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.

The Westgate West Shopping Center is an existing commercial center that is locally and regionally accessible by multiple transport connections. The Shopping Center location will serve existing and future Costco members in the area, reducing travel time to other Costco warehouses. However, the existing retail building configurations are obsolete and need updating. Costco proposes an improved retail experience for tenants and shoppers, including new landscaping and traffic calming measures to increase visibility and allow safer pedestrian and cyclist circulation throughout the Shopping Center. Additionally, Costco’s commitment to sustainability, inclusion, and bringing quality jobs to the community with competitive pay will benefit San Jose and beyond.

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.

Circulation and Deliveries

The proposed Costco warehouse will be accessed from Lawrence Expressway, Prospect Road, and Saratoga Avenue (via the adjacent West Valley Shopping Center). Costco has listened to the residential neighbors’ concerns regarding the access on Graves Avenue and will close the entrance to the project site at the end of Graves Avenue (across from the Saratoga Dog Park) to vehicular traffic. Costco has also committed to restricting Costco trucks from entering or exiting the project site along Graves Avenue. However, the remaining access point at Graves is not controlled by Costco and is used by other shopping center tenants for their operations.

The project also includes some circulation improvements to the southern portion of the site, including an extension and realignment of the internal drive that begins at Prospect Road to provide a direct connection to the Costco rooftop and surface parking areas, and some restriping of the parking lot to accommodate the updated parking layout.

The transportation analysis for Costco is based on data, including trip counts collected at other Costco warehouses and historic pre-COVID 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 and approved projects nearby. In addition, the transportation consultant has conducted preliminary field reviews to observe general circulation near the Shopping Center and at site access points.

Project Attributes

Promote Economic Growth

The Costco warehouse is expected to create 250 to 300 jobs that are well-paying and offer long-term career opportunities. The current San Jose Minimum Wage rate is $17.00 per hour. In comparison, the average wage for Costco’s San José locations is $29.04/hour, which includes a $2/hour premium to assist with the cost of living in the San Jose area. This average hourly wage rises to $45.45 when benefits are included.

Increase Tax Base

Costco will serve as an anchor location at the Westgate West Shopping – bolstering the city’s retail base and tax revenue. The City of San Jose’s analysis shows an estimate of $2 million in annual sales tax from a typical big box store.

Improved Retail Experience

Costco proposes an improved retail experience for tenants and shoppers, including new landscaping and traffic calming measures to increase visibility and allow safer pedestrian and cyclist circulation throughout the Shopping Center.

Community Giving

Costco is committed to being an active member of the local community. Costco budgets 1% of pre-tax profits for select charitable contributions focused on children, education, and health and human services. In 2020, Costco contributed over $48 million to organizations such as United Way, Children’s Miracle Network Hospitals, Costco Scholarship Fund, disaster relief, and many programs. Two examples:

Volunteer Reading Program. Costco employees volunteer to help students in first through fourth grades improve their reading skills. Currently, there are over 466 programs across the United States and Canada, with more than 2,500 volunteers working one-on-one with students.
Children’s Miracle Network Hospitals Campaign. In 2021, Costco members and employees helped to raise more than $39 million for 114 Children’s Miracle Network Hospitals across the U.S. and Canada.