Wheatsville's Guadalupe store closes after 45 years. What the city has said about businesses on the light rail route

Wheatsville Co-op closed its Guadalupe Street grocery on Sunday, Oct. 25, ending a 45-year run near the University of Texas, KUT reported. The co-op pointed to declining sales, rising rent and uncertainty about construction in the area. Workers were offered jobs at the South Lamar store, and the 800-pound "Mangiasaurus" sculpture was moved from the roof to South Lamar.

"It's been really difficult to remain a sustainable grocery store here," General Manager Tanya Carney told KUT.

The closing matters beyond one store. Guadalupe Street is on the route of the first phase of Austin's voter-approved light rail line, and businesses along it are weighing what years of construction will mean for them.

Why the co-op said it was leaving

When Wheatsville announced the closing in May 2024, its then-general manager cited several problems, the Austin Monitor reported:

• Annual sales at the store fell from $18.6 million in 2013 to $9.1 million in 2023.
• Delivery trucks back across Guadalupe into the loading bay, which he said would not be possible once rail is built. He called that the biggest problem.
• Light rail plans would block crossing at 31st Street and restrict left turns across the tracks.
• The 1940 building needed repairs after part of the roof collapsed in March 2024.

At the time, the Austin Transit Partnership, which is building the line, said the design was early and that it would work to minimize impacts where possible.

Light rail construction is expected to start in 2027, with trains running in 2033, KUT reported in July.

What our records add

ATP builds the line, but the council sets the terms. In May, the council approved a design agreement with ATP, 9-0 with two members absent. It gives ATP temporary access to city property and right-of-way for pre-construction work. In July it voted 10-0 to correct the light rail development review ordinance. In September 2025 it approved an agreement on buying land for the line, 11-0.

The closing came up at City Hall. During public comment at the council's March 26 meeting, a speaker named the loss of Wheatsville as an example of the effects of transportation projects.

Construction impacts have been on committee agendas. At an October 2025 Mobility Committee meeting, a presenter described recommendations for businesses and residents around I-35 and light rail projects while they are under construction. A March 2026 committee meeting included an Austin Light Rail update.

A rent-help program is on the Nov. 5 agenda. Item 24 would direct the city manager to design a commercial space buy-down program that temporarily covers part of the rent for local small businesses. Council Member Krista Laine is the lead sponsor. Our story on the resolution covers its terms. During July budget deliberations, Council Member José Velásquez said the city was leveraging construction mitigation funds for a buy-down program.

The same pressure is playing out on Riverside. Our story on JD's Supermarket covers a southeast Austin grocer that fears the line could force it to close.

What's next

• Nov. 5: The council takes up the commercial rent buy-down resolution.
• This fall: The city plans another round of public input on the East Riverside corridor plan, which staff said was written before the current light rail design.
• 2027: Light rail construction is expected to begin, according to ATP's timeline as reported by KUT.

Wheatsville's lease on the Guadalupe building ran through the end of 2026, according to the co-op's expansion FAQ.