Michael Garcia Staff writer June 7, 2024

A planned H-E-B could bring the city of Montgomery more than $45,000 in annual tax revenue according to city documents.

In March, City Council began discussing the feasibility for a new location from the San Antonio-based grocery chain. The anticipated grocery store will sit on 32 acres of land off Texas 105, building only on 16 acres of that land, and will also include a gas station and car wash, city documents state. 

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“While the good news in a general sense is that (H-E-B is) moving forward, it sounds like they’re still quiet on a specific timeline,” said Dave McCorquodale, assistant city administrator and director of planning and development via email. 

During a City Council meeting on May 28, McCorquodale told council members that a separate developer would come back to build on the remaining 15 acres near the grocery store. 

“We’re under the impression that it will be commercial based on conversations with H-E-B’s consultant,” he said.

The grocery store is expected to cost more than $280,000 with a total accessed valuation of $12 million. While a timeline wasn’t shared for when the location would open, it’s expected to bring the city $45,600 in annual tax revenue. It’s unclear how much in sales tax revenue the grocery store will bring to the city.

“H-E-B intends to move forward with site grading and stormwater detention facilities for the combined tracts, but doesn’t intend to immediately begin construction for the store,” McCorquodale said.

Before stepping down from his position in May, former Mayor Byron Sanford said more grocery and retail options are needed in the fast-growing city. 

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“It essentially blesses the city with jobs and an economic base that we expect in probably two or three years,” Sanford said in a previous article. “That’s going to be far better than what we have right now. These are two huge blessings…as far as economic boost that we very much need.” 

Officials have said in 2022 that the city was expected to double in five years. At the time the city had a population of approximately 2,000 — with the city now sitting between 2,500 to 2,8000 residents, said newly elected Mayor Sara Countryman.

Other smaller cities, such as Willis, are starting to see an increase in population. In November 2022, the city north of Conroe opened its first H-E-B after the city saw an influx in commercial and residential development projects.  

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