Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved Costco’s plans for two large warehouses near Tracy, projected to create 400 construction jobs and 250 permanent positions. This development, pending county approval, is expected to generate about $4 million in additional sales tax revenue, enhancing local employment prospects and funding city resources. The project emphasizes sustainability, with warehouses to operate on 100% renewable energy, reflecting Tracy’s growth as a hub for warehouse and distribution facilities.
California – The Tracy City Council has approved Costco’s plans to construct two large warehouses on land just outside the city limits. This approval, granted last week, is contingent upon subsequent approval from San Joaquin County.
The proposed warehouses are to be situated near the southeast corner of Schulte and Hansen roads. The development includes a substantial 1.2 million square foot warehouse alongside an additional warehouse that will exceed half a million square feet. This initiative is projected to yield significant economic benefits for Tracy, including the generation of approximately 400 construction jobs during the warehouse development phase.
Upon completion, these warehouses are expected to create around 250 permanent positions for Costco, enhancing local employment opportunities. Moreover, the project is anticipated to generate nearly $4 million in additional sales tax revenue for Tracy. These funds could significantly contribute to the city’s resources, allowing for investments in parks and infrastructure improvements.
Currently, the land designated for development is zoned for agricultural use. Therefore, it requires county approval for its annexation into Tracy’s city limits. San Joaquin County Supervisor Robert Rickman has indicated that the growth of cities like Tracy often necessitates the annexation of county land for development projects.
The process for the land annexation is expected to span 3 to 4 months, while the construction of the warehouses is projected to take around two years provided there are no significant issues.
In line with contemporary sustainability practices, Costco has committed to operating the new warehouses on 100% renewable energy. This commitment represents a growing trend in commercial development within Tracy, which has experienced considerable expansion in warehouse and distribution facilities. The area’s strategic location near major highways and transportation hubs has fueled this growth, responding to the increasing rise of e-commerce and online shopping.
Over the years, Tracy has transformed prominently, marked by the influx of warehouses and distribution centers catering to market demands. As e-commerce continues to dominate the commercial landscape, the city is expected to maintain its trajectory of growth and development.
Key Points of Costco’s Warehouse Project
- Location: Near southeast corner of Schulte and Hansen roads, Tracy, California
- Project Size: 1.2 million square foot warehouse and over half a million square feet for the second warehouse
- Jobs Created: 400 construction jobs and 250 permanent jobs for Costco
- Sales Tax Revenue: Approximately $4 million for the city of Tracy
- Land Status: Currently zoned for agriculture, requiring county annexation approval
- Timeframe: 3 to 4 months for annexation process; 2 years for construction completion
- Sustainability Commitment: 100% renewable energy operation for new warehouses
FAQ Section
What is the location of the new Costco warehouses?
The proposed location is near the southeast corner of Schulte and Hansen roads in Tracy, California.
What are the sizes of the planned warehouses?
The project includes a 1.2 million square foot warehouse and another over half a million square feet.
How many jobs will the project create?
The construction of these warehouses is expected to create 400 construction jobs, and upon completion, approximately 250 permanent jobs will be created for Costco.
What economic benefit is expected from the project?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy.
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 take?
The approval process for the land annexation could take 3 to 4 months.
How long will it take to complete construction of the warehouses?
The construction project is expected to take about two years to complete without issues.
What is Costco’s commitment regarding energy usage for the new warehouses?
Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
What trend does this development 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.
Chart of Key Features
| Feature | Details |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads, Tracy, California |
| Warehouse Sizes | 1.2 million square feet and over half a million square feet |
| Construction Jobs | 400 construction jobs |
| Permanent Jobs | Approximately 250 for Costco |
| Sales Tax Revenue | Nearly $4 million |
| Land Status | Zoned for agriculture, requires county annexation approval |
| Approval Process Duration | 3 to 4 months |
| Construction Duration | About two years |
| Sustainability | 100% renewable energy operation |
| Growth Trend | Increased warehouse and distribution facilities due to e-commerce |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco
- Wikipedia: Costco
- Modesto Bee: Tracy Costco Warehouse Development
- Google Search: Tracy California warehouses
- Tracy Press: Industrial Annexation Proposal Returns
- Encyclopedia Britannica: Costco
- CNBC: Amazon and Fulfillment Centers in Tracy
- Google News: Costco warehouses Tracy California
- Insurance Journal: Retail Development Trends
- Google Scholar: Costco warehouse development
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