Airport commission approves exclusive negotiating agreement allowing Costco to evaluate airport business-park site

The Santa Barbara Airport Commission on March 18 voted unanimously to enter an exclusive negotiating agreement with Costco Wholesale Corporation that allows the company to evaluate identified parcels in the airport business park north of Hollister for a potential gas station.

Director Hastert told commissioners the agreement would let Costco "look at the sites that are identified and want to have the ability to negotiate with us if it looks like it's something that will work for them," and stressed the arrangement is for due diligence rather than a commitment to lease or develop the land. Hastert said either party can cancel the agreement on 30 days' notice.

Vice Chair Maya moved to advance item 8; the motion was seconded and passed unanimously.

Commissioners pressed staff on several practical concerns. One asked whether traffic impacts at the Fairview-Hollister intersection would be studied; Hastert said traffic and other development constraints would be assessed during the due-diligence period and that city partners, including the City of Goleta, would be consulted if the site looked likely to move forward. Another commissioner asked whether reports and studies Costco commissions during its analysis could be shared with the city if Costco later decided not to proceed; Hastert said the agreement has been reviewed by the city attorney and that staff would look into amending the agreement to secure useful information for the airport.

Commissioners also discussed revenue implications. A commissioner suggested the new use could generate substantial sales-tax revenue for the host jurisdiction; no city fiscal estimate was adopted by the commission.

The motion to authorize negotiations with Costco passed unanimously.