Prepared for Urban Planning Partners, Inc.
Costco Relocation Project
Economic Impact Analysis
Prepared by:
Spencer Bremer, Research Analyst
Ross Williams, Research Analyst
information is valuable for all stakeholders, public and private, allowing them to weigh the potential benefits and drawbacks of relocation and make informed decisions regarding business expansion and/or economic development strategies. Overall, IMPLAN's prevalence in relocation impact analysis stems from its ability to provide comprehensive and reliable insights into the economic consequences of relocation decisions.
About the Fresno County Economic Development Corporation The Fresno County Economic Development Corporation is a private non-profit organization established to market Fresno County as the premier location for business prosperity. We facilitate site selection for new businesses and assist in the retention and expansion of local businesses within Fresno County.
To learn more, visit www.fresnoedc.com
Spencer Bremer, Research Analyst
Ross Williams, Research Analyst
CITY COUNCIL
APRIL 18, 2024
COSTCO WHOLESALE RELOCATION – N. Riverside Drive
1. Off-Site Improvements
2. Site Specifics and Operations
3. Economics & Community
Benefits
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?