OCEANSIDE – Costco is negotiating for space in a proposed shopping center on state Route 76 in Oceanside as an alternative to building on city property across the street.
Oceanside officials have been talking with Costco representatives for several years about opening a store on city land west of Foussat Road and just north of state Route 76. Negotiations on actual terms for a deal have grown more serious since fall.
But city officials have confirmed that the megastore also has entered into talks with the developer of the Pavilion at Oceanside, a shopping center proposed for 96 acres along Route 76, east of Foussat. The land is home to the defunct Valley Drive-In theaters.
Jane McVey, city director of economic and community development, confirmed the dual negotiations and said that locating at the Pavilion center would allow Costco to open sooner.
Mel Kuhnel, the San Diego-based vice president for development of Thomas Enterprises, the Pavilion developer, declined to discuss the Costco negotiations. But he said he would not deny that negotiations have taken place.
“If you want to see this process go through in a timely manner,” Kuhnel warned, “do not mention it.”
Jim Sinegal, Costco president and CEO, confirmed yesterday that “we have a couple of different sites we are looking at in the Oceanside area” and that negotiations are ongoing.
Kuhnel said he expects to break ground on Pavilion in November. Before that can happen, the city Planning Commission must approve the environmental impact report and the development plans for the project. The environmental study is complete and public comments on it are due at City Hall next week.
Costco is expected to contribute $1 million in sales tax to the city.
McVey said the object is to get a Costco store in town, and if the company chooses to locate in the Pavilion center, the city will look for another client for its land.
Costco has said it needs around 16 acres, about the size of the city property.
The Pavilion is to be a 950,000-square-foot center – one of the largest in the city. According to Thomas Enterprises' Web site, it will include “a blend of power and casual luxury retailing and dining.” Regardless of whether Costco locates there, Kuhnel said, a Target store is definitely slated for the center.
Also proposed are a movie theater complex, fitness center, supermarket, and boutiques. Thomas Enterprises also built the upscale The Forum in Carlsbad.
Lola Sherman: (760) 476-8241; lola.sherman@uniontrib.com
