Downey City Council voted to move forward with a development agreement that clears the way for a new Costco in Downey on roughly 13.6 acres along Firestone Boulevard. The proposal, led by Costco Wholesale Corp. alongside property owners and the Downey Nissan dealership, would replace the former All American Home Center site and part of the dealership property.
City leaders describe the redevelopment package, valued at about $10.5 million in public and planning commitments, as a project that could produce local benefits — including increased tax revenue and employment — but they emphasize those figures are projections from city staff and the developer, not firm guarantees.
New Costco in Downey: timeline and approvals
The council vote advances a development agreement but does not authorize immediate construction. The project must complete the California Environmental Quality Act (CEQA) review and proceed through Downey’s entitlement process before any grading or building permits are issued.
Under CEQA, the city will start with an initial study to determine whether an Environmental Impact Report (EIR) is required. If the study identifies potentially significant impacts, the city would prepare an EIR that includes a public comment period, analysis of alternatives and proposed mitigation measures. City staff told the council the CEQA and entitlement steps could take up to about a year, an estimate that could stretch longer if the EIR is substantial or if additional hearings are requested by community groups.
Assuming the entitlement path follows the anticipated schedule, the first visible site work would be the planned relocation of Downey Nissan to a new site, clearing the primary 13.6-acre footprint for the warehouse and an associated gas station. City officials caution that even with steady approvals, a public-facing Costco store opening is likely several years away when accounting for relocation, permitting and construction timelines.
Local impact: jobs, revenue and traffic
Supporters argue the redevelopment will bring economic activity to Downey. City presentations and developer materials project the plan could create “hundreds of jobs” across construction and store operations; those figures are explicitly labeled as projections by city officials and the developer and will depend on the final project scope and hiring decisions.
The city also projects additional sales and property tax revenue that could help fund public services. Officials said details about projected revenue and timing will be refined in the entitlement documents and fiscal analysis accompanying environmental notices.
Traffic and parking are central concerns for residents and planners. Firestone Boulevard is a primary east–west arterial serving Downey’s commercial corridors, and the proposed warehouse and gas station will add vehicle trips to intersections already in steady use. Specific traffic mitigation measures — such as additional turn lanes, signal timing adjustments, off-site improvements, and delivery scheduling limits — are likely to be developed as part of the CEQA traffic study and any subsequent conditions of approval.
Local businesses may see mixed effects. A new large-format retailer can draw shoppers who also visit nearby restaurants and services, but smaller retailers sometimes worry about competition and shifts in traffic patterns. Economic impacts on nearby retail will depend on the store layout, parking management and how the developer coordinates access with surrounding properties.
Local reaction and mayoral praise
The council decision drew mixed responses. Some residents questioned the need for another Costco when stores operate in nearby Norwalk and Lakewood and raised quality-of-life concerns about congestion. Other neighbors and shoppers welcomed the project as a relief valve for busy nearby stores.
Mayor Pro Tem Horacio Ortiz Jr. praised the agreement in an Instagram post, writing: “This project will create hundreds of jobs, generate new revenue for essential city services, and strengthen our city’s future.” The statement reflects the city leadership’s framing of the proposal as a long-term investment, while opponents have signaled they will use the CEQA process to press for stronger traffic and environmental protections.
Public comments and any appeals during the CEQA process will give residents additional opportunities to raise issues at hearings and in writing before final entitlements are granted.
What comes next
With the council vote complete, the immediate procedural steps are clear:
- Initiate CEQA review, including an initial study and, if required, an Environmental Impact Report with a public comment period.
- Prepare entitlement documents and coordinate the planned relocation of Downey Nissan to clear the 13.6-acre footprint.
- Develop and evaluate traffic mitigation measures, utility plans and site-preparation work as part of environmental and permitting studies.
- Hold public hearings and respond to comments; issue final CEQA findings and mitigation monitoring if the project proceeds.
- Begin permitting and construction only after entitlements, with an opening likely several years out, depending on approvals and construction schedules.
Residents and stakeholders should watch for city notices and environmental documents that will provide details on mitigation measures and fiscal projections. Any CEQA findings could require changes to the project plan before the city issues final entitlements.
Source: Fox Business. Mayor Pro Tem Horacio Ortiz Jr.’s comments taken from his public Instagram statement reported by local coverage.
