News Summary
The Newport News City Council has approved a Conditional Use Permit for a new Costco location, set to enhance services and facilities for the local community. Located on Jefferson Avenue, the new site will include a gas station, increased parking, and a large warehouse. This expansion is part of broader infrastructure improvements backed by the Newport News Economic Development Authority. Construction is expected to begin soon, with the new store anticipating opening in late 2026 or early 2027, bringing significant economic benefits to the region.
Newport News, VA — The Newport News City Council has approved a Conditional Use Permit for a new Costco location during a meeting held on June 10. This decision marks a significant expansion of the Costco brand within the city, as the new store is set to include enhanced facilities and services for local residents.
The new Costco site will be located at 12470, 12490, and 12500 Jefferson Avenue, currently owned by Ferguson Enterprises, which is under contract to sell the property to Costco. The approved permit allows for the construction of a gasoline supply station alongside the new retail space.
Costco representatives have expressed enthusiasm regarding the new site, highlighting benefits such as increased parking capacity, additional warehouse space, and a broader range of services for the community. The current Costco location acts merely as a tenant, leaving the future of that property uncertain once the relocation occurs.
In support of this project, the Newport News Economic Development Authority (EDA) has authorized a participation agreement with Costco that will facilitate transportation and infrastructure improvements. The EDA has approved up to $3.25 million in local cost-sharing for these infrastructure upgrades, recognizing the need for enhancements due to the expected increase in traffic.
Costco has conducted a thorough traffic impact analysis for the proposed site, which received consent from both the City of Newport News and the Virginia Department of Transportation (VDOT). This analysis indicated that public improvements are essential for ensuring safety and an effective traffic flow in the area.
The new location will feature a 163,000-square-foot warehouse alongside a members-only gas station equipped with 32 pumps and providing more than 800 parking spaces, effectively doubling the existing parking capacity.
Ferguson Enterprises has recently vacated the site after occupying it for over 25 years, consolidating its operations to its headquarters. The redevelopment will also entail the demolition of three existing buildings owned by Ferguson, which total around 230,000 square feet. Furthermore, the project will include surrounding green space and various traffic condition improvements specifically on Jefferson Avenue and Bland Boulevard.
Proposed traffic enhancements encompass additional turning lanes, a 20-foot transitional buffer with vegetation along Jefferson Avenue for aesthetic appeal, as well as a raised median aimed at bolstering pedestrian safety.
The existing Costco will continue its operations until the anticipated opening of the new location, which is slated for late 2026 or early 2027. When opened, the relocated store is expected to accommodate an additional 150 to 200 cars during peak traffic times, necessitating the planned traffic alterations.
Current staff members, numbering approximately 260, will be retained at the new site, with prospects for hiring additional employees to accommodate the larger facility and the expected increase in business operations. City officials are optimistic that the new Costco location will have a positive impact on the local economy by enhancing access to goods and services for Newport News residents.
The original development plan for the former Ferguson site included plans for a hotel and conference center. However, these plans were altered when Costco expressed interest in the location, leading to the current permit approval and subsequent project developments.
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Additional Resources
- Pilot Online: Newport News Costco Relocation
- 13 News Now: Newport News Costco Gas Station
- WTKR: Newport News Costco Moving
- 13 News Now: New Costco Newport News Investment
- Pilot Online: More Info on Newport News Costco
- Wikipedia: Costco
- Encyclopedia Britannica: Costco Wholesale Corporation
- Google Search: Costco News
- Google News: Costco Relocation
- Wavy: Virginia AG Asks Costco to End DEI Policies
