BUDA, Texas — A long vacant landfill site in Buda is set to be redeveloped into a new retail destination after city leaders and regional partners finalized an agreement to bring a new H-E-B store to the area.

The project is the result of a partnership between the City of Buda, the Buda Economic Development Corporation, Hays County, Hays County Emergency Services District No. 8, and H-E-B. The grocery store will be built on the southbound access road of Interstate 35 north of Main Street.

Officials said the property had remained vacant and underutilized for decades because of its history as a landfill site. Before moving forward, the partners conducted extensive reviews and environmental considerations to ensure the project prioritizes public safety and long term community well being.

Local leaders say the redevelopment will transform the site into a retail center expected to generate jobs, increase tax revenue, and expand shopping options for the region.

Hays County Precinct 4 Commissioner Walt Smith said the project represents an opportunity to turn a long standing challenge into economic growth.

The City of Buda, Buda Economic Development Corporation, Hays County, and the Emergency Services District have agreed to provide a combined $20.1 million incentive package over 30 years. The incentives will be funded through future sales and property tax rebates generated by the project.

Under the agreement, the City of Buda and Buda EDC will reimburse up to two thirds of the site’s environmental remediation costs, capped at $12.1 million. Hays County and Emergency Services District No. 8 will each contribute up to $4 million.

Officials estimate the total land remediation costs could reach about $30 million.

Mayor Lee Urbanovsky said the project represents a major step forward for the city.

“This is a defining moment for our community,” Urbanovsky said. “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.”

As part of the agreement, H-E-B will fund environmental remediation work and roadway improvements identified through a traffic impact analysis. Planned improvements will focus on enhancing traffic flow along the Interstate 35 and Main Street corridor, including work near the Old San Antonio Road connector.

Jennifer Storm, chief executive officer of the Buda Economic Development Corporation, said the redevelopment represents a major opportunity for the city.

“For decades, this property sat underutilized. Now, through this innovative partnership and the power of collaboration, together, we’re creating opportunity where none existed before,” Storm said.

H-E-B also agreed to redevelop its current Buda store at 15300 South Interstate 35. Within 18 months of the new store opening, at least 60 percent of the existing property must be repurposed for retail businesses that generate sales tax revenue.

The company has also committed to creating at least 50 new full time equivalent jobs within one year of the store opening and plans to source construction materials locally when possible.

Construction on the project is expected to begin in 2026.