The long lines at the Coon Rapids Costco gas station are getting a big-league fix. The retailer has snapped up the vacant former TGI Friday’s next door and plans to knock it down, expand its fuel operation, and squeeze in more parking on the crowded Riverdale Boulevard site.
Costco paid $5.5 million for the Riverdale Boulevard parcel and will fold it into its existing warehouse property so the gas station can move to the southwest corner of the combined lot. The goal is to cut down on the long queues and traffic backups that sometimes spill into the Riverdale Village drive aisles.
Sale details from state records
According to the Minnesota Department of Revenue, Costco Wholesale Corporation is listed as the buyer of the 2.54-acre parcel at 12519 Riverdale Blvd NW. The deed was recorded July 14, 2026, with a purchase price of $5,500,000. The document identifies NADG/SG Riverdale Village LP as the seller and lists the planned use as “Retail / Vehicle related /Gas/service station.”
How the city signed off
The relocation cleared a key hurdle when the Coon Rapids planning commission recommended approval of a Planned Unit Development that allows 12519 and 12547 Riverdale Blvd to be combined and the fueling facility shifted on the site. As the Coon Rapids planning commission minutes note, Costco’s real estate manager told commissioners that “the current gas facility creates confusion with traffic coming in from Northdale Boulevard,” and city staff said the new layout would separate parking from fueling to improve circulation.
The commission’s recommendation came with strings attached, including requirements to enter into a development agreement and a site security agreement and to meet all engineering and fire department standards before anything gets built.
What will change on the ground
On paper, the new setup is a serious upgrade. Costco’s plan calls for about 20 pumps at the new islands, up from 10 at the current fuel station, along with roughly 128 additional parking spaces across the combined site. The redesigned layout is expected to include wider lanes and more space between dispensers to make it easier for drivers to maneuver.
Officials also highlighted the less glamorous but crucial part of the job. The existing pumps will be decommissioned under state and local rules, with soil testing required before any backfilling takes place. Bring Me The News first reported the purchase and outlined the basic project details.
Costco’s approach to congestion
Buying up neighboring parcels to relieve traffic pressure is not a one-off move for Costco. The strategy has shown up at other busy locations in the region, where parcels next door get converted into more pumps or more parking to keep peak-time backups in check. The Minneapolis/St. Paul Business Journal has tracked similar deals and how retailers rework adjacent lots to handle heavy traffic at major shopping centers.
City documents show the planning commission attached multiple conditions before full construction can begin, including formally combining the parcels and finalizing the required development and site security agreements. Decommissioning of the old fueling area and fire-safety reviews are also flagged as key next steps. There is no public construction timetable yet, but with the deed recorded, the project now moves into permitting, engineering reviews, and negotiation of the development agreement required by the city.
