Buda’s Economic Boom: US Foods Eyes Major Expansion
Hey there, folks! Have you heard the exciting news buzzing around Buda? Well, buckle up because things are heating up with some serious economic development that could benefit our charming little city. Less than 15 miles south of downtown Austin, Buda is on the verge of a significant transformation thanks to a potential expansion by the big-time food distributor, US Foods Holding Corp.
A Glimpse at the Plans
Let’s dive into the juicy details! US Foods, which is headquartered in Illinois and is one of the largest food-service distributors in the world, is looking to invest a whopping $120 million in expanding their Buda operations. The company plans to expand their existing facility, located at 2150 Fire Cracker Drive, by an impressive 170,000 square feet.
You might be wondering, what’s in it for Buda? Well, this expansion could bring 165 new jobs to our community, providing plenty of opportunities for local folks. The average salary for these jobs is projected to be around $74,000, and the company aims to hire at least 102 employees by 2026. How’s that for some economic good news?
Project Husky: The Secret Code Name
Here’s something that adds a bit of flair to the story – the project is codenamed “Project Husky” during discussions about economic development. Sounds intriguing, right? Hays County officials are looking to approve a Chapter 381 agreement that would provide some sweet incentives to US Foods, like property tax and sales tax rebates. These rebates could amount to 37% of the property taxes generated from 2027 to 2031, and up to 25% of the sales tax generated until 2036.
Of course, there are some strings attached. US Foods must finish improvements and secure a certificate of occupancy for the site by January 2027. It’s a big commitment, but US Foods is clearly serious about making Buda a key hub in their distribution network.
Buda’s Growing Reputation
Now, let’s take a moment to appreciate what this means for our city. With a population of roughly 16,000, Buda is emerging as a significant player in manufacturing and food distribution. This recent expansion joins the ranks of other exciting developments, like the recent choice of Buda by Korean electric vehicle supplier Futronic USA Inc for their manufacturing site. We’ve also got local legends like Heaven Hill Industries, makers of Deep Eddy Vodka calling Buda home!
US Foods’ Performance and Future Prospects
To put things into perspective, US Foods brought in $9.7 billion in net sales this quarter alone—an increase of 6.8% from last year, driven by growth in their total case volume and food cost inflation of 3.2%. Their gross profit shot up to $1.7 billion, a rise of 8.1% compared to the previous year. With $148 million in net income this quarter, up by $53 million, it’s safe to say that US Foods is strong and ready to invest in Buda.
What Happens Next?
So what’s next for Buda? The City Council and the Buda Economic Development Corp. will meet on November 18 and 19 to discuss the economic development performance agreement with US Foods, which is also linked to Project Husky. The agreements are rumored to be capped at around $1.5 million, which sounds like a win-win situation for all parties involved if you ask me!
In conclusion, this potential expansion not only marks a crucial milestone for US Foods, but it might just be the catalyst that sparks Buda’s growth into a thriving manufacturing and distribution hub. We’re keeping our fingers crossed for this project to take off and for our town to blossom with new opportunities!
