Plans are still on for an H-E-B store in the Magnolia city limits.[/caption]

Despite delays, H-E-B will begin building its first store within Magnolia city limits once road construction on FM 1488 at FM 149 wraps up, City Administrator Paul Mendes said. The Texas Department of Transportation project will wrap up in late 2017.

The Texas-based grocery store company purchased land in 2014 as part of a 142-acre mixed-use development to be located along FM 1488 between FM 149 and Spur 149. The property is being developed by Austin-based Stratus Properties Inc. and will become part of Magnolia Commons, a proposed development featuring retail sites along with 1,200 residential properties.

“I told [development partner Jon Andrus] that there was some concern about H-E-B possibly putting off starting the store or not building it at that location [within city limits],” Mendes said during the March 14 Magnolia City Council meeting. “It’s definitely going out there. What they’re holding on right now is the construction. Nobody wants to start a new store with their roads torn up.”

In August, H-E-B opened a store at Tamina Road and FM 1488, its first location in the Greater Magnolia area, which has shown area demand for another location, Mendes said.
Unlike the Tamina location, a H-E-B store inside the city limits would allow the city to collect a full portion of sales tax revenue.

“Almost all customers that are coming to [the store on] Tamina [Road] are coming from us and west of us, so they still see this as a prime location,” Mendes said.
H-E-B proposed a fall 2018 opening, Mendes said at a March 23 luncheon.