TAIPEI (Taiwan News) — Taichung City Government on Thursday confirmed that the city's third Costco is set to open in Xitun District, after the city's urban development bureau on Tuesday approved a land-use change, CNA reported.

According to Taichung City Government, the city has been negotiating with Victor Taichung Machinery Works about turning its old factory site in Xitun District into an industrial-use zone that also allows commercial development. The city also reached out to Costco to push the site as a possible location.

The city’s urban development bureau said the land overhaul would revamp the idle plant site and raise the share of public facilities the developer must give back to the city. The bureau said the plan includes donating 30% of the land for parks, plazas, roads and a retention pond.

The bureau added that the change could help drive growth along the Mountain Dadu Tech Corridor and near future metro Blue Line stations. It said the site could host research centers, offices, company headquarters, shopping areas or a big-box store.

Taichung Mayor Lu Shiow-yen (盧秀燕) noted that the project is not yet finalized because it must be submitted to the interior ministry for review. Lu added the exact location and outcome will be announced by Costco.

City Councilor Chen Ting-hsiu (陳廷秀) said the project breaks the city’s promise of balanced development between urban and coastal districts. Chen said the proposed site is only about a 20-minute drive from Costco’s Nantun and Beitun branches, urging the city to instead consider coastal areas with better road access and more room for growth, per CNA.