Buc-Ee's Council Presentation - Rev1

Consider Approval of a Chapter 380
Agreement with Buc-ee’s, LLC
February 20, 2024
sanmarcostx.gov
1
About the Project
• Approx 74,000 SF Family Travel Center

• 120 Fueling positions with capacity for Electric Vehicle charging
• Located on ~ 22 acre site fronting Southbound I-35
• Capital investment of $50 million
• 175 Full time jobs – average annual wage $43,855
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3
Project Location
Yarrington Rd
Site
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Site Plan
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Environmental
Not Located within:
• Any Edwards Aquifer Zone

or
• Water Quality Zone
Outside of 500-year floodplain
Will install oil water separators

for each fueling area storm
drain inlet
Will install one or more oil

water separators to receive
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runoff from fueling area 5
Existing and Proposed Roadways
Project Site
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Proximity to Fire Stations
Site Location
Future Fire Station
Fire Station #5
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Sustainability
Stormwater Quality:
Stormwater collection is designed to direct stormwater run-off from customer
fueling and bulk delivery areas to one system, flowing to one or more oil/water
separators installed in each individual inlet in the system.
Water Conservation:
- Rain-sensor irrigation system
- Rainwater harvesting system (1st for the company)
- High efficiency water fixtures and lighting
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Sustainability Continued
Energy Conservation:
- Integrated timed/light-sensing controls
- All exterior light fixtures are fully shielded, full cut-off, 100% downward directional,
and mounted as low as practical.
- 65% of the total lumen output is situated under the fuel canopies.
Electric Vehicle Charging:

- Plan is to accommodate EV charging stations along perimeter parking
- Approximately 100-175 spaces available to install as dictated by consumer demand
and third-party providers
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Proposed Jobs
Number of Proposed Full Time Jobs
• Planned Jobs = 200 to 225
• 175 minimum number of jobs needed to operate store during a pandemic
• Typical starting wage is $18/hour with benefits
Employee Benefits:
• Employer sponsored health insurance starting after 60 days
• 401k – 100% match up to 6%
• 3 weeks paid time off per year (rolls over)
• Additional $2/hour for overnight shift
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Proposed Terms
• Minimum 175 full time jobs with benefits
• No rebate of property taxes – 100% capture by City, County, ISD
• 50% sales tax rebate over 15 years assuming County participation
• Sign standards modified to allow for a 68’ pole sign with sign face
area up to 360 square feet prominently featuring San Marcos’s name
• Company to donate $100,000 to City community fund
• Rainwater harvesting, oil water separators, lighting standards
• Make effort to hire local residents, contractors and suppliers
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Potential Revenue to the City
Property Tax Collections
Rebate % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total
City $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rebated
City $205K $390K $391K $392K $394K $396K $400K $403K $408K $412K $420k $428k $436k $444k $452k $5.9
Retained million
50% Sales Tax Rebate

Rebate % 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total
Rebated million
Retained million
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*Numbers rounded 12
Potential Revenue to the City, County and ISD
Local Entity Total Rebate Total Sales Total

Tax Property Tax
City $3.2M $3.2M $5.9M
County $1M $1M $2.8M
Hays CISD $0 $0 $11.4M
Return on City incentive over 15 years:

(Gain of investment – cost of investment)/cost of investment
($12.3M property/sales taxes - $3.2M in rebate)/ $3.2M in rebate = 2.84 or 284%
15-year taxes collected to Hays County is $3.8M (Net of sales tax rebate)
15-year taxes collected to Hays CISD is $11.4M
*Numbers rounded sanmarcostx.gov

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EDSM Recommendation
• Economic Development San Marcos Board voted 7-0 on December 18, 2023,
to recommend this project and incentive to the City Council at the following
level:
• 50% sales tax rebate for 10 years
• Assumes Hays County to match City incentive for the same term
• After additional benchmarking with other municipal Chapter 380 agreements,

term was set at 15 years
sanmarcostx.gov
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Staff Recommendation
Staff recommends Council approve a Chapter 380 economic

development incentive agreement as presented on next slide on
first reading.
Next Step
• City Council consideration on second reading
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Proposed Terms
• Minimum 175 full time jobs with benefits
• No rebate of property taxes – 100% capture by City, County, ISD
• 50% sales tax rebate over 15 years assuming County participation
• Sign standards modified to allow for a 68’ pole sign with sign face
area up to 360 square feet prominently featuring San Marcos’s name
• Company to donate $100,000 to City community fund
• Rainwater harvesting, oil water separators, lighting standards
• Make effort to hire local residents, contractors and suppliers
sanmarcostx.gov
16
Questions
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Consider Approval of a Chapter 380

Agreement with Buc-ee’s, LLC

February 20, 2024

• Approx 74,000 SF Family Travel Center

• Any Edwards Aquifer Zone

Outside of 500-year floodplain

Will install oil water separators

Will install one or more oil

Future Fire Station

Electric Vehicle Charging:

50% Sales Tax Rebate

Local Entity Total Rebate Total Sales Total

Return on City incentive over 15 years:

*Numbers rounded sanmarcostx.gov

• After additional benchmarking with other municipal Chapter 380 agreements,

Staff recommends Council approve a Chapter 380 economic

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