Judge Charles Adams rejected the group\u2019s arguments in a 28-page ruling delivered Jan. 5. The plaintiffs have roughly two months to file an appeal, according to a legal expert familiar with the case.<\/p>\n \u201cWest Valley Citizens for Responsible Development is understandably disappointed by the trial court\u2019s decision, and is currently evaluating all options for possible next steps,\u201d Anthony Arger, an attorney representing the group, told San Jos\u00e9 Spotlight.<\/p>\n Meanwhile,\u00a0City Attorney Susana Alcala Wood<\/a>\u00a0celebrated the ruling as \u201cthorough and thoughtful.\u201d She also accused the plaintiffs of using the legal challenge over environmental concerns as a pretext to \u201cobstruct or delay\u201d the project.<\/p>\n \u201cThe decision means that this project can move forward, which will serve to revitalize and reuse existing empty and vacant commercial buildings, and generate sales tax that helps provide city services for residents,\u201d Wood told San Jos\u00e9 Spotlight.<\/p>\n Costco representatives did not respond to a request for comment.<\/p>\n Residents have been up in arms over the proposed Costco ever since\u00a0development plans<\/a>\u00a0for the site at 5287 Prospect Road first surfaced in 2021. They have warned\u00a0the introduction of such a large retailer to the shopping center<\/a>, which neighbors Prospect High School, would\u00a0create severe traffic safety risks<\/a>\u00a0in the surrounding neighborhoods.<\/p>\n In their lawsuit, the resident group alleged the project\u2019s environmental impact report, a review required by state law, failed to account for all the potential impacts the development might bring. In addition to traffic, the group pointed to potential impacts related to air quality, noise pollution, strains on public services and urban decay, among other issues.<\/p>\n The lawsuit also contended the project is inconsistent with San Jose\u2019s general plan and the site\u2019s zoning designation.<\/p>\n The court rejected both arguments. In a wide ranging opinion, Adams dismissed multiple legal claims advanced by plaintiffs, including their allegation that the city had failed to provide adequate responses to comments from residents on a draft environmental report.<\/p>\n \u201cPetitioner has not established that any error in the City\u2019s response would be prejudicial,\u201d Adams wrote. \u201cWhen viewed as a whole, the (environmental report) reflects a good faith effort at full disclosure.\u201d<\/p>\n Costco officials have previously said they estimate the project would bring 250 to 300 jobs to San Jose and generate about $2 million in annual tax revenue. In the face of public backlash, the company also made several changes to its development proposal. That includes a pledge to spend $2.5 million toward pedestrian and bike safety improvement work \u2014 such as path widening and crosswalk modifications \u2014 along Lawrence Expressway, which is west of the shopping center. Additionally, part of the shopping center\u2019s parking area will be reconfigured to close off a driveway on Graves Avenue that opens into a residential area.<\/p>\n The Costco will replace buildings that have housed Ethan Allen Furniture Company, Bikram Yoga San Jose, Smart & Final and Orchard Supply Hardware, all of which will be demolished. The project will be the first U.S. location with rooftop parking, according to Costco, and will include a tire center.<\/p>\n Responding to the ruling, District 1 Councilmember Rosemary Kamei, whose district includes the shopping center, highlighted the expected economic benefits the Costco could bring to the city.<\/p>\n \u201cThe court\u2019s decision allows a project to proceed that brings very significant public benefits \u2014 including millions of dollars for pedestrian safety supporting students in the area \u2014 and replaces longstanding blight with an economically beneficial use,\u201d Kamei told San Jos\u00e9 Spotlight.<\/p>\n Costco is still in the process of obtaining building permits for the project, according to a spokesperson for the Department of Planning, Building, and Code Enforcement. Once construction gets underway, the project is expected to take 21 months, officials have said.<\/p>\n Contact Keith Menconi at\u00a0keith@sanjosespotlight.com\u00a0or @KeithMenconi on X.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/01\/1769166309_618_LNM-20250616-SJSPOTLIGHTLOGO-01.jpg\")
<\/a><\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/01\/LNM-20261020-SJCOSTCO-02.png\")
Renderings of the Costco proposed at 5287 Prospect Road in West San Jose. (Image courtesy of San Jose via San Jose Spotlight)<\/p>\n