Planning Commission approves Costco at Foothill Ranch after traffic and open-space questions

The Lake Forest Planning Commission on Feb. 5 approved entitlements for a new Costco warehouse at 26602 Town Centre Drive in Foothill Ranch, concluding a public hearing that included both public support and opposition and extensive commissioner questioning about traffic and open space.

Associate planner Connor Musler told the commission the application would demolish the former movie theater and construct a 165,068‑square‑foot building, 34 feet tall, with an entrance canopy, parking, landscaping and associated site improvements. The proposal seeks a site development permit, use permits for off‑site alcohol sales and limited tire center services, exceptions to mixed‑use standards (including a reduction in required open space), and a sign program modification. Musler said the project is exempt from CEQA under Guidelines section 15183, supported by a traffic study, greenhouse gas analysis and noise study that were peer reviewed by the city’s consultant, De Novo Planning Group.

Two members of the public spoke during the hearing. Dwight Robinson, a Lake Forest resident of 27 years and former councilmember and mayor, urged approval, saying residents he had spoken with were enthusiastic and that a local Costco could reduce sales‑tax leakage to neighboring cities. By contrast, long‑time Foothill Ranch resident Andrew O’Connor opposed the project, saying residents had not been adequately consulted, expressing concerns about traffic and quality of life, and warning the big‑box store could harm nearby independent restaurants and the food court.

Commissioners pressed staff on the traffic analysis during a detailed exchange. Commissioner Grable noted that technical appendices project levels of service of A or B at most intersections through 2028, with two intersections identified at lower levels of service; Musler said the traffic study did not identify the need for intersection improvements or turning‑pocket extensions and that Costco had volunteered some additional measures. Musler confirmed the applicant’s technical reports were prepared by the project team, reviewed by staff and peer‑reviewed by De Novo Planning Group.

Commissioner concerns centered on a requested exception to the mixed‑use open‑space requirement. The mixed‑use standard calls for 25% open space in the zoning district; the site currently provides about 8.1% and the proposal increases it slightly to roughly 8.8%. Davey Askom, AVP of development for the applicant, said the design added landscaping and that the project provides 2,068 parking spaces versus about 1,994 required, noting further increases in open space would begin to conflict with parking needs. He said the team would consider modest additional landscape increases but emphasized the project is designed to meet operational and parking needs.

Musler also described proposed alcohol sales occupying roughly 1,765 square feet of the sales area and noted that, because the census tract has an overconcentration of alcohol licenses, the Alcoholic Beverage Control (ABC) requires a determination of public convenience or necessity. Musler said the police chief reviewed the application and raised no concerns; the applicant also proposed security measures including cameras and age verification.

After discussion, Commissioner Grable moved to approve the resolutions for the project as a comprehensive motion; the motion was seconded and passed on a unanimous roll‑call vote.

What happens next: The approved entitlements allow the applicant to proceed with building permits and required site work. City staff said they will maintain an open dialogue with the applicant to monitor potential operational impacts such as traffic during opening and initial months of operation.