What’s proposed
Plans have been filed to redevelop the former Margaritas restaurant at 10280 W. Highway 29 into an Ally Medical freestanding emergency room. Site and building permits submitted to local and county agencies outline a renovation of the existing structure rather than new ground up construction.
According to permit documents, the project will convert the former restaurant into an 8,746 square foot emergency room and include an additional 850 square foot expansion. Records from the Texas Department of Licensing and Regulation list the redevelopment as a privately funded project with an estimated cost of 4.5 million dollars.
Construction timeline
TDLR filings show construction is scheduled to begin May 1, 2026. The project is expected to be completed by Dec. 31, 2026. No patient opening date has been announced.
About Ally Medical
Ally Medical operates freestanding emergency rooms across Texas, including locations in the Austin, Dallas Fort Worth and Houston regions. The company states that its facilities are owned and managed by local, board certified physicians.
Clarifying earlier reports
Earlier state filings tied to the same address had identified plans for a Q Mart convenience store with an attached Denny’s restaurant. That led to reports that a Denny’s could be opening at the former Margaritas site.
Ownership for Margaritas and Time Out Sports Bar later clarified that those plans apply to a different property. The Q Mart and Denny’s are now expected to be built on an adjacent parcel at the corner of State Highway 29 and County Road 260, not on the former Margaritas building site.
What it means for the area
If completed as planned, the Ally Medical ER would bring a new emergency care option to the Highway 29 corridor while repurposing an existing commercial building.
Construction activity is expected to begin this spring, marking the next step in ongoing development along one of Liberty Hill’s busiest roadways.

