After years of discussion and negotiations, Costco is moving forward with plans to build a store in southeast Ukiah.
It has submitted preliminary plans and paid the city more than $300,000 for an environmental impact study. The city last week approved a contract with Environmental Science Associates to prepare the environmental study.
"It looks as if Costco will in fact be coming to Ukiah soon. It has been a long process," said Ukiah City Councilman Benj Thomas.
The environmental studies are expected to take about eight months, according to city officials.
Costco has eyed the Ukiah area for a potential store for more than a decade but the giant retailer took its time committing to a location.
The city wanted the store — and its potential tax dollars — for a shopping center inside city limits along Highway 101, while developers tried to lure the store to property north of Ukiah in the unincorporated county.
Negotiations with Ukiah officials picked up after voters said no in 2009 to the developers' plans to bypass county planning procedures to build their shopping center.
City officials wooed Costco with some trepidation about bringing another big-box store to Ukiah, but ultimately decided it was a good project, Thomas said.
"It will unquestionably have an impact on some small retail places," he said. But not having the store would have a bigger negative impact on the cash-strapped city.
The city is facing a budget deficit of $800,000 to $900,000 this coming fiscal year, Thomas said.
The tax revenue generated for the city by Costco is expected to more than fill the hole, he said. The store also should draw more shoppers to Ukiah from outside the immediate area, a boon to other businesses, Thomas said. Currently, Mendocino County residents drive to Sonoma County to shop at Costco, he noted.
"It could solve a whole lot of problems," Thomas said.
As proposed, the store will be located on 15.33 acres just south of a shopping center that includes a Staples, Friedman's Home Improvement and Walmart.
The store plans include a 137,620-square-foot metal and concrete warehouse and a 16-pump gas station, according to the company's architectural firm.
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