H-E-B–anchored retail center planned for former landfill site in Buda

By Kaylee Gonzalez

News Reporter

BUDA— A former landfill in Buda is set to be converted into a new retail center anchored by H-E-B. The project follows a partnership among Hays County, the City of Buda, Hays County Emergency Services District No. 8 and the Buda Economic Development Corporation.

The development will transform vacant land near Interstate 35 into a commercial site that officials say will create jobs, expand shopping options and increase tax revenue. Construction is expected to begin in 2026.

Because the site was previously used as a landfill, the agreement includes environmental remediation and safety measures before construction begins. H-E-B will also contribute to roadway improvements along I-35 and nearby connectors to improve traffic flow. Officials say these upgrades will make the area safer and more accessible for customers.

The project includes a $20.1 million incentive package, funded over 30 years through future tax revenues generated by the development. Officials said the funding will help offset the estimated $30 million cost of preparing and cleaning the site. The incentive is designed to reimburse a portion of remediation costs using new tax revenue produced by the property.

Local leaders said the development represents a shift from unused land to a source of economic growth. By transforming the vacant property into a retail and commercial center, officials say the project will generate sustained revenue for the city and county while supporting long-term development in the area. The addition of a major retailer is also expected to attract other businesses, increasing activity along the I-35 corridor.

The new store is expected to create at least 50 full-time jobs within its first year of operation. For San Marcos and nearby communities, the project could help ease congestion by distributing retail activity more evenly and may create job opportunities for students in the area. With expanded commercial options, residents and students may have more convenient access to goods and services while gaining employment opportunities.

For more information, contact the following media representatives:

John Costilla — Buda Economic Development Corporation
Kandice Boutté — Hays County
Michelle Henley — City of Buda
Clay Huckaby — Hays County ESD No. 8