Tracy, California, September 19, 2025 News Summary The Tracy City Council has approved Costco’s plans to construct two large warehouses on the southeast corner of Schulte and Hansen roads. The development, pending county approval, includes a 1.2 million square foot warehouse along with another structure over 500,000 square feet. It is expected to generate 400 construction jobs and 250 permanent positions while contributing $4 million in annual sales tax revenue to the city. This project emphasizes sustainability with Costco committing to operate on 100% renewable energy. Tracy, California – The Tracy City Council recently approved Costco’s plans to build two large warehouses just outside the city. This decision, made last week, is pending approval from the county and represents a significant step towards expanding the city’s limits. The proposed location for these warehouses sits near the southeast corner of Schulte and Hansen roads. Costco’s development includes a 1.2 million square foot warehouse alongside another structure that exceeds half a million square feet. The construction of these warehouses is expected to generate 400 construction jobs during the build phase. Once completed, approximately 250 permanent jobs with Costco will be available, providing a boost to the local employment market. This project is estimated to generate nearly $4 million in additional sales tax revenue for the city of Tracy. The city plans to use this revenue to fund parks and improve infrastructure, contributing to better community facilities and services. The land earmarked for development is currently classified as agricultural and must undergo a county approval process for annexation into Tracy’s city limits. San Joaquin County Supervisor Robert Rickman pointed out that city growth often incorporates the annexation of county land to accommodate developments of this nature. The approval process for the annexation is anticipated to take between three to four months, while the actual construction project is expected to take about two years to complete, provided there are no significant issues during the process. Costco has made a commitment that the new warehouses will operate using 100% renewable energy. This aligns with broader trends in creating sustainable warehouses and distribution facilities. The development plan reflects a general growth trend in Tracy, a city that has become increasingly attractive for warehouse and distribution operations due to its strategic location near major highways and transportation hubs. Tracy has transformed significantly over the years, adapting to the demands and challenges presented by the growing e-commerce and online shopping sectors. As online shopping continues to rise, the need for distribution centers in well-located areas is more critical than ever, reinforcing Tracy’s position in the warehousing industry. Key Features of Costco Warehouse Project Location: Southeast corner of Schulte and Hansen roads Warehouse Sizes: 1.2 million square feet and over 500,000 square feet Construction Jobs Created: 400 Permanent Jobs Created: 250 Estimated Sales Tax Revenue: $4 million Renewable Energy Commitment: 100% Approval Process Duration: 3 to 4 months for annexation Construction Timeline: Approximately 2 years Conclusion The approval of Costco’s warehouse project underscores Tracy’s continued growth and evolution within the logistics and warehousing sector, responding effectively to the demands of modern commerce while also prioritizing sustainability through renewable energy sources. FAQ What did the Tracy City Council approve? The Tracy City Council approved Costco’s plans to build two large warehouses just outside the city. Where will the new Costco warehouses be located? The proposed location is near the southeast corner of Schulte and Hansen roads. How many jobs will the construction of the warehouses create? The construction of these warehouses is expected to create 400 construction jobs. How many permanent jobs will be created after the warehouses are completed? Upon completion, approximately 250 permanent jobs will be created for Costco. What is the estimated taxable revenue from this project? The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy. What is the current zoning status of the land for development? The land intended for development is currently zoned for agriculture and requires county approval for annexation into Tracy city limits. How long is the approval process expected to take? The approval process for the land annexation could take 3 to 4 months. What energy source will the new warehouses use? Costco plans to ensure that the new warehouses will operate on 100% renewable energy. What trend does the development reflect? The development of the new warehouses reflects a wider trend in Tracy, which has seen significant growth in warehouse and distribution facilities due to its strategic location. Deeper Dive: News & Info About This Topic CBS News: Tracy City Limits Expansion for Costco Wikipedia: Costco Modesto Bee: Business News Google Search: Costco warehouses Tracy Press: Industrial Annexation Proposal Google Scholar: Costco Tracy California Insurance Journal: Features on Warehouse Development Encyclopedia Britannica: Logistics CNBC: Amazon and Fulfillment Centers in Tracy Google News: Tracy California warehouse
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
