Business & Real Estate

Costco store moves forward in Elk Grove

A drawing of the entrance for the Costco store proposed in Elk Grove.
A drawing of the entrance for the Costco store proposed in Elk Grove. Costco Wholesale

The Elk Grove City Council approved a permit Wednesday night for Costco Wholesale to build a new warehouse store near Elk Grove Boulevard and Bruceville Road.

The approved design included changes the City Council asked for during a previous public hearing. Costco’s architects removed the red corporate striping from the back of the building, added more natural stone and glass features and altered the signature entry canopy.

Vice Mayor Steve Ly said Costco’s willingness to implement design changes made it an appealing partner for the city.

Three residents objected to the location, citing traffic and noise concerns on Elk Grove Boulevard. One spoke in favor.

Before the last meeting on Costco in May, residents submitted a petition seeking smaller retail developments because the site backs up against residential neighborhoods.

Council members told the audience the feedback they’ve received from residents outside of council meetings has been overwhelmingly supportive.

Jenifer Murillo, Costco’s director of real estate development, said the company has around 40,000 members in the Elk Grove community, enough to support this development and the existing Costco in south Sacramento.

Mayor Gary Davis said the area has long been planned for this level of retail, including preparing the road to handle the traffic associated with a Costco.

A 24-pump fueling station is planned for the parking lot adjacent to the 150,000-square-foot store.

Elk Grove staff are still researching options for possible city subsidies after the property owner said the proposed lease would not be financially viable without economic incentives. The council would have to discuss and approve an incentive package.

Costco will be one of several new sites along Elk Grove Boulevard between Bruceville Road and Wymark Drive. In May, the city Planning Commission approved The Ridge Shopping Center project to the west of the Costco site. The shopping center could contain up to 226,000 square feet of commercial space in 14 buildings. The Dignity Health medical campus will sit to the east of the Costco.

The council approved the project on a 3-0 vote. Councilman Pat Hume was absent, and Councilman Darren Suen recused himself because he owns Costco stock.

Ellen Garrison: 916-321-1920, @EllenGarrison