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Costco wants to move its northwest Fresno location to a bigger, better facility. After roadblocks at a city council meeting last month, the warehouse retailer will try again this Thursday.
Councilmember Mike Karbassi said he supports Costco, but he withheld approval over concerns about traffic — specifically the routing of delivery trucks and the placement of a first-in-the-Central Valley-for-Costco car wash.
“I’ll be meeting with staff, reviewing what they’ve said in the reports. I’m also going to ask them in person to make sure that, on the record, they commit to whatever they have claimed,” Karbassi told GV Wire on Monday.
Costco said its lease at the current 4500 W. Shaw Avenue location (east of Golden State Boulevard, a notorious traffic jam because of the train tracks), expires in September 2025. It has the land and the plan to move to 7120 N. Riverside Drive, off of Herndon Avenue in northwest Fresno, by the end of 2025.
The proposed Costco includes a standard 163,000 square feet of floor space — however it is nearly 30,000 square feet larger than the West Shaw warehouse. The total warehouse space would be 219,000 square feet — with a “last-mile” delivery space.
The new Costco would also feature a 32-pump gas station, up from 12 at the current location.
Traffic Mitigation
Costco will present several traffic mitigation measures on Thursday. Turn lanes will be expanded from Herndon onto Arthur Avenue — which will be the eastern border, a road that does not yet exist — and Riverside Drive.
A new signal along Riverside into Costco will go along with an upgraded signal at Herndon and Riverside. There will be several “right in, right out” access in and out of Costco. Improvements at the nearby Golden State/Herndon signal are also planned.
Existing PG&E lines will be moved underground.
To help reduce sound, Costco plans to use rubberized hot-mix asphalt on North Riverside Drive, and construct a cinderblock wall at least six feet tall.
Delivery trucks will be restricted on the eastern side of Costco, using Arthur Avenue.
There are certain unavoidable impacts Costco said — temporary construction noise, increased vehicle miles traveled, and overflow traffic on Herndon Avenue and Golden West Boulevard.
Car Wash in Jeopardy?
At the March 7 hearing, Karbassi expressed concerns about the car wash.
Costco plans to build the car wash on the north end of the property, on the Spruce Avenue side. As part of construction, Spruce would be extended where it currently does not exist between Riverside Drive and Strother Avenue.
“I want them to be able to answer basic questions like, for example, what are you going to do if you decide to discontinue the car wash, which is a new product to Costco?”
The presentation included alternate plans for the property if a car wash is not included. It would either be used for more parking, or as an outparcel.
Karbassi said he is also concerned about waiting cars spilling out onto the road.
“People have to get into regular Costco, right? When the cars back up on the road, it affects the ability for customers to park and be able to go and shop. And of course, with all this VMT stuff, when you have idling cars, it doesn’t help the environment a whole lot,” Karbassi said.
VMT is an urban planning term, vehicle miles traveled, to measure traffic and environmental impact. Costco said that reducing VMT to acceptable levels is unavoidable “given the nature of Costco shopping.”
“Members purchase items in bulk at Costco facilities, making walking, biking, or transit trips to the warehouse impractical,” Costco said. The company estimates 129,325 daily VMT for the new warehouse. The current VMT, according to city environmental documents, is 120,000.
Costco said it has plans in place to help employees reduce their vehicle traffic, including ridesharing and subsidized public transit.
Messages to Costco representatives were not returned.
Costco: Great for Employees
At the March 7 city council hearing, several councilmembers asked questions about the company’s employee relations and charitable contributions. At its revised presentation planned for Thursday, Costco wants to leave no doubts.
Costco plans to hire 15% more employees at the new location, from 279 to 339. The company has an employee turnover rate of 18% annually.
“We take care of our employees!” the presentation boasts. The company said it offers full benefits, with hourly earnings between $18 and $34 an hour.
Approximately $80,000 in the last year went to local organizations in the Fresno area, Costco said. The company donated more than 1,100 backpacks to local schools.
Golf Net Issue
The city-owned Riverside Golf Course lies to the north of the proposed new Costco. A current condition would require Costco to build netting to avoid errant golf balls.
Costco said the condition does not apply to them.
“The condition is based on a code section that applies only to Private Recreational Sports Facilities. Costco is not such a facility nor is it located near one,” said Costco real estate development director Pari Holliday in a letter to the city.
Imposing the condition, Holliday said, would “set a precedent that the City may wish to avoid of installing netting.”
If a net installed, Costco wants to work together with the city, using a consultant on the best option.
