Brea residents contest secret tax deal tied to planned Costco complex

A proposed Costco and gas station on the former Beckman Coulter campus in Brea has ignited a dispute after the city council approved a 50-year tax-sharing arrangement with developer Dwight Manley. Under the deal, the city will receive no discretionary sales-tax revenue for the first two years, with its share gradually increasing to an even split after about 30 years, and an extra 5 % earmarked for senior-center programs.

Residents, organized as Brea4All and led by Mark Strom, allege the agreement was crafted in secret, pointing to text messages from Assistant City Manager Jason Killebrew that appear to show staff urging council support before a public hearing. The group has issued a cease-and-desist letter and claims the council violated California’s Brown Act. City officials, including Mayor Cecilia Hupp and Councilmember Christine Marick, argue the incentive is needed to attract Costco, which they say will generate jobs and new tax revenue amid a projected $14 million budget shortfall for 2027-28. Former finance director David Cain criticized the terms as the worst he has seen, while Manley defended the arrangement as reflecting the high cost of acquiring and developing the site.