Costco Gets Vermont Land Permit for Gas in Colchester

Efforts by the retail giant Costco to sell gasoline at its Colchester retail center are getting a boost from a Vermont district environmental commission.

On Thursday the commission issued an Act 250 land-use permit for the plan.

The permit said the three-island, 12-pump gas station could be built if Costco helps pay for traffic improvements at the nearby Interstate 89 Exit 16 and U.S. 7 interchange.

The Burlington Free Press is reporting the gas pumps can't start operating until the Vermont Transportation Agency submits a land-use application for a redesign of the Exit 16 interchange.

Supporters think competition from Costco would help drive down gas prices in northern Vermont.

But competitors oppose the proposal, citing increased traffic and environmental concerns.

Copyright 2013 Associated Press. All Rights Reserved.