land in the industrial park.

The city is providing the money to Costco in increments, with all of it to be paid once the store opens.

Clemett made the comment Tuesday, following the release of her report that included the issue.

“There is the potential the additional cost may have been avoided if some of this collaboration and those procedures had been better defined,” she told a news conference.

This report by The Canadian Press was first published Dec. 9, 2025.

Jeremy Simes, The Canadian Press