KCMO City Council passes ordinance assisting Midtown Costco in business center conversion

August 6, 2026 - 18:45

The Kansas City, Missouri, City Council voted Thursday to approve an ordinance that supports Costco's plan to turn its Midtown location into a business center. The measure, which passed after discussion among council members, is seen as a key step in the retail giant's effort to repurpose the existing store at the busy intersection near Armour Boulevard and Main Street.

Under the new ordinance, the city will provide certain zoning and land-use adjustments that make it easier for Costco to operate a business center format at that site. Unlike a typical warehouse club, a business center focuses on bulk sales to restaurants, offices, and small retailers, offering larger packaging sizes and a narrower range of consumer goods. The change means the current store, which has served everyday shoppers for years, will shift its inventory and layout to cater to commercial buyers.

Council members who backed the measure said the move protects jobs and keeps a major anchor tenant in the area. They also noted that the conversion could draw new business activity to Midtown, as nearby food service and catering companies would have a convenient source for supplies. Some residents, however, have raised concerns about reduced access to regular groceries and household items, especially for those without easy transportation to other Costco locations in the metro.

Costco has not announced a firm timeline for the conversion, but the company has said it plans to keep the building open during the transition. The ordinance also includes provisions for parking and delivery truck routing to minimize disruption to neighboring streets. City staff will work with Costco on a phased approach, allowing the store to remain operational while shelving and checkout areas are reconfigured.

The vote came after a public hearing where several business owners spoke in favor of the change, arguing that a dedicated business center would fill a gap in the local supply chain. Opponents, including some community groups, asked the council to delay the decision until a full study on traffic and noise impacts was completed. In the end, the council moved forward, citing the economic benefits and the company's commitment to staying in the district.