Goleta to Weigh Pros and Cons of Costco Gas Proposal

Santa Barbara Newsroom
By Tom Schultz
May 21, 2007

A gas station proposed for Costco in Goleta would reduce parking spots and expose the public to increased risk in the event of a plane crash, officials say -- but would also give members of the big box chain a new option for obtaining less expensive fuel.

The Goleta City Council today considers a draft report, one focused on environmental impacts of the proposal to carve 16 fueling stations from the parking lot at Camino Real Marketplace.

Warehouse chains like Costco entered the vehicle fuels market about 10 years ago across the country. With Costco membership fees offsetting merchandise prices, Costco gas typically sells for less than fuel at other locations.

“Since Costco’s gasoline prices are significantly lower than surrounding competitors’ prices, Costco gasoline is a consumer draw,” the Association for Convenience and Petroleum Retailing reported in the late 1990s.

At the time, Costco gas ran about 13 cents less than retail gasoline elsewhere. This past week, a company spokesman could not be reached for comment.

While some residents back a Costco gas station in Goleta, others worry it would compound traffic problems and create more fumes near Girsh Park.

"We don't want it," nearby residents Fracsesca Cleyet and Cynthia Ruano wrote the city last month, noting the existence of other nearby gas stations. "When we agreed to have Costco in the neighborhood, we agreed very reluctantly. . . We gave them an inch, and they want a mile."

Last month, Goleta resident Frank Katch wrote the city to lend his support.

“You know when you shop at Costco for gasoline you will get either the lowest price in the area or very close,” he wrote. “I want the convenience. I want one-stop shopping.”

Noting Santa Barbara Airport is located approximately 1 mile east of the proposed site, a city draft environmental impact report (EIR) lays out pros and cons of the proposal.

"The project's incremental increase in risk exposure for aircraft accidents from the nearby Santa Barbara Municipal Airport is considered a significant and unavoidable impact," according to the report. "While the frequency of occurrence for such an event would be very low, the consequences would be categorized as major, which collectively result in a significant societal risk exposure. "

In addition, the report states, "the loss of 88 parking spaces in close proximity to the entrance of the existing Costco warehouse would occur during periods of peak demand, resulting in inadequate parking for Costco warehouse customers within a reasonable (500 foot) distance of the entrance. This is considered a significant impact, and while possible mitigation of this impact could be achieved through the reconfiguration of the warehouse to provide a second entrance at the southeast corner of the building, this reconfiguration does not appear to be feasible or desired by the project applicant."

The station would be built to the north of the northwest corner of Costco, which was approved by Santa Barbara County in 1997 before Goleta incorporated in 2002.

The station would include a pump island canopy, four fuel dispenser islands with four self-serve pumps each, a controller enclosure and three underground gasoline storage tanks with associated pipes and monitoring systems, according to Goleta.

An estimated 12 to 16 million gallons of gasoline per year would be dispensed. The proposed hours of operation for the proposed site would be from 6 a.m. to 10 p.m. on weekdays and 6 a.m. to 8 p.m. on weekends.

The gas station would be available to Costco Warehouse members only.

The canopy structure would be approximately 10,800 square feet in size, according to the city.

The nearest gas stations to the proposed project are at the northwest and southeast corners of Storke Road and Hollister Avenue. The nearest residential developments are the Pacific Oak Apartments and the Pacific Palms condominium complex approximately 600 feet to the northwest of the proposed site.

The public can comment on the draft EIR through Thursday at City Hall.

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