Costco at Westgate West Shopping Center

Costco Wholesale (Costco) proposes to construct a new warehouse in Westgate West Shopping Center at 5287 Prospect Road to serve the local community with competitively priced goods and services from nationally known brands and regional businesses that its members have come to expect. The project would redevelop the current Westgate West Shopping Center’s northern portion by replacing 188,265 square feet of existing retail comprised of three buildings and a covered garden center with a 165,148-square-foot Costco warehouse. Most of the three buildings that will be demolished are currently vacant or have tenants with leases that will expire at the end of their current lease terms before the start of this project. The remaining tenants, including UPS, Sutter Health, and Bikram Yoga, will relocate within the Shopping Center.

We are Listening!

The proposed Costco warehouse at the Westgate West shopping center is approaching an important milestone. On Tuesday, October 22, at 6:00 p.m., the project will be reviewed by the San Jose City Council for project approval. Since submitting our project application in November 2021, we have met with neighbors, community groups, and interested stakeholders to share our vision for a modern and sustainable warehouse and to listen to the community’s interests and concerns about the project.

In direct response to the community’s concerns, Costco has agreed to numerous project changes, including:

Closing the existing driveway at the end of Graves Avenue (across from the Saratoga Dog Park).
Costco trucks will not utilize the remaining driveway on Graves Avenue for loading/unloading activities. Costco will make all efforts to educate vendors to avoid utilizing Graves Avenue for loading and deliveries. Costco does not control the remaining access point at Graves, and other shopping center tenants use it for their operations. The property owner is committed to working with existing tenants to discourage the use of this driveway for truck access. They will also provide appropriate signage discouraging truck drivers from utilizing Graves Avenue.
Replacing the 4-foot wall along Graves Avenue with a 6-foot wall set back to align with the Costco building and to increase the landscaped area and screen parking. Additionally, the plan intends to preserve the 55 beautiful magnolia and olive trees located on Graves Avenue.
Improving the pathway on Lawrence Expressway between Graves Avenue and the Lawrence Expressway driveway to match the sidewalk south of the driveway.
Improving the pedestrian crossing at the Lawrence Expressway driveway.
Increasing the roof-top parking parapet wall from 5 feet to 6 feet.
Adding a roof over the loading docks.
Costco will make a voluntary contribution of $2.5 million for pedestrian and bike safety improvements at the intersection of Lawrence Expressway and Prospect Road.

Costco understands there are other topics of interest from the community, including:

Transportation Analysis

The City oversaw preparation of a transportation analysis to study the effects of the proposed warehouse on traffic, bicycle infrastructure, and pedestrian access. The analysis was based on data, including trip counts collected at other Costco warehouses and historic pre-COVID traffic measurements taken from the surrounding area. The City has worked with transportation engineers to identify the scope of the transportation study to ensure that it covers transportation systems likely to be affected by the project and includes information about other proposed or approved projects nearby. In addition, the study includes field reviews to observe circulation near the Shopping Center and at site access points. The transportation analysis is available for review here.

Environmental Review

On December 15, 2023, the City of San Jose released the Draft Environmental Impact Report (Draft EIR) for the project. An EIR is the most in-depth and comprehensive level of environmental study that cities complete to comply with the California Environmental Quality Act (CEQA). The City oversaw the preparation of technical studies regarding transportation, circulation, noise, and air quality, which informed the EIR’s analysis and ultimately will be factored into the project’s design. Information regarding the environmental review process and documents for public review are available on the City’s website, or contact Kara Hawkins at 408-535-7852 or via e-mail: [email protected].

The public review comment period ended on February 20, 2024. The City and its consultant has prepared written responses to the comments received related to the adequacy of the EIR. These responses are available for review in the City’s 1^st Amendment Response to Comments on the City’s website here.

By the Numbers

Square footage

∼ 165,148 SF*

Height

40 feet

Parking

687 spaces (306 surface and 381 rooftop) for Costco; 1,311 for the Shopping Center**

Hours of Operation

Monday – Friday: 9:00 a.m. – 8:30 p.m. Saturday and Sunday: 9:00 a.m. – 7:00 p.m.

Employees

250-300 new jobs

* A total of about 188,265 SF will be removed, yielding a net reduction of roughly 23,117 SF of retail space within the Shopping Center.

** A net increase of 280 parking spaces within the Westgate West Shopping Center, and an increase of 450 spaces over what is required by the City’s zoning ordinance.

The Project

Located in the Westgate West Shopping Center at 5287 Prospect Road, the proposed Costco warehouse will feature retail sales, tire sales and installation, pharmacy, optical and hearing services, general grocery, food service and preparation, alcohol sales for off-site consumption, and a bakery. A gas station is not proposed.

BUILDING DESIGN

The Costco warehouse design introduces a new modern structure with sustainability features and an enlivened public realm. A key consideration of the building design is to ensure that operational activities such as the receiving area and tire center are oriented away from the residential community.

Public Process

Costco is engaging in a transparent public engagement process and listening sessions with residents, neighborhood associations and interested stakeholders. Additionally, the City maintains a website (available here) that provides the assigned planner’s contact information and lists details about upcoming public meetings.