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Auburn Theater Supporters Breathe Sigh Of Relief As Costco Pulls Out Of Planned Site

AUBURN (CBS13) — Costco has abruptly scrapped its plans to open a store in Auburn after battles with supporters of an old theater, among others.

Michael Coder has spent the last several months preparing for his theater's grand finale. It sits on the property where Costco planned to build, so the news is a relief to him.

"It's sort of like a breath of fresh air," he said.

Costco had already signed a contract with Placer County for the property just off of Highway 49, but the big-box store unexpectedly sent the city a letter saying it was terminating the agreement and wants it $500,000 back.

CBS13 has learned the Costco would have given the county $900,000 a year and more than 150 jobs.

"It certainly is a significant amount of funds that will now, at least in this point in time, we can't be counting on," said Mary Dietrich.

Costco is not revealing why it canceled the contract, but some, like Auburn Mayor Keith Nesbitt, think it's due to community concerns. The city had filed a lawsuit arguing the store would increase traffic and hurt local businesses.

"We need to sit down at the table and create a project that is best for everyone," he said.

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