Nearly a year after announcing plans to bring Costco to Irondale, city leaders say the deal is officially complete and the long-anticipated project is moving forward.
Mayor James Stewart announced this week that the city has completed a 300-day due diligence process and finalized agreements needed for the development, clearing the way for what city officials describe as one of the largest economic development projects in Irondale’s history.
“It took over 1956 days to be able to bring that project to the City of Irondale, but we are happy that we’ve been able to close the deal,” Stewart said in a video message.
Stewart said many residents believed the project was finalized when it was first announced on July 29, 2025. Since then, city officials and Costco representatives have worked through a lengthy due diligence process involving property acquisition agreements, infrastructure planning and other development details before final documents were signed.
According to city plans and previous announcements, the project will bring a new Costco warehouse and self-service gas station to property near Grants Mill Road and Interstate 459. The development is valued at approximately $105 million and will include a 152,000-square-foot warehouse.
Stewart thanked Jefferson County officials, city attorney April Danielson and the Irondale City Council for helping bring the project to completion.
The mayor said the development will provide new revenue for infrastructure improvements and other city projects while serving as a catalyst for additional growth.
“We are going to have brand new revenue to be able to do infrastructure, to be able to do roads and to be able to do capital projects,” Stewart said. “Hopefully it will create jobs for over 200 to 400 people to be employed.”
Previous city projections estimated the development would create between 200 and 300 jobs and generate between $6 million and $8 million annually in new sales tax revenue. Officials have also said the project will expand the city’s tax base and help attract additional investment to the area.
The new warehouse will become Costco’s sixth Alabama location, joining stores in Hoover, Huntsville, Madison, Montgomery and Mobile.
Stewart described the announcement as an “exhilarating moment” for the city.
“Again, we are so excited,” Stewart said. “This is an exhilarating moment in the city of Irondale to see this $105 million project come to a city of only 13,545 people. But in the city of Irondale, we do things big and we also punch above our weight.”
While a groundbreaking date has not been announced, reports have indicated the city is targeting a spring 2028 opening for the new store.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
