‘Project Hot Dog’: Costco eyeing new location in this North Texas city

   

Details of the agreement between the city and Issaquah, Washington-based Costco have not been released since the deal is still being finalized.

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Hot dogs are about to be flowing in Forney after officials gave the green light to an economic incentives package for Costco Wholesale Corp.

After weeks of discussing in closed sessions what was identified on agendas as “Project Hot Dog,” Forney City Council voted unanimously on July 16 to authorize City Manager Charles Daniels to negotiate and execute a Chapter 380 economic development agreement with Costco (Nasdaq: COST), subject to approval by the city attorney’s office.

Costco is famous for its $1.50 hot dog-and-drink combo, and the vote came a day before National Hot Dog Day. Forney Mayor Jason Roberson said in an interview the timing was a coincidence.

Details of the agreement between the city and Issaquah, Washington-based Costco have not been released since the deal is still being finalized. City officials confirmed the new store will be located at U.S. Highway 80 and Clements Drive but declined to say how big the store will be or how many jobs will be created.

Representatives of Costco did not respond to requests for comment.

The average Costco warehouse is about 147,000 square feet, with newer units being slightly larger, according to the retail giant’s annual report. Based on other store openings across the U.S., Costco typically employs between 100 and 300 people per store.

Costco’s expansion to Forney comes as the city continues to experience an economic development boom while its population surges. Forney, located in Kaufman County east of Dallas, led the nation for estimated population growth from 2020 to 2023 at 51.2%, according to a Dallas Business Journal analysis of U.S. Census Bureau data.

“Location is a big win for us,” Roberson said. “We just happen to be in the right spot. [Costco’s expansion] will pull in traffic from the east. We’re anticipating people from East Texas driving this way to get to Costco. These retailers, they have metrics and they know for a fact how many Forney residents have Costco cards and go to Rockwall to spend money. They recognize if they have a store in Forney, it will strengthen presence.”

Forney, not too long ago seen as a “sleepy bedroom community,” reached an estimated 35,470 residents as of July 1, 2023, according to the Census Bureau data. Multiple large warehouses and a new Tom Thumb grocery store are under construction. An H-E-B grocery store is also coming to the city in the Villages at Gateway, a 2,000-acre master-planned development where Target and Home Depot are also setting up as anchor tenants.

As new retailers expand to Forney, Roberson said the goal has been to “strategically place” them across the city to help redistribute traffic patterns. The city wants to alleviate traffic congestion by having Costco in the west and the Villages at Gateway in the east, he said. Costco’s location will also be in what Roberson described as currently “kind of a food desert.”

“We were extremely impressed by Costco’s offering,” Roberson said. “They have a great reputation for low turnover, which fits the culture of Forney. They are great, great community partners. We’re very excited about the jobs they’ll bring that offer great job security and great benefits.”

For Costco, the expansion to Forney comes as it continues to build more of its members-only clubs across the country and in Texas. CEO Ron Vachris said during Costco’s annual shareholders meeting in January that the company plans to open 31 stores this year, an even more aggressive expansion than in 2023, when it opened 23 locations.

Costco currently operates 882 warehouses, including 609 in the U.S.

Within Dallas-Fort Worth, Costco has 12 locations with three more already underway. A location in Prosper is under construction and expected to open this fall. A new Costco store in Celina is also slated to open later this year. Weatherford will also get a new store, expected to open in early 2025.