Judge blocks plans to build largest Costco in Fresno. How will city respond?

A Fresno County judge has blocked approvals for a Costco store planned on Herndon Avenue in northwest Fresno, dealing a major setback to a project initially scheduled to be completed this summer.

Judge Jonathan Skiles’ 12-page ruling on Thursday sided with a group of residents who sued the city in May 2024. As the Herndon-Riverside Coalition for Responsible Planning and Development, the residents alleged city officials violated zoning laws and conducted an insufficient analysis of the store’s environmental damages.

The city must revise its environmental impact report for the Costco project in accordance with the California Environmental Quality Act before seeking new approvals for its construction. The city may also appeal the case.

It remained unclear Tuesday how the city will respond to the judge’s ruling. A spokesperson for Mayor Jerry Dyer’s office did not immediately respond to a request for comment.

The current environmental impact report includes an analysis of the site’s projected effect on greenhouse gas emissions, as more vehicles would travel through the area. According to the report, the project would fulfill the city’s greenhouse gas reduction goals outlined in a 2021 plan.

But a judge revoked certifications for that plan last August, leaving the city’s analysis of greenhouse gas emissions “without foundation,” Skiles wrote.

Skiles also ruled that the city violated its municipal code by allowing a storage and distribution space for large items within the planned warehouse. The city’s code would classify that space under “industrial” use even though the rest of the site would be zoned for “general commercial” use, according to the residents.

However, Skiles rejected one of the coalition’s claims and said the city sufficiently evaluated alternative locations for the project.

The new store at West Herndon Avenue and Riverside Drive, if built, would replace the current one at 4500 W. Shaw Ave., increasing in size from 134,000 to 219,000 square feet. The site would also include a car wash and 32-pump gas station.

Daniel Brannick, an environmental attorney representing the coalition, told The Bee after a June hearing that the lawsuit was not a “NIMBY thing,” referring to the phrase “not in my backyard.” He said the group did not specifically focus on environmental justice, either — residents were not opposed to a new Costco location but wanted the city to more adequately consider alternative spots to reduce traffic disruptions and environmental impacts.

The coalition sought “informed decision making” from city officials as well as “meaningful public participation” when seeking approval for projects like the Costco store, Brannick added.

Fresno City Council President Mike Karbassi represents the district that includes the proposed Costco location. He told The Bee on Tuesday that the city provided ample opportunities for public feedback before approving the Costco design in March 2024, and he said the coalition sought to “hijack” the planning process through its lawsuit.

Karbassi said the city should remain committed to the building the project and explore how to move forward. He expressed concern that the coalition could try blocking further efforts to adjust the Costco plans, including if the city were to try rezoning the land.

“They can also claim that this isn’t about stopping growth and development or killing jobs, but that’s what they’re doing,” he said.

This story was originally published July 22, 2025 at 12:40 PM.