The Santa Barbara Airport Commission has approved an Exclusive Negotiating Agreement (ENA) with Costco Wholesale Corporation to explore the possibility of a gas station at the airport-owned business park north of Hollister Avenue.
The agreement gives Costco 12 months of exclusive rights to study the site and assess whether a gas station could be viable.
Commissioners noted that approval does not guarantee construction and that the agreement simply allows both parties to evaluate the opportunity.
Costco has 12 months to study the site and is not obligated to proceed, while either party can cancel the agreement with 30 days’ notice, a provision discussed at the March 18 Airport Commission meeting.
Costco’s due diligence will include evaluating site-specific challenges, including a high water table and potential cultural resources.
The agreement also ensures that the airport cannot lease the property to another party during the 12-month study period.
Commissioners said that any studies Costco conducts, such as traffic or environmental reports, would be shared with the city even if the project does not proceed.
While the site offers potential, it also faces significant development constraints. A high water table complicates construction and adds to the site’s overall development challenges.
Additionally, traffic concerns are also significant. The already congested Fairview and Hollister Avenue intersection could face added strain if a gas station is built.
Officials said the existing Economy lot will remain in use. The airport is planning a Long-Term South parking lot to reduce reliance on current facilities and manage future demand.
A Costco gas station could generate significant sales tax revenue, which is estimated at 8% to 10% of store sales, making it a potential boost to the airport’s finances.
Such revenue would supplement the airport’s Enterprise Fund, which has grown from landing fees, rental car revenues, and fuel-related fees, up more than 10%, while overall non-commercial aviation revenue rose 8.13% mid-year.
Commissioners also discussed a potential fuel flow fee for non-aviation fuel. While standard for aviation fuel, applying it to a retail gas station would be a novel approach.
Officials said the idea remains under consideration.
Costco will conduct detailed traffic, environmental, and feasibility studies in the coming months. These findings will help determine whether the project proceeds, which remains in an exploratory phase.
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YES! Costco gas prices are always lower than anywhere else.
Far fetched, but….Costco could be planning to leave their current location and rebuild a whole new unit where the drive-in theater used to be. That whole parcel could easily accommodate a Costco warehouse, parking, and gas station. The location is ideal with its easy freeway access and major thoroughfares (Fairview and Hollister Aves.). Certainly would reduce the strain on traffic where Costco is currently located. They could easily construct an entrance from Fairview through the area where the golf course is currently located (I believe the golf course land belongs to the City of SB). Dedicated MTD bus and Amtrak train stops would go far to reduce vehicle traffic.
I don’t think it’s far fetched at all…and actually makes a lot of sense. I don’t know of any Costco Gas Stations that are remote from their warehouses?
Gas storage would be completely submerged within the water table of Goleta slough. Seems like a bad idea.
BASIC – the SB airport (basically built on the slough) has massive underground tanks for jet fuel.
Lucky for us, we live in the great state of California, where our environment is protected like no other. You can be sure, if something like this is allowed, it’s been thoroughly vetted and comes with strict oversight and regulation. That’s why those high taxes we pay don’t bother me too much. I can rest easy knowing that money is actually going to protect my planet and my family.
New Costco development on a wetland vs. a regional airport that’s been there for many decades? Apples to oranges. How badly do we need another gas station? Not.
How do you figure a new development with new tech and likely harsher regulations/guidelines will be less safe than old tanks? You’re not making sense.
Also, now you’re just changing the goalposts, as you always do. You initially moaned about (presumably) safety, now you’re changing your complaint to being about need. A tip in life, BASIC: you don’t ALWAYS have to complain about EVERYTHING, especially when it won’t affect you at all.
When the World Trade Center was being constructed in the mid 60’s they had to deal with 70′ of water logged landfill. They created a “bathtub” to keep out the Hudson River. Something similar to work around the low water table shouldn’t be that difficult 60 yrs later.