Lake Forest council upholds planning commission approval for Foothill Ranch Costco, rejects appeal over traffic analysis

The Lake Forest City Council unanimously voted March 17 to uphold the planning commission's approval of a proposed Costco at 26602 Town Center Drive and to adopt staff's recommendation that the project is exempt from detailed CEQA review under Guideline 15183.

The site, currently the former Cinemark movie theater in the Foothill Ranch Town Center, would be demolished to make way for a new 165,068-square-foot building with an entrance canopy, 34-foot height and associated parking, landscaping and site improvements. Staff reported the project provides 2,068 parking spaces where 1,994 are required and proposed several use permits, including off-site alcohol sales requiring an ABC public-convenience determination.

Connor Musler, the city's associate planner, summarized the staff report and said the environmental review followed the city's adopted CEQA procedures and relied on technical studies (traffic/VMT, greenhouse gas, geotechnical) and review by the city's environmental consultant. "The environmental impacts were all discussed and analyzed," Musler said, and staff concluded there were no site-specific impacts that would preclude the 15183 streamlining exemption.

An appeal filed within 15 days by the Supporters Alliance for Environmental Responsibility (SAFER) argued the traffic-impact study used an inappropriate VMT methodology and internal-capture assumptions that understated new vehicle miles traveled. "The traffic study didn't follow the city's VMT guidelines," said Chase Preciado, a paralegal representing SAFER. He said the report relied on an internal capture rate meant for mixed-use projects and assumed many trips would be shifted from other Costco locations, which SAFER's expert said was unsupported.

Dale Goldsmith, attorney for the applicant, defended the study on behalf of Costco and its traffic consultant, saying the methodology used Costco-specific transaction data and GIS trip-routing to model member behavior and proximity to other stores. "The market area already serves five Costcos within 10 miles," Goldsmith said. "Most primary trips are expected to shift from existing stores, not create net new trips." He added that the city's independent third-party traffic expert reviewed and approved the analysis.

Residents who spoke during the public comment period raised concerns about traffic, parking impacts on the food court and truck movements to serve a large retail tenant. Andrew O'Connor, a Foothill Ranch resident, said, "Just go out there on a Saturday or Friday afternoon and stand there ' you will see the traffic." Supporters, including planning commissioner Tom Grable speaking as a resident, told the council the project would revitalize a struggling center and bring jobs and revenue.

Council members questioned staff about supplemental materials submitted the weekend before the hearing, and staff's consultant said those memos and additional technical responses had been reviewed and did not change the project's CEQA conclusions. Councilmember Voigt moved to accept staff's recommendation. The motion passed unanimously.

With the council's action, the planning commission's approval and the CEQA 15183 exempt determination stand. There was no vote to approve construction permits on the dais beyond accepting the staff recommendations; further project approvals will follow the normal ministerial or discretionary permit submittal and building-permit review process.