Brittany Kelley
BUDA — A former landfill will now lay the foundation for a new, larger H-E-B for Buda residents.
The project has been a long time coming, said Buda Economic Development director Jennifer Storm. She noted that, internally, H-E-B has recognized that its current storefront was quickly being outgrown.
“They knew that this store was undersized and so, we have worked with them to try to find a piece of property, where they could stay in Buda and be able to expand their store,” she explained.
After finding the land, which is located on the southbound access road of IH-35, north of Main Street, the biggest challenge has been the environmental factor. The site, which was a dormant landfill, is going to require significant remediation, said Storm. For this reason, potential developers have overlooked the area, due to the costs — estimated at $30 million — associated with bringing the land up to the standard it needs for a facility.
“A company like H-E-B is able to invest in the land and get it cleaned up and then, work with us to have an incentive over time to help offset some of those costs,” she said.
The state of this site has left little property tax revenues for the entities in which it lies, half in the Hays County Emergency Services District (ESD) No. 8, Hays County and the city of Buda. Because of this, she noted that all three, including the Buda EDC, were eager to contribute in the form of tax incentives to ensure the project moves forward.
The incentive states that H-E-B will receive 50% of all sales and property tax generated from the project until either the maximum $20.1 — $12.1 million from the city and the Buda EDC, $4 million from ESD No. 8 and $4 million from Hays County — payout occurs or the timeline reaches 30 years.
The director clarified that this means the incentive will end prior to the 30 years, if H-E-B receives $20.1 million in less time and vice versa. So, the incentive will also end, even if H-E-B still has not reached $20.1 million in 30 years.
The taxing entities will also begin receiving a significant boost in property taxes, following the land’s development.
Under the agreement, according to a news release, H-E-B will invest in environmental remediation and roadway improvements — based on a traffic impact analysis — to ensure the site is safe and accessible.
Storm noted that because of the environmental factors, there may be limitations on what the store can do aesthetically, such as landscaping, but that the city has made requests for the store to fit in with Buda’s traditional style.
Looking to the future, the director emphasized that this store will not only bring a better shopping experience to residents, along with 50 full-time jobs, but other retail establishments.
“Activating that property will activate a lot of the other parcels near [the new store]. There’s still some vacant property to the north and the south of that parcel,” said Storm. “We have a pretty big gap in retail services in Buda. That’s something we’ve been working towards for a while and so … I think, ideally, it will likely be what you usually see around an H-E-B, which is more retail.”
This hope continues in what will be the former H-E-B location, following the opening of the new store, as she stated that H-E-B has agreed to “something retail-focused” to ensure that sales tax is still generated.
Despite H-E-B’s ownership of the land, Storm stated that the opportunity of what company builds on the land isn’t limited to H-E-B-branded stores.
Construction on the remediation is set to begin in 2026, but Storm shared that the task is a big undertaking, which most likely lengthens the timeline to grand opening day to 2028.
"This is a defining moment for our community,” said Buda Mayor Lee Urbanovsky. “By taking land that once symbolized limitation and turning it into a source of jobs, commerce and community pride, we are writing the next chapter of Buda’s story. This agreement reflects our commitment to smart growth, strong partnerships and a brighter future for our residents.”
