West San Jose to get Costco after judge tosses lawsuit
FILE ART - (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
SAN JOSE, Calif. - A Santa Clara County Superior Court judge has tossed a lawsuit seeking to block plans to bring a new Costco to a West San Jose shopping center. The decision clears the way for the hotly contested development project to move forward.
What they're saying:
The suit, backed by a resident group known as West Valley Citizens for Responsible Development, argued the San Jose City Council had erred in approving the Costco project in October 2024. The lawsuit, filed two months after the council vote, alleged the proposed 165,000-square-foot store at the Westgate West Shopping Center violated city zoning rules and the project’s environmental review process was inadequate.
Judge Charles Adams rejected the group’s 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.
"West Valley Citizens for Responsible Development is understandably disappointed by the trial court’s decision, and is currently evaluating all options for possible next steps," Anthony Arger, an attorney representing the group, told San José Spotlight.
The other side:
Meanwhile, City Attorney Susana Alcala Wood celebrated the ruling as "thorough and thoughtful." She also accused the plaintiffs of using the legal challenge over environmental concerns as a pretext to "obstruct or delay" the project.
"The 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," Wood told San José Spotlight.
Costco representatives did not respond to a request for comment.
Battle over plans to build San Jose Costco
For three years, West San Jose residents have been fighting the city over construction of a Costco in their neighborhood, especially when there are four others just minutes away.
The backstory:
Residents have been up in arms over the proposed Costco ever since development plans for the site at 5287 Prospect Road first surfaced in 2021. They have warned the introduction of such a large retailer to the shopping center, which neighbors Prospect High School, would create severe traffic safety risks in the surrounding neighborhoods.
In their lawsuit, the resident group alleged the project’s 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.
The lawsuit also contended the project is inconsistent with San Jose’s general plan and the site’s zoning designation.
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.
"Petitioner has not established that any error in the City’s response would be prejudicial," Adams wrote. "When viewed as a whole, the (environmental report) reflects a good faith effort at full disclosure."
By the numbers:
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 — such as path widening and crosswalk modifications — along Lawrence Expressway, which is west of the shopping center. Additionally, part of the shopping center’s parking area will be reconfigured to close off a driveway on Graves Avenue that opens into a residential area.
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.
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.
"The court’s decision allows a project to proceed that brings very significant public benefits — including millions of dollars for pedestrian safety supporting students in the area — and replaces longstanding blight with an economically beneficial use," Kamei told San José Spotlight.
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.
This story was first published in San José Spotlight.