Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved Costco’s proposal to construct two large warehouses on the city’s outskirts. The development is set to create 400 construction jobs and 250 permanent jobs while generating nearly $4 million in additional sales tax revenue for local projects. This significant move follows county approval and reflects Tracy’s ongoing trend towards growth in logistics and distribution, alongside commitments to sustainability through renewable energy operations.
Tracy, California Approves Costco’s Plans for Two New Warehouses
Tracy, California, has officially approved Costco’s proposal to build two large warehouses on the outskirts of the city. The Tracy City Council sanctioned the plans last week, pending necessary approvals from San Joaquin County. This decision is a significant step in Costco’s expansion efforts within the region.
The warehouses are set to be constructed near the southeast corner of Schulte and Hansen roads, covering a substantial area of land. The first warehouse will span an impressive 1.2 million square feet, while the second will measure over half a million square feet. The construction of these facilities is projected to generate approximately 400 construction jobs in the area.
Once the warehouses are completed, Costco is expected to create around 250 permanent jobs for local residents. This development is also forecasted to significantly boost the city’s finances, with an anticipated nearly $4 million in additional sales tax revenue. These funds are expected to be utilized for local projects, including parks and infrastructure improvements.
Land Approval and Development Timeline
The land designated for this development is currently zoned for agricultural use and requires county approval for its annexation into the Tracy city limits. San Joaquin County Supervisor Robert Rickman noted that city growth frequently includes the annexation of county lands for various development purposes. The approval process for annexation is expected to take between 3 to 4 months. The construction of the warehouses is estimated to take roughly two years to complete, assuming no significant issues arise during the process.
Sustainability Commitments
Costco has committed to operating the new warehouses on 100% renewable energy, reflecting a broader trend towards sustainability in the construction and operation of large-scale facilities.
Trends in Tracy’s Development
The approval of Costco’s warehouse project illustrates a larger trend in Tracy, which has witnessed substantial growth in warehouse and distribution facilities in recent years. The city’s strategic location near major highways and transportation hubs has made it an attractive destination for such developments. The rapid rise in e-commerce and online shopping demands has been a significant driver of this transformation, contributing to Tracy’s evolution from a primarily agricultural community to a burgeoning center for logistics and distribution.
Conclusion
Overall, the Tracy City Council’s approval of Costco’s plans is anticipated to bring economic growth, job creation, and enhanced revenue for the city, all while adhering to commitments regarding environmental sustainability. As Tracy continues to develop, projects like this one symbolize the shift towards a more industrial and logistics-oriented future.
FAQ
What is Costco planning to build in Tracy, California?
Costco plans to build two large warehouses just outside the city of Tracy, California.
When was the plans approval by the Tracy City Council?
The Tracy City Council approved the plans last week, pending county approval.
What is the size of the planned warehouses?
The project includes a 1.2 million square foot warehouse and another over half a million square feet.
How many jobs will the construction and operation create?
The construction of these warehouses is expected to create 400 construction jobs. Upon completion, approximately 250 permanent jobs will be created for Costco.
What financial benefits are anticipated for 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 sustainability practices will Costco incorporate in the new warehouses?
Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
Key Features Chart
| Feature | Description |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads |
| Warehouse Size | 1.2 million square feet and over half a million square feet |
| Construction Jobs | 400 |
| Permanant Jobs | 250 |
| Sales Tax Revenue | Nearly $4 million |
| Timeline for Annexation Approval | 3 to 4 months |
| Construction Duration | Approximately 2 years |
| Renewable Energy | 100% renewable energy operations |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco
- Wikipedia: Costco
- Modesto Bee: Business News on Tracy
- Google Search: Tracy California Business Development
- Tracy Press: Industrial Annexation Proposal
- Google Scholar: Tracy California Economy
- Insurance Journal: Features on Economic Impact
- Encyclopedia Britannica: Costco
- CNBC: Amazon and Tracy California
- Google News: Tracy California Costco
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
