US grocery retailer H-E-B has finalised an agreement with local government agencies to build a new 135,000 sq ft supermarket on a dormant landfill site in Buda, Texas, backed by a $20.1 million (€18.6m) incentive package covering environmental remediation costs estimated at $30 million (€27.8m).

Facilities Dive reported that the 30-year incentive package will be funded through sales and property tax rebates generated by the project, with construction expected to begin in 2026.

The city of Buda and its Economic Development Corporation will jointly cover up to two-thirds of the estimated remediation cost, capped at $12.1 million (€11.2m), with Hays County and the county's emergency services district each contributing up to $4 million (€3.7m).

H-E-B is required under the agreement to invest at least $70 million (€64.9m) in the project, create at least 50 full-time equivalent jobs within one year of opening, and source construction materials locally.

The new store will include a drive-through True Texas BBQ restaurant, a pharmacy, and a garden centre. Demolition of existing buildings on the site has already begun.

Within 18 months of the new store opening, H-E-B has committed to repurposing at least 60% of its existing Buda grocery store location for additional retail tenants, further extending the economic footprint of the project.

Buda Mayor Lee Urbanovsky said: "By taking land that once symbolised limitation and turning it into a source of jobs, commerce, and community pride, we are writing the next chapter of Buda's story."

Jennifer Storm, chief executive officer of Buda EDC, said the project demonstrates how innovative partnership can create opportunity where none existed before.

Hays County Commissioner Walt Smith described the agreement as the first environmental-based incentive agreement in the history of the county.

Access the full story on H-E-B's Buda landfill redevelopment and its implications for facility site remediation.