Updated Sept. 21 at 5:37 p.m.

An announcement from the city of Buda on Tuesday said the city was in talks with Deep Eddy Vodka to relocate their Dripping Springs distillery to a 194,000-square-foot vacant space at 150 Precision Drive, Buda. Representatives from the flavored-vodka company later clarified that their facility at 2250 E. Hwy. 290, Dripping Springs, will continue to be used in production of their products and that Deep Eddy will maintain its tasting room there. The agreement with the city of Buda will allow the company to expand production of its spirits and keep up with growing demand.

Last week it was announced that the property housing the Deep Eddy Vodka distillery in Dripping Springs was sold, but the company representative said the distillery and tasting room will remain at that location. Deep Eddy Vodka occupies the Dripping Springs property through a 20-year lease, which was signed three years ago.

Ann Miller, director of the Buda Economic Development Corp., said the agreement with Deep Eddy was a “team effort” among the Buda EDC, city staff, Hays County, the Greater San Marcos Partnership and Buda Fire Department, which helped identify necessary safety upgrades to the 194,000-square-foot building Deep Eddy will move into if the deal is approved by the county.

“It truly would not have gotten pulled off if everyone wasn’t working together,” Miller said.

Hays County is expected to discuss an incentive agreement for the company in early October, Miller said.

Published Sept. 19 at 8:48 p.m.

Deep Eddy Vodka, an Austin-born company known for its flavored liquor, has announced plans to expand its distilling operations to Buda.

At the Sept. 20 Buda City Council meeting, council members voted unanimously to adopt an economic development agreement between Deep Eddy, its parent company Heaven Hill and the Buda Economic Development Corporation. The entire deal is dependent on Hays County's approval of an economic development incentive package, which county commissioners were going to discuss in early October, Buda EDC Director Ann Miller said.

Assuming Hays County approves an agreement with the company, Deep Eddy will expand its operations to an existing building at 150 Precision Drive, Buda. The building has been vacant for approximately two years, and at 194,000 square feet, is more than five times the size of Deep Eddy’s current Dripping Springs location.

The company will keep its tasting room at its current location in Dripping Springs, but Buda's agreement with the company includes a small incentive for the company to open a tasting room in the city eventually.

According to a Buda press release, Deep Eddy approached the city nearly seven months ago, saying their current facility was too small to accommodate the company’s growth.

“I couldn’t be happier that Deep Eddy has chosen Buda for its new expanded facility,” said Mayor Todd Ruge. “This is a victory for the city of Buda and Hays County.”

Deep Eddy will retain all 40 of its existing jobs, and plans to add at least 20 new jobs over the next 10 years. Renovations on the building will start later this year, and the company expects to begin full operations in Buda by early 2017.

“I’m thrilled that Deep Eddy will remain in Hays County and that all existing jobs will be retained,” said City Manager Kenneth Williams in a press release. “The company is a welcome addition to the City of Buda.”