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

The long wait is officially over for the city of Irondale. Mayor James D. Stewart announced during a Monday afternoon press conference that the city has finalized a development agreement for a highly anticipated Costco location.

A Major Development for Irondale

This $105 million project marks a significant milestone for the city of approximately 13,000 residents. The new warehouse, which will be the sixth Costco in Alabama and the second in the Birmingham metro area, will be located at the corner of Grants Mill Road and Interstate 459.

The site is set to feature a 152,000-square-foot warehouse and an accompanying gas station. To clear the way for this development, the city invested $3.5 million to purchase the land.

Timeline and Economic Impact

Construction is slated to begin this week and is expected to span 26 months. If the schedule holds, the store could open its doors by late summer 2028, with city officials projecting it will draw roughly 6,000 customers to the area every day.

The project is backed by a performance-based incentive package of up to $70 million. This is funded by an 88% rebate on the sales tax generated at the store, with Irondale retaining the remaining 12%. Mayor Stewart expects the incentive to be paid in full within seven to eight years, after which 100% of the sales tax revenue will flow directly into city coffers.

Beyond tax revenue, the store is expected to create 200 to 300 new jobs and contribute $8 million to $10 million in annual sales tax revenue to support infrastructure and capital projects.

Years of Persistence

The path to this moment began in December 2020, involving complex negotiations between the city, Costco, and the neighboring Mercedes dealership. After years of obstacles, the deal has finally crossed the finish line.

"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."

The city is hosting a "blasting meeting" on June 15 to discuss the upcoming groundbreaking. Reflecting on the journey, Stewart added, "The bigger the project the more patience that you need. They decided to come to Irondale. We must be doing something right."