Costco Wholesale withdrew its application to build a store in Newbury Park near the 101 Freeway and Wendy Drive after determining the cost would be too great. It would be the most expensive store the company has ever built, according to Costco.

"The bottom line is the project costs are not economically feasible for us to go forward," said Jeff Brotman, chair of Costco Wholesale.

"The cost of land, cost of site, city requirements such as off-site roads and traffic signals and restrictions are too much for us to make money," he said.

"In today's environment we must be conservative."

Still, Brotman said, Costco has a large number of members in the area and believes it would do well if costs came down so they could move forward with the project.

The proposed development of a 154,742-square-foot Costco warehouse store with a gas station, parking and signage was taken off the agenda of the Jan. 13 Thousand Oaks City Council meeting after Costco sent the city a letter on Jan. 12. The planning commission had already given its approval to the proposal.

"As you know, Costco does not own the subject site. Despite substantial efforts, we have been unable to finalize a lease for the site," Michael Okuma, Costco director of real estate development, said in the letter.

Community Development Director John Prescott of T.O. said the city's requirements didn't come up as a reason for withdrawing the application when he talked to Costco representatives.

"We understood it was because the business deal hadn't been finalized," Prescott said. "The first meeting the city had with Costco on this project was two and a half years ago. Since then Costco has spent a lot of money on design.

"We were told the application was withdrawn because there wasn't a business deal and Costco didn't want the hearing to go forward until there was one," he said.

"It's sort of a shame," Prescott said.

He said that city planners had worked with Costco to come up with a nice design that would fit the city's requirements.

"I'm still optimistic a deal will be reached," said Gary Wartik, city economic development director.

According to Brotman, Costco and the property owners aren't communicating at this time, although, he said, he would like to get a call from them.

"We'd love to chat. We'd be happy to talk. If project costs come down, we'd be happy to look at it," he said.

He would also like the city to reconsider the infrastructure requirements.

"All parties have to rethink it," Brotman said.

City spokesperson Andrew Powers said many cities, not just Thousand Oaks, require property owners to pay for infrastructure

needs for development.

"It's good government and takes the burden off the taxpayers," Powers said.

The Seventh-day Adventist Church owns the property and didn't withdraw its application. SDA and Costco applications to the City Council were intertwined, so Prescott recommended the city postpone the hearing until city staff determines if changes to the Specific Plan are still desirable.

Costco has already paid $30,000 for a special use permit, $30,000 for a development permit, $3,600 for an oak tree permit and $12,000 for a mitigated negative declaration. The church paid $10,000 for a tract map major modification, $6,000 for a Specific Plan amendment and $6,000 for zone changes.

Costco was expected to generate new jobs and about $600,000 to $750,000 a year in sales and gasoline tax revenue for the city, Wartik said.