More than 300,000 square feet of industrial space could soon become available for lease on the east side of Buda in 2018.
All of it is part of a development agreement between the Buda Economic Development Corporation (EDC) and Exeter Buda Land, L.P., which officials believe could generate more than $350,000 in new property tax revenue over the next eight years.
According to a press release from Buda EDC Director Ann Miller, Exeter plans to develop industrial space that’s split into two 300,000 square-foot buildings in Buda directly east of U.S. Foods.
Miller said the project would be divided into two phases of construction; the EDC is only offering incentives to Exeter for the first phase.
Phase 2 includes areas of Travis County and other jurisdictions.
Ann Miller, Buda EDC Director, said the 300,000 square feet of space in Buda, directly east of U.S. Foods, would most likely be used for commercial or industrial purposes, such as an e-commerce center for a large retailer, a medical manufacturing or distribution center, or even a distribution center for Amazon Fresh.
Miller said the space would most likely be used for commercial or industrial purposes, such as an e-commerce center for a large retailer, a medical manufacturing or distribution center, or even a distribution center for Amazon Fresh.
“Exeter has been interested in developing an industrial and distribution complex in the Austin-San Antonio corridor and we are excited about the potential the Buda site possesses,” Barney Sinclair with Exeter Property Group said in a statement.
Miller also said that since the available 30-acres skirts a portion of Main Street, there will be a certain portion of space allocated to retail tenants in the future, which could create more jobs for Buda residents.
“This project has the potential of providing more employment opportunities for our citizens and expanding the tax base of our city,” Mayor George Haehn said in a statement.
Hays County on Nov. 21 entered into a performance agreement with Exeter Property Group, the parent company to Exeter Buda Land L.P. Hays County is providing a 15 percent rebate of net new property taxes once the building is complete.
The press release said that percentage of rebate by Hays County would increase to 30 percent once Exeter secures a lease with a tenant that employs at least 50 people.
The press release also stipulated that the maximum amount of rebates Exeter can receive for the project from the county is $125,000 over the life of the agreement.
Exeter is investing anywhere from $7 to $14 million for the project, which could generate “$300,000 to $450,000 in new property tax revenue to Hays County after the rebate over the next eight years,” according to the release.
“These agreements with the City of Buda and Hays County are bringing the project closer to becoming a reality and bringing a much-needed asset to Hays County,” Precinct 1 Hays County Commissioner Debbie Ingalsbe said in the press release.
Buda’s agreement provides a $62,500 cash incentive to reimburse a portion of infrastructure-related costs upon Exeter’s completion construction of a 300,000-plus square-foot building.
Exeter will receive an additional $62,500 incentive upon securing a tenant that will employ 50 people, per the agreement with Buda.
“This project has the potential to create a hub of economic activity in Buda and northern Hays County…which will create new quality jobs for the community and help spur additional investment in our community,” Miller said.
Ingalsbe supported Miller’s statement regarding the potential for future similar facilities in the region.
“We look forward to working with Exeter as they grow their presence in Hays County and believe this project will spur additional speculative facilities along the I-35 corridor,” Ingalsbe said.
As per Texas Local Government Code, the Buda City Council passed a resolution authorizing the performance agreement between the Buda EDC and Exeter Property Group at the Nov. 8 and Nov. 21 council meetings.
According to the release, Exeter plans to close on the property pending permit approvals and then begin construction on Phase 1 of the project in early 2018.
Miller said construction should be complete by the end of 2019.
“Thanks to the hard work and dedication of the EDC, City staff and leadership, Buda has once again secured a much needed commercial and retail development project and I look forward to seeing more developments like this one in the future,” Haehn said.
