H-E-B plans to build a $175 million refrigerated facility at its East Side campus.
The new property is part of the San Antonio-based grocer’s largest-ever investment in its manufacturing and supply chain operations.
H-E-B plans to construct a two-story, 675,000-square-foot facility with refrigeration space, as well as office and administration space, at 2045 South Foster Road, according to a filing with the Texas Department of Licensing and Regulation. Construction is expected to begin in August this year and be completed by March 2028.
Both projects are part of the grocery chain’s overall $700 million expansion of its distribution operations on the East Side, as the company opens more stores and makes more of its own products. The company acquired more than 870 acres off South Foster Road in 2017 and said it has since spent more than $445 million to build warehouses and manufacturing operations there.
In May, Bexar County Commissioners Court unanimously approved county staff to negotiate a $15 million tax break for the expansion.
H-E-B is requesting the tax break — a 10-year, 85% abatement of county property taxes on its investment — in exchange for hiring 720 employees and keeping all 1,389 current jobs at its facilities. Commissioners will vote on a final agreement with the company at a later date, but signaled that they’ll likely support the deal.