Buda approves $20.1 million incentives for H-E-B redevelopment of former landfill into a larger store

Redevelopment plan targets long-vacant site near Interstate 35

H-E-B has reached an incentive agreement with local and county partners to redevelop a former landfill site in Buda, Texas, into a new grocery-anchored retail destination. The combined incentive package totals about $20.1 million and is structured to be paid over 30 years through rebates tied to sales and property tax revenue generated by the project.

The proposed store site sits along the southbound access road of Interstate 35, north of Main Street. Public statements tied to the agreement describe the project as a conversion of a long-unused landfill property into a retail hub, with the grocery store serving as the anchor tenant.

Public incentives linked to remediation and infrastructure needs

Local development materials describe the project as requiring extensive environmental and site-preparation work due to the property’s former use as a landfill. Project discussions have referenced land remediation costs estimated at roughly $30 million, which the incentive package is intended to help offset.

Plans for the development include environmental repair as well as roadway and access improvements intended to make the property safe and functional for public use. Separate public descriptions of the project have indicated the development team evaluated the site’s conditions and project feasibility before advancing the agreement.

The incentive package is designed as a long-term rebate structure, intended to be funded by new tax collections associated with the completed development.

Project scope includes larger-format store and additional features

Earlier planning documents and project descriptions have identified a new, expanded store concept in Buda of approximately 135,000 square feet. Those materials have also described associated features such as a pharmacy, a garden center, and a drive-thru True Texas BBQ component.

The new store would be positioned across from the city’s existing H-E-B location. Development updates tied to the current agreement also indicate the company intends to redevelop the existing store site for additional businesses after the new store is built.

Key points from the agreement and development outline

• Incentive amount: about $20.1 million, delivered over 30 years through tax rebates generated by the project.
• Site: former landfill property near IH-35 and Main Street in Buda.
• Primary objective: remediate and upgrade the property to support a new retail development anchored by an H-E-B store.
• Additional work: roadway and access improvements associated with safe site operation.

What comes next

The agreement sets the framework for long-term redevelopment of a constrained and complex site, with major remediation work preceding vertical construction. As the project progresses, additional milestones are expected to include permitting steps, final engineering, and sequencing for environmental work and roadway improvements, followed by construction of the new store and subsequent reuse planning for the existing H-E-B property.