San Jose's contentious journey to introduce a sixth Costco location at Westgate West Shopping Center is forging ahead after a Santa Clara County Superior Court judge dismissed a lawsuit aimed at blocking its development. This ruling sidelines the efforts of the group West Valley Citizens for Responsible Development, which had backed the lawsuit filed in the wake of the San Jose City Council's approval in October 2024.
Arguments presented by the group, including violations of city zoning rules and criticisms of the environmental review process, were not persuasive enough for Judge Charles Adams. The group, represented by attorney Anthony Arger, expressed their letdown in a statement obtained by San José Spotlight, saying they are "understandably disappointed by the trial court's decision, and is currently evaluating all options for possible next steps." Yet the project is green-lit, and future steps, including possible appeals, are under contemplation.
City Attorney Susana Alcala Wood considered the judge's ruling as “thorough and thoughtful,” and she has accused those bringing the lawsuit of using environmental concerns as a smokescreen to delay or obstruct the project. The population of San Jose, growing rapidly, will witness the demolition of established businesses like Ethan Allen Furniture Company and Bikram Yoga San Jose, to make room for the new Costco, which, according to company officials cited in information from San José Spotlight, is expected to bring 250 to 300 jobs and generate about $2 million in annual tax revenue for the city.
Costco has made planned modifications to the development project in response to public backlash, including committing $2.5 million to pedestrian and bike safety improvements and changes to the shopping center's parking area. Costco's pledge includes widening paths and altering crosswalks along the busy Lawrence Expressway. The plans also highlight a unique rooftop parking feature for the U.S. store and a tire center. District 1 Councilmember Rosemary Kamei threw light on the advantages of the project, telling San José Spotlight, “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.” In the eyes of the developers, the new Costco is envisioned as a milestone that will embellish the area and boost the local economy.
Although celebrated by city officials, concerns about student safety, overwhelming traffic, and noise raised by community activists such as Marc Pawliger, co-founder of Save West Valley, were previously voiced, as reported by SFGATE. The proximity of the proposed location to Prospect High School particularly underpinned these concerns. Nevertheless, with legal hurdles now largely circumvented, Costco and San Jose city officials are moving forward. The timeline for the new Costco store anticipates a 21-month construction period after building permits are secured, which officials say are currently in process by the Department of Planning, Building, and Code Enforcement.
