San Jose leaders approve Costco amid resident uproar

San Jose officials have greenlit the long-planned Westgate West Costco warehouse in what some residents describe as a once-thriving shopping center.

While the San Jose City Council unanimously approved plans — with recusals from Councilmembers Pam Foley due to a financial conflict and Arjun Batra, who owns Costco shares — the decision was met with disappointment from dozens of neighbors who packed the council chambers Tuesday. The residents wore green shirts reading “Save West Valley.”

Since forming the grassroots organization last year, members of Save West Valley! have rallied against the proposed Costco — claiming the additional traffic will bring safety concerns to the neighborhood surrounding Prospect High School.

Costco Real Estate Development Director Michael Okuma said the company made modifications to the original Westgate West Costco plans to accommodate residents’ concerns, including a $2.5 million pledge toward pedestrian and bike safety along Lawrence Expressway.

“We’re improving the pedestrian path at Graves (Avenue), from Graves to Prospect (Road) along Lawrence (Expressway), improving the Lawrence driveway intersection,” Okuma said Tuesday. “I want to also thank you, Vice Mayor (Rosemary Kamei), for coordinating the effort to identify the set of crews to increase pedestrian safety and help minimize the distance across.”

But residents remain unconvinced even with these improvements.

“This project contradicts San Jose’s vision toward neighborhoods. Instead of a transit-oriented, pedestrian-friendly urban village, we face a big box warehouse generating massive traffic congestion,” resident Emily Ding said Tuesday. “Please prioritize our community’s safety and livability over this ill-fitted development.”

Residents at the meeting accused city leaders of acting in the interests of Costco, but Mayor Matt Mahan said the decision to approve a new Costco was not out of support for big business.

Mahan said the four pages of conditions Costco and city officials agreed upon are the most conditions he’s seen for such a project since becoming mayor.

“We have a need, over time, for things like jobs and housing,” he said at the meeting. “This is a conditional use permit, after being built there will also be a certificate of occupancy. So there are legal entitlements we are giving to someone if they pass — they come with certain obligations and some rights to enforce.”

City employees said they have the right to revoke Costco’s permit should the company violate the conditions negotiated in the plan.

Kamei, who represents the district, said she worked closely with the transportation department to ensure the $2.5 million pledged by Costco was sufficient to pay for the improvements residents wanted.

“It doesn’t address all four corners (of the street), but it does address the two corners necessary to provide improvements,” Kamei said at the meeting. “So I will be committed to look for other types of funding safer routes to school. I am also committed to ensuring that the students at Country Lane are safe.”

Councilmember Domingo Candelas, who lives near a Costco, said the warehouse brings economic vibrancy and value to the area.

“I also appreciate that the city will assess traffic flow and the impact after the Costco is built, which will help our (transportation department) better assess the impacts as a city,” he said Tuesday.
Some residents called for the street behind the Westgate West Costco, Graves Avenue, to be closed during business hours as a way of directing traffic away from neighborhoods, with one nearby resident describing the area as “ground zero” for the potential traffic congestion.

San Jose Chamber of Commerce President and CEO Leah Toeniskoetter was among business owners and advocates who said the economic benefits and jobs that will be made possible by the upcoming 165,000-square-foot warehouse will be felt citywide.

She said Costco has shown to be a partner with the city over the past three years of planning.

“If existing shopping centers like Westgate West cannot add new retail to remain competitive, it does pose a significant economic challenge for us,” Toeniskoetter said.