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Salem approves site plan for new Costco as part of shopping center

The Kuebler Gateway Shopping Center is expected to bring a fueling station and at least four retail buildings to the area.
Credit: Natalie Pate
Officials from PacTrust real estate agency and Costco Wholesale spoke with residents of the South Gateway Neighborhood Association at an open house Tuesday, June 19, 2018, in Salem about the proposed move of Costco to Kuebler Blvd.

The city of Salem has approved a site plan for a 24-acre southeast Salem shopping center that includes a Costco Wholesale, but an appeal of the decision could be imminent.

The Kuebler Gateway Shopping Center is expected to bring a fueling station and at least four retail buildings to the area bordered by Kuebler Boulevard SE, Boone Road SE, 27th Avenue SE and Battle Creek Road SE.

Still, "the land use decision is not final. They need to make it through appeal," said City Planner Aaron Panko. "There needs to be a final land use decision approving the development before the city can approve development permits for this project."

T.J. Sullivan, vice chairman of the South Gateway Neighborhood Association, said he expects his association to appeal the decision. Sullivan has voiced concerns in the past about Costco attracting regional traffic to the area. Others also have been worried about light pollution and noise associated with the development.

The centerpiece of the whole development is a Costco store that is supposed to relocate from Hawthorne Avenue SE.

The current Costco location has been listed for sale at nearly $11 million, though the sale hinges on the relocation. The new store is expected to be 168,550 square feet in size, according to city planning documents.

The city pegged 17 conditions onto its decision, released Tuesday.

Among them: there must be bicycle parking for every one of the proposed buildings; at least 16 Oregon White Oaks have to be part of the shopping center's landscape design; a driveway on 27th Avenue SE should be transformed into a single-lane roundabout; and a stop sign should go in on the new driveway approach for Boone Road SE.

Officials from Portland-based PacTrust, which owns the site, could not immediately be reached for comment.

Email jbach@statesmanjournal.com, call (503) 399-6714 or follow on Twitter @jonathanmbach.

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