Oconomowoc council approves rezoning and conditional-use permits for proposed Costco near I‑94

The City of Oconomowoc common council approved changes Tuesday to allow a 161,661‑square‑foot Costco wholesale warehouse, tire center and a 12‑pump fuel facility on about 23.27 acres at Papp’s Farms Boulevard north of I‑94 and west of Sawyer Road.

Jason Gallo, the city’s planning director, summarized the applications during a public hearing: a land‑use map amendment in the city’s Comprehensive Plan 2050, rezoning from Business Park to General Commercial and conditional‑use permits for gasoline sales and vehicle service. Gallo told the council the plan commission recommended approval on May 7 and that the applicant had supplied required materials including a spill prevention plan, truck‑turning diagrams for fuel delivery and responses to conditional‑use standards.

The applicant, Steve Cross, Costco’s Midwest real‑estate development director, said the company views the site as an “infill” location that would serve existing members and add local jobs. “We will be bringing in couple hundred high paying jobs,” Cross said, adding that the company’s benefit packages “are in the order of 40 to $50,000” for employees who meet eligibility. Cross said Costco’s market analysis shows roughly 17,000 households in the trade area already hold Costco memberships.

Council discussion mixed economic and operational benefits with safety and land‑use questions. Several aldermen cited tax benefits of commercial development and noted the site’s location adjacent to other interstate‑oriented retail, including Fleet Farm. Others raised concerns about traffic impacts, the Lake Country Trail crossing near Sawyer Road and the three undeveloped “outlots” in front of the Costco site that could later be sold or developed. Some council members asked the applicant to commit to restrictions on what can occupy outlots; Cross said Costco typically uses reciprocal‑easement agreements and other restrictions when it parcels and sells adjacent property.

Public comment included both opposition and support. One resident who lives in the nearby lakes area said the Trail crossing and increased traffic would be “a nightmare for safety” and urged the council to consider trail users and lake‑area recreation. Another resident urged approval, saying the infrastructure was sufficient and the project would drive business for other retailers.

The council took four formal actions on the project on motions before it. A certified survey map to divide the larger Papp’s Farms property and create the 23.27‑acre parcel for Costco was approved (5–3). The council then adopted the ordinance to amend the Comprehensive Plan land‑use map (7–1) and rezoned the parcel from Business Park to General Commercial (7–1), both votes following waivers of second reading. Finally, the council approved the conditional‑use permits for gasoline sales and vehicle service to allow the tire center and fuel facility (unanimous in roll call).

Votes recorded on the certified survey map: Alderman Altman Cloth — yes; Alderman Ellis — yes; Alderman Spiegelberg — no; Alderman Mulder — yes; Alderman Shellpepper — yes; Alderman McConnell — no; Alderman Youngworth — no; Alderman Rosick — yes.

Votes on the comprehensive‑plan amendment and rezoning were similar, with Alderman Spiegelberg casting the lone no vote both times. The conditional‑use permit passed on a roll call with all members voting aye.

Gallo said the rezoning and permits will require standard follow‑up steps, including final engineering, state and county review of updated traffic studies and construction permits. Gallo and Cross said preliminary traffic work indicates signalization and some turning‑lane work will be required and that Papp’s Farms would fund off‑site improvements. Cross said Costco would manage future parcel sales with site‑use restrictions if it parcels the outlots, and he suggested the company prefers to retain flexibility for future parking expansion if needed.

Council members asked staff to continue reviewing updated traffic analyses and to ensure trail and pedestrian safety are addressed in project design and off‑site improvements. Several aldermen suggested follow‑up at committee level for detailed design, utility coordination and phasing of roadway improvements.

The council did not require the applicant to place binding restrictions on the outlots at this meeting; Cross said Costco would manage future sales with restrictions consistent with Costco’s operational requirements. The project approval moves the plan to implementation steps: engineering, permit review and coordination on required traffic signal and road‑work improvements.