The announcement of the first outlet of United States retail chain Costco in Sydney's west has renewed calls for a factory outlet and homemaker centre at Kembla Grange.Premier Kristina Keneally last week announced Costco would open a $58 million retail warehouse on Parramatta Rd at Auburn, covering more than 13,700sqm.Ms Keneally said the project would create up to 130 construction jobs, along with up to 300 subsequent positions. Kembla Grange factory outlet: what you think But progress on the Illawarra's first factory outlet and homemaker centre remains at an impasse despite the potential for capital investment of $125 million and the creation of more than 800 construction and 1000 permanent jobs.The location remains the key sticking point, with proponent Total Recycling Pty Ltd arguing in favour of a 18.7ha site at Kembla Grange, a site Planning Minister Tony Kelly has labelled "clearly not the right location for a number of important planning reasons".Mr Kelly said the site had been zoned industrial "employment lands" and could not be used for retail purposes.But Total Recycling Pty Ltd spokesman Bill Bartlett said the Costco site, which required industrial land to be rezoned for retail use, showed the Department of Planning was playing by its own rules. "To my mind, it says that they can do what they want in other areas, but not necessarily down here," Mr Bartlett said.He said the department told the company it would respond by Easter to an independent analysis of 10 alternative sites, but it had yet to hear anything.A spokesman for Mr Kelly said the department remained committed to discussions over a factory outlet and homemaker centre in the region. "The department will continue to work with the proponent on its proposal and will finalise its response shortly," he said.The spokesman downplayed comparisons between the Costco and Kembla Grange sites, saying they were "quite different". He pointed to the built-up nature of the Auburn area and proximity of the Costco site to existing infrastructure.