Business & Real Estate

Costco submits plans for big-box store in Elk Grove

A shopper pushes a cart outside Costco Wholesale in this May 27, 2009 file photo. Elk Grove estimates that a Costco warehouse and gas station could bring in as much as $800,000 a year in additional sales tax revenue for the City. In addition, the store could employ up to 200 full-time employees.
A shopper pushes a cart outside Costco Wholesale in this May 27, 2009 file photo. Elk Grove estimates that a Costco warehouse and gas station could bring in as much as $800,000 a year in additional sales tax revenue for the City. In addition, the store could employ up to 200 full-time employees. AP

Big-box retailer Costco has submitted plans to build a store in Elk Grove, a move heralded by the city as a plus for city tax coffers and a boon for shoppers.

Elk Grove Mayor Gary Davis said in a press release that the city is looking forward to reviewing the retailer’s application to develop a store at Elk Grove Boulevard and Civic Center Drive, just east of Bruceville Road.

“Costco would be a solid addition to the Elk Grove retail market,” Davis said. “Their presence would provide good local jobs and the opportunity to keep more of our residents’ hard-earned dollars in the Elk Grove economy.”

Elk Grove estimates that a Costco warehouse and gas station could bring in as much as $800,000 a year in additional sales tax revenue. In addition, the store could employ up to 200 full-time employees.

Costco has submitted design plans that call for a roughly 150,000-square-foot store with a 24-pump gas station. The plans call for the possibility of expanding the gas station to 30 pumps.

The project would be built on 17 acres zoned to allow warehouse retail. The land, owned by Pappas Investments, is about 6 miles from Costco’s south Sacramento store.

City review of the project has begun. It is expected to reach the city planning commission early next year.

There are five Costco stores in the Sacramento area, but none in Elk Grove. Costco would be a big coup for the city for several reasons, officials said.

“It checks every box from an economic development standpoint,” said Elk Grove Economic Development Director Darrell Doan. “The sales tax is off the charts and will help us pay for everything we need to pay for at City Hall. Costco is known as the best retail employer in the industry in terms of average salary and benefits.”

Doan said getting the Costco brand would send a positive signal to the marketplace, prompting more and higher-quality retail businesses to invest in Elk Grove.

If project approval goes smoothly, and the project is not appealed to the City Council, the Costco could be under construction by March, Doan said.

“The goal for everybody is to have the store open for the holidays 2016,” Doan said. “That is the fastest it could be opened, but not an official Costco date.”

Some cities with thriving downtowns have fought Costco, fearing the big-box retailer would turn their main streets into ghost towns.

“There’s kind of a different dynamic here,” Doan said. “What we know is that we are bleeding sales tax dollars into the county and into other cities in our region because we don’t have the big-ticket retailers that they have.”

Sacramento County Supervisor Don Nottoli said he has heard nothing along the lines of closure for the existing south-area Costco at 7981 E. Stockton Blvd. He feels there is sufficient business to support both stores.

Costco could not be immediately reached for comment.

Bill Lindelof: 916-321-1079, @Lindelofnews

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