Newport News City Council to Review Proposed Costco Gas Station Plan
Conditional Use Permit Request for Jefferson Avenue Site Includes Fuel Facility along with Large Warehouse Store
A Newport News Daily contributor used AI to produce this post from these sources:
Agenda, City Council Regular Meeting, Tuesday, June 10, 2025, 7:00 PM
Newport News Planning Commission Meeting May 21, 2025

The Newport News City Council is set to hold a public hearing on Tuesday, June 10, 2025, regarding a request for a conditional use permit related to the proposed construction and operation of a Costco Wholesale warehouse and accompanying gasoline supply station. The meeting will take place at the Denbigh Community Center, located at 15198 Warwick Blvd, beginning at 7:00 PM.
The request, Conditional Use Permit No. CU-2025-0003, comes from Ferguson Enterprises, LLC and Costco Wholesale Corporation. The project site encompasses a 20.23-acre portion of properties located at 12500, 12490, and 12470 Jefferson Avenue. While the property is zoned M1 Light Industrial and a wholesale retail establishment like Costco is permitted by right in this district, a conditional use permit is required specifically for the automobile gasoline supply station component.
The proposed development includes a 135,000 square foot warehouse and a 12-pump gas station. Costco is seeking this new location as a more viable option for expansion compared to their current site, which they find no longer feasible. The project involves purchasing the 32.37 acres from Ferguson, submitting a boundary line adjustment plat to reconfigure the property into three new parcels, with Costco occupying the largest 20.23-acre parcel. The plan also includes the demolition of three existing structures on the site.
The Newport News Planning Commission previously reviewed the application and voted unanimously (9:0) to recommend approval of the conditional use permit with conditions on May 21, 2025. The staff report presented to the Planning Commission indicated that while the proposed use is not entirely consistent with the One City, One Future 2040 Comprehensive Plan's designation of office uses for the property, it aligns with strategies for sustainable redevelopment through the reuse of vacant buildings.
A Traffic Impact Analysis prepared in April 2025 found that the local transportation system can adequately support the traffic generated by the proposed development, provided recommended improvements are made. The Virginia Department of Transportation (VDOT) also reviewed the analysis and found it acceptable. Required traffic improvements include developing northbound right-turn lanes on Jefferson Avenue, a southbound left-turn lane at the Jefferson Avenue/Boykin Lane intersection, and adjustments to lanes at the Bland Boulevard entrance among others. All required improvements must be completed before a certificate of occupancy is issued.
Other conditions recommended by staff and supported by the Planning Commission include requirements for a Class 1 site plan review, a boundary line adjustment plat, landscape plans to mitigate the visual impact of the parking area and gas station, submission of building elevations and exterior materials, and installation of equipment like vacuum and air supply adjacent to the public right-of-way with appropriate screening. The gas station pumps are expected to operate from 6:00 a.m. to 9:30 p.m. Monday through Friday and 6:00 a.m. to 7:00 p.m. on Saturday and Sunday. No freestanding sign is proposed for the property.
During the Planning Commission discussion, concerns were raised regarding potential traffic issues along Jefferson Avenue, particularly given other developments in the area, and the importance of completing the new Denbigh interchange. A citizen also voiced opposition to the location at a previous City Council meeting on May 13, 2025, citing safety concerns at the already busy intersection and suggesting alternative sites.
The City Manager recommends approval of the conditional use permit. The public hearing portion of the City Council meeting on June 10 is scheduled to allow citizens to comment on this and other germane matters before the business portion concludes no later than 10:00 p.m.