Costco, 319-Apartments Planned To Reinvent NewPark Area

NEWARK, CA — A new Costco and 319-apartments are part of the city’s plans to reinvent the NewPark Mall area.

The council voted unanimously on July 22 to approve proposed designs from mall owner and developer Brookfield Properties for the warehouse and housing development. Construction could start as early as this fall, City Manager David Benoun reported at the meeting.

At the meeting, Mayor Al Nagy voted “heck yes” on the project, saying it could be one of the most significant projects in the city’s history.

The Costco warehouse would be approximately 161,000 square feet, including a bakery, pharmacy, optical center, hearing aid testing center, food court, photo center, tire sales and installation center and 10,340 square-foot open air canopy, the city’s website says. The warehouse would also come with a 32-pump gas station.

Costco would be on the southern portion of the mall, taking the space previously occupied by JC Penney and Burlington Coat Factory, which would be demolished to make room for the warehouse. Approximately 84,000 square feet of space inside the mall would also be removed to accommodate the new Costco building.

The 319-unit apartment building would be six stories, a mixed-use project that puts residential levels over the ground floor retail and amenities along Mowry Avenue, near the entrance of the mall. The building would have approximately 3,700 square feet of retail on the ground floor and 12,900 square feet of amenities like a bike shop, clubroom, co-working space, game room and fitness room, plus a pool courtyard and six-and-a-half level parking structure with 506 spaces.

Twenty-nine units would be set at affordable rates for households at very low, low and moderate-income levels, Community Development Director Steven Turner said in his presentation at the meeting.

Brookfield representative Sarah Klauztermeier said the construction would create 1,100 temporary jobs, with 1,300 ongoing jobs after construction is completed. Activity from the development would also generate $6.6 million per year in tax revenue for the city, Brookfield anticipated.

Kim Katz represented Costco at the meeting, describing the company’s market studies that found a need for a third Costco in the area.

“If you happen to shop at any of our closest locations, which are Fremont or Hayward, then you know they're very busy,” she said. “By adding another warehouse to this market, it will relieve pressure to these other locations and provide a closer and more convenient option to our members in Newark.”

Katz said 82 percent of Newark households are already Costco members, and that the company found the convenience of the Newark location would draw shoppers.

The council and Brookfield also discussed plans to make the area more of a community destination, with opportunities for leisurely shopping, outdoor activities and entertainment provided in a convenient area.

Turner described plans that included an open space for events and farmers markets, an outdoor food and beverage retail section and pedestrian and bike-friendly routes that connect the mall with Shirley Sisk Grove Park and the rest of the outdoor spaces.

The design the city approved on July 22 would reduce the mall’s overall square footage by a net 187,691 square feet, but would make room for more outdoor walkways, kiosks and plaza space that would improve the shopping experience and attract “a higher quality of retail,” Turner said.

NewPark Mall opened in 1980, with Sears, JCPenney and Macy’s as its anchor stores. In 2013 and prior, the city noticed a change in retail trends that meant the decline of mall shopping, Turner said. Customers were drawn to online retail and open-space complexes that included entertainment and events alongside shopping.

When the city passed the general plan in 2013, it included provisions that would make the mall area into a “dynamic urban center,” Turner said, quoting the general plan. In 2018, Newark and Brookfield initiated discussions for the mall area and Newark passed the Specific Plan, which would guide use of the area. In 2020, Newark and Brookfield identified Costco as a potential anchor tenant for the mall.