Buda Announces Significant Investment to Transform Former Landfill into Thriving Retail Hub
(Buda EDC) FOR IMMEDIATE RELEASE
JOINT PRESS RELEASE FROM HAYS COUNTY, THE CITY OF BUDA, THE BUDA ECONOMIC DEVELOPMENT CORPORATION, AND HAYS COUNTY EMERGENCY SERVICES DISTRICT NO. 8
Partnership incentives clear the path to transform long-vacant land, creating vital growth opportunities, bringing more jobs, tax revenue, and community assets to the region
(Buda EDC) BUDA,TEXAS–March11,2026 – A long-dormant landfill site in Buda is set to become a hub of economic activity, thanks to a groundbreaking partnership between the City of Buda, the Buda Economic Development Corporation (Buda EDC), Hays County, Hays County Emergency Services District No. 8 (ESD), and H-E-B. Together, the partners have finalized an agreement that will bring a new H-E-B store on the southbound access road of Interstate 35, north of Main Street.
Because of the selected location’s history as a landfill site, all parties took extreme precautions and conducted thorough reviews to ensure that the proper investment, safety, and well-being of residents and the community were the top priorities. This transformative project will convert a site that has been vacant and underutilized for decades into a vibrant retail destination, creating new jobs, increasing tax revenue, and expanding shopping options for the region.
“Together with H-E-B, Hays County, the City, Buda EDC, and ESD, we’re transforming the site into a thriving retail hub that will generate jobs, sales tax revenue, and momentum for additional growth. It’s a true example of turning a challenge into a catalyst for prosperity,” said Walt Smith, Precinct 4 Commissioner, Hays County.
The City of Buda, Buda EDC, Hays County, and the ESD have committed a combined $20.1 million incentive package over 30 years, funded through sales and property tax rebates generated from the newly created sales and property taxes resulting from the project. The City and Buda EDC will reimburse up to two-thirds of the remediation expenses, capped at $12.1 million. Hays County and the Emergency Services District will provide amounts not to exceed $4 million each, with the district’s contribution to be derived specifically from Sales Tax Allocation Refunds generated by revenue at the H-E-B store.
“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. This agreement reflects our commitment to smart growth, strong partnerships, and a brighter future for our residents.”
Under the agreement, H-E-B will invest heavily in environmental remediation and roadway improvements to ensure the site is safe and accessible. The company will also fund roadway improvements based on a Traffic Impact Analysis to enhance traffic flow along the IH-35/Main Street corridor, including improvements to the Old San Antonio Road connector. The financial incentive package, a Chapter 380 & 381 Economic Development and Performance Agreement, will help offset land remediation costs estimated at $30 million.
“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,” said Jennifer Storm, Chief Executive Officer, Buda EDC.
Additionally, H-E-B has also committed to redeveloping its existing Buda grocery store location at 15300 S. IH-35. Within 18 months of the new store’s opening, the company will repurpose at least 60% of the former property for retail sales tax-generating businesses, ensuring economic momentum continues across the community.
As part of the agreement, H-E-B has committed to creating at least 50 new full-time equivalent jobs within one year of opening, while sourcing construction materials locally to further support the regional economy.
Construction is expected to begin in 2026.
About Hays County
Ideally situated along the Interstate 35 corridor between Austin and San Antonio, Hays County is one of the fastest-growing and most dynamic counties in Texas. Home to a diverse and expanding population of approximately 300,000 residents, the county boasts a robust economy driven by higher education, health care, manufacturing, tourism, and a thriving small-business community. Guided by a commitment to smart growth, fiscal responsibility, and community well-being, Hays County continues to create opportunity while offering an exceptional quality of life for residents, visitors, and businesses alike.
About the City of Buda
Buda, the Outdoor Capital of Texas, is located along the Interstate 35 corridor in Hays County, just south of Austin. Home to more than 18,000 residents, Buda is known for its burgeoning commercial and innovation hub, exceptional quality of life, desirable neighborhoods, charming historic downtown, and vibrant events and festivals where residents and visitors can shop, dine, relax and breathe easy. Learn more at www.budatx.gov.
About Buda Economic Development Corporation
The Buda EDC champions commerce and community by fostering a business-friendly environment that drives innovation, attracts investment, and honors Buda’s heritage. Through strategic partnerships, targeted industry development, and comprehensive business support, Buda EDC advances sustainable economic growth and quality of life. Focused on advanced manufacturing, knowledge-intensive business services, entrepreneurism, and arts and entertainment, the organization supports businesses at every stage while preserving the character that makes Buda unique. Learn more at www.budaedc.com.
About Hays County Emergency Services District No. 8 (ESD #8)
Hays County ESD #8 is a voter-established special district that funds and manages the Buda Fire
Department through property tax and sales tax revenue. Serving the City of Buda and northeastern Hays County, the district operates multiple strategically located fire stations and provides both fire protection and emergency medical services (EMS). In addition, ESD #8 delivers fire prevention outreach, community education, training, recruiting, and wildfire preparedness initiatives to ensure the highest level of public safety and community resilience.
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Primary Media Contact:
Buda Economic Development Corporation
John Costilla | john.costilla@budaedc.com | 512-295-6525
Additional Contact Information:
Hays County
Kandice Boutté | kandice.boutte@hayscountytx.gov I 512-704-7480
City of Buda
Michelle Henley | Michelle.henley@budatx.gov I 512-523-1075
Hays County ESD #8
Clay Huckaby | chuckaby@budafire.org I 512-295-2232
