Gas Station May Bring Cheaper Gas to Goleta

KEYT (Video)

Goleta could soon have the cheapest gas in the area.

Costco wants to convert about 90 parking spaces in its Camino Real Center parking lot into a self-serve gas station. Many residents say with gas prices approaching $4 a gallon discounted gas would be a very welcome relief. Costco regularly sells gas at 10 to 13 cents a gallon cheaper than most stations in the area. Only Costco customers can buy gas at these stations.

Monday night the city held a public meeting to hear about possible concerns over the proposal. Many residents said they were concerned with more traffic, air pollution and the loss of parking close to the popular store.

An environmental impact report says building a gas station in the flight path of Santa Barbara Municipal Airport could be dangerous.

The deadline for comments on the environmental report is Thursday.

Senior Reporter John Palminteri has our report.

Neighbors Line Up Against Costco Gas Station

Santa Barbara Newsroom
By Tom Schultz
May 22, 2007

Neighbors of a proposed gas station at Costco told the Goleta City Council on Monday they do not welcome the project, fearing fumes, fuel truck trips and added traffic congestion at Hollister Avenue and Storke Road.

This comes amid opposition to the proposal from staff analysts at the Santa Barbara County Association of Governments, an agency that must decide whether the project would conform to safety standards associated with the nearby Santa Barbara Municipal Airport. Oil and gas storage is incompatible with the Costco site, located in an airplane landing approach zone, according to a May 15 letter from an SBCAG planner to Goleta officials who circulated the correspondence Monday.

While backers of the project said it would not severely impact parking at Camino Real Marketplace, the shopping center home to Costco, neighbors wondered aloud how that might be possible. Some threatened to cancel their Costco memberships if the project goes through. The station would eliminate 88 parking spots.

"It poses concerns about safety and quality of life," Bill Rosen, a nearby condo complex resident, told the council.

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. At the time, Costco gas ran about 13 cents less than retail gasoline elsewhere.

Amid record prices at the pump nationwide, members of the wholesale "big box" chain would likely seize upon the chance to buy less expensive gas. But first the project needs to pass muster with local officials.

Those who spoke in opposition to the proposal to carve 16 fueling spots from the marketplace parking lot raised a raft of concerns, among them: the proximity to homes, neighborhood children breathing fumes, placing another gas station in the area, the possibility for increased fire risks and the potential for ground water contamination.

Nobody from the public spoke in favor of the project, and Costco offered little by way of a defense.

Peter Brown, a lawyer for the wholesaler, stated toward the onset of the hearing that the project would not negatively impact parking. Toward the end, he told the council the company would respond to all other concerns later, and in writing.

That strategy drew a rebuke from Councilman Roger Aceves.

"I am a little not pleased with the applicant, in that the time to discuss this is in public," Aceves said. "I hope that letter can be published in time so the public can respond to it."

Aceves also said he was concerned that the gas station would impact the Costco food court.

Nothing was decided Monday. The council reviewed a city draft environmental impact report (EIR) that states the project would reduce parking spots and expose the public to increased risk in the event of a plane crash.

Noting Santa Barbara Airport is located approximately 1 mile east of the proposed site, the report 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."

Council members asked for more information about how many daily fuel truck trips the station would generate — some estimates place the figure at several times that of nearby gas stations combined. Council members also asked for more information on parking trends at the shopping center.

"Obviously, this will be a controversial issue for the community," Councilman Eric Onnen said.

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 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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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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City of Goleta - Environmental Reviews

Currently posted are:

Village at Los Carneros Draft EIR
The Draft Environmental Impact Report for the Village at Los Carneros Residential Project has been released. The proposed project is located at 1 S. Los Carneros Road, on Lots 2 and 5 of the Raytheon/Campus Pointe Specific Plan Area.

A public hearing on the Draft EIR will be held by the City Council on Monday, May 7 at 6pm.

The public comment period on the Draft EIR begins on March 26 and will end on May 9 at 5:30pm.

Costco Gasoline Station - Draft Supplemental EIR
The Draft Supplemental Environmental Impact Report for the Costco Gasoline Station Project has been released. The proposed project is located at 7095 Marketplace Drive, Goleta, California.

A public hearing on the Draft SEIR will be held by the City Council on Monday, May 21 at 6pm.

The public comment period on the Draft SEIR begins on April 9 and will end on May 24 at 5:30pm.