The expansion will add more than 15,000 square feet to the deli portion of the existing building. The space will provide for additional shelving, a wider variety of food, a new sushi section and a larger healthy living section, said Amy Madison, president of the Greater San Marcos Partnership.
San Antonio-based Joeris General Contractors was issued permits for the expansion and began phase one of the project in April, said city councilwoman Kim Porterfield, Place 1.
Madison said remodeling during the first phase added signage, changed some aisle locations and will be completed in mid-October. Phase two involves the construction of additions to the building. This phase requires dust control measures.
The expansion will create 10 jobs in addition to the 124 employees currently working at the store, said Steve Parker, director of finance for the City of San Marcos.
Porterfield said construction along Thorpe Lane will add new sidewalks and a right turn lane. Drivers will no longer be able to make left turns in or out of the Hopkins entrance to alleviate traffic, she said.
“A lot of people called that the ugliest intersection in San Marcos,” Porterfield said.
Porterfield said city council initially rejected all bids for the reconstruction of the road in April due to high costs. The council approved a $1.7 million bid in mid-May from Capital Excavation, an Austin-based construction company.
Madison said the expansion experienced some setbacks because of city building codes. An agreement was reached to allow the expansion to exceed the 83 percent square foot addition limit. This would allow H-E-B to have an 87 percent expansion.
“I think this (expansion) will serve the community better,” Madison said. “There will be more availability with products and more variety.”
Parker said the expanded store will give the city additional tax benefits. The approximate $1.2 million increase in property taxes will generate an estimated $17,000 in sales tax, he said.
Property tax on the store is currently $3.8 million. Madison said with the renovations and expansion, the store will have more than $5 million in property taxes.
“We need a grocery store that offers more choices to people, something that is better able to suit their needs. This project will provide that,” Porterfield said.