Bulk retail giant Costco eyes former Army base site for massive Oakland warehouse

A Costco sized comeback looks like it’s in the works for Oakland.

The bulk-buying behemoth is moving closer to opening its first warehouse in Oakland, with newly filed plans revealing a massive store that could bring roughly 400 jobs and millions in tax revenue.

The proposed retail warehouse will span a whopping 166,800 square feet at the intersection of West Grand Avenue and Wake Avenue, taking over a dormant stretch that once served as a U.S. Army base, according to planning documents first reported by the East Bay Times. The chain’s Bay Area location will also boast a gas station and a whopping 947 parking spaces.

Under the proposal, the warehouse would operate seven days a week.

But the real prize for Oakland could be economic windfall.

“Costco represents a significant economic development opportunity that is expected to generate approximately $3 million in annual General Fund revenue, create an estimated 400 high quality jobs with competitive wages and benefits, expand access to affordable goods and services for Oakland residents and businesses, and strengthen the City’s retail tax base,” city documents read.

The jobs are expected to pay $32 per hour on average, come with benefits, and provide room for growth.

The warehouse would also finally give Oakland residents a Costco to call their own — despite having 90,000 Costco members living within the city limits. The city estimates that those members spend an estimated $270 million annually at Costco, with those dollars going to nearby cities instead of Oakland.

The latest plans follow a July vote by the Oakland City Council approving a two-year exclusive negotiating agreement with Costco for approximately 23 acres of city-owned land. Under the arrangement, Costco agreed to pay Oakland $300,000 for the negotiating period, with the possibility of two additional six-month extensions costing $25,000 apiece.

Mayor Barbara Lee has touted the proposal as a potential economic game-changer.

“This Exclusive Negotiation Agreement gives Oakland the opportunity to explore a transformative economic development project that could create hundreds of quality jobs, generate millions in revenue for city services, and bring new investment to the former Army base,” Lee told the San Francisco Standard in June.

The proposal has already stirred excitement among Bay Area residents, who see the store as a major bright spot. The project remains in the planning stages.

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