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Downey Council Approves Plan for New Costco Warehouse and Gas Station

City leaders say the project will bring jobs and new revenue during a forthcoming CEQA and city entitlement review.

Overview

  • The Downey City Council approved the development agreement this week, formalizing a two-step plan that would relocate Downey Nissan and create a roughly 13.6-acre site on Firestone Boulevard for a Costco and gas station.
  • The agreement names Costco Wholesale, Downey Nissan and property owners Andrews Rancho del Norte and Andrews Rancho del Sur as parties to the deal and includes a reported $10.5 million redevelopment package.
  • Officials expect the project to enter a California Environmental Quality Act (CEQA) review and the city's entitlement process next, which the city estimates could take up to about a year before any construction permits are issued.
  • If approvals proceed on schedule, the timeline calls for about a year to build the relocated dealership followed by roughly another year to construct the Costco, leaving the store several years from opening.
  • Public reaction was mixed online, with some residents welcoming relief from overcrowded nearby Costcos and others questioning the need for a new store and raising concerns about added traffic and parking; the CEQA process could invite public comment and potential legal challenges that would affect timing.