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Fresno City Council Faces Thursday Vote on 280K SF Costco Relocation and Fee Waiver

Fresno City Council will vote Thursday on a 280,000-square-foot Costco relocation that could receive a $40 million fee exemption.

By Colin Percy · May 20, 2026

The Fresno City Council is scheduled to vote this Thursday on a proposed 280,000-square-foot Costco project located at the corner of Herndon and Riverside in north Fresno. The development, which aims to replace an existing 1985-era store, is currently embroiled in a debate over a potential $40 million exemption from the city's vehicle-miles-traveled (VMT) mitigation program. Critics argue that the exemption, which proponents claim is eligible under a grandfather clause, would cost the city more than two years' worth of annual Measure C transit funding.

Simultaneously, a community coalition is demanding the recusal of Councilmember Mike Karbassi from the upcoming vote. The group alleges that public comments made by Karbassi regarding project opponents demonstrate an 'unacceptable probability of bias,' which they argue violates due process requirements for quasi-judicial proceedings. The council's decision hinges on whether the project—specifically its planned mini-warehouse facility—conforms to existing zoning laws.

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