KEY POINTS
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A $30 million project led by grocer H-E-B and local partners will transform a long-abandoned landfill into a retail hub, anchored by a new H-E-B store.
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The project includes environmental remediation and infrastructure upgrades, creating significant potential opportunities for local contractors, tradespeople, and suppliers.
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Officials said the redevelopment will generate jobs, increase tax revenue, and revitalize the community, while committing to sourcing local construction materials.
H-E-B, the Texas grocery chain founded in 1095, is spearheading a transformative redevelopment project in Buda, converting a long-abandoned landfill near Austin into a vibrant retail hub.
This ambitious initiative will not only bring a new H-E-B store to the southbound access road of Interstate 35 but also create significant opportunities for the construction industry through extensive remediation and infrastructure improvements.
According to a joint March 11, 2026, statement from Hays County, the City of Buda, the Buda Economic Development Corporation (Buda EDC), and Hays County Emergency Services District No. 8 (ESD #8), the project represents a $20.1 million incentive package over 30 years. The financial support will help offset the estimated $30 million in land remediation costs, ensuring the site is safe and ready for development.
“This is a true example of turning a challenge into a catalyst for prosperity,” said Walt Smith, Precinct 4 Commissioner, Hays County. “The construction industry will play a pivotal role in transforming this site into a thriving retail hub, generating jobs, sales tax revenue, and momentum for additional growth.”
Construction is expected to start in 2026, though no date was specified in the joint statement.
Construction-Driven Transformation
The redevelopment of the former landfill site will require environmental remediation, a process that will involve local construction firms and specialized contractors. H-E-B has committed to sourcing construction materials locally, further boosting the regional economy and supporting the construction industry.
In addition to remediation, the project includes significant infrastructure upgrades. H-E-B will fund roadway improvements based on a Traffic Impact Analysis to enhance traffic flow along the IH-35/Main Street corridor and improve the Old San Antonio Road connector. These upgrades will require skilled labor and engineering expertise, creating opportunities for contractors and construction professionals.
“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. “
Mayor Urbanovsky added, “The construction industry will be at the heart of this transformation, helping us build a brighter future for our residents.”
Economic and Industry Impact
The new H-E-B store is expected to create at least 50 new full-time jobs within one year of opening. At the same time, the construction phase will generate additional employment opportunities for local contractors, tradespeople, and suppliers.”
“For decades, this property sat underutilized. Now, through this innovative partnership and the power of collaboration, we’re creating opportunity where none existed before,” said Jennifer Storm, Chief Executive Officer of Buda EDC. “The construction industry will be a key driver in bringing this vision to life.”
H-E-B has also committed to redeveloping its existing Buda location at 15300 S. IH-35. Within 18 months of the new store’s opening, at least 60% of the former property will be repurposed for retail businesses, ensuring continued economic momentum and additional construction opportunities.
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