The Downey City Council in California gave the green light to a development agreement that clears the way for a new Costco warehouse with an attached gas station, though the decision fell short of winning over every resident in the area.
The project will rise along Firestone Boulevard, on a roughly 13.6-acre parcel that currently houses the former All American Home Center site and the Downey Nissan dealership, which will need to relocate before construction begins. Officials estimate the redevelopment package will cost around $10.5 million, involving Costco Wholesale Corp., the dealership, and the owners of the surrounding properties.
Local officials defended the initiative as an economic opportunity for the city. Mayor Pro Tem Horacio Ortiz Jr. voiced his support on social media, arguing the project will create hundreds of jobs and bring in new revenue to help fund essential municipal services.
Residents split over the new location
Not everyone shared the official enthusiasm. On social media, several residents questioned the need for a third nearby warehouse, pointing out that Costco already operates locations just minutes away in the neighboring cities of Norwalk and Lakewood. Some even suggested they’d rather see a different chain, like Trader Joe’s, move into the area instead of another Costco.
Others welcomed the news. They argued that the existing nearby stores are often overcrowded, and that the parking lot at the Norwalk location has become especially difficult to navigate since a recent redesign — making the new store, in their view, a welcome addition.
What’s left before the project becomes reality
Despite the agreement’s approval, the project still faces several hurdles before construction can start. Costco must complete an environmental review under the California Environmental Quality Act (CEQA) and go through the city’s entitlement process, steps that officials expect could take up to a year.
Only after those approvals can the dealership relocation move forward, followed by construction of the new warehouse. As a result, the Downey store’s opening remains several years away.