Irondale, July 30, 2025
News Summary
Costco is investing $105 million to build a new 152,000-square-foot store with a gas station in Irondale. This will create 200-300 jobs and generate significant sales tax revenue for the local economy. The project follows years of planning and aims to address community concerns with a noise-reduction buffer zone.
Irondale
Costco is set to build a new location in Irondale with an investment of $105 million, which includes a 152,000-square-foot store and a gas station. The facility will be situated on Grants Mill Trail, adjacent to the Mercedes-Benz dealership and conveniently located near Interstate 459. This marks Costco’s second store in the Birmingham metro area, following the existing location in Hoover.
The decision to establish a Costco in Irondale comes after nearly five years of planning, during which the company evaluated four potential sites before selecting the final location. The store is estimated to generate between $6 million and $8 million in annual sales tax revenue, contributing significantly to the local economy. The city of Irondale has approved up to $70 million in performance-based incentives for the project, based on the expected sales tax revenue from Costco.
The store is anticipated to create between 200 and 300 new jobs for the community, providing a boost to local employment. As Irondale has a population of approximately 13,545, this venture will make it the smallest city in Alabama to host a Costco. The mayor of Irondale has emphasized that the arrival of Costco is a defining moment, signaling the city’s openness to business and growth.
To ensure a smooth transition for the city, Irondale plans to purchase about 18 acres of land around the new store to create a buffer zone with neighboring residential areas, addressing potential concerns such as noise from store operations. Additionally, to mitigate noise impacts, the area will incorporate a 200-foot elevation difference to help minimize disturbances for local residents.
Construction for the project does not have a confirmed start date at this time, but the city is eager to commence work. Currently, Costco operates five locations throughout Alabama, including stores in Huntsville, Madison, Mobile, and Montgomery.
The decision to open a store in Irondale is seen as part of a broader strategy to revitalize underutilized land and enhance the city’s tax base without burdening current residents with increased taxes. Furthermore, Costco is recognized for its competitive wages and benefits, recently raising its minimum wage to $20 per hour, which is appealing to potential employees.
Residents of Irondale reacted positively to the announcement, showing their excitement with applause during the presentation. However, some locals voiced concerns regarding potential noise from the store during its operation. The city’s proposed buffer zone aims to address these issues while fostering a conducive environment for new commercial growth.
Key Features of the Costco Project in Irondale
| Feature | Details |
|---|---|
| Investment | $105 million |
| Store Size | 152,000 square feet |
| Job Creation | 200 to 300 new jobs |
| Annual Sales Tax Revenue | $6 million to $8 million |
| Incentives Approved | Up to $70 million |
| Buffer Zone | 18 acres of land |
| Elevation Difference for Noise Reduction | 200 feet |
| Current Alabama Locations | 5 (Hoover, Huntsville, Madison, Mobile, Montgomery) |
Frequently Asked Questions
What is the investment amount for the new Costco store?
The total investment for the new Costco store in Irondale is $105 million.
How large will the store be?
The new Costco location will occupy 152,000 square feet of space.
How many jobs will the store create?
It is projected that the new Costco will create between 200 and 300 jobs for the local community.
What are the expected annual sales tax revenues?
The store is expected to generate between $6 million and $8 million in annual sales tax revenue.
What measures are being taken to address noise concerns?
The city plans to create a buffer zone and incorporate a 200-foot elevation difference to reduce noise impacts on nearby residents.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Bham Now: New Costco Coming to Irondale
- AL.com: Costco Coming to Irondale
- WBRC: City Leaders Announce New Costco Location
- Wikipedia: Costco
- CBS 42: Costco Looks to Irondale
- Google Search: Costco Irondale
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
