Newport News Plans for Costco Relocation

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Illustration of Costco store construction with parking and gas station

News Summary

Newport News is moving forward with plans for a new Costco location which will feature a larger store, expanded parking, and additional gas pumps. The Economic Development Authority has authorized a $3.25 million commitment for necessary infrastructure improvements. The location will significantly enhance local services, create new jobs, and is expected to be completed by late 2026 or early 2027, with community members excited about the change.

Newport News Gears Up for Exciting Costco Relocation

Newport News is buzzing with excitement as plans for a brand new Costco location are well underway! The Newport News Economic Development Authority (EDA) has decided to move forward with the project, which promises to bring a larger store with enhanced services, including a significant increase in parking and a gas station, to the community.

Infrastructure Improvements on the Horizon

City officials have confirmed that steps have been taken to ensure the necessary infrastructure improvements are implemented for this much-anticipated development. On March 7, the EDA gave a green light authorizing a Participation Agreement with Costco that focuses on upgrades to transportation and infrastructure near the intersection of Jefferson Avenue and Bland Boulevard.

Prime Location and Local Contracts

The new Costco is set to be built on properties currently owned by Ferguson Enterprises, located at 12470, 12490, and 12500 Jefferson Avenue. In a significant turn of events, these properties are now under contract with Costco after the EDA waived its rights of repurchase.

Traffic Analysis Approved

Costco has completed a comprehensive Traffic Impact Analysis for this new venture, which has received the thumbs-up from both the City of Newport News and the Virginia Department of Transportation (VDOT). The analysis emphasized the need for public improvements to maintain safety and ensure that traffic flows smoothly in the area.

City Backing and Financial Commitment

To support these improvements, the EDA has authorized up to $3.25 million in local cost-sharing aimed at facilitating off-site traffic alterations related to the project. Current negotiations are ongoing to finalize the terms of the participation agreement between Newport News and Costco.

Gas Pumps and More Parking Coming Soon

One of the exciting features of the new Costco location is the plan to add a large number of gas pumps. A conditional use permit for these gas pumps will be reviewed by the Newport News Planning Commission on May 7, followed by a review from the city council on June 10, should the permit be approved.

The new store is expected to more than double the existing store’s parking capacity, skyrocketing from 397 to 829 parking spaces. Costco plans to include 24 gas pumps at the new site, which is twice as many as the current location that provides just 12. The building will also be approximately 152,000 square feet, marking a 13% increase compared to the existing store.

Job Creation and Community Impact

The anticipated relocation has the potential to create up to 30 new jobs, adding to the current workforce of 260 employees. This is fantastic news for the local job market and a great boost for the Newport News economy!

Changes Ahead for Ferguson Enterprises

As a part of this development, about 230,000 square feet of Ferguson Enterprises’ office and showroom space will be demolished, impacting three buildings overall. With an eye on reducing real estate holdings, it’s worth noting that much of this space has been mostly vacant since the pandemic.

Looking Ahead

Newport News taxpayers will contribute to the infrastructure costs associated with the relocation, with a projected completion date for the new Costco expected by late 2026 or early 2027.

Community members have expressed their excitement, looking forward to the increased parking and improved access at the new location. With plans underway and the approval process beginning soon, Newport News is undoubtedly gearing up for this remarkable change. Keep your eyes peeled for more updates on this project as it progresses!

Deeper Dive: News & Info About This Topic

HERE Resources

Costco to Relocate and Expand in Newport News

Additional Resources

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