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A planned road extension in Kyle being
touted as a sensible traffic solution may also prevent HEB's big-box
competitors from ensconcing themselves in a highly desirable location.
The planned extension would connect FM 150 West with FM 150 East
through a parcel of land just east of I-35 and currently owned by
San Antonio-based H.E. Butt Grocery Co. and Austin-based developer
Barshop & Oles. The two companies bought the 38 acres at FM
150 and I-35 in 2002.
After several years of planning and market studies, HEB and Barshop
& Oles bought a new 38-acre site at the intersection of FM 1626
and I-35 in late 2005.
HEB broke ground this spring on the new site, which will contain
an approximately 140,000-square-foot HEB Plus. That would be the
largest grocery store in Hays County.
In 2004, while HEB and Barshop & Oles were still planning to
build a store on the original site, the city of Kyle started working
on a master transportation plan that included plans to connect FM
150 West and FM 150 East through the grocery store's land.
Eddy Etheredge, a project manager at Lockwood, Andrews & Newnam
Inc., the engineering firm working with Kyle on its transportation
plan, says the city and Barshop & Oles decided to scrap the
extension when it became apparent that both a road and a big-box
store wouldn't fit on the site.
But now that HEB is building in another location, the site is again
sitting empty, making the extension possible. Kyle's planning and
zoning staff liaison, Kerry Urbanowicz, says Barshop & Oles
has been talking extensively with city officials about resurrecting
plans for the FM 150 extension. "It's still part of the transportation
preliminary plan," Urbanowicz says. "I'm sure the property
owners and TxDOT would love to see it constructed like that ...
the plans I've seen are working towards making that happen."
Urbanowicz says there's no definitive timeline for the extension's
construction yet.
Milo Burdette, vice president for development
with Barshop & Oles, says his company is very involved in discussions
with Kyle about the potential road, although the plans remain conceptual
for now. Burdette says he sees an FM 150 extension accommodating
small retail, and acknowledges the road could help HEB fend off
competition. But he says the two companies aren't looking to the
road extension as a defensive tactic. Representatives of HEB could
not be reached for comment.
HEB's Kyle store will be the first major grocery chain for the city.
Kyle's population has exploded from 5,314 in 2000 to nearly 15,000
in 2005. But until HEB broke ground this spring, it was Kyle's neighbor
to the north, Buda, that was getting all the big-box development.
Wal-Mart and Cabela's both opened their doors in Buda within the
past year. Both had considered sites in Kyle before buying land
in Buda.
Planners familiar with the area say Wal-Mart and HEB have an intense
rivalry.
"They're both premier companies and both very competitive in
the market," says Jeff Barton, a project manager with Doucet
& Associates. "I'm sure they're looking to see what's happening
and who's going where. There's no doubt about that."
Eric DeJernett, a senior vice president focused on retail and mixed-use
at Trammell Crow Co., says despite any rivalry that may exist between
HEB and Wal-Mart, it's a smart move for Barshop & Oles to run
a road through the property at the intersection of FM 150 and I-35.
"It probably cleans up the area and it may make the property
more valuable," DeJernett says.
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