Costco Wins Approval to Relocate and Expand Fuel Facility in Coon Rapids

Costco Wins Approval to Relocate and Expand Fuel Facility in Coon Rapids

COON RAPIDS, MN — Costco has received the green light from the Coon Rapids City Council to relocate and significantly expand its fuel facility at the Riverdale Village Shopping Center, a move designed to ease long-standing congestion and improve traffic flow in one of the city’s busiest commercial areas.

Under the approved plan, the gas station will move from the northeast side of the Costco property to the southwest corner, on a site currently occupied by a vacant TGI Fridays restaurant. Costco will purchase and demolish the restaurant building to make way for the new facility, which will feature 20 fueling pumps—double the current number—and the capacity to serve up to 40 vehicles at once.

City officials and Costco representatives say the expansion is aimed at addressing persistent issues with long lines and traffic backups at the existing gas station, a problem regularly observed during peak shopping hours. A traffic study conducted as part of the project found that the redesign would reduce queuing times, improve circulation within the shopping center, and lessen pressure on nearby intersections.

The traffic improvements will include a new intersection design, changes to driveway access, and a dedicated right-turn-in, right-turn-out access point from Riverdale Boulevard. Additional features such as enhanced landscaping, evergreen screening, and updated lighting will also be incorporated to minimize the visual impact of the larger facility.

Because gas stations are not a permitted use within the Riverdale Village’s existing regional shopping district zoning, Costco required and received approval for a Planned Unit Development (PUD). The Coon Rapids Planning Commission recommended approval on a 6–1 vote before the City Council ultimately signed off on the project.

The current fuel station will remain open throughout construction, ensuring uninterrupted service for Costco members. In addition to the expanded fueling capacity, the project includes the addition of 128 new parking spaces on the site.

City officials acknowledged community concerns about potential safety issues at nearby intersections but concluded that the project’s design changes, coupled with traffic flow adjustments, would mitigate risks. Costco has also committed to meeting environmental and safety regulations regarding decommissioning of the old station and installation of new infrastructure.

The expansion is part of Costco’s broader strategy to improve operational efficiency and enhance customer experience as demand for its services continues to grow.

MinneapoliMedia