California Town May Exempt Gas Station Ban to Attract Costco
Windsor May Exempt Gas Ban for Costco

A town in California's Sonoma Valley wine country wants a Costco, but its four-year-old total ban on new and expanded gas stations stands in the way. The town of Windsor is exploring exemptions to the law that would allow larger stores to have gas stations.

Council Signals Openness to Costco

At a recent municipal council meeting, lawmakers framed the exemption as an invitation for Costco to open a location in the Sonoma County town. 'We want to signal to the Costcos of the world to say we're open,' town council member Mike Wall told the Press Democrat, a local newspaper.

The cult favorite discount retail chain currently has two stores in Sonoma County: a Rohnert Park location opened in 2002 and a Santa Rosa store was added in 1986, while Windsor is home to four gas stations.

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Expert Criticizes Ban

According to Neil Saunders, managing director at GlobalData Retail, the ban does a great disservice to the people of Windsor as it stymies competition and keeps gas prices high. 'A Costco gas station would offer far lower prices, which I am sure is something most people in Windsor would welcome, just as they have welcomed it across the country,' Saunders told the Daily Mail.

In 2022, as the region experienced a searing heat wave, the town council unanimously passed an ordinance banning new gas stations or the expansion of existing ones in an effort to fight climate change. Costco's gas averages 10 to 30 cents cheaper a gallon than at other gas stations, according to US News.

Saunders believes the ban does a great disservice to the people of Windsor, as it stymies competition and keeps gas prices high. 'A Costco gas station would offer far lower prices, which I am sure is something most people in Windsor would welcome, just as they have welcomed it across the country,' he said.

Other Towns Consider Similar Moves

Windsor is the second town in Sonoma County mulling exemptions to gas station bans with an eye to attracting a Costco. There are 11 municipalities in the county with similar ordinances. Reportedly, representatives of the retailer have reached out to the town asking it to revise its ban.

Woody Hastings, a founder of the Sonoma County-based Coalition Opposing New Gas Stations, urged the Windsor town council not to pass the exemption. He told the Press Democrat that the town should be proud of the pioneering policy, noting that it needs 'more bikes on the road and less cars.'

We reached out to Costco for a comment, but have not heard back from them. 'Unfortunately, it is our company policy to not comment regarding future Costco warehouses until we are ready to share details about the new location,' a Costco spokesperson told SFGATE.

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