AGENDA CAPTION:
Title
Consider approval of Resolution 2024-21R, on the second of two readings, approving a Chapter 380 Economic Development Incentive Agreement with Buc-ee’s San Marcos, LLC., that provides incentives in the form of refunds of 50 percent of sales taxes generated by the company over 15 years for the construction of a new Buc-ee’s Travel Center along IH-35 south of Yarrington Road, and grants a variance to the height and area requirements for one pole sign; authorizing the City Manager, or her designee, to execute said agreement; and declaring an effective date.
Body
Meeting date: March 5, 2024
Department: CMO
Amount & Source of Funding
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Fiscal Note:
Prior Council Action: City Council voted 7-0 at the regular council meeting on February 20, 2024 to approve a Chapter 380 Economic Development Incentive Agreement with Buc-ee’s, LLC to provide incentives in the form of refunds of 50 percent of sales taxes generated by the company over 15 years for the construction of a new Buc-ee’s Travel Center along IH-35 south of Yarrington Road, and grants a variance to the height and area requirements for one pole sign on the first of two readings.
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Economic Vitality
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Sports Tourism, Eco-Tourism, Retail Tourism & 13,000 year heritage
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Background Information:
Buc-ees LLC is seeking to construct a 74,000 SF family travel center on the southbound frontage of I 35 South of the Yarrington Road intersection. The capital investment of the project is $50 million and will result in the creation of a minimum of 175 full time jobs.
The proposed incentive is a 50% sales tax rebate for a 15-year term provided there is equal participation by Hays County. The city would capture 100% of the property taxes generated from this project.
City Council voted unanimously at the February 20th regular meeting to approve a Chapter 380 Economic Development Incentive Agreement with Buc-ee’s, LLC on the first of two readings following the terms stated above.
Council Committee, Board/Commission Action:
Economic Development San Marcos (EDSM) Board voted 7-0 on December 18, 2023 to recommend City Council consider a Chapter 380 Agreement with Project Journey for a 50% sales tax rebate for 10 years. This project was originally benchmarked with other agreements that did not reveal multijurisdictional participation and required a modification of the agreement term to 15 years to achieve parity.
Alternatives:
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Recommendation: Staff recommends approval as presented.
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