On first reading, San Marcos City Council unanimously approved a Chapter 380 development incentive agreement with H-E-B for the construction of a 100,000-square-foot grocery store, which would be located at the southeast corner of I-35 and McCarty Lane.
In case you missed it
In efforts to expand its grocery options, the council approved a resolution supporting an incentive agreement for grocery store development in May. H-E-B submitted an incentive request in August, citing the resolution as having a direct impact on their decision to build another store in San Marcos, according to agenda documents.
What residents should know
Aside from the 100,000-square-foot grocery store, the project also includes the construction of a 10,000-square-foot convenience store with fuel pumps and a car wash. The new location is expected to bring 212 full-time employees and an additional 238 part-time employees, according to agenda documents.
Under the agreement, the city will rebate H-E-B a percentage of annual property and sales tax collections over five years based upon a capital investment of $55.35 million. San Marcos is expected to retain $604,000 in property taxes and $1 million in sales tax collections over the five-year period, according to a news release.
What the dais is saying
Mayor Jane Hughson said the new location will make the H-E-B located at 641 E. Hopkins St. easier to navigate.
Council member Matthew Mendoza—a San Marcos native—said there had always been a food desert on the east side of town and thanked H-E-B and city staff.
What's next?
The item will come back to council for a second and final reading of the agreement Nov. 6.
