Buda on the Brink of Exciting Economic Growth!
Buda, a charming city located just 15 miles south of downtown Austin, is buzzing with excitement over a potential economic development boom that could significantly enhance its landscape. At the center of this anticipation is US Foods Holding Corp., a multibillion-dollar food distributor based in Illinois that is contemplating a whopping $120 million expansion of its operations right here in Buda!
The expansion could mean 165 new jobs for the community, a lovely addition to Buda’s growing workforce. And, believe it or not, if everything goes as planned, it will not only boost the local economy but also aid in solidifying Buda as a thriving manufacturing and food distribution hub.
What’s the Plan?
According to documents released ahead of upcoming meetings, the company is looking to increase the size of its current facility at 2150 Fire Cracker Drive by 170,000 square feet. This is a significant move, especially considering US Foods only settled into its 305,000-square-foot location back in 2011, promising previously to create over 100 jobs. Looks like they’re ready to go big or go home!
On November 19, both Hays County and the city of Buda will consider incentives to encourage the expansion. These will likely include property tax and sales tax rebates through a Chapter 381 agreement, codenamed “Project Husky” in economic development talks.
Incentives That Could Make a Difference
The proposed county incentive would give US Foods a tax break equating to 37% of the property taxes generated each year from 2027 to 2031, but capped at $498,000. Meanwhile, the sales tax rebates would hit 25% of tax generated from the property annually from 2027 through 2036, with no cap in sight!
To seal the deal, US Foods needs to invest that eye-popping $120 million into the site for building improvements and new equipment, aiming to complete the upgrades and get a certificate of occupancy by January 2027.
A Bright Future for Buda
If all goes well, US Foods must create 165 jobs by 2031, with an average salary of $74,000. They are also required to generate at least 102 jobs by 2026. It’s a big commitment, and the potential economic impact could be a game changer for Buda, which currently has a population of approximately 16,000.
Buda isn’t just dreaming big with US Foods. Recently, it also welcomed Futronic USA Inc., a Korean electric vehicle supplier, choosing to set up their manufacturing site in the city. Buda has been steadily transforming itself into a favorable spot for industry and distribution, already known for being home to Heaven Hill Industries, renowned for producing Deep Eddy Vodka.
US Foods’ Solid Financials
Not to be overlooked is that US Foods is also in a strong financial position. Just recently, the company reported net sales of $9.7 billion for the quarter, showing a 6.8% increase compared to the previous year. That’s right—more folks are dining out, and US Foods is riding the wave of demand!
With a gross profit of $1.7 billion and net income rising by $53 million, it’s clear US Foods is on an upward trajectory. This growth could very well translate into even more opportunities for Buda.
A Bright Path Ahead
So, as we await to see whether Project Husky will bring the promised transformation, the community of Buda is on its toes, hoping for a nod of approval this November. Whether you’re a potential job-seeker or a local resident, the excitement is palpable as Buda gears up for what could be an extraordinary leap into a prosperous future!
