Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved Costco’s plans to build two warehouses near Tracy, California, contributing to local job creation and sales tax revenue. The project includes a 1.2 million square foot warehouse and another over half a million square feet. It is expected to generate 400 construction jobs and 250 permanent positions once operational. The initiative aims to enhance local infrastructure and align with sustainability goals by operating on 100% renewable energy.
Tracy, California Approves Costco’s Plans for Two New Warehouses
Costco has received the green light to build two significant warehouses just outside the city limits of Tracy, California, following the approval of plans by the Tracy City Council last week. The approval is pending further clearance from the county, marking a notable step in the city’s development and expansion efforts.
The new warehouses will be situated near the southeast corner of Schulte and Hansen roads. The project includes a 1.2 million square foot warehouse along with an additional structure exceeding half a million square feet, indicating a substantial investment in logistics and distribution capabilities in the region.
Construction of these warehouses is anticipated to generate 400 construction jobs for local workers. Once operational, the facilities are expected to create around 250 permanent jobs with Costco, providing long-term employment opportunities for residents.
This development is poised to yield financial benefits for the city, estimated to generate nearly $4 million in additional sales tax revenue for Tracy. Such funds could be utilized for various city projects, including parks and infrastructure improvements, enhancing the community’s quality of life.
Necessary Approvals for Development
The land earmarked for the new warehouses is currently zoned for agriculture, which necessitates county approval for annexation into Tracy’s city limits. San Joaquin County Supervisor Robert Rickman noted that the expansion of city boundaries often incorporates annexation of county land, illustrating a common trend in urban development.
The entire approval process for the land annexation could take between 3 to 4 months. Once all approvals are in place, the construction of the warehouses is projected to take approximately two years, assuming the project proceeds without major complications.
Sustainability Initiatives and Context
Costco has committed to ensuring that the new warehouses will operate on 100% renewable energy. This initiative aligns with growing concerns about sustainability and the environmental impacts of large-scale industrial developments.
The proposed warehouses are part of a broader development trend in Tracy, which has witnessed significant growth in warehouse and distribution facilities in recent years. The city’s strategic location near major highways and transportation hubs has made it a prime candidate for such developments, driven predominantly by the rise of e-commerce and online shopping.
Over the years, Tracy has transformed remarkably, accommodating a rising number of warehouses that support not just employment growth but also the demands of a fast-evolving retail landscape. The city’s approach to fostering warehouse growth reflects a willingness to adapt to economic shifts while supporting job creation and increased municipal revenue.
FAQ
What are the plans for the new warehouses in Tracy, California?
Costco plans to build two large warehouses just outside the city of Tracy, California, one measuring 1.2 million square feet and another over half a million square feet.
How many jobs will be created by the new warehouses?
The construction of these warehouses is expected to create 400 construction jobs and approximately 250 permanent jobs for Costco upon completion.
What is the expected fiscal impact of the new warehouses on Tracy?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy, which could be used for parks and infrastructure improvements.
What stage is the project currently in?
The plans have been approved by the Tracy City Council but require county approval for annexation into city limits, which could take 3 to 4 months.
Is Costco’s new development environmentally friendly?
Yes, Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
Key Features of the Tracy Costco Warehouses
| Feature | Details |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads, Tracy, CA |
| Warehouse Sizes | 1.2 million square feet and over half a million square feet |
| Construction Jobs Created | 400 |
| Permanents Jobs Created | 250 |
| Estimated Sales Tax Revenue | $4 million |
| Approval Timeline | 3 to 4 months for annexation approval |
| Construction Duration | Approximately 2 years |
| Renewable Energy | 100% renewable energy operation |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco
- Wikipedia: Tracy, California
- Modesto Bee: Tracy Warehouse Developments
- Google Search: Tracy California Warehouse Development
- Tracy Press: Industrial Annexation Proposal
- Encyclopedia Britannica: Warehouse
- CNBC: Fulfillment Centers in Tracy
- Google News: Costco Warehouse Construction Tracy
- Financial Times: Logistics Developments
- Google Scholar: Tracy California Costco
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