Fresno City Council President Mike Karbassi is sounding the alarm after a court ruling effectively blocked plans to build a new Costco and delivery warehouse in northwest Fresno, warning that the project could now jump to neighboring Madera County. 

Speaking on GV Wire’s “Unfiltered” podcast, Karbassi expressed frustration over a judge’s decision last week halting the long-awaited Costco project planned for the northeast corner of Riverside Drive and Herndon Avenue. The project had been in development for more than four years and received full city approval after extensive public hearings. 

“This was a very exciting project,” Karbassi said. “It was a four-year public process, two big council meetings, everything on the record, and we approved the project.” 

Related Story: Fresno Costco Project Killed by Judge’s Decision

‘Last-Mile’ Delivery Warehouse Becomes Sticking Point

But a lawsuit filed by environmental groups derailed those plans. Karbassi said the plaintiffs used a “shotgun approach” to challenge the development, and while most of the claims were dismissed, the judge sided with the plaintiffs on two issues: air pollution concerns and zoning complications related to a proposed “last-mile” delivery warehouse. 

“One was the greenhouse gas emissions and pollutants in the air. The other was the zoning being inappropriate because there is a last-mile warehouse on the site,” he said. “It’s not the biggest building, it’s a small building next to it that will store goods.” 

The warehouse component, intended to help facilitate more efficient deliveries for Costco customers in the area, may have triggered additional environmental review requirements under California law.

Could Project End Up in Madera? 

The setback has sparked concerns that Costco could move the project, and its potential jobs and tax revenue, across the San Joaquin River to Madera County or elsewhere in the region. 

“I will not stop fighting to ensure we have more jobs that stay in Fresno,” Karbassi said. “Because the last thing we want is for this Costco to jump the river, go to Madera, or to go to Clovis or anywhere else.”

Clovis has a Costco at 2270 Clovis Ave. near Shaw Avenue.

City Should Follow the Law: Environmental Group Leader

Fresno resident Dan Waterhouse, vice chair of the environmental coalition opposed to the Costco project, previously told GV Wire that his group is not obstructionist.

“People can believe what they want to, but quite frankly, despite some hyperbolic comments coming from certain city councilmembers, that’s not our intent. We never were and are not trying to obstruct the project. We just want the city to fulfill its requirements under land use planning law,” Waterhouse said.

The coalition would accept a Costco if the city follows environmental law, he said.

Fresno officials are expected to explore options for appealing the decision or revising the environmental impact report to address the court’s concerns.

“We needed these jobs to stay, and the tax revenue to stay in our community,” Karbassi said.