Costco Reaches Terms with The City Council, Slated to Open in California as The World’s Largest

By Moon Harper

Apr 22, 2024 05:32 AM EDT

A California Costco will close to make room for a giant warehouse after voting delays spanned over a month and a two-hour hearing on Thursday.

Costco's Larger Warehouse Opening

When its lease expires next year, the current northwest Fresno Costco, situated at West Shaw Avenue since 1985, will be replaced by a vast 219,000-square-foot warehouse that will occupy an empty lot approximately four miles away at North Riverside Drive and West Herndon Avenue, as reported by Fresnoland. Plans for the upcoming location include a 32-pump gas station, a new car wash and parking lot, and a dedicated food delivery service.

Originally intended to be the company's largest worldwide, at over 240,000 square feet, the store's plans were adjusted due to community concerns. Currently, a Salt Lake City store holds the title at 235,000 square feet, while the average size of Costco warehouses in the U.S. is 146,000 square feet.

The "Traffic-Calming Measures" Scrutiny

Fresno City Council Vice President Mike Karbassi stated last month that he would not endorse the project unless Costco confirmed additional "traffic-calming measures" for the surrounding streets. He noted that such factors were not taken into account when the original store was constructed nearly 40 years ago.

Karbassi stated that when the council approved the West Shaw Costco years ago, they decided in good faith. Now, there is scrutiny, especially on traffic, to prevent future issues, and taxpayers will not need to bail out the project 30 years from now. Other impacts discussed at Thursday's meeting included noise during construction and disruptions to neighboring schools.

Costco Reaching an Agreement with The City Council

In response, Costco stated that its trucks will avoid North Riverside Drive and will instead utilize Arthur Avenue, a road that is yet to be constructed along the east side of the warehouse. The company also mentioned that the gas station's operating hours will be longer than those of the store, and the gas pumps at the previous location on West Shaw Avenue will continue to be operational.

Subject to public outreach, Costco intends to pave the section of Riverside Drive adjacent to the west side of the warehouse with rubber asphalt to address noise concerns and also confirmed that it held meetings with Central Unified School District officials to ensure their satisfaction with the proximity of the new store.

Karbassi expressed discomfort in approving the plans without identified funding during a budget deficit year. However, the 7-0 vote was reached after Costco committed to funding road improvements on Herndon Avenue, including addressing erosion along the unused lane and installing a four-way stop at West Spruce Avenue and North Hayes Avenue, in addition to several high-visibility crosswalks.

The new store is projected to generate nearly $13 million in tax revenue, with $3 million allocated to Fresno County, and is set to create 37 new full-time jobs, according to the company.

Construction is set to commence in the fall and is expected to conclude by the end of 2025, as reported by Your Central Valley. There is another Costco located on North Abby Street in Fresno, with another nearby in Clovis.