Case Study Explores Mixed-Use Development Potential for San Francisco Costco Site

Santa Clara's Station Area Task Force explored a potential mixed-use development at the existing Costco site during their June 19, 2025, meeting, highlighting both opportunities and challenges for the community.

The task force presented a case study of a similar mixed-use Costco development in Los Angeles, which features 800 residential units, including 184 affordable housing units, alongside a Costco store. This model, occupying a five-acre lot with five levels of subterranean parking, was analyzed for its feasibility in Santa Clara, where high water tables and proximity to the bay pose significant construction challenges.

The proposed development would replace the current Costco with a new mixed-use structure, integrating residential units above the retail space. Task force members discussed the importance of creating a street-friendly design by positioning the building closer to Coleman Avenue and relocating surface parking to the rear. This approach aims to enhance the neighborhood's aesthetic and functionality, aligning with existing residential areas.

However, the task force acknowledged the complexities of executing such a project. Discussions with economic consultants revealed that while the idea is not entirely off the table, the likelihood of moving forward in the near term is low due to the operational disruptions it would cause for Costco. The current business would need to cease operations during construction, raising concerns about the feasibility of such a transition.

As the task force continues to evaluate this potential development, the focus remains on balancing community needs with practical considerations, ensuring that any future plans align with the broader goals of enhancing Santa Clara's urban landscape. The discussions from this meeting will inform next steps as stakeholders weigh the possibilities for revitalizing the Costco site.