{"id":7066513,"date":"2026-09-25T09:34:52","date_gmt":"2026-09-25T09:34:52","guid":{"rendered":"https:\/\/peraltafinancing.com\/alabama\/irondale-exposes-one-of-metro-birminghams-biggest-flaws\/"},"modified":"2026-09-25T09:34:52","modified_gmt":"2026-09-25T09:34:52","slug":"irondale-exposes-one-of-metro-birminghams-biggest-flaws","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7066513","title":{"rendered":"Irondale Exposes One of Metro Birmingham\u2019s Biggest Flaws"},"content":{"rendered":"


\n<\/p>\n

\n
\"Irondale's<\/a>
Irondale\u2019s $8.6 million youth Ruffner Sports Complex (al.com)<\/figcaption><\/figure>\n

By David Sher<\/em><\/p>\n

I want to make this perfectly clear: I am not an enemy of Irondale.<\/p>\n

I\u2019m impressed by a small municipality that keeps stacking up economic wins while so much of the rest of Jefferson County struggles.<\/p>\n

But that\u2019s exactly the problem.<\/p>\n

The 2% Getting 100% of the Windfall<\/strong><\/p>\n

Jefferson County has roughly 665,000<\/strong> residents spread across 35 municipalities<\/a><\/strong><\/span>. Irondale has about 13,500<\/strong> residents\u2014 roughly 2%<\/strong> of the county\u2019s population.<\/p>\n

That 2% is about to capture the benefits of a $1 billion economic development plan almost entirely on its own.<\/p>\n

Irondale recently finalized a development agreement with Costco<\/a><\/strong><\/span> for a $105 million warehouse and gas station on Grants Mill Road. City leaders expect it to generate $6\u20138 million a year in new sales tax revenue<\/a><\/strong>,<\/span> on top of 200 to 300 jobs.<\/p>\n

To land the deal, Irondale approved a $70 million incentive package<\/a><\/strong><\/span>, with Costco keeping 88% of certain revenues generated by the project until that incentive is repaid \u2014 a process expected to take seven or eight years, after which the city finally gets to keep 100%.<\/p>\n

Worth noting: Costco doesn\u2019t need the help. The company posted $8.1 billion in net income<\/a> <\/strong><\/span>last fiscal year. A $70 million incentive is less than 1% of what Costco earned in profit in a single year \u2014 real money for Irondale, pocket change for Costco.<\/p>\n

One Billion Dollars, One Small City<\/strong><\/p>\n

The Costco deal is just one piece of something much bigger. Irondale is executing what it calls the \u201cBillion Dollar Vision,\u201d<\/a><\/strong><\/span> a plan to draw $1 billion in cumulative capital investment into the city by 2033.<\/p>\n

As of last fiscal year, the city already had more than $430 million in active and committed projects toward that goal \u2014 a new civic center, a ballpark, a municipal complex, a library, and a shopping center already pulling in 45,000 visitors a week.<\/p>\n

The Incentive Tax We All Pay<\/strong><\/p>\n

Here\u2019s the part that should bother every taxpayer in this county, not just the ones outside Irondale. That $70 million incentive package didn\u2019t come out of thin air \u2014 it came out of future public revenue that Irondale otherwise would have kept for itself, schools, roads, and services.<\/p>\n

Cities offer incentives like that because they\u2019re competing against other cities, including others in this county, for the same handful of retailers and developers. If Jefferson County\u2019s municipalities weren\u2019t bidding against one another \u2014 if we approached economic development regionally instead of 35 separate governments racing to out-incentivize each other \u2014 Irondale likely wouldn\u2019t have needed to give away nearly as much to win Costco.<\/p>\n

That\u2019s real public money, gone before it ever hits a general fund, spent not because the project demanded it but because the competition did.<\/p>\n

Good For Irondale. What About Everyone Else?<\/strong><\/p>\n

None of this is illegal or unreasonable on Irondale\u2019s part. Mayor James Stewart has spent years building relationships with retailers and using the city\u2019s location near I-459 to its advantage. That\u2019s good governance, and Irondale residents are right to be proud of it.<\/p>\n

But concentrating a billion dollars of development in a city containing only about 2% of Jefferson County\u2019s population does little for the other 98% who live outside Irondale. The sales-tax revenue remains in Irondale, which has already built a new sports complex and library and is now building a civic center.<\/p>\n

Those projects may benefit some people beyond the city limits, but they were planned and financed by one municipality rather than as part of a coordinated regional strategy.<\/p>\n

Meanwhile, public money that might otherwise have reached local government sooner was used to help Irondale compete for the development\u2014potentially bidding against neighboring communities that are part of the same economy.<\/p>\n

To be clear, I\u2019m not proposing we combine our cities into one \u2014 I\u2019ve made that case before and I know how that argument lands. This isn\u2019t that. What I\u2019m suggesting is narrower and, I think, less controversial: that our 35 municipalities cooperate on economic development instead of competing against one another for the same companies.<\/p>\n

Even Irondale May Not Win The Way It Thinks<\/strong><\/p>\n

There\u2019s a wrinkle even Irondale should consider. Part of what makes a small city attractive to residents is its smallness \u2014 lower costs, a leaner bureaucracy, a council that moves fast. If the Billion Dollar Vision succeeds and Irondale grows substantially over the next decade, some of what made it a good place to live may erode along the way.<\/p>\n

Bottom Line<\/strong><\/p>\n

To its credit, in 2021 the Jefferson County\u2019s Mayor Association signed a Good Neighbors Pledge\u00a0 <\/a><\/strong><\/span>agreeing to not poach existing businesses from one another. Now it\u2019s time for the next step.<\/p>\n

Irondale deserves credit for playing the game well.<\/p>\n

But as long as our cities keep bidding against each other instead of pursuing growth as one region, we\u2019ll keep paying a premium for wins that don\u2019t reach most of us.<\/p>\n

David Sher is the founder and publisher of\u00a0ComebackTown<\/strong><\/a><\/span>.\u00a0\u00a0He\u2019s past Chairman of the Birmingham Regional Chamber of Commerce (BBA), Operation New Birmingham (REV Birmingham), and the City Action Partnership (CAP).<\/em><\/p>\n

Care about Birmingham,\u00a0sign up for ComebackTown newsletter<\/a><\/strong><\/span><\/p>\n

Invite David to speak for free to your group about how we can have a more prosperous metro Birmingham. dsher@comebacktown.com<\/em><\/p>\n

(Visited 3,491 times, 3 visits today)<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"

Irondale\u2019s $8.6 million youth Ruffner Sports Complex (al.com) By David Sher I want to make this perfectly clear: I am not an enemy of Irondale. I\u2019m impressed by a small municipality that keeps stacking up economic wins while so much of the rest of Jefferson County struggles. But that\u2019s exactly the problem. The 2% Getting […]<\/p>\n","protected":false},"author":1,"featured_media":7066514,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11763],"tags":[13380,28782,13228,75846,227808,9614],"dealstore":[],"offerexpiration":[],"class_list":["post-7066513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alabama","tag-biggest","tag-birminghams","tag-exposes","tag-flaws","tag-irondale","tag-metro"],"yoast_head":"\nIrondale Exposes One of Metro Birmingham\u2019s Biggest Flaws - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7066513\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Irondale Exposes One of Metro Birmingham\u2019s Biggest Flaws - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Irondale\u2019s $8.6 million youth Ruffner Sports Complex (al.com) By David Sher I want to make this perfectly clear: I am not an enemy of Irondale. 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