H-E-B Expands Buda Store on Former Landfill as Population Grows

A former landfill in Buda is on the verge of becoming a major retail hub, with a new H-E-B store at its center. This development is part of a broader effort by city leaders to keep up with the rapid growth along the Interstate 35 corridor.

The proposed site is located just north of Main Street along I-35 South — directly across from the city’s existing H-E-B, which locals often say is overcrowded.

“There’s never any parking if you go after 6:00,” said Krysti Wood, owner of downtown businesses Posie and KD Premier Home Solutions.

A Growing City, A Growing Demand

The new H-E-B store is expected to be significantly larger than the current location, which was built in the early 2000s. City officials believe this expansion reflects Buda’s population boom and the increasing need for retail options.

Wood supports the project, calling it a much-needed addition for the community.

“I think it’s a great thing. It brings lots of jobs to the area,” Wood said. “There’s tons of people moving into the area… it’s going to be an asset to us.”

The new H-E-B will serve as the anchor for a larger retail hub planned for the site. However, building on a former landfill presents unique challenges.

Building on a Former Landfill

Buda City Manager Micah Grau explained that the project will require extensive groundwork to ensure safety and stability.

“What H-E-B is planning to do is to excavate out the portion that’s underneath the building and build that up completely stable,” Grau explained.

Luke Metzger, Executive Director of Environment Texas, said that developing on a former landfill without industrial waste is safe if regulations are followed. He noted that using disturbed properties like this one helps with land development in the growing Central Texas region. He expects crews to test the landfill during excavation and to be cautious of hazardous materials that could affect groundwater.

Repurposing a landfill adds complexity and cost to the project. This is reflected in a $20.1 million incentive package approved by the city of Buda and Hays County agencies over 30 years — a figure higher than typical retail incentives.

“This is a larger package than you would typically see for a grocery store,” Grau said. “That is because of the landfill component of it. So we are viewing this as an environmental mitigation-type project.”

Traffic Improvements Included

As part of the development, H-E-B is also committing to infrastructure upgrades in the area. Plans include widening Old San Antonio Road, adding turn lanes, and improving the intersection at Main Street.

The store will also feature a main entrance off of S I-35 Frontage Road and a secondary entrance from Old San Antonio Road.

What’s Next

Project officials say landfill remediation and construction could begin within the next year. Crews are expected to excavate 10 to 15 feet below ground to prepare the site.

Once complete, the new store is expected to create at least 50 full-time equivalent jobs within its first year of operation. A grand opening is currently targeted for late 2028.

H-E-B has also pledged to redevelop its existing Buda location at 15300 S. IH-35. Within 18 months of the new store opening, at least 60% of the former site will be repurposed into retail businesses that generate sales tax revenue.

For residents like Wood, the changes can’t come soon enough.

“The lines are long,” Wood said. “I think having a bigger H-E-B, they’ll offer more items as well.”