Business

Costco is considering a new store in Tumwater, city information shows. Here’s the proposed site

Costco wants to open an even bigger store in Tumwater that ultimately would replace the existing store on Littlerock Road, according to city information.

Representatives of the Costco proposal are set to meet with Tumwater officials Tuesday to get feedback on a project that would create a store on the southwest corner of Tumwater Boulevard and Interstate 5, south of the Toyota dealership in the area and on the same side of the freeway.

The city has known for a long time that Costco has wanted a store larger than the one that sits between Walmart and Fred Meyer, said Mike Matlock, community development director for the city.

“Our understanding is that it’s just a size issue,” he said. “The store is more profitable if bigger.”

The existing store opened in the early 1990s and is about 143,000 square feet, he said. The new store is proposed at 160,000 square feet, according to the meeting information. It also would have a gas station with 40 fueling positions and 950, 10-foot-wide parking spaces, the information shows.

A contact at Costco on Monday declined to comment on the proposal.

The new Costco proposal is part of a larger mixed-use development plan that encompasses 57 acres in the same area. In addition to the store, the developer wants to bring additional businesses to the site as well as multi-family housing, Matlock said.

The site currently is a forested property, he said.

Tuesday’s meeting is with the city’s development review committee, a body that provides feedback on development proposals before they become official and trigger public comment periods.

One element of the proposal would extend Tyee Drive, Matlock said.

Tyee Drive currently winds its way around the Toyota dealership, then connects to a roundabout on Israel Road. Under the extension plan, Tyee would be extended across the street and continue south through the proposed development site to Prine Drive Southwest.

Tumwater is also home to a Costco distribution center. The 1-million-square-foot building opened south of 93rd Avenue Southwest and east of I-5 about two years ago.

“They are a really important business in Tumwater,” Matlock said about Costco.

The proposed location of a new Costco at the southwest corner of Tumwater Boulevard and Interstate 5.
The proposed location of a new Costco at the southwest corner of Tumwater Boulevard and Interstate 5. City of Tumwater Courtesy
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This story was originally published December 2, 2024 at 1:03 PM.

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Rolf Boone
The Olympian
Rolf has worked at The Olympian since August 2005. He covers breaking news, the city of Lacey and business for the paper. Rolf graduated from The Evergreen State College in 1990. Support my work with a digital subscription
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