Costco Could Finally Be One Step Closer to Coming to Escondido's North County Mall

If you've been following the long-running story about Costco potentially opening at North County Mall in Escondido, there's another important update.

On August 12, the Escondido City Council is scheduled to consider approving a direct lease agreement with Costco for the former Sears property at North County Mall.

A Project That's Been Years in the Making

The idea of bringing Costco to North County Mall has been around for several years.

Back in 2022, the City approved a lease agreement connected to the proposed Costco project. However, that agreement wasn't directly with Costco. It was with Transformco, the company formed to acquire many of the remaining assets of Sears after the retailer filed for bankruptcy.

Sears had been a longtime anchor in Escondido before eventually closing in 2020, leaving a large vacant space along Interstate 15.

By 2023, Costco had become directly involved in the project, giving many local residents hope that the new warehouse was finally moving closer to reality.

Then, just before Thanksgiving 2023, things changed. Costco asked the City to stop processing its development application, and the project appeared to be on hold.

No official explanation was provided at the time, which naturally led to plenty of speculation about why Costco had changed course.

Why the August 12 Update Matters

The proposed agreement now heading to the Escondido City Council would be a lease directly between the City and Costco.

The proposed lease includes an initial 20-year term along with multiple five-year renewal options.

According to City estimates, a future Costco at the property could generate more than $2 million per year in sales tax revenue for Escondido. It could also create hundreds of jobs and potentially encourage additional investment throughout North County Mall.

That's significant because the sales tax revenue would go into the City's general fund, meaning it could be used for a variety of services and priorities benefiting Escondido residents.

Costco Isn't the Only Change Coming to North County Mall

Costco may be getting most of the attention, but it's not the only major project that could change the feel of North County Mall.

Round1 Entertainment is also coming to the property, taking over the former Nordstrom space. The entertainment concept is expected to include attractions such as bowling, arcade games, karaoke, billiards, and other family-oriented activities.

The mall's anticipated Japanese Food Hall also appears to be getting closer to opening.

At this point, there still isn't an official opening date announced for either Round1 or the Japanese Food Hall, but both projects add to the feeling that North County Mall may finally be gaining some momentum.

Could North County Mall Be Turning the Corner?

For years, people around Escondido and North County have wondered what the future of the mall would look like after losing major anchors like Sears and Nordstrom.

Costco alone would be a major addition. But combine Costco with Round1 Entertainment and the Japanese Food Hall, and the mall starts to look less like a traditional shopping center and more like a place where people might come to shop, eat, and spend time with family and friends.

There's still plenty that needs to happen before Costco becomes a reality, but the August 12 City Council meeting could be another important step toward bringing the project together.

And yes... for some people, the biggest selling points may still be cheaper gas and that famous Costco hot dog.