MONTGOMERY – Gov. Kay Ivey has announced a $266,660 grant to the city of Athens for road improvements at the site of a future supermarket that will employ 100 people.
The city will use the funds from the Appalachian Regional Commission to make improvements at the intersection of West Elm Street and Lucas Ferry Road, where Food City is building a 57,000-square-foot supermarket. Food City’s $19.5 million investment includes the grocery store and two adjacent parcels for future developments.
“As the Huntsville area continues its rapid growth, more people are discovering that Athens and the rest of Limestone County are wonderful places to live,” Gov. Ivey said. “I commend local leaders for meeting the challenge of this growth head-on with strategies to fulfill the needs of current and future residents. I am pleased to support these road improvements which will serve not only this development but further commercial development opportunities and jobs in the future.”
Gov. Ivey previously awarded $300,000 in Community Development Block Grant funds to Athens in December 2025 for this project and earlier in 2025 announced two grants totaling $800,000 for a similar development in another part of the city.
The Food City project will involve widening the roads and adding deceleration and turning lanes that will serve as entrances to the development. City leaders expect the increased customer traffic for the Food City location to attract more businesses, noting that hundreds of acres of surrounding land are available for further commercial development.
The Alabama Department of Economic and Community Affairs administers the ARC program in Alabama.
“These road improvements are needed for this development to move forward and will be crucial for any future developments as well,” ADECA Director Kenneth Boswell said. “ADECA is pleased to join Gov. Ivey in support of this project.”
Gov. Ivey notified Athens Mayor William “Ronnie” Marks that the grant had been approved. The city will contribute $322,207 to the project.
ARC is an economic development agency of the federal government and 13 state governments. The agency’s mission is to innovate, partner, and invest to build community capacity and strengthen economic growth in Appalachia to help the region achieve socioeconomic parity with the nation. Thirty-seven Alabama counties, including Limestone County, are part of the ARC region and eligible for funds.
ADECA manages a range of programs that support law enforcement, economic development, recreation, energy conservation and water resource management.
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