When will Alabama’s newest Costco open? After 5 year wait, construction nears

The wait is finally over for Irondale. After more than five years of negotiations and planning, the city has officially finalized its development agreement for a new Costco warehouse.

A Major Milestone for Irondale

Mayor James D. Stewart confirmed during a Monday press conference that site work is set to begin this week. The project, which has been in the works since late 2020, is expected to span 26 months of construction. Reflecting on the long journey, Mayor Stewart noted that while the process involved significant obstacles—including complex renegotiations with project partners like the nearby Mercedes dealership—the result is a major win for the community of 13,000.

“There were some who never thought that a city our size could be able to attract this,” Stewart said. “But today when they turn on their TV, read their newspaper, they will see that what I told them five years ago has come to fruition today.”

Project Details and Economic Impact

The $105 million project will be located at the intersection of Grants Mill Road and Interstate 459. The site will feature a massive 152,000-square-foot warehouse along with a dedicated gas station. The city, which purchased the land for $3.5 million, expects the store to generate significant economic momentum.

Key projections for the development include:

• Job Creation: 200 to 300 new positions.
• Traffic: An estimated 6,000 customers daily once operational.
• Revenue: $8 million to $10 million in annual sales tax revenue dedicated to capital projects and infrastructure.

Financial Structure

The development utilizes a performance-based incentive package totaling $70 million. This is funded by an 88% rebate on sales tax generated at the store, with the remaining 12% kept by Irondale. Mayor Stewart expects the incentive to be fully paid off within seven to eight years, at which point 100% of the sales tax revenue will flow directly into city coffers.

What Comes Next

Residents can look forward to a "blasting meeting" on June 15 to discuss the immediate future of the ground breaking. If the construction timeline holds, the store is projected to open in late summer 2028. City leadership views this as a transformative moment, serving as a catalyst to attract further retail investment to the area.

As Mayor Stewart put it: “It’s going to put Irondale on the map and serve as more of a catalyst for other retailers to want to come into the city. They decided to come to Irondale. We must be doing something right.”

For more updates on local developments, stay tuned to 205focus.com.