H-E-B is clearing the final hurdle for a long-planned grocery expansion south of Austin that would turn a former landfill into a major retail project.
The San Antonio–based grocer won unanimous approval from the Hays County Commissioners Court on Tuesday for the last piece of a roughly $20 million incentives package tied to a new store in Buda, a suburb of Austin. The Austin Business Journal reported that the agreement, dubbed “Project San Antonio” in public discussions, supports redevelopment of a 21-acre site at 15000 North I-35 into a 135,000-square-foot supermarket.
The project includes a drive-thru True Texas BBQ restaurant, pharmacy and garden center. Construction is expected to ramp up this year, with demolition of existing structures already underway, officials said in the meeting.
The incentives package totals up to $20.1 million over 30 years and will be funded through sales tax and property tax rebates generated by the development once it opens. Additionally, the city of Buda and the Buda Economic Development Corporation will reimburse as much as $12.1 million, while Hays County and Emergency Services District No. 8 will each provide up to $4 million through sales tax refunds.
In exchange, H-E-B must invest at least $70 million in the project and create 50 full-time equivalent jobs within a year of opening. The grocer also committed to sourcing construction materials locally.
Under the incentives agreement, H-E-B must also redevelop its existing Buda store across I-35 within 18 months of opening the new store, repurposing at least 60 percent of that site for retail uses that generate additional sales tax revenue.
City officials framed the deal as a turning point for the fast-growing suburb roughly 15 miles south of downtown Austin. Buda Mayor Lee Urbanovsky called the project a “defining moment” that converts land once seen as a limitation into a hub for jobs and commerce.
The site’s complicated history is a big reason incentives were needed, according to the outlet. The property sits atop a former landfill, requiring extensive environmental work, including digging as deep as 20 feet to replace soil and stabilize the site. Officials have estimated remediation could cost about $30 million.
The grocer previously eyed the site decades ago, but ultimately built its existing 61,500-square-foot Buda store across the highway in 2000. With Buda’s population now at about 16,000 — and surrounding communities such as Mustang Ridge, Creedmoor, Niederwald and Del Valle expanding — local leaders have pushed for a larger regional grocery anchor.— Eric Weilbacher
Read more
H-E-B wants incentives to build on former Buda landfill
Blackstone taps CMBS debt to fund part of $442M Texas grocery portfolio buy
Supermarket H-E-B secures zoning for first namesake store in Dallas
How popular grocer H-E-B snagged land for its first Dallas store