New Costco approved in California, but some locals say location is 'unnecessary'

A new Costco warehouse and gas station are one step closer to coming to Downey, California, after city leaders approved a development agreement for the project, though not everyone is convinced the area needs another location.

The Downey City Council recently voted to move forward with plans for the new warehouse on Firestone Boulevard. City officials say the development is expected to create hundreds of jobs and generate new revenue for public services.

Mayor Pro Tem Horacio Ortiz Jr. praised the project in an Instagram post, calling it an investment in the city's future.

"The Costco project will create hundreds of jobs, generate new revenue for essential city services, and strengthen our city's future," Ortiz Jr. wrote.

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The announcement drew mixed reactions from residents, with several questioning why another Costco is needed when warehouses already operate in nearby cities of Norwalk and Lakewood.

"Do y'all really need a Costco when the one at Norwalk is a 15 minute drive away?" one commenter wrote.

Another added, "We want a Trader Joe's not another Costco."

Others welcomed the project, arguing nearby Costco locations are often overcrowded and difficult to navigate.

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"The Norwalk Costco has been a nightmare since they redid the parking lot," another resident wrote. "Happy to welcome one to Downey."

According to local reports, the project includes relocating the existing Downey Nissan dealership before construction begins on the new Costco. The warehouse and gas station would be built on roughly 13.6 acres that include the former All American Home Center site and the current dealership property.

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The redevelopment package is expected to cost about $10.5 million and involves Costco Wholesale Corp., Downey Nissan and the owners of the surrounding properties.

The retailer still faces several steps before construction can begin. The project must complete a California Environmental Quality Act review and the city's entitlement process, which officials expect to take up to a year. Construction of the relocated dealership and the new Costco warehouse would follow, putting the store's opening several years away.