Passing on Branford, Costco Eyes Guilford

In 2005, Costco wanted to open a store in Branford, but the town’s Zoning Board of Appeals turned down the company’s request for a variance. The site did not provide both the visibility and easy access from I‑95 the company wanted. It was also too small.

Costco did not give up on the idea of a store on the shoreline. Now, the company is pressing for a store on the Guilford ​“Rock Pile” — just 2.5 miles from the Branford line.

Because of this proximity, Branford First Selectman “Unk” DaRos said, he has concerns about the effect of a massive Costco on Branford small business.

“Since it’s that close it could affect some of our merchants in Branford.  I certainly think it would affect small business in Guilford. If it ended up in Branford, they [Guilford] would have the same problems,” he said.

Last month, Costco Wholesale and Developers Diversified Realty (DDR) Guilford LLC submitted a joint application to the Guilford Planning and Zoning Commission (P&Z) for a text amendment to the zoning regulations on the “Rock Pile” site off of Exit 57. This amendment would allow a single store of 150,000 square feet in an area which is currently zoned to allow stores of 25,000 square feet (and stores up to 40,000 square feet with a special permit). If approved, the amendment would allow DDR to lease the entire site to Costco, instead of leasing to approximately 25 different tenants as DDR initially planned.  This deal fell through. 

Though Guilford businesses are concerned, many townspeople have come out for the Costco. Guilford First Selectman Joseph Mazza said that though he is still on the fence and has no say in the approval process, the people who have spoken to him have been at least 2 to 1 in favor. “I was extremely surprised to see the favorable reaction in town,” he said.

We asked him what he would say to the people who oppose the development and say that in the end big box stores become costly to a municipality.  “Do what I’m going to do,” Mazza, a former accountant, said. “Look at the facts.” 

For Mazza, those facts include both the tax benefits other towns receive from Costco stores, and the number of services those towns increased to accommodate the store. Residents are also concerned about the environmental, cultural, and scale issues of bringing Costco to a small town, especially a town with three historic districts on the National Register.  Then there are those who are tired of driving to the store in Milford, and would prefer a closer option.

This last feeling concerns Bishop’s Orchards, a family run business which is now owned by the fourth and fifth generations. The store, which sells Guilford grown fruits and vegetables and many other products, is less than a mile from the proposed site.

Keith Bishop, a fifth-generation co-owner, said that as a family, the Bishops are supporting the current zoning regulations without the proposed changes. “We’re concerned about the impact of big boxes on the landscape, and the look and feel of Guilford,” Bishop said, “and by any retail that doesn’t fit the existing zoning regulations.”

When asked if he thought people might come to Bishop’s after going to Costco, Bishop said that they might, but that his gut reaction was the opposite. “I’m sure there will be some of that,” he replied, “but also some people might go to Costco instead of coming to us. And if the traffic is busier people might not come in.”

Ron Rosa, who owns the Guilford Food Center, has been in business with his brother, Ray Rosa since 1969. “We do buy from Costco,” Ron Rosa said, “but if they move into town I can’t see myself going over there. It would look kind of silly to go across town and buy a side of sirloin, and then come back to my store and cut it into steaks.”

“I don’t think it’s a great idea,” Rosa added. “I think it will hurt a lot more businesses in town than people realize.”

Mazza said that he too is worried about small businesses, and would have preferred the original plan for the Guilford Commons shops. “When DDR first brought Costco to town, and they met with me and the town’s economic development specialist, I wasn’t too happy,” he said. “Personally, I was in favor of the lifestyle shops. I said ‘You’re going to have a tough time getting the amendment through, but if you’re going to put Costco anyplace, that’s the place to put it.’”

Indeed, the Guilford site has everything Costco originally wanted from Branford. The “Rock Pile” is visible from I-95, but less visible from Route 1, and has easy access on and off the highway. The proposed store would cover the site with 516,150 square feet of impervious area (the building, gas station, and parking lot) which is slightly less than the 529,150 square feet proposed for the original DDR project, Guilford Commons. For comparison, the Guilford Green is 308,800 square feet.

The application also includes plans for a kiosk inside the store where local businesses could advertise for free to the 3,000 Costco members who will see it each day. According to Joseph Montesano, the top regional director of Northwest Atlantic and Costco’s representative and real estate advisory services provider, Costco wants to encourage positive relationships with local merchants.

Montesano could not reveal if local businesses are shopping at the Costcos in their towns, but he argued that since 40 percent of Costco’s members are small business owners, Costco benefits from their success. “If the small businesses do well, they spend more with us,” Montesano said. “The rising tide raises all the boats.”

Montesano also pointed out that when he sees Costco’s Kirkland brand in small stores, he knows the relationship is working out. He told the Eagle about a recent trip to Swanky Frank’s restaurant with his son, where he noticed that many of the supplies being used were from Costco. “Everything was Kirkland brand. I thought, ‘They’re using our fry oil. That’s kind of cool.” He added: “We’re hoping that the frequency of this occurrence would increase.”

Costco has also proposed to do two things differently in Guilford: the application includes a change of façade to make the store more suitable for Guilford’s ambiance, and the lack of a liquor and wine section.

Though Costco stores usually sell high quality liquor cheaply, the Guilford proposal does not include a liquor store because there are no available liquor licenses in town. Though Mazza argued that it would be a “credibility issue” for Costco to add a liquor store when it was not in their original proposal, Montesano said that Costco would be interested in acquiring a license should one become available.

Before any of these hopes can be realized, Costco must undergo a long application process. Ray Bower, chairman of the Guilford P&Z explained that his board is the one which will approve or reject the application to amend the zoning. If the P&Z approves it, DDR and Costco would have to submit a more detailed proposal to the Inland Wetlands Commission.

If that is approved, the companies will need a complete site plan, which would come before the planning and zoning for final approval. Bower also said that at any point they could appeal in superior court if the project is denied or conditions are added. He added that opponents in town could also file against Costco in superior court. “It seems like a subjective process,” Bower said, “but we’re trying to be as fair and objective as possible.”

The P&Z is required to hold public hearings on the application to hear from town officials and residents before they vote. Bower said that the first public hearing is scheduled for September 22nd, but that one hearing may not be enough. “I’m anticipating it will take at least three to four meetings to get through this process,” Bower said. “I think people will have a lot to say.” (Since our interview, 5 hearings have been scheduled for September 22nd, 29th, and October 13th, 20th, and 27th.)

Amy Earls, the office manager at Page’s Hardware in Guilford, another landmark small business, pointed out that Costco might get one perk out of all the debate. “If they do come in after all this controversy,” she said, “everyone’s going to want to see what all the fuss is about. Then, if they like the store…” She smiled. “It’s a really good advertising stunt.”

Back in the food center, Ron Rosa’s son helped a customer buy hamburger meat. ​“I only need enough for four hamburgers,” she said.

Rosa also stressed the importance of small scale. ​“People call us all the time to say ​‘Hey, what time does the Little Folks Fair start on the green?’ ​‘Can you go next door and check the hours?’ I went to school here, and I have friends who wish they could come back and live here because it is a small town. We’ve got to preserve that feeling.”

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