With a judge blocking Costco’s move to a larger northwest Fresno location over environmental and zoning issues, a Madera County politician pounced — saying it’s easier to do business north of the San Joaquin River.

Madera County Supervisor Jordan Wamhoff shared his idea on Facebook last week, making arguments in favor of a move.

“Businesses are leaving cities that make it hard to grow and are choosing communities that truly support economic development. Madera County is open for business,” Wamhoff posted July 25.

Fresno City Council President Mike Karbassi — who represents the area where Costco wants to move — found Wamhoff’s post “amusing.”

“I don’t know the comfort level of a company like Costco. I think what’s really important is that the message be sent that this city is committed to keeping a great employer like Costco and those jobs and those construction jobs here in the city,” Karbassi said.

Madera County could be an option, a Costco representative said.

“Ultimately, it’s Costco’s board of directors’ decision, but I would think that they would look at all of their options if they can’t proceed on the Fresno location,” said Tom Anderson, Costco’s real estate broker in the Central Valley.

Dyer Speaking With Costco

Fresno Mayor Jerry Dyer is working to keep Costco within city limits. He said he spoke with Costco’s senior vice president of real estate, listed on the company’s website as David Messner.

“If Costco decided to relocate outside of the city limits, which I do not think is on the table at this time, it would be a significant financial blow to the city of Fresno. But more importantly, I think it would be a disservice to the people who shop at Costco,” Dyer said.

Anderson said the company wants to resolve the issue by the end of the year, but opening in Fresno is the priority.

“They will always look at other options based on the litigation but more importantly they’re looking at the litigation and see if the issues that were raised can be addressed. They will do that,” Anderson said.

Costco has not completed purchase of the Herndon/Riverside property, Anderson said.

Karbassi said there is nothing set on the council agenda for the city to make its next move.

Costco’s Economic Benefits

Fresno city officials did not have an exact figure of how much tax revenue the West Shaw Avenue Costco generates. Such numbers are “proprietary,” officials told GV Wire.

Dyer is seeking figures on how many new employees the proposed West Herndon Costco would hire, and how many construction jobs it would create.

Investopedia crunched data from Costco’s financial filings — it is a publicly traded company. Each store averaged $260 million in annual sales.

At an April 2024 city council hearing to approve the relocated Costco plan, company officials said at a presentation that the new store would generate an estimated $15 million in annual total tax revenue.

The city receives $1.375 — $1 for the city and $0.375 for Measure P —for every $100 spent on taxable goods. The city’s tax rate is 8.35%.

Costco also said:

• Property value would increase from $1 million to $98 million. Property taxes would increase from $14,000 to nearly $1 million;
• Central Unified school bond revenue would increase from under $3,000 to more than $210,000;
• $55 million economic benefit, $4 million more than from the West Shaw Avenue location;
• Fresno would see a $151 million economic benefit during construction, with $1.55 returned to the community for every dollar spent.

Judge Blocks Costco Move

Costco wanted to move from its current location on West Shaw Avenue — where it opened its first warehouse in Fresno in 1985 — to an empty parcel of land at Herndon Avenue and Riverside Drive. The 219,000-square-foot facility would feature a larger 32-pump gas station and a car wash.

But the concept of a warehouse-within-a-warehouse for delivery of online orders ran afoul of zoning laws, a judge recently ruled. An environmental group successfully won a writ of mandate blocking the move, also arguing the city failed to properly calculate the effect of more cars traveling to a new location.

The city must either start the approval process again — the last time, it took four years — or fight back legally.

“The goal for all of us is to move as quickly as we can to be able to satisfy the judge’s concerns, to get this case back before him, so that we can get Costco built in Fresno,” Dyer said.

Costco previously said its lease on West Shaw Avenue expires in September. Anderson, the real estate broker, said there is “flexibility” in the lease, but he did not have exact deals.

K4 Management has a listing for the location on its website, but without additional details. The company did not return messages seeking comment.

Wamhoff Wants Costco

Wamhoff has not spoken with Costco, and is unaware if any other county official made contact. County officials offered no comment.

“Would I like Costco in Madera County on this side of the river? Absolutely,” Wamhoff said. “It would be positive for our county to have that tax base here.”

Speculating on a move, Wamhoff said it is unlikely Costco would relocate along Highway 41, close to its north Fresno location at Herndon and Blackstone avenues.

He envisioned Avenue 7 around Highway 99 as a place to draw from Madera County, northwest Fresno, and western Fresno County.

“Madera County is known for its openness and willingness to attract new business and cutting red tape and having a more streamlined process for getting things built,” Wamhoff said.

While environmental reviews may be the same, Wamhoff says there would be less resistance in Madera County.

“We just don’t have the same outspoken opponents —  or that we necessarily care about the outspoken opponents — in Madera County,” Wamhoff said.

Wamhoff called Fresno politicians “more sensitive to the needs of these radical environmental groups.”

He said “there have been some outside conversations with other organizations that might be involved in Costco,” but would not elaborate.

Kristina Gallagher, executive director of the Madera County Economic Development Commission — a business recruitment agency — had no comment on whether her group has talked with Costco.