City Council Regular Meeting
April 18, 2024
FRESNO CITY COUNQU-�
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0 9:25 A.M. (ID 24-487) HEARING to Consider Plan Amendment and Rezone Application No. P21-01960, Conditional Use Permit Application No.
P21-01959, Conditional Use Permit Application No. P21-03251, Planned Development Permit Application No. P21-03252 and related Final Environmental Impact Report (FEIR), State Clearinghouse (SCH) No. 2021100443 pertaining to ±22.4 acres of property located on the northeast corner of West Herndon Avenue and North Riverside Drive (Council District 2) - Planning & Development Depart
ment
[TITLE TRUNCATED FOR SUPPLEMENTAL PACKET COVER PAGE]
Contents of Supplement: Public comment emails, Tray memo, Updated PowerPoint
ltem(sJ
Supplemental Information:
Any agenda related public documents received and distributed to a majority of the City Council after the Agenda Packet is printed are included in Supplemental Packets.
Supplemental Packets are produced as needed. The Supplemental Packet is available for public inspection in the City Clerk's Office, 2600 Fresno Street, during normal business hours (main location pursuant to the Brown Act, G.C. 54957.5(2). In addition, Supplemental Packets are available for public review at the City Council meeting in the City Council Chambers, 2600 Fresno Street. Supplemental Packets are also available on-line on the City Clerk's website.
Americans with Disabilities Act (ADA):
The meeting room is accessible to the physically disabled, and the services of a translator can be made available. Requests for additional accommodations for the disabled, sign language interpreters, assistive listening devices, or translators should be made one week prior to the meetinQ. Please call City Clerk's Office at 621-7650. Please keep the doorways,
April 4, 2024
Costco has outgrown their current Shaw Avenue facility and the lease agreement is set to expire next year (2025). The subject project proposes to relocate the exist Lng Shaw Avenue Costco location to a new 22.4-acre site located at the northeast corner of West Herndon Avenue and North Riverside Drive. In order to facilitate the relocation project, the following entitlement applications were filed: Plan Amendment/ Rezone Application No. P21-01960; Conditional Use Permit Application No.
P21-01959, Conditional Use Permit Application No. P21-03251 and Planned Development Permit Application No. P21-03252. The current project was required to complete an Initial Study and has conducted a full environmental assessment though an EIR which is the highest level of review available.
Plan Amendment Application No. P21-01960 proposes to amend the Fresno General Plan and the Bullard Community Plan to change the existL ng planned land use designation for the subject property from Commercial - Community to Commercial - General. Further, the proposed plan amendment proposes to reclassify West Herndon Avenue, from North Riverside to North Hayes Avenue, from an Expressway to a Super Arterial.
The rezone application component proposes to amend the Official Zoning Map of the City of Fresno to rezone the subject property from the CC/EA/UGM/cz ( Community Commercial/Expressway Overlay/Urban Growth Management/conditions of zoning) zone district to the CG/UGM/cz ( General Commercial/Urban Growth Management/conditions of zoning) zone district zone district in accordance with the Plan Amendment Application.
Conditional Use Permit Application No. P21-01959, requests to construct a ±219,216 square-foot warehouse retail building, ±4,800 square-foot carwash and a ±13,000 square- foot fuel canopy with 32 fuel pumps. The warehouse footprint is comprised of ±163,539 square-feet for retail sales, ±4,422 square-feet for loading/receiving, ±46,834 square-feet for market delivery operation, ±3,233 square-feet of open canopy space, and ±1,188 square-feet of building envelope. The project includes 873 total parking stalls, which include 25 accessible spaces and 92 electric vehicle-ready parking stalls. It’s noted that under the current planned land use and zone district of Community Commercial, the proposed carwash would be prohibited. Under the proposed Commercial General planned land use and zone district, the proposed use would be permitted with an approved conditional use permit.
Conditional Use Permit Application No. P21-03251 requests authorization to establish a State of California Alcoholic Beverage Control (ABC) Type 21 alcohol license that will allow the sale of beer, wine, and distilled sp irits for consumption off the premises where sold.
Planned Development Permit Application No. P21-03252, request to modify parking lot development standards to allow for 36.5-foot-tall light fixtures rather than 25-foot light fixtures.
April 4, 2024
On February 21, 2024, the Planning Commission recommended to City Council approval of the project and certification of the Final Environmental Impact Report (SCH No. 2021100443).
On March 7, 2024, the items were considered by the City Council. After several concerns and questions related to traffic and environmental impacts, mitigation measures to be incorporated, effects on nearby property values, and traffic safety were raised by Councilmembers Karbassi and Arias, the item was referred back to staff. The following response is to provide clarification and address the aforementioned concerns and questions.
RESPONSE
1. Traffic
a. West Spruce Avenue
The Fresno General Plan Circulation Element plans for West Spruce Avenue, which is currently incomplete and terminates at Strother Avenue, to connect to North Riverside Drive. This project proposes to complete this section of roadway. In doing so, there are concerns related to increased traffic and speeding along West Spruce Avenue, east of the project site towards the intersection of West Spruce and North Hayes Avenues which is currently a two-way stop. Additionally, there were concerns about project related truck traffic using Riverside Drive and/or Spruce Avenue.
Traffic Calming Measures
The Public Works Department provided traffic calming measures that could be applied/implemented by Costco. These include (attached):
1. Installation of all-way stop control at the intersection of West Spruce and North Hayes (2 way to 4 way stop) along with high visibility crosswalks in all directions;
2. Installation of a refuge island (Non-ped crossing) at the east end of the golf course for the West Spruce Avenue connection to provide a traffic calming measures approaching/exiting Costco from the east on West Spruce Avenue; and
3. Installation of a refuge island (Non-ped crossing) near the intersection of West Spruce and North Sandrini Avenues.
The above referenced traffic calming measures could be applied to the project as a condition of approval.
April 4, 2024
b. West Spruce Avenue Not Connected
Alternatively, should West Spruce Avenue not be built out completely (e.g. connect to current terminus at Strother Avenue) one of the following procedures and/or analysis must be considered:
1. Amend the Fresno General Plan Circulation Element to remove West Spruce Avenue
a. Revise the VMT, GHG, and Traffic Safety analysis;
i. Recirculate the EIR; or
2. Revise the VMT, GHG, and Traffic Safety analysis;
a. Recirculate the EIR
b. Changes to project (no Spruce connection) to be considered by Planning Commission prior to returning to City Council.
If the City Council chooses to apply one of these options, the action must be referred back to staff until analysis is complete, public participation is included, and the Planning Commission makes a recommendation to City Council. c. Truck Traffic
Concerns were raised about project related truck traffic using North Riverside Drive and/or West Spruce Avenue; specifically, whether trucks associated with other vendors could be restricted to only utilizing North Arthur Avenue.
Costco has expressed an intent to restrict all truck trips, includ ing those associated with other vendors, from using North Riverside Drive and to only utilize Arthur to access the site for loading and delivery purposes.
Restricting access and use of North Riverside Drive from truck traffic (including other vendors) could be applied to the project as a condition of approval.
2. Significant Environmental Impacts
As previously mentioned, the exist Lng West Shaw Avenue Costco, as approved on April 30, 1985 by the Fresno City Council under Site Plan Review Application No.
S-8451, was the very first to be located in the State of California. It’s also noted that the related initial study/environmental a ssessment prepared for the Shaw location resulted in a Negative Declaration. The activities and current impacts of the existing West Shaw Avenue Costco (namely traffic, GHG, & VMT) were not analyzed as they would under today’s standards, nor were mitigation measures approved or incorporated. The EIR prepared for the new project (Herndon & Riverside) fully analyzes the impacts and applies all feasible mi tigation measures to address these impacts.
April 4, 2024
Councilmember Arias asked what the specific environmental impacts did the EIR determine to be significant.
The EIR identified four (4) significant and unavoidable environmental impacts (Noise, Project VMT, Cumulative VMT, and Traffic Safety) that would result from the proposed project. However, the EIR did identify mitigation measures to be implemented to reduce adverse impacts. The significant and unavoidable impacts are as follows:
x Impact 3.11-1: Generation of a substantial temporary increase of construction noise levels in excess of applicable standards;
x Impact 3.13-2: Conflict or Be Inconsistent with CEQA Guidelines Section 15064.3, Subdivision (b) Regarding Vehicle Miles Traveled;
x Impact 3.13-3: Substantially Increase Hazards Due to a Geometric Design Feature (e.g., Sharp Curves or Dangerous Intersections) or Incompatible Uses (e.g., Farm Equipment); and
x Impact 4-13: Cumulative Transportation Impacts.
The following is an overview of the mitigation measures to be implemented.
a. Noise
According to Mitigation Measure 3.11-1, the project shall implement additional measures to reduce exposure to construc tion noise during noise-sensitive time periods. For all outdoor construction activity that is to take place outside of the City of Fresno construction noise exception timeframes (i.e., 10:00 p.m. and 7:00 a.m., Monday through Saturday, and all hours of the day on Sunday), and that is anticipated to generate interior noise levels at sensitive receptors that exceed the City of Fresno General Plan interior noise standard of 45 dB for residential land uses, the construction contractor shall comply with the measures which are described as follows:
x Obtain an exception to Article 1, “Noise Regulations,” through the Chief Administrative Officer (e.g. Noise Permit).
x Install temporary noise curtains as close as possible to the noise-generating activity.
x Use noise-reducing enclosures and techniques around stationary noise- generating equipment (e.g., concrete mixers, generators, compressors). x Operate heavy-duty construction equipment at the lowest operating power possible.
x Construction equipment with back-up alarms shall be equipped with either audible self-adjusting backup alarms or alarms that only sound when an object is detected.
x Provide a minimum of one week of advanced notice to owners of all residential located within 350 feet of where nighttime construction activity would take place.
April 4, 2024
According to Mitigation Measure 3.11-3, the project applicant shall construct a sound wall west of the loading docs or other noise attenuating feature with a demonstrated ability to result in a decrease at the easter Q property line of the existLng residences along North Riverside Drive.
According to Mitigation Measure 3.11-5, the project proponent shall implement traffic noise reduction measures to ensure that exterior noise levels at residential land uses near the west side of North Riverside Drive do not exceed the City’s current noise standard of 65 dB Ldn/CNEL under existing-plus-project conditions. This performance standard can be achieved using either of the two (2) following measures. If one option is not implemented, the other would be required.
x Pave the roadway segment (Riverside Drive) with rubberized hot-mix asphalt or equivalent surface treatment with known noise-reducing properties on top of the roadway surface. It’s noted that pavement will require more frequent than normal maintenance and repair to maintain its noise attenuation effectiveness. The applicant shall fund the incremental cost for maintaining the roadway segment with the surface treatment.
x Construct a sound barrier taller than the 6-foot cinderblock wall that is currently present from West Spruce Avenue to West Herndon Avenue. The sound barrier shall be constructed of solid material (e.g., wood, brick, adobe, an earthen berm, boulders, or combination thereof). Sound wall construction would only be implemented if all of the property owners on the west side of North Riverside Drive between West Herndon Avenue and West Spruce Avenue collectively agree to the mitigation.
Given there are no guarantees that all property owners will collectively agree to implementing the sound barrier mitigation measure, the project proponent (Costco) has confirmed that they will pave Riversi de Drive with rubberized hot-mix asphalt or equivalent surface treatment with known noise-reducing properties on top of the roadway surface.
b. Transportation and Circulation
Vehicle Miles Traveled (VMT) – Project and Cumulative
According to Mitigation Measure 3.13-2, Costco shall provide a mandatory commute reduction program for Costco employees that achieves at least a 26 percent reduction in employee VMT. The commute reduction program shall be provided to the City for approval prior to issuance of a certificate of occupancy. Actions may include measures from the most recent California Air Pollution Control Officers Association (CAPCOA) Handbook for Analyzing GHG Emissi on Reductions, Assessing Climate Vulnerabilities, and Advancing Health and Equity (Handbook) measures for reducing greenhouse gas emissions within the transportation sector.
April 4, 2024
Most of the measures quantified in the CAPCOA Handbook aim to reduce VMT and encourage mode shifts from single-occupancy vehicles to shared (e.g., transit) or active modes of trans portation (e.g., bicycle) (CAPCOA 2021). Although all transportation measures are provided below, not all are applicable or feasible given the implementation scale, nature of the proposed project, and/or limited jurisdictional authority of Costco, the applicant, to implement particular measures.
x Commute trip reduction marketing;
x Provide ridesharing program;
x Implement subsidized or discount transit program;
x Provide end-of-trip bicycle facilities;
Traffic Safety
According to Mitigation Measure 3.13-3, Costco shall provide off-site improvements to alleviate queuing that would result in transportation hazards prior to issuance of building permits. The off-site improvement to be provide are as follows:
1. Signal phasing at North Golden State Boulevard and West Herndon Avenue shall be revised to optimize green-time allocation relative to anticipated volumes.
2. “DO NOT BLOCK” pavement markings are required for the full width of North Weber Avenue to reduce queue blockage of the intersection.
3. On the north leg of the intersection (i.e., North Golden State Boulevard, northeast of West Herndon Avenue), reconstruct the median to extend the south bound dual left turn pocket as far north as possible without interfering with the existing north bound left-turn pocket at West Kathryn Avenue.
The mitigation measures outlined above ar e contained in the attached Mitigation Monitoring Reporting Program.
3. Additional Questions & Concerns
a. Netting
Recreational netting along West Spruce Avenue was described in the project description (Infrastructure Improvements section) of the EIR and shall therefore be required as part of the project.
With coordination with City of Fresno PARCs Department, the improvements/modifications to the golf course and installation of recreational netting shall be completed at Costco’s expense. Any new netting shall be consistent and compatible with improvements on the west property line of the golf course, along Riverside Drive.
April 4, 2024
Removing the recreational netting as a project requirement could result in traffic safety impacts and additional analysis could be required to analyze safety hazards resulting in errant projectiles (golf balls) entering the public right-of-way.
b. Removal of Carwash
Any modifications to the carwash (e.g. relocation/removal) would require subsequent entitlement applications to be processed by Planning and Development.
c. Costco to Provide
1. Data on effects on neighboring property values;
2. Renderings - what pr oject will look like from various vantage points;
3. Specifics on Community Investment – how much of the 1% pre-tax profit goes to charities in Fresno;
4. Letter from current property owner (Shaw Avenue location) - responsibility for releasing the building; and
5. Hours of Operation.
Exhibit A: Site Plan
Exhibit B: Shaw Costco Negative Declaration
Exhibit C: DPW Traffic Calming Measures
Exhibit D: MMRP
Exhibit E: Costco Supplemental Packet
cc: Kelli Furtado, Chief of Staff to the Mayor
Fresno Costco Commercial Center Project
MITIGATION MONITORING AND REPORTING PROGRAM
State Clearinghouse No. 2021100443
City of Fresno
February 2024
City of Fresno
Costco Commercial Center Project MMRP 1
MITIGATION MONITORING AND REPORTING PROGRAM
INTRODUCTION
CEQA and the State CEQA Guidelines (PRC Section 21081.6 and State CEQA Guidelines Sections 15091[d] and 15097) require public agencies “to adopt a reporting and monitoring program for changes to the project which it has adopted or made a condition of project approval to mitigate or avoid significant effects on the environment.” A Mitigation Monitoring and Reporting Program (MMRP) is required for the proposed project because the EIR identifies potential significant adverse impacts related to the project implementation, and mitigation measures have been identified to reduce those impacts.
PURPOSE OF MITIGATION MONITORING AND REPORTING PROGRAM
This MMRP has been prepared to ensure that all required mitigation measures are implemented and completed in a satisfactory manner prior to or as part of implementation of the proposed project. The attached table has been prepared to assist the responsible parties in implementing the mitigation measures. The table identifies the mitigation measures, monitoring responsibility, mitigation timing, and provides space to confirm implementation of the mitigation measures. The numbering of mitigation measures follows the numbering sequence found in the Draft EIR.
Mitigation measures that are referenced more than once in the EIR are not duplicated in the MMRP table.
ROLES AND RESPONSIBILITIES
Unless otherwise specified herein, the project applicant or its designee is responsible for taking all actions necessary to implement the mitigation measures under its jurisdiction according to the specifications provided for each measure and for demonstrating that the action has been successfully completed. The City of Fresno shall confirm implementation of all measures under its jurisdiction according to the specifications provided for each measure.
Inquiries should be directed to:
Steven Martinez, Planner II
City of Fresno Planning and Development Department
2600 Fresno Street, Third Floor, Room 3043
Fresno, CA 93721
Phone: (559) 621-8047
Email: [email protected]
The location of this information is:
City of Fresno
2600 Fresno Street, Third Floor, Room 3043
Fresno, CA 93721
MITIGATION MONITORING AND REPORTING PROGRAM TABLE
The categories identified in the attached MMRP table are described below.
X Mitigation Measure – This column provides the verbatim text of the adopted mitigation measure.
X Implementation Responsibility – This column identifies the party responsible for implementing the mitigation measure.
X Timing – This column identifies the time frame in which the mitigation will be implemented.
X Verification – This column is to be dated and signed by the person (either project manager or his/her designee) responsible for verifying compliance with the requirements of the mitigation measure.
April 4, 2024
City Council Members City
of Fresno
2600 Fresno Street
Fresno, CA 93721
Re: Costco Wholesale -7120 N Riverside Drive Reconsideration of Condition 15 related to netting at the Golf Course
Dear Fresno City Council Members:
Costco is requesting the City Council substitute condition of approval 15 related to protection of the site from errant golf balls with the following:
Because the proposed use is near a City-owned golf course, the applicant and the City shall work together on identifying and implementing safety measures (such as fences, nets, walls, or other methods) to protect occupants of the project site from errant golf balls.
Condition 15 as suggested by staff and included in Exhibit G attached to Staff Errata is as follows:
• To promote pedestrian safety and reduce the likelihood of property damage, whenever a proposed use contains, or is placed adjacent to, public or private outdoor facilities that provide batting cages, golf courses, golf-driving ranges, paintball, archery, or similar activities, the proposed use shall include fences, nets, walls, or other methods that are capable of stopping all projectiles fired and/or hit by containing or redirecting the projectile to a safe location Costco’s requested modification is extremely important to Costco for the following reasons:
• The condition is based on a code section that applies only to Private Recreational Sports Facilities. Costco is not such a facility nor is it located near one. The City Council has made a policy decision that the code section only applies to Private Recreational Sprots Facilities. If the condition is imposed as staff has proposed, it would set a precedent that the City may wish to avoid of installing netting, etc. for all projects near public recreation facilities, parks, etc. or for the City’s own projects to create or expand public recreational opportunities. • Costco is the party that raised to the City the issue of wishing to protect its members from errant golf balls, and Costco has been exploring the best methods
CITY COUNCIL
APRIL 18, 2024
COSTCO WHOLESALE RELOCATION – N. Riverside Drive
1. Off-Sit e Improvements
2. Site Specifics and Operations
3. Economics & Community
Ben
efits
CITY COUNCIL APRIL 18, 2024
OFF-SITE IMPROVEMENTSCity Council
Questions/Requests
CITY COUNCIL | page 2 of 14
APRIL 18, 2024
Off-Site Transportation Improvements
1. New traffic signal at W Fir Ave. and N Riverside Dr.
2. Upgrades to existing signal at N Riverside Dr. And W Herndon Ave.
3. New left turn pocket at Arthur from EB W Herndon Ave.
4. Construction of Arthur Ave.
5. Construction of W Spruce Ave connection
6. Expand NB lanes on N. Riverside Dr.
7. Underground overhead power lines on W Herndon Ave.
8. Underground overhead power lines on Arthur Ave.
9. Trail extension along W Herndon Ave and N Riverside Dr.
10. North Golden State Boulevard and West Herndon Avenue:
Revise signal, add median, and reconstruct the median to extend the south bound dual left-turn.
• What transportation
improvements are being
made?
• Request additional traffic
calming measures on
Spruce particularly at
Hayes and Polk.
*RIRO = Right-in/Right-out
• Spruce traffic calming measures
• Costco has reviewed the additional measures
proposed by City Public Works Staff and is amenable
to implementing as project conditions.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 3 of 14
APRIL 18, 2024
Truck Routing
• Confirm no delivery trucks
will utilize N. Riverside
Drive.
• Costco will not allow delivery trucks to utilize N. Riverside Drive • Delivery trucks will use Arthur Avenue via W. Herndon Avenue for site access and egress. The fuel trucks will loop onto Spruce Avenue to exit onto Arthur Avenue; they will be restricted from using N. Riverside. • The southernmost driveway on N. Riverside has been modified to be right in only and the design will physically prohibit trucks from utilizing this driveway. The driveway also shifted north to accommodate the landscaping along N. Riverside to extend the full length of the MDO’s west elevation. • Our off-site improvement plans also include signage to direct all deliveries to Arthur Avenue.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 4 of 14
APRIL 18, 2024
Queue Management
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 5 of 14
APRIL 18, 2024
Concepts without Car Wash
• Request for alternatives
site concepts if the car
wash is removed.
CAR WASH AS PARKING LOT
CAR WASH AS OUTPARCEL
• The Costco car wash
program is being
expanded nationally
and there is
demand for the
service in California
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 6 of 14
APRIL 18, 2024
Warehouse Operation
Warehouse and Car Wash Open:
• Monday through Friday from 9:00 a.m. to 8:30 p.m.
• Saturday and Sunday from 9:00 a.m. to 7:00 p.m.
Fuel Open:
• 5:00 a.m. to 10:00 p.m. daily
• The extended hours for fuel minimize demand during peak hours and spread activity across a longer period and reduce idling and queuing. • School busses pick up in the area at approximately 7:15 am. • What are the operating
hours of the Costco?
• What are car wash hours?
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 7 of 14
APRIL 18, 2024
EMPLOYEES -
• ~ 37 new full-time equivalents (FTE)
• 15% more employees
• Increase from 253 to 290 FTE
• Full-time employees are promoted from within
• Initially all employees hired as part-time
• Part-time is a minimum of 24 hours per week
• Benefits: All employees receive a comprehensive benefit package after 90 days
• Compensation: $18.50 to $34.00 per hour
• Retention Rate: Turnover is less than 18% annually
• How many jobs?
• Define part time.
• What is the average
retention rate?
• Explain compensation
package.
• Do part-time employees
get benefits?
Headcount by Years of Service – Fresno on Shaw Avenue
2023
2024
90% live in Fresno
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 8 of 14
APRIL 18, 2024
Community Benefits
Charitable Giving
• Local Programs – Costco donated approximately $80,000 cash in FY 22/23 to local organizations in Fresno including but not limited to Valley Children’s Hospital, Holy Cross Ministries, Fresno Central Seventh Day Adventist, and Bowe’s Animal Shelter.
• For the Valley Children’s Fundraising Campaign Area warehouses collectively raised over $9 Million during May 2023
• Costco’s 1% pre-tax profit charitable giving represents the company’s total cash donations throughout the company, including cash donations made by individual warehouses.
• What are the specifics of
Costco’s charitable giving
in Fresno?
• How much of the 1% pre-
tax profit goes to charities
in Fresno?
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 9 of 14
APRIL 18, 2024
Community Benefits – Local
Backpack Program
• 1,152 total backpacks donated in 22/23 - 768 backpacks to Jefferson Elementary 384 to Pinedale Elementary.
• Other schools that have participated in the program include Lawless Elementary and Madison Elementary.
Feeding America Donations
• The Fresno Shaw location donated over 203,000 lbs of food plus assorted items including clothing, to food banks in Fresno in FY23.
Reading Program
• 4 employees volunteer their time to read to students at a local elementary school. • Last year's school was Lawless Elementary, and Polk Elementary has participated in the past.
New Partner with Central Unified School District
• Reading program will now include Central schools.
• Central students will benefit from back-to-school supplies. • Food pantry will continue to support our families.
• Costco will participate in the CUSD’s CTE Business/Entrepreneurship pathway program. • Costco staff also expressed interest in being a guest speaker and participating in student job fair. • What schools got the
backpacks, how many?
• What are the specifics of
Costco’s charitable giving
in Fresno?
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 10 of 14
APRIL 18, 2024
Impact on Adjacent Home Values
• Does Costco have any data
on how a new store may
impact adjacent home
values?
• Costco does not regularly collect data regarding adjacent home values. • Costco team obtained data regarding home values in the vicinity of the new Clovis warehouse that opened in 2019.
• The data show the homes closest to Costco increased in value at a greater rate than homes appreciated in the area generally.
• In the three years after the Clovis Warehouse opening, home values within ¼ mile of the Costco increased
40.4%.
• By comparison, in the three years after the Clovis Warehouse opening, home values within 1 mile of the Costco increased 34.4%.
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 11 of 14
APRIL 18, 2024
Economic Benefits
• What are the economic
benefits of Costco’s new
location?
• Costco’s $98 million investment to relocate the Shaw Avenue Costco to N.
Riverside and W. Herndon within City limits will bring significant economic benefits to the City directly and indirectly during project construction and operation.
• Economic Impact Analysis prepared by the County of Fresno Economic Development Corporation (EDC) to assess the scale of economic benefit that would result from the relocated Costco.
• Additionally, Costco prepared a preliminary property tax assessment to understand the increased revenues associated directly with the increased property value.
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 12 of 14
APRIL 18, 2024
EDC – Economic Impact Analysis
• What are the economic
benefits of Costco’s new
location?
Construction Economic Impacts
• Economic benefit/contribution to gross regional product (GRP) • $151.76 million economic benefit over a 6-month construction duration. • Every construction $ spent equals $1.55 in economic output for the region. • Employing up to 100 temporary workers at its peak.
• Utilizing local city of Fresno General Contractor – helping to keep the dollars in Fresno. • Tax Revenue
• Approximately $12.95 million across federal, state, and local tax instruments. • Approximately $3.09 million (or 23.8 percent) will stay within Fresno County.
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 13 of 14
APRIL 18, 2024
EDC – Tax Revenue Analysis
• What are the economic
benefits of Costco’s new
location?
Operation Annual Economic Impacts
• Economic benefit/contribution to gross regional product (GRP) • Estimated $55.82 million annual economic benefit representing the project’s overall gross regional product (GRP) contribution to the regional economy. • Net increase of $4.06 million+ (approximately 7.84%) annually over the existing location on Shaw Avenue.
• 289 direct full-time equivalent (FTE) employees (net increase of approximately 21 FTEs). • Plus 116 indirect/induced jobs.
• Tax Revenue
• $15.21 million annually across federal, state, and local tax instruments with a net increase over
1.11 million based on a 7.84% increase.
• Approximately $4.37 million (or 28.7 percent) annually will stay within Fresno County. • Costco expects that the projected tax revenue is underestimated given our sales have increased an average of 15% at other recent relocations.
ECONOMICS AND COMMUNITY BENEFITSCity Council
Questions/Requests
CITY COUNCIL | page 14 of 14
APRIL 18, 2024
Economic Benefits – Property Tax Local Revenue
• What are the economic
benefits of Costco’s new
location?
Costco prepared a preliminary assessment of revenues changes associated directly with an increased property value from the project site. • Property tax revenue specific to increased property value is estimated at over $1 million annually (shared between the County and City).
• Property Value estimated change from $1.4 million to $98 million • Property Tax Revenue (base tax of 1%) change from $14,000 to $980,000 +$965,000 per year to City/County combined
• City portion change from <$5,000 to between $200,000 to $300,000 per year* • CUSD bond revenue change from <$3,000 to over $210,000 * The City and County split the one percent and we were not able to get the specific split.
CITY COUNCIL
APRIL 18, 2024
EXTRAS - REFERENCE
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 16 of 14
APRIL 18, 2024
Site Renderings - Intersection of W. Herndon & N. Riverside looking toward the new Costco. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 17 of 14
APRIL 18, 2024
Site Renderings - Looking toward the new Costco across N. Riverside. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 18 of 14
APRIL 18, 2024
Site Renderings - Looking toward the new Costco across N. Riverside at the new signal. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 19 of 14
APRIL 18, 2024
Site Renderings - View of Costco and parking lot from Arthur entrance. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 20 of 14
APRIL 18, 2024
Site Renderings - Looking across Spruce toward the car wash. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 21 of 14
APRIL 18, 2024
• Request for visual
simulations from several
viewpoints around the
site.
Site Renderings - Looking across Spruce toward the fuel station.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 22 of 14
APRIL 18, 2024
Site Renderings - View of Costco and parking lot from Arthur entrance. • Request for visual
simulations from several
viewpoints around the
site.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 23 of 14
APRIL 18, 2024
Warehouse Elevations
• Project elevations as they
were not provided in the
City Council staff report
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 24 of 14
APRIL 18, 2024
Fuel Station Elevations
• Project elevations as they
were not provided in the
City Council staff report.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 25 of 14
APRIL 18, 2024
Car Wash Elevations
• Project elevations as they
were not provided in the
City Council staff report.
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 26 of 14
APRIL 18, 2024
VMT Reduction Measures Costco will implement from Mitigation Measure
3.13-2 include:
• Commute Trip Reduction Marketing (up to ~4% employee VMT reduction) including the following features (or similar alternatives):
• on-site or online commuter information services,
• employee transportation coordinators,
• on-site or online transit pass sales,
• and guaranteed ride home service.
• Ridesharing Program (up to ~8% employee VMT reduction) • Subsidized or Discount Transit Program (up to ~5.5% employee VMT reduction)
• End-of-Trip Bicycle Facilities (up to ~4.4% employee VMT reduction) • Improve Street Connectivity (up to ~30 percent employee VMT reduction)
• Pedestrian Network Improvements/Construct Bike
Facilities/Expand Bikeway Network (up to ~10% employee VMT reduction)
Transportation VMT Mitigation (continued)
• How does this project not
trigger the need for
additional VMT
mitigation?
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 27 of 14
APRIL 18, 2024
Impact 3.13-2 and 14-13: Conflict or Be Inconsistent with CEQA Guidelines Section 15064.3, Subdivision (b) Regarding Vehicle Miles Traveled for both the project and cumulative conditions.
• As discussed above, The primary source of daily VMT is warehouse shopping by Costco members. Members purchase items in bulk at Costco facilities, making walking, biking, or transit trips to the warehouse impractical.
• Bulk shopping generally requires access to a personal automobile and is often a single-destination outing. Mitigation that would substantially reduce the VMT of Costco members is infeasible due to the nature of Costco’s land use and business model, which is inherently auto-oriented .
Significant and Unavoidable Impacts – VMT Project and Cumulative • What are all the Significant
and Unavoidable Impacts
associated with the
project?
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 28 of 14
APRIL 18, 2024
Impact 3.13-3: North Golden State Boulevard and West Herndon Avenue intersection overflow Note: This is only a project impact as it is mitigated to a less- than-significant level under cumulative with other planned improvements including high-speed rail.
• The southbound left-turn queue at the North Golden State Boulevard and West Herndon Avenue intersection would overflow the available storage for the turn pocket.
• As discussed in the EIR constraints including the existing roadway layout, limited right-of-way and approved projects such as Highspeed Rail in the area preclude additional design features to fully address this impact.
• Spillback condition would occur during the most congested period of the day and would not be a continuous condition.
• This would remain a transportation hazard with mitigation until the planned High Speed Rail improvements are constructed. (Draft EIR p.
3.13-21)
Significant and Unavoidable Impacts – Hazards Due to a Geometric Design Feature • What are all the Significant
and Unavoidable Impacts
associated with the
project?
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 29 of 14
APRIL 18, 2024
EMPLOYMENT -
Benefits
• All Employees Eligible, 90 days after start date,
including Full-time and Part-time employees
• Medical, Dental, and Vision with low out-of-pocket
premiums and copays
• Paid bonding leave
• Health care reimbursement account
• Dependent care reimbursement account
• Voluntary short-term disability
• Long-term disability
• Life insurance and AD&D insurance
• Employee assistance program
• Employee stock purchase plan
• 401(k) plan - match employee contributions up to 5k
a year.
• Programs to support physical, emotional, and
financial well-being
• Explain compensation
package.
• Do part-time employees
get benefits?
Compensation
• $18.50 to $34.00 per hour
Paid Time-off
• Paid sick and vacation time
• Eight paid holidays
• One paid floating holiday to allow
employees to observe a day that’s
meaningful to them, e.g., Juneteenth,
Indigenous Peoples Day, Veterans Day
We take care of our employees!
SITE SPECIFICS AND OPERATIONS
City Council
Questions/Requests
CITY COUNCIL | page 30 of 14
APRIL 18, 2024
Concepts without Car Wash
• Request for alternatives
site concepts if the car
wash is removed.
CAR WASH AS PARKING LOT
CAR WASH AS OUTPARCEL
CEQA
City Council
Questions/Requests
CITY COUNCIL | page 31 of 14
APRIL 18, 2024
Impact 3.13-2: proposed project would result in a net increase of 129,326 regional daily VMT.
• Costco will implement Mitigation Measure 3.13-2 as detailed in the Final EIR, prepared by Ascent, the EIR consultant hired and contracted with the City, which requires Costco to implement the listed VMT measures to reduce employee VMT by a minimum of 26 percent.
• Employee trips account for less than 2 percent of the project’s daily trips and less than 7 percent of the VMT (13,385 of 129,326 overall project VMT) • Reduction in employee VMT will have minimal impact on the overall increase in VMT. The mitigation measure will reduce the project’s VMT by approximately 3,500 of 129,326 daily VMT.
• Given the limits of reducing members’ VMT given the nature of Costco shopping, it is not possible to reduce VMT at a meaningful level and in any way that reduce this impact to a less-than-significant level.
• The project will provide bike parking as does the Clovis warehouse.
Transportation VMT Mitigation
• How does this project not
trigger the need for
additional VMT
mitigation?
• Does new store in Clovis
have bike racks for
customers and in stores?
CEQA
City Council
Questions/Requests
CITY COUNCIL | page 32 of 14
APRIL 18, 2024
Mitigation Measure 3.11-5: Implement noise reduction measures to ensure that exterior noise levels at residential land uses near the west side of North Riverside Drive do not exceed the City’s 65 dB :
• Pave the roadway segment with rubberized hot-mix asphalt or equivalent surface treatment with known noise-reducing
properties on top of the roadway surface.
• Construct a sound barrier taller than the 6-foot cinderblock wall, of solid material.
• Costco will utilize rubberized hot-mix asphalt (underlined above) if mitigation is needed to meet 65 dB SNEL
• Given Costco has committed to requiring all delivery trucks to access the site from Arthur Avenue and not utilize N. Riverside east of W.
Herndon Avenue, the noise associated with trucks and single event noise is not expected to exceed 65 dB SENL
EIR Mitigation Measure with Options
• For EIR Mitigation
Measures with options,
what option will Costco
implement?
o Applies to Mitigation
Measure 3.11-5
o No other mitigation
measures list options that
could stand alone from one
another.
o Note all text excerpted
from the EIR is shown in
blue italic type.
CEQA
City Council
Questions/Requests
CITY COUNCIL | page 33 of 14
APRIL 18, 2024
Impact 3.13-2: proposed project would result in a net increase of 129,326 regional daily VMT.
• Costco will implement Mitigation Measure 3.13-2 as detailed in the Final EIR, prepared by Ascent, the EIR consultant hired and contracted with the City, which requires Costco to implement the listed VMT measures to reduce employee VMT by a minimum of 26 percent. • Employee trips account for less than 2 percent of the project’s daily trips and less than 7 percent of the VMT (13,385 of 129,326 overall project VMT)
• Reduction in employee VMT will have minimal impact on the overall increase in VMT. The mitigation measure will reduce the project’s VMT by approximately 3,500 of 129,326 daily VMT. • Given the limits of reducing members’ VMT given the nature of Costco shopping, it is not possible to reduce VMT at a meaningful level and in any way that reduce this impact to a less-than-significant level. • The project will provide bike parking as does the Clovis warehouse.
Transportation VMT Mitigation
• How does this project not
trigger the need for
additional VMT
mitigation?
• Does new store in Clovis
have bike racks for
customers and in stores?