The demolition and rebuilding of the H-E-B store at South Congress Avenue and Oltorf Street in Austin will start early next year, the company said Thursday.

H-E-B had planned to close the South Congress H-E-B in March 2020 for the project. The building was to be demolished to make way for a multi-level store with underground parking, a beer garden, a food hall and a stage for live music.

H-E-B spokeswoman Leslie Sweet told the American-Statesman at the time that the postponement was due to both COVID and construction issues.

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The project will now begin in February, the company said Thursday. H-E-B will open a temporary store located at the adjacent Twin Oaks shopping center during construction. The temporary store will open one week before construction starts. H-E-B estimates the project will take about two years to complete.

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The H-E-B store at 2400 S. Congress Ave. opened in 1957 at 25,000 square feet. Currently, the store is about 69,000 square feet.

The new three-level store will be 145,000 square feet, with shopping and restaurant space and above-ground parking, the company said. It will feature indoor and outdoor seating for dining and an outdoor stage for live performances.

The store will also include curbside and home delivery services and a full-service pharmacy with drive-through service. In addition, it will have a True Texas BBQ, which is H-E-B's in-house barbecue restaurant brand.

“Our vision has always been to create a store that our customers will be proud of, an iconic location that reflects the personality and vibrancy of the South Congress community,” said Cathy Harm, H-E-B group vice president Central Texas. “This store is an important part of this neighborhood, and we hope this new design conveys the deep gratitude we have for our loyal customers who have supported our business for more than 60 years.”

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San Antonio-based H-E-B has operated in Austin for more than 80 years and has long been the region's dominant grocer. Industry analysts estimate that the company controls about 60% of the grocery market in Austin, a rarity in U.S. cities, where Walmart usually dominates sales.

During operation of the Twin Oaks temporary store, the location will offer home delivery and pharmacy services. Curbside pickup will not be available.

H-E-B also has a store under construction on Lake Austin that is replacing a former Randalls location. The Lake Austin H-E-B will include a coffee shop, a pharmacy and a True Texas BBQ and is expected to open next summer.

H-E-B last year opened a store at Slaughter Lane and South Congress Avenue, and in recent months has opened stores in the Oak Hill neighborhood and in Leander.

This article originally appeared on Austin American-Statesman: Austin H-E-B to be demolished, rebuilt on South Congress in 2022