SAN MARCOS, Texas — Last week, the San Marcos City Council approved an economic development incentive agreement with H-E-B to build a third location in the city.
Now, we are learning more about what the store will include. The new grocery store will be located on a nearly 18-acre space near Interstate 35 and McCarty Lane.
H-E-B said it will include a True Texas BBQ restaurant with indoor seating. It will have a pharmacy and curbside parking for online orders. A fuel station and car wash are also planned for the site. The store will be over 100,000 square feet.
City officials said it will bring a “much-needed” grocery store to the east side of I-35 and support a fast-growing portion of the community with an anticipated 212 full-time employees and 238 part-time employees.
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. The city is expected to retain $604,000 in property taxes and $1 million in sales tax collections over the five-year period.
"We are always looking for growth opportunities to better serve our customers. This is a project we have had in the works for years, and we look forward to serving even more customers in this growing part of Texas with the best H-E-B has to offer,” Cathy Harm, H-E-B senior vice president, Central Texas Region said in a release.
To commemorate the announcement, H-E-B recently donated $10,000 to the community. Of that, $5,000 will go to the Hays County Food Bank and another $5,000 will go to the San Marcos Police Department.
The city council is expected to vote on the second and final reading of the agreement during the Nov. 6 meeting.
The store is expected to open by December 2026.