ASHEVILLE, NC — As Asheville continues its long recovery from the catastrophic impacts of Hurricane Helene, Mayor Esther Manheimer has formally requested that Costco reconsider its decision to withdraw its application for a proposed retail store. In a letter sent Thursday, March 12, 2026, Manheimer emphasized the critical economic role the project could play for the Greater Asheville area, where the storm caused more than $5 billion in regional damage and triggered a 15 percent unemployment spike, according to initial state estimates.
The proposed 150,000-square-foot Costco store, planned for a site within the Enka Commerce Park in Candler, had been moving through the rezoning process in 2025 before the company officially withdrew its application in February 2026. Costco cited significant regulatory hurdles and escalating site challenges—specifically multi-million dollar infrastructure requirements imposed by the NCDOT for improvements to Smokey Park Highway—as the primary reasons for the withdrawal.
Economic Impact and Recovery Roadblocks
The loss of the project is a significant blow to a region grappling with a 12–14 percent commercial vacancy rate and the displacement of thousands of workers. The project was expected to:
Create 200 to 300 jobs with average wages starting at $20 per hour.
Generate an estimated $1.5 million annually in local sales tax revenue for Buncombe County, according to organizers.
Provide approximately $500,000 in new property tax revenue, according to projections.
The setback comes at a tense moment for local infrastructure. U.S. Housing and Urban Development (HUD) Secretary Scott Turner recently visited the region to evaluate long-term recovery efforts but has notably clashed with city officials. Turner recently withheld $225 million in disaster recovery funds, citing a "DEI is dead at HUD" policy after rejecting Asheville’s recovery plan for including race-based prioritization for small business grants.
As Buncombe County begins overdue infrastructure work, the city is hoping a compromise on road improvements might lure the retail giant back to the table to support the households still affected by the storm’s aftermath.