After 10 years of court challenges, environmental review and bureaucracy, Costco is opening in the Capital Region Thursday morning at 8 a.m.
The retailer's 100th store in the Northeast will be located in a 153,000-square-foot warehouse next to the Crossgates Mall in Guilderland. About 12,000 people in the Capital Region have already signed up for a membership, according to a Costco spokesperson.
Capital Region Bureau Chief Grant Ashley joined Lucas Willard on Midday Magazine to discuss the winding path to the new location’s opening and how it could affect the Capital Region.
Editor's note: This conversation has been lightly edited for clarity.
INTERVIEW TRANSCRIPT
Willard: So, you visited this new Costco store. What'd you see?
Ashley: For the uninitiated, Costco is a warehouse store where you buy a membership and then you buy bulk goods at a generally lower price.
This location was built across the street from Crossgates Mall, and when I went, we had to go through the back door, but it was looked mostly ready to go.
There were a lot of workers inside getting things ready and doing trainings, and on the big day they're expecting some lines out the door.
They're supposed to have a "Costco-sized" cake, which is to say very large, and they have some products, especially for the opening day, like the famous giant teddy bears.
I spoke to Tony Dotson. He's the store manager, and he says this is the 100th Costco in the Northeast, and it's the one with the most member signups. They've got over 12,000 people already.
Dotson: I think it has a lot to do with that buildup. You know, the anticipation, the euphoria of Costco, and everyone knows what we stand for and and what we bring to the table, the quality of our products and the services that we provide, and I think everyone has been wanting that, and so I think that's been the the pretty much the driver for those signups.
Willard: Tony Dotson has mentioned, there's been a lot of excitement from shoppers in the Capital Region about this store, but I know that this has been something that's been in development for a long time.
I know that there have been a lot of concerns with the property where this store is located. What can you tell me about some of those challenges and that history behind this store.
Ashley: So, if you're from Albany, you're probably aware that this is the result of 10 years of bureaucracy.
There were five court cases. Some of those had lengthy appeals. It had to go through environmental review. It was built on a mostly but not entirely vacant neighborhood, as well as some pine bush habitat.
I spoke to Mark Eagan. He's the president and CEO of the Capital Region Chamber of Commerce, and he says the saga showed Costco's commitment to opening here.
Eagan: For Costco to remain committed to that project for a decade means they did their research to know it was in the right location, where long term it was going to be successful.
Ashley: Part of the reason they opened here, according to Dotson, is because they already have a membership base. The closest Costco to Albany is in Springfield, Massachusetts, and they felt there were enough people making the trip to justify opening a Costco here.
Dotson: They go around and they look at our member base, and they we can look at zip codes and where our members are, and so for example, the nearest Costco location from here is just under 90 miles away. So, they look at areas that there's a need, but also they have to have boots on the ground and actually see if it's viable in the area.
Willard: I also just want to point out that there have been Albany area residents that have been opposed to development in the area where the Costco is located.
The Rapp Road Historic District marks an historically African American neighborhood in the region. Actually, that there's a plaque that's placed there that says it's part of the Register of Historic Places by the U.S. Department of the Interior. So there were a lot of community concerns, as we've mentioned, going into this. But as far as an economic effect, obviously this is something that the company Costco pursued for a long time. What are they saying about job creation or otherwise?
Ashley: According to Costco, they're creating about 250 jobs, and about 200 of those jobs were hired locally. The rest were transferred from other locations. I don't think the jobs themselves are as big as deal as the Costco effect. This is a pretty widely studied economic phenomenon because Costco pays higher than other retail stores and generally has better benefits. Other companies in the area raised their wages in response to try to compete with Costco.
I spoke to Kajal Lahiri about this. He's a UAlbany professor of economics, and he said this is a pretty well-studied phenomenon.
Lahiri: Adjoining businesses in order to keep their employees have to increase their wages to the employees also, right? So there's a ripple effect that the area sees as a result of Costco coming to town.
Willard: What are the experts saying about some of the potential net effects of this development?
Ashley: There will be increased traffic in the area, especially if you have so many people. People when they go to Costco, they tend to make it a day trip, which can boost other businesses in the area because they're going out to eat or going to the mall.
It also means that there's just more traffic in the area. I spoke to David Banks. He's a lecturer at UAlbany's Department of Geography, Planning, and Sustainability, and he said the area can handle it.
Banks: I think we'll see both both increased traffic, but I think the area is able to manage that because it does have a lot of street infrastructure already available. It's close to the mall, the confluence of two highways.
Ashley: Banks also said that in an ideal world, you would have had Costco take over the central warehouse so it's more downtown and encourages more people to take public transit. He also criticized Costco for clearing that pine bush forest we mentioned earlier and for playing into car-centric infrastructure. But, he also said, given how car-centric Albany is, this was probably one of the better places to put it.
Banks: If you're not going to be able to successfully induce Costco to build in the shape that you want, that may be less car-dependent, then this is probably a next best option. Because while it is a very car-friendly area. It is also on many bus lines.
