Council approves first reading of Costco plan‑development overlay; plan commission recommended approval

The Oconomowoc Common Council on Tuesday approved first reading of an ordinance to create a plan development (PD) overlay district that would allow a proposed Costco wholesale store and detached fueling facility to exceed some zoning limits at a 23.26‑acre site near Pabst Farms Boulevard and I‑94.

Jason Gallo, the city planner, told the council the PD overlay request covers three site‑related items requested by the applicant: increasing maximum lot coverage from a 75% cap to 90% for the developed area excluding certain outlots, allowing more parking stalls than the zoning maximum, and reducing a required 3‑foot pavement setback to 0 at several shared access points. Gallo said staff and the plan commission weighed the requested flexibility against public benefit and determined the lot coverage question was the primary item that required council action.

The ordinance (25‑01102) would allow construction of a 161,552‑square‑foot Costco warehouse, a detached vehicle fueling facility with 12 pumps and three future outlots, and was paired with earlier approvals of a conditional use permit for the gas station and automotive repair uses inside the store. Gallo said the project includes off‑site traffic improvements, turn lanes and proposed signal work, and that the city is not funding the off‑site improvements or using TIF dollars for the Costco site.

Members of the public from nearby neighborhoods in the Village of Summit raised concerns about traffic on Sawyer Road and local intersections. Resident Robert Schmidt said traffic leaving Bartlett Road onto Sawyer has “probably doubled” since nearby construction began and asked for provisions addressing Sawyer Road traffic. Mark Umhafer, another nearby resident, asked whether signals were planned at Valley and Sawyer and whether the timing of intersection improvements was clear.

Costco’s real estate development director, Steve Cross, described the site design and stormwater approach, telling the council the planned regional stormwater facility serves multiple parcels and allows the project to have higher impervious coverage without on‑site ponds. Cross said the company had increased landscaping on the plan—“we're about 13% right now more” than the minimum points required after plan commission feedback—and that outlots would remain grass until the company decides whether to add parking or sell the parcels for development in future years.

Council discussion reflected differing views. Supporters cited jobs (Costco estimates 150–200 employees at the store) and the project’s potential to attract additional development to the area; critics said the city should be cautious about creating a precedent for higher lot coverage and larger paved areas. Alderman Spiegelberg said he would vote against the PD to “be a voice for a lot of people that aren't in favor of this.” Alderman Rosick and others noted the project had been revised after plan commission suggestions and emphasized the off‑site stormwater and traffic work proposed.

The council voted on a motion to approve the ordinance and waive the second reading. The motion to waive the second reading failed on a procedural vote, and the council then voted on the ordinance first reading; roll call on final action on the ordinance first reading recorded six ayes and two nays (Alderman McConnell and Alderman Spiegelberg voted no). The ordinance therefore advanced on first reading (25‑01102).

Ending: Council members asked staff to continue coordination with county, state and Village of Summit officials on the traffic improvements identified in the project's traffic impact analysis, and reminded residents that future changes (for example, adding outlot development or changing operating hours) would return to city review processes.