The city and Townwest Commons developer NewQuest Properties announced Academy would build the store at an April 6 City Council meeting.
NewQuest Managing Partner Jay Sears said the 50,000-square-foot store will be the ninth in the Austin area.
Sears said construction will begin before the end of April, and it is expected to be ready to open by early 2024.
Together with the recently announced EVO Entertainment, Academy will act as an anchor for the second phase of Townwest Commons.
"You really couldn't kick off a project with two better anchors than these two," Sears said. "They both have really large regional draws."
Cheney Gamboa, Hutto's assistant director of economic development, said that regional draw will mean more sales tax income for the city.
"What we're excited about from a tax base perspective is that this will draw shoppers from surrounding areas," Gamboa said. "That means it's not just going to be on the citizens of Hutto to sustain this development."
According to an April 6 city announcement, Academy is expected to bring $15 million in yearly sales initially, increasing to $20 million per year once the development stabilizes.
"We're confident that this will be a really great center at full buildout," Gamboa said. "EVO and Academy being the two big anchors just reinforces that sustainable long-term development that we really want."