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If the mountain contains valuable minerals then the cost will be negative; you can make money by removing it.
https://en.wikipedia.org/wiki/Mountaintop_removal_mining
Though, depending on the geology, you might not want to build a town on the resulting site. Sometimes heavy metals leach out of the disturbed rock, resulting in polluted surface water.
No minerals
You’re comparing moving 100 cubic meters of soil, so 200tons+ 10-15km away versus paying $20.
One of these is vastly more expensive than the other.
Governments would rather use eminent domain than literally move mountains.
You lose a mountain to get some shitty parking lots or whatever.
What?