Terms of the agreement between Issaquah, Washington-based Costco and the city have not been made public because they are still being finalized.
Forney, Texas — read This story and more North Texas business news From our partners at Dallas Business Journal
Hot dogs are about to start rolling out in Forney after officials approved an economic incentives package for Costco Wholesale Corp.
After debating in closed session for weeks what is listed on the agenda as the “Hot Dog Plan,” the Forney City Council voted unanimously on July 16 to authorize Mayor Charles Daniels to negotiate and enter into a Chapter 380 economic development agreement with Costco (Nasdaq: COST), subject to approval by the city attorney’s office.
Costco is known for its $1.50 hot dog and drink combo, and the vote took place the day before National Hot Dog Day. Forney Mayor Jason Roberson said in an interview that the timing was coincidental.
The terms of the agreement between Issaquah, Washington-based Costco and the city have not been made public because they are still being finalized. City officials confirmed the new store will be located at U.S. Highway 80 and Clements Drive, but did not disclose the size of the store or how many jobs it would create.
A Costco representative did not respond to a request for comment.
Costco’s average warehouse size is about 147,000 square feet, and the new store is slightly larger, the retail giant said in its annual report. Based on other stores it has opened around the US, Costco typically employs between 100 and 300 people per store.
Costco’s expansion into Forney comes as the city is experiencing a rapid population and economic development boom: Located in Kaufman County east of Dallas, Forney is expected to have the highest population growth rate in the nation at 51.2% from 2020 to 2023, according to a Dallas Business Journal analysis of U.S. Census Bureau data.
“The location is a big win for us,” Roberson said. “We just happen to be in a good spot.” [Costco’s expansion] “We’re going to see an increase in traffic from the east. We expect we’ll have people driving up this road from East Texas to get to Costco. These retailers have the metrics, they actually know how many Forney residents have Costco cards and spend money in Rockwall. They know having a store in Forney will increase their presence.”
Forney, which until recently was considered a “sleepy commuter town,” has reached an estimated 35,470 residents as of July 1, 2023, according to Census Bureau data. Several large warehouses and a new Tom Thumb grocery store are under construction. A HEB grocery store is also slated to open in the Village at Gateway, a 2,000-acre master-planned development that will also feature a Target and Home Depot as anchor tenants.
Roberson said the goal is for new retailers to be “strategically placed” throughout the city to redistribute traffic patterns as they come to Forney. The city hopes to ease traffic congestion by placing Costco on the west side and Gateway Village on the east side, he said. The Costco store would be located in an area Roberson currently describes as “kind of a food desert.”
“We’ve been very impressed with Costco’s offerings,” Roberson said. “They’re known for having low turnover and are a great fit for the culture in Forney. They’re a great community partner. The jobs they’re bringing in have great job stability and benefits, so we’re very excited.”
For Costco, the expansion into Forney comes as the company continues to expand its membership clubs nationally and in Texas. Chief Executive Officer Ron Bakris said at the company’s annual shareholder meeting in January that the company plans to open 31 stores this year, a more aggressive expansion than when it opened 23 stores in 2023.
Costco currently operates 882 warehouses, including 609 in the United States.
There are 12 Costco stores in the Dallas-Fort Worth area, with construction already underway for three more. A Prosper store is under construction and expected to open this fall. A new Costco store in Celina is also scheduled to open later this year. A new store is also opening in Weatherford, scheduled to open in early 2025.
