Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved plans for Costco to construct two large warehouses just outside the city limits, pending final approval from San Joaquin County. This development will feature a 1.2 million square foot warehouse and another exceeding half a million square feet, creating around 400 construction jobs and 250 permanent roles once completed. Additionally, it is expected to generate nearly $4 million in sales tax revenue for the city, contributing to local parks and infrastructure improvements while aligning with sustainability goals.
California – The Tracy City Council has approved plans for Costco to build two large warehouses just outside the city limits, pending final approval from San Joaquin County. This development reflects the ongoing growth of warehouse and distribution facilities in the area, which has become a strategic hub for e-commerce and online shopping.
The approved project is located near the southeast corner of Schulte and Hansen roads and includes the construction of a 1.2 million square foot warehouse alongside another warehouse exceeding half a million square feet. This development is expected to create approximately 400 construction jobs during the building process.
Once completed, the new warehouses will bring about 250 permanent jobs to the local economy. Additionally, the project is estimated to generate nearly $4 million in additional sales tax revenue for the city of Tracy, funds that could be utilized for parks and infrastructure improvements.
The land intended for development is currently zoned for agriculture, necessitating county approval for annexation into Tracy city limits. This process could take approximately 3 to 4 months, and if the annexation is granted, the construction project is expected to take around two years to complete, assuming there are no complications.
In a commitment to sustainability, Costco has indicated that the new warehouses will operate on 100% renewable energy, aligning with broader environmental goals. San Joaquin County Supervisor Robert Rickman highlighted that the growth of suburban areas typically includes the annexation of county land for development, illustrating a trend towards urban expansion.
In recent years, Tracy has seen significant growth, particularly in the wake of increasing demand for warehouse space driven by the rapid rise of e-commerce. The city has transformed considerably, attracting more warehouse and distribution facilities due to its advantageous location near major highways and transportation hubs, making it an attractive site for logistics companies.
This latest Costco development underscores the continued trend of Tracy’s growth within the distribution sector, promising new economic opportunities for the community.
FAQ
What warehouses is Costco planning to build in Tracy, California?
Costco plans to build two large warehouses just outside the city of Tracy, California, including a 1.2 million square foot warehouse and another over half a million square feet.
How many jobs will the Costco warehouses create?
The construction of these warehouses is expected to create 400 construction jobs and approximately 250 permanent jobs once the project is completed.
What is the expected sales tax revenue from the Costco project?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy.
How long will the annexation and construction process take for Costco warehouses?
The approval process for the land annexation could take 3 to 4 months, while the construction project is expected to take about two years to complete without issues.
Key Features of Costco Warehouse Project in Tracy
| Feature | Details |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads |
| Warehouse Size | 1.2 million square feet and over half a million square feet |
| Construction Jobs Created | 400 construction jobs |
| Permanent Jobs Created | Approximately 250 jobs |
| Sales Tax Revenue | Nearly $4 million |
| Annexation Approval Time | 3 to 4 months |
| Construction Duration | About two years |
| Energy Source | 100% renewable energy |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco
- Wikipedia: Warehouse
- Modesto Bee: Costco Warehouse Development
- Google Search: Costco warehouse Tracy
- Tracy Press: Industrial Annexation Proposal
- Google Scholar: California warehouse development
- Insurance Journal: Warehouse Industry Trends
- Encyclopedia Britannica: Costco
- CNBC: Amazon and Fulfillment Centers in Tracy
- Google News: Costco Tracy California
Author: STAFF HERE COSTA MESA WRITER
The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
