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Hays County gives HEB tax incentives to expand warehouse

Wednesday, January 7, 2009 by Austin Monitor

Hays County Commissioners voted unanimously Tuesday to join the city of San Marcos in offering HEB several million dollars worth of tax incentives to ensure the grocery chain doubles the size of a distribution warehouse in the city. Using a Chapter 381 Economic Development agreement, the county deal would save HEB an estimated $1.71 million with a 100 percent rebate on real property taxes through 2029.


The planned expansion would occur in six phases over the next 20 years and brings some welcome projections given the current economic climate. The distribution center is expected to add 320 full time jobs amounting to $16.26 million in additional annual salaries. Currently, the grocery chain has 534 full time employees working at the 75-acre site at 2301 Hunter Road.


HEB is currently in contract negotiations to purchase an additional 47 acres. The first phase of construction is slated to begin in 2010, with additional phases beginning in 2014, 2018, 2021, 2024 and 2028. Each phase is entitled to receive ten years worth of rebates with all rebates slated to end Dec. 31, 2029. 


The project will add 750,000 square-feet to the site and cost nearly $5 million for site development and $35.375 million for structural additions, which HEB would spend on local contractors and builders. The county projects it would ultimately see an increase in tax revenue of nearly $10 million through personal property taxes.

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