MONTGOMERY— A $300,000 grant awarded by Gov. Kay Ivey will help bring 100 new jobs and development to the city of Athens while also resulting in traffic and drainage improvements.
The Community Development Block Grant will be used to make road improvements at the intersection of West Elm Street (U.S. Highway 99) and Lucas Ferry Road. The improvements are required to facilitate construction of a grocery store and other retail businesses on a site adjacent to the intersection.
The construction of the 57,000-square-foot Food City grocery store is also expected to attract additional development in the northwest part of the city.
“North Alabama, particularly the Athens area, is experiencing astonishing growth boosted in part by the huge development in Huntsville, but also because Limestone County, plain and simple, is a good place to live and work,” Gov. Ivey said. “I commend local leaders for embracing this growth and making the needed improvements to continue to make it a good place to live.”
The city of Athens plans to use CDBG funds to improve traffic access on both West Elm Street and Lucas Ferry Road leading to the new Food City. The work will involve widening the roads and adding deceleration and turning lanes. Drainage improvements are also scheduled.
Food City, part of a $19.5 million private investment, will house an in-store bakery and deli, full-service meat and seafood department, pharmacy, floral boutique, Starbucks café and an adjacent fueling station.
The grant is part of the state’s ongoing investment in economic development in the city. Gov. Ivey also announced two grants totaling $800,000 for a similar development on the city’s east side earlier in 2025.
The Alabama Department of Economic and Community Affairs administers the CDBG program in Alabama.
“This project is expected to be the catalyst for future growth and jobs in that area of Athens,” ADECA Director Kenneth Boswell said. “ADECA joins Gov. Ivey in supporting this project.”
Gov. Ivey notified Mayor William R. “Ronnie” Marks that the grant had been approved. The city of Athens has pledged $322,207 in local funds for the project.
ADECA administers a wide range of programs supporting law enforcement and traffic safety, economic development, energy conservation, water resource management and recreation development.
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