Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved Costco’s plans for two large warehouses near Tracy, California. This development includes a 1.2 million square foot facility and a second one over 500,000 square feet, expected to generate about 400 construction jobs and 250 permanent positions. The project is also anticipated to yield $4 million in sales tax revenue, aiding city improvements. The proposed location is subject to San Joaquin County approval, and Costco will utilize 100% renewable energy for its operations, aligning with sustainability goals.
California – The Tracy City Council has reached a pivotal decision by approving Costco’s plans to construct two large warehouses just outside the city limits of Tracy, California. This crucial approval, granted last week, is subject to the approval of San Joaquin County.
The chosen location for these substantial developments is situated near the southeast corner of Schulte and Hansen roads. The proposed project comprises a 1.2 million square foot warehouse alongside another facility exceeding half a million square feet.
This ambitious construction endeavor is not only set to provide substantial economic benefits by creating approximately 400 construction jobs, but it will also generate about 250 permanent jobs for Costco once completed. Furthermore, the project is projected to yield nearly $4 million in additional sales tax revenue for the city of Tracy, potentially designated for parks and infrastructure enhancements.
The land earmarked for development is presently zoned for agricultural use and necessitates county approval for its annexation into the city limits. San Joaquin County Supervisor Robert Rickman has indicated that city expansion frequently involves the annexation of county territory for development purposes.
The land annexation approval process is expected to take around 3 to 4 months. If all proceeds smoothly, the construction phase could take approximately two years to finalize. In addition to the economic implications, Costco has committed to ensuring that these new warehouses will be powered by 100% renewable energy.
This development aligns with a broader trend in Tracy, which has experienced significant growth in warehouse and distribution facilities due to its strategic position near major highways and transport hubs. Over the years, the city has undergone substantial transformations, significantly influenced by the rise of e-commerce and online shopping, leading to an influx of warehouses.
As the city continues to modernize and grow, the new Costco warehouses are anticipated to be a driving force in enhancing the local economy while also contributing to sustainability initiatives through renewable energy practices.
Key Features of Costco Warehouse Development
- Location: Near southeast corner of Schulte and Hansen roads
- Planned Structures: One warehouse of 1.2 million sq. ft. and another over 500,000 sq. ft.
- Job Creation: Approximately 400 construction jobs and 250 permanent Costco jobs
- Sales Tax Revenue: Estimated $4 million for city improvements
- Renewable Energy: Commitment to 100% renewable energy operation
- Timeline: Annexation process 3-4 months; construction approximately 2 years
FAQ
What is Costco planning to build in Tracy, California?
Costco plans to build two large warehouses just outside the city of Tracy, California.
What was the decision made by the Tracy City Council?
The Tracy City Council approved the plans last week, pending county approval.
Where is the proposed location for the warehouses?
The proposed location is near the southeast corner of Schulte and Hansen roads.
What are the sizes of the warehouses Costco intends to build?
The project includes a 1.2 million square foot warehouse and another over half a million square feet.
How many jobs will the construction of these warehouses create?
The construction of these warehouses is expected to create 400 construction jobs.
How many permanent jobs will be created for Costco?
Upon completion, approximately 250 permanent jobs will be created for Costco.
What financial impact is the project expected to have on Tracy?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy, which could be used for parks and infrastructure improvements.
What is the zoning status of the land intended for development?
The land intended for development is currently zoned for agriculture and requires county approval for annexation into Tracy city limits.
How long will the approval process for land annexation take?
The approval process for the land annexation could take 3 to 4 months.
How long will the construction project take?
The construction project is expected to take about two years to complete without issues.
Will the new warehouses be environmentally friendly?
Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
What trend does the development of these warehouses reflect in Tracy?
The development of the new warehouses reflects a wider trend in Tracy, which has seen significant growth in warehouse and distribution facilities due to its strategic location near major highways and transportation hubs.
Deeper Dive: News & Info About This Topic
- Modesto Bee
- CBS News
- CNBC
- Wikipedia: Tracy, California
- Google Search: Costco warehouses Tracy California
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
