H-E-B plans to build a new supermarket on an idle landfill site in Buda, Texas, and has reached an agreement with local government agencies. According to an announcement released Wednesday, the grocer will receive more than $20 million in incentive funds to cover part of the costs of safely developing the site.

Under this newly finalized arrangement, H-E-B will invest in remediating the land and bear the costs of road improvements around the new store. Sales tax and property tax rebates generated by the project will be used to fund this 30-year incentive package.

H-E-B plans to begin construction on the new store this year, but the announcement did not provide a specific opening timeline.

Additionally, H-E-B has agreed to redevelop the site of its existing store in Buda. Buda has a population of approximately 18,000 and is located about 15 miles south of Austin, Texas. Within 18 months after the new store opens, the grocer will convert at least 60% of the existing store property into commercial use that generates sales tax.

The announcement also showed that H-E-B has committed to creating at least 50 full-time equivalent positions within one year after the new store opens and will source construction materials locally.

The City of Buda and its economic development corporation will jointly cover two-thirds of the costs for remediating the designated land for the new store (with an estimated total cost of about $30 million), capped at $12.1 million. Hays County and the county's emergency services district will each provide up to $4 million to transform this land, which has been "idle and underutilized for decades," into a retail center.

"This is a defining moment for our community," said Buda Mayor Lee Urbanovsky in a statement. "By transforming land that once symbolized limitations into a source of jobs, commerce, and community pride, we are writing a new chapter in Buda's story."

According to local news website MySA, the Buda City Council approved a zoning change in December 2025 that allows H-E-B to build the new store on the site. MySA also noted that H-E-B has long wanted to expand its presence in Buda, having considered building on this landfill about two decades ago but abandoning the idea due to the high cost of site remediation at the time.