Grocer H-E-B Seeks Incentives to Build on Former Landfill

H-E-B acquired a former landfill in Buda, but it would require taxpayer-funded incentives to fulfill its plans to build a store there.

The San Antonio-based grocer bought the 21-acre site at 5000 North Interstate 35, but it needs incentives to help cover remediation costs, including the replacement of up to 20 feet of soil, the Austin Business Journal reported.

Plans for the site include a 135,000-square-foot store with a True Texas BBQ drive-thru, pharmacy and garden center.

H-E-B purchased the land last month, following negotiations with the previous owners, John Rogers, Carol Anne Rogers and Janet Rogers Wallgreen. The Buda City Council has already approved the necessary zoning changes.

However, before work can begin, H-E-B is awaiting approval from the Buda Economic Development Corporation for incentives that would help make the development financially viable.

The company has emphasized that it is moving forward with the project “on best faith,” but the viability of the store hinges on receiving financial support from the city.

The challenges associated with building on a former landfill site are considerable. H-E-B will need to dig down 20 feet to replace soil, a process that comes with its own set of environmental and construction challenges. While early soil testing has shown no signs of contamination, construction debris remains a concern, adding to the cost.

In addition to addressing the environmental concerns, the company is also looking at infrastructure upgrades to accommodate the development. A traffic impact analysis has recommended improvements that would cost an estimated $900,000.

H-E-B has proposed paying for nearly half of the costs, but the city would need to cover the balance, along with additional expenses for relocating utilities and acquiring land.

While some city officials have expressed concerns about the financial burden on Buda, a town between Austin and San Marcos. But there is strong support for a larger grocery store that would serve Buda and surrounding communities experiencing rapid growth.

— Andrew Terrell