Costco project and city reserves
Where it standsIn June 2026 the council approved a $10.5 million agreement, paid from city reserves, to move Downey Nissan and clear a Firestone Boulevard site for a Costco warehouse and gas station.
What's on the tableEnvironmental review and permits for the project, and separate sales tax-sharing agreements with Costco and Downey Nissan.
- The council approved the Master Development Funding Agreement 5-0 and appropriated $10.5 million from the General Fund Reserve. The Downey Patriot, June 25, 2026 print edition: Downey authorizes $10.5 million deal to help land Costco; Downey adopts $335 million spending plan · Jun 25, 2026
- The city's share includes a $10 million lease cancellation payment to Downey Nissan and about $500,000 for environmental and entitlement review. The Downey Patriot · Jun 19, 2026
- The city estimates the Costco project would raise sales tax revenue by more than $3 million a year. The Downey Patriot · Jun 19, 2026
- A future $3 million sales tax-sharing agreement with Costco and a $2 million agreement with Downey Nissan would return to the City Council. The Downey Patriot · Jun 19, 2026