Oakland takes 'critical step' toward bringing Costco to The Town
Is Costco coming to Oakland?
The city of Oakland is considering a plan that could lead to a new Costco being built in West Oakland.
OAKLAND, Calif. - The city of Oakland took a major step this week toward a proposal to bring a Costco to the former Oakland Army Base.
Last month, District 3 Councilmember Carroll Fife introduced a resolution seeking approval for the city to initiate talks and establish negotiating terms with Costco and San Francisco-based real estate investment and development firm, Deca Companies.
What we know:
The resolution, aimed at a possible exclusive negotiating agreement for the project, was approved by the City Council on Tuesday, according to Deca.
"I'm pleased to share that Oakland's City Council today passed a resolution to move forward with bringing Costco to West Oakland," Deca Senior Associate Rodolfo Baquerizow told KTVU in an email.
The move follows the Oakland Community and Economic Development Committee's unanimous approval of the resolution last week, Deca said in a news release.
"The resolution, introduced by District 3 Councilmember Carroll Fife, represents a significant step toward addressing food access challenges in West Oakland, an area that has long been identified as a food desert," the developer said.
Under the proposal, a Costco would be built at 2008 Wake Avenue in the North Gateway Development at the former Oakland Army Base.
Food desert
Advocates of the plan said a warehouse in the area would address an ongoing need for residents to have access to food and other essentials.
What they're saying:
"As the D3 Council representative, my primary objective is to improve the lives of my constituents, who have endured generations of disinvestment and neglect," said Councilmember Fife was quoted in the release.
"For too long, our West Oakland community has lacked access to essential services, often forcing residents to leave Oakland to find quality options—including groceries. Our families deserve access to affordable groceries, and we want to keep those dollars and tax revenues within our city," Fife said.
Deca said that the project would also bring hundreds of new jobs to the area.
The backstory:
In 2003, the federal government transferred the 22-acre North Gateway parcel to Oakland.
Through the years, discussions have emerged about redevelopment, with the former base being identified as a possible site for housing in a city that has had a need for housing solutions amid a growing homeless population.
In 2022, the city council approved a Fife-sponsored resolution to conduct a feasibility report on a possible homeless shelter that would house roughly 1,000 people on the North Gateway parcel.
But the city opposed the homeless shelter plan, pointing to costs, environmental concerns as well as a potential conflict with two major recyclers, California Waste Solutions and CASS, Inc, with planned facilities at the site.
"Due to environmental, regulatory, contractual and other constraints staff does not recommend use of the North Gateway for a homeless intervention site," the city stated, also noting, "Operating costs to serve 1000 people in cabins would be approximately $22.5 Million."
What's next:
If the talks for an exclusive negotiating agreement are successful, the ENA would then go before the city council for approval, according to Deca officials.
The company said, meanwhile, community outreach and engagement efforts will continue "to ensure residents are included in the decision-making process in a meaningful way."
"This project sends a clear message," said Deca Companies Vice President Travis Duncan, "Oakland is open for business. We're proud to be part of the team working to turn this food desert into a destination for affordable, quality groceries and good jobs."