FRESNO, Calif. (KMJ/KFSN) — Plans for a new northwest Fresno Costco are now on hold after a county judge rejected it over environmental concerns, writing in an order that the city’s approval conflicts with state law.
“It’s definitely a setback, but I don’t think it’s over,” Fresno City Council President Mike Karbassi said. “We have the ability to appeal if necessary, but we also have the ability to consider maybe rezoning the property.”
Costco wanted to transform a vacant lot near Herndon and Riverside avenues.
The warehouse would have been one of the company’s largest at 219,000 square feet. Plans called for a 32-pump gas station, a car wash, and about 1,000 parking spots.
“This is just a vacant piece of land,” Karbassi said at the site. “It doesn’t do much for anybody. It would just be brilliant to have someone come in, invest millions of dollars in this property, increase its value and provide that revenue to the taxpayers.”

Weeks after Costco’s approval in the spring of 2024, the Herndon-Riverside Coalition for Responsible Planning and Development sued the city, raising zoning and environmental concerns.
Representatives now say they are “pleased” with the trial court’s ruling.
“As far as we know, the project is not ‘dead,'” they wrote in a statement to Action News. “The city has an opportunity to fix its faulty work now.”
The organizers suggested future discussions should be more candid.
“I push back vehemently against that crap,” Karbassi said when asked to respond. “I can tell you as the councilman for this area, I insisted that Costco go meet with the residents, meet with other interest groups – and they did that for years.”
In 2024, Costco made a full-court press to get the project approved. Representatives showed up to two City Council meetings.

Costco — and the city — are now under pressure. The lease for Costco’s West Shaw location is reported to expire in September.
“The last thing we want is for Fresno to lose those jobs to Clovis or Kerman or Madera,” Karbassi said. “We want to keep those jobs, and most importantly, those tax dollars here in Fresno because we use that money to fix potholes, pay for police officers and firefighters, and parks.”