Public hearing set after city votes to annex land with Costco
MADISON – A public hearing is set for Feb. 9 after the Madison City Council approved an agreement at the last Monday’s council meeting to annex nearly 25 acres of land into the city which includes the Clift Farm Costco Wholesale.
“The annexation agreement provides for the city to receive revenues that it does not currently receive,” said City of Madison Director of Development Services Mary Beth Broeren at the meeting.
The public hearing is the next step in welcoming Costco to Madison. Addressing the city’s zoning for the annexed land, it will be held at City Hall, 100 Hughes Drive in Madison, during the regular city council meeting starting at 6 p.m. It is required for the city’s zoning designation of the property as a general business district.
Costco opened in November of 2024 as the second Costco in the Huntsville metro area. Situated within Madison County until now, shoppers have paid a 7.5% sales tax on purchases, including a 2% developer fee for public infrastructure projects on the development. Clift Farm has been developed by Breland Companies.
Starting Feb. 18, the 2% developer fee will expire, and customers will pay the same 9% sales tax already standard across Madison. Police and fire services will continue without interruption, as mutual aid agreements were already in place and remain active.
The city will receive gas tax, liquor tax, property tax, and .5% of the sales tax generated there, and the School District will receive its portion of the property taxes.
In the agreement with the de- veloper, Clift Home Place, LLC and Breland Companies, the City of Madison will share 3% of taxable sales with Clift Home Place, LLC for 40 years.
District 4 city councilman Michael McKay objected to the sharing of taxes, “I object to assigning 3% of the taxable sales to the property’s developer for 40 years, leaving the city only one-half percent. As far as I understand, that’s unprecedented in recent history. Businesses already in city limits weren’t offered these terms. I’m concerned this agreement would disadvantage us when negotiating future opportunities. As such, I don’t support the agreement.”
Mayor Ranae Bartlett responded, “From the mayor’s seat, I don’t think that you’re comparing apples to apples because it does not impact or impede our ability to negotiate development agreements with other types of businesses. They’re not Costco. Costco is a very unique piece of retail property. Currently, we get zero. We have Madison residents who go across the street and shop in Clift Farms, and we get zero.”
The annexation takes effect on Feb. 18.
