Costco seeks approval for Tracy distribution campus expansion adding 250 jobs

The Tracy City Council meeting on March 4, 2025, featured a significant proposal from Costco Wholesale that promises to enhance local employment and bolster the community's economy. The company, represented by its real estate director and local distribution campus manager, presented plans for a new project aimed at expanding its operations in Tracy.

Costco's proposal includes the construction of two new buildings at their distribution campus, which is expected to create an additional 250 jobs. Currently, Costco employs over 1,400 individuals in Tracy, and this expansion reflects the company's long-standing commitment to the area, where it has operated for over three decades.

The new facilities will support Costco's logistics and e-commerce operations, including a direct delivery center for larger items purchased online. This development is strategically located near major highways, ensuring efficient distribution while maintaining a distance from residential areas.

In addition to job creation, the project emphasizes sustainability. Costco plans to implement extensive landscaping that exceeds local environmental standards, utilizing drought-tolerant plants and solar energy solutions. The company has committed to generating a significant portion of its energy on-site and has partnered with the Sierra Club to ensure its operations align with renewable energy goals.

The economic impact of this project extends beyond job creation. It is anticipated to generate substantial tax revenue for the city, which will contribute to essential services such as road maintenance, education, and emergency services. The council's approval of this project is seen as a pivotal step toward fostering economic growth in Tracy.

As the meeting concluded, the council members expressed their support for the proposal, recognizing its potential benefits for the community. If approved, construction is expected to begin in the spring, marking a new chapter in Costco's investment in Tracy and its commitment to the local workforce and environment.