A long-dormant landfill site in Buda is set to become a hub of economic activity, thanks to a groundbreaking partnership between the City of Buda, the Buda Economic Development Corporation, Hays County, Hays County Emergency Services District No. 8 and H-E-B. Together, the partners have finalized an agreement that will bring a new H-E-B store on the southbound access road of Interstate 35, north of Main Street.
Under the agreement, H-E-B will invest heavily in environmental remediation and roadway improvements to ensure the site is safe and accessible. The company will also fund roadway improvements based on a Traffic Impact Analysis to enhance traffic flow along the IH-35/Main Street corridor, including improvements to the Old San Antonio Road connector. The financial incentive package, a Chapter 380 & 381 Economic Development and Performance Agreement, will help offset land remediation costs estimated at $30 million.
“This is a defining moment for our community,” said 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.”
Because of the location’s history as a landfill site, all parties took extreme precautions and conducted thorough reviews to ensure that the proper investment, safety and well-being of residents and the community were the top priorities. This transformative project will convert a site that has been vacant and underutilized for decades into a vibrant retail destination, creating new jobs, increasing tax revenue and expanding shopping options for the region.
The City of Buda, Buda EDC, Hays County, and the ESD have committed a combined $20.1 million incentive package over 30 years. The City and Buda EDC will reimburse up to two-thirds of the remediation expenses, capped at $12.1 million. Hays County and the Emergency Services District will provide amounts not to exceed $4 million each, with the district’s contribution to be derived specifically from Sales Tax Allocation Refunds generated by revenue at the H-E-B store.
Additionally, H-E-B has also committed to redeveloping its existing Buda grocery store location at 15300 S. IH-35. Within 18 months of the new store’s opening, the company will repurpose at least 60% of the former property for retail sales tax-generating businesses, ensuring economic momentum continues across the community.
As part of the agreement, H-E-B has committed to creating at least 50 new full-time jobs within one year of opening, while sourcing construction materials locally to further support the regional economy.
Construction is expected to begin this year.
