Windsor Considers Lifting Gas Station Ban to Attract Costco

Last week, local lawmakers in Windsor, California, indicated a desire to overturn a policy that restricts new and expanded gas stations, potentially to lure in a Costco.

This move comes after Windsor implemented a law in 2022 aimed at addressing climate change, which inadvertently blocks budget-friendly fuel retailers like Costco from setting up shop there.

As Costco continues its rapid growth across the U.S., the planned location in Windsor would mark its third store in Sonoma County, and officials seem eager to see this happen.

“We want to let Costco know that we are open for business,” stated City Councilman Mike Wall, as he discussed the town’s intentions.

Besides bringing in a new store, officials believe it could also address the issue of “retail leakage,” where residents leave town for shopping elsewhere.

“Our retail leakage is a serious concern,” mentioned City Councilman Sam Salmon. “Could a Costco help mitigate this? It’s definitely a pressing issue.”

To facilitate the Costco’s potential entrance, a new proposal suggests creating exceptions that would allow large retailers with gas stations to establish operations in Windsor. Wall shared his thoughts on potentially exempting larger stores from the gas station requirements for the town’s benefit.

Costco typically offers gas at prices that can be up to 30 cents lower than competitors, which could be a significant draw for residents.

Neil Saunders, managing director of GlobalData Retail, commented that lifting the ban could benefit consumers seeking more affordable fuel options. “If we had a Costco gas station, it would provide much lower prices. I’m sure the community would appreciate it,” he noted.

Wall highlighted the potential for increased tax revenue as another reason for supporting Costco’s establishment in the area. “Gas stations are, well, a necessary compromise to make a Costco possible. They could bring in substantial tax revenue over time,” he said.

However, not everyone is on board. Some local advocates are against bringing in Costco, despite the promise of lower consumer costs. Woody Hastings, a member of a coalition opposed to new gas stations, emphasized the importance of sticking to the existing regulations. “We need less car dependency and more sustainable transportation options,” he argued.

As for Costco’s interest, it’s uncertain if they are keen on setting up in Windsor. The town’s Economic Development Manager noted that no discussions have occurred with Costco, merely “rumblings of interest” have been heard.

Local businessman Rich Carnation shared that a Costco representative deemed the current ordinance “a non-starter.” He mentioned having relayed to Costco that he believes the City Council would likely reconsider the ban since local residents are eager for a Costco.

It’s worth noting that California has some of the highest gas prices in the country, with the average price for a gallon recently reported at $6.14.