Costco eyes old Garden State Park site

CHERRY HILL Costco Wholesale has set its sights on a parcel of prime South Jersey real estate to expand the megastore chain's presence in the region.

The Issaquah, Wash., retailer has put down a marker to build a 157,845-square-foot warehouse in Garden State Park, site of the former horse racetrack.

In addition to a warehouse, a proposed site plan recently filed with the township calls for retail space, a restaurant, and a bank on the vacant 18-acre site.

"We're excited about Costco," Cherry Hill Mayor Chuck Cahn said. "It just goes to show that businesses in the community recognize that Cherry Hill is a place where they can continue to invest, grow, and thrive."

If approved, the plan would be a coup for one of the largest retailers in the country and further anchor the bustling complex that has emerged as a premier shopping spot in Camden County's second-largest municipality.

"This is a piece that has been out there," said Paul Stridick, the township's community development director. "It would be great to have it developed again."

Additional details of the project, including cost and a construction date, were not disclosed.

In an e-mail sent by his executive assistant, Jeff Brotman, Costco's chairman and co-founder, declined to comment.

"Our corporate policy is not to comment on specific markets," Brotman said in the statement.

The land is owned by Edgewood Properties. The prime real estate in what many consider the epicenter of South Jersey will likely fetch a hefty price.

The site was originally zoned for a million-square-foot office complex that never materialized after the real estate market plunged. The township Planning Board would have to decide whether to approve changing the development to retail.

If it does, Stridick said, the township will likely require Costco to build a classic-style building with masonry architecture similar to other buildings in the complex.

Garden State is home to a Home Depot, a Best Buy, a Wegmans, clusters of other stores, franchise restaurants, and luxury townhouses and condos.

"It's not going to be your typical retail warehouse," Stridick said. "We will make this unique to the Garden Park Development."

Costco, a membership-only warehouse club, would bring stiff competition to local Sam's Club and BJ's Wholesale Clubs, which have more warehouses in South Jersey.

Experts say Costco has built loyal customer bases and strategically selected prime locations without oversaturating the market.

A Costco warehouse in Mount Laurel is the only one in the tri-county area. In the Philadelphia area, warehouses are in Montgomeryville, Glen Mills, Warminster, and King of Prussia.

Costco is scheduled to open five locations this month in Australia, Canada, Texas, and Illinois, according to its website. The company, which reported net sales of $8.1 billion for October, operates 642 warehouses worldwide.

If the Costco deal is approved, it would leave one remaining undeveloped site at the former racetrack - a 10-acre tract off Route 70.

Garden State Park, which once hosted the nation's top thoroughbred and harness races, ceased operating in May 2001 after revenue and attendance declined. Built in 1942, the 600-acre track was demolished in 2005.

GS Park Racing, which owns the site, obtained approvals more than a decade ago to develop an off-track betting parlor there. GS Park owns Freehold Raceway and an OTB facility in Toms River.

But before GS Park can proceed with its Cherry Hill plan, New Jersey and Gov. Christie must win a legal battle to force the federal government to lift a ban limiting sports betting on professional and collegiate sports to four states.

Because the highly visible and desirable site has sat dormant for years, Cahn and Cherry Hill officials say it would now be better suited for something else, possibly a corporate campus or other commercial tax-paying venture.

"I would prefer that the owners either develop it or sell it," Cahn said.

GS Park Racing, however, has vowed to fight any attempt by the township to label the land an "area in need of redevelopment," which would move the township a step closer to finding a new use for the property.

"They have made no decision to sell it," said Barbara Casey, a partner at the Ballard Spahr law firm who represents GS Park Racing. "There are still holding it for potential development for a use that is complementary to their racetrack."

Source: Philly.com