An artist’s rendering of the proposed Costco warehouse at Herndon Avenue and Riverside Drive in Northwest Fresno. Draft EIR image
published on May 21, 2026 – 4:38 PM
Written by Ben Hensley
A two-year effort to relocate Fresno’s Costco warehouse cleared a major hurdle Thursday when the Fresno City Council unanimously approved plans to move the store to Northwest Fresno near the developing Marketplace at El Paseo shopping center.
Meanwhile, a new location opened in Tulare County.
Fresno relocation
The council voted 5-0 to approve a conditional use permit authorizing construction of a 219,216-square-foot Costco warehouse, including a car wash and a fueling depot with 32 pumps. The project would relocate the existing Costco on Shaw Avenue, which has operated since 1985.
Councilmember Mike Karbassi, whose district includes the proposed site, said concerns about traffic flow have been addressed through planning and infrastructure improvements tied to the project.
Karbassi pointed to growth across Northwest Fresno, highlighting the reconfiguration of Herndon Avenue, expanded transit service to the Marketplace at El Paseo and continued residential and commercial development in the area.
“One of my priorities was to expand bus service,” Karbassi said, thanking the department of transportation for its assistance. “It [the bus route] actually goes to the El Paseo shopping center, which is just cattycorner — within walking distance — of the current Costco.”
Karbassi said Herndon Avenue will transition from an expressway to a designated super-arterial roadway as part of broader infrastructure upgrades, allowing for additional turn lanes and improved traffic flow.
Other infrastructure changes
Among the planned improvements: resurfacing and restriping portions of Herndon Avenue between Riverside Drive and Hayes Avenue, additional left- and right-turn lanes, a new traffic signal at Riverside Drive and Fir Avenue, and shared-use pedestrian paths.
A new roadway, Arthur Avenue, will be constructed to reroute truck traffic away from residential neighborhoods west of the proposed site. Traffic-calming measures are also planned along Spruce Avenue, including a new roadway connection between Riverside Drive and Hayes Avenue along the north side of the development.
The proposal avoided at least one potential source of opposition. Representatives from the project and Central Unified School District held multiple meetings in 2024, and the district raised no concerns with the project.
Second chance
Fresno Mayor Jerry Dyer praised the council’s decision.
“I applaud the Fresno City Council’s decision to approve the Costco project,” Dyer said. “This has been a highly anticipated development in our community, and we look forward to seeing the new and improved Costco move forward.”
The project was first proposed in 2024 and initially billed as the largest Costco location in the world before it was halted by a joint lawsuit filed by Friends of Calwa and Fresno Building Healthy Communities. A court ruled that Fresno had failed to follow state environmental law, citing zoning violations and flawed environmental reviews.
Costco on the move in the Valley
Just hours before Thursday’s vote, Costco opened its second Visalia store, at the corner of Riggin Avenue and Shirk Street. The location includes the first Costco car wash in the Central Valley and a 32-pump fueling station.
The City of Visalia said in an Instagram post that Costco is among the city’s top employers and plays a significant role in the local economy.
“This new location brings added convenience to residents in North Visalia and surrounding communities while helping drive future growth and development along this corridor,” the post reads.
The Visalia store is among 28 new warehouses projected to open in 2026, part of a long-term company strategy targeting 30 or more new Costco warehouses over the next decade.