Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved plans for Costco to build two large warehouses just outside the city. This project, pending county approval, includes a 1.2 million square foot warehouse and another over half a million square feet. It is expected to create 400 construction jobs and 250 permanent positions, generating nearly $4 million in sales tax revenue for local improvements. The warehouses will operate on 100% renewable energy, contributing to the city’s economic growth and sustainability efforts.
Tracy, California has approved plans for Costco to build two new large warehouses just outside the city limits. This decision was made by the Tracy City Council last week, pending approval from the county. The warehouses will be located near the southeast corner of Schulte and Hansen roads, as part of an expansion project that is expected to have substantial economic benefits for the city.
The proposed project includes a 1.2 million square foot warehouse and another warehouse of over half a million square feet. This significant construction effort is expected to create 400 construction jobs, providing a boost to the local workforce. Additionally, upon completion, Costco anticipates adding approximately 250 permanent jobs to the region, further contributing to economic growth.
The warehouses are projected to generate nearly $4 million in additional sales tax revenue for Tracy. The city plans to allocate these funds towards parks and infrastructure improvements, enhancing public amenities and services for residents.
Currently, the land designated for development is zoned for agriculture, which requires county approval for annexation into the Tracy city limits. This process is expected to take approximately 3 to 4 months. If all goes smoothly, the construction of the warehouses is projected to take around two years to complete.
In a push towards sustainability, Costco has committed to ensuring that the new warehouses operate on 100% renewable energy. This aspect aligns with broader environmental goals and reflects a growing trend among businesses to adopt more sustainable practices.
Tracy has experienced considerable growth in the warehouse and distribution sectors due to its strategic location near major highways and transportation hubs. The city has undergone a transformation over the years, influenced by the surge in e-commerce and online shopping, positioning it as a key player in the logistics and distribution industry.
Background Context
The approval of Costco’s plans represents a significant step in Tracy’s development, continuing a trend of growth in the logistics sector. San Joaquin County Supervisor Robert Rickman has noted that city growth frequently necessitates annexing agricultural land from the county for development purposes. As communities evolve, the balance between maintaining agricultural lands and accommodating new commercial enterprises becomes increasingly relevant.
The ongoing expansion of warehouse facilities is part of a larger phenomenon affecting many regions across California and the nation as e-commerce continues to rise. The demand for efficient logistics and distribution capabilities is expected to persist, driving further development in places like Tracy.
FAQ
Where will the Costco warehouses be built?
The proposed location is near the southeast corner of Schulte and Hansen roads, just outside the city of Tracy, California.
How many jobs will be created by the 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 economic impact of the project?
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.
How long will the annexation and construction process take?
The approval process for the land annexation could take 3 to 4 months, and the construction project could take about two years to complete if there are no issues.
Will the warehouses utilize renewable energy?
Yes, Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
Key Features of the Project
| 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 |
| Permanent Jobs Created | 250 |
| Sales Tax Revenue | $4 million estimated |
| Renewable Energy Usage | 100% renewable energy for operations |
| Annexation Approval Time | 3 to 4 months |
| Construction Duration | Approximately 2 years |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco
- Modesto Bee: Costco Warehouses in Tracy
- CNBC: Amazon and Fulfillment Centers in Tracy
- Wikipedia: Tracy, California
- Google Search: Costco warehouses Tracy California
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
