The warehouse retail giant Costco – a favorite of shoppers and city budget directors alike — wants to build its 14th Orange County store in Lake Forest.
The chain that’s known for offering family-sized goods, food samples and a $1.50 hot dog-and-drink deal provided a glimpse into its plans in Lake Forest’s public planning documents. Costco typically does not comment on new store developments.
According to the paperwork, the company intends to demolish a shuttered movie theater at the Foothill Ranch Towne Centre and replace it with a 160,811 square-foot store on the 16-acre site that includes the entertainment facility and its parking lot. The theater, which operated under the Regal and Cinemark brands, last showed films in September 2024.
The store, if approved as suggested, would be slightly larger than a typical Costco, which is around 140,000 square feet. The proposal also includes a tire center at the Lake Forest site.
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It’s clear the Lake Forest plan is evolving. A project summary from January showed Costco wanted a gas station at the site. Plus, rooftop parking above the store was included, an amenity likely necessary to make up for spaces lost to a fuel center. However, a Costco filing with the city from May 27 talks only of a one-story building, traditional ground-level parking, and no gas station.
Cities typically welcome a Costco due to the significant sales tax revenues its huge stores generate. Annual sales can run $250 million or more.
“The project is still in the early stages, but we’re excited about the potential of having a Costco in Lake Forest,” said Jonathan Volzke, the city’s spokesperson.
The Foothill Ranch shopping center, situated in the northern part of the city a block north of the 241 toll road, lies between Bake and Alton parkways. This center would provide a new Costco with “big box” competition from nearby Walmart and Target stores.
The nearest Costco is 6 miles away in Irvine, close to the 5 freeway. A Lake Forest location would shorten the drive for Costco fans, not just in the city, but also in Rancho Santa Margarita, the Saddleback foothills and parts of Mission Viejo and Irvine.
Across Orange County, Costco also has two traditional stores in Laguna Niguel and Tustin, along with locations in Cypress, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, La Habra, San Juan Capistrano and Yorba Linda. It also has a business-oriented location, open to all members, in Westminster.
Costco is willing to think outside the norm for its Southern California expansions. In South Los Angeles, a new 185,000-square-foot Costco will be the first floor of a high-rise mixed-use project that also contains 800 apartments.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
