A grassroots group says the city botched an environmental report when it approved a proposed Costco in northwest Fresno. The group had its day in court on Wednesday.

The expansive West Herndon Avenue lot where the mega-retailer wants to relocate its West Shaw Avenue store is empty. Not only has construction not started, but the company hasn’t completed buying the land.

Costco has not commented whether the lawsuit is holding up construction.

Judge Jonathan Skiles heard arguments on a writ of mandate filed by the Herndon-Riverside Coalition for Responsible Planning and Development in his Fresno courtroom. He took the matter under advisement, and will issue a written ruling later.

Fresno environmental attorney Daniel Brannick, a one-time appointee to a city planning review commission, is part of the group. He was joined by San Luis Obispo-based environmental lawyer Babak Naficy.

Brannick said allowing this Costco could lead to similar projects in the city — something he wants to avoid.

“There’s potential for really adverse city-wide effects,” Brannick said after the hearing. “Costco is one of those gravity shifting land-use projects.”

The city is listed as the defendant, with Costco Wholesale Corporation, and Jenco Farms LP as real parties in interest.

An attorney for Jenco confirmed that the sale of the land is not complete.

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Costco Wants New Location

Costco opened its West Shaw location near Highway 99 in 1985. It wants to construct a bigger location on West Herndon Avenue and Riverside Drive.

The new location would feature the usual retail building and gas station, but also a car wash, and a “last mile” warehouse within the retail building. The city council approved the project — including the environmental report — in April 2024. The process took four years.

The city’s report also considered at least two alternate sites along Veterans Boulevard, which was yet to be expanded when Costco applied for the project — at Riverside Drive and at Bullard Avenue. Neither was deemed feasible.

“There’s no specific agenda, like anti-Cosco or pro-Target or anything. It’s just holding the government accountable,” Naficy said.

Brannick said he is not against a retail location where Costco wants to build.

“I don’t want this to be framed as a NIMBY thing,” Brannick said.

Brannick would not elaborate about his environmental group, other than they are concerned Fresno citizens helping fund the lawsuit.

The Legal Arguments

Brannick’s group filed litigation in May 2024, alleging the city violated CEQA — the state law used for environmental land use decisions. Specifically, Brannick challenged the city’s greenhouse gas emissions analysis, impacts of vehicle miles traveled, and an “inadequacy” of alternative and mitigation measures.

The plaintiff also argued that Costco’s plan to use part of the retail warehouse for storage of goods for the last-mile delivery system is not allowed in a retail location.

In court, Naficy argued the finer points of land-use law and the greenhouse gas reduction plan, to the point Skiles asked him to speed things along.

The city, through attorney Anthony Taylor of Irvine-based firm Aleshire & Wynder, LLP, argued that the environmental report met legal standards.

The two sides also argued the impact of how a subsequent ruling from an appeal court meant that the city could no longer use a blanket environmental study to approve projects. The plaintiffs said it applies. Taylor said it is irrelevant.