Be prepared to pay an extra 0.625 cents for every dollar you spend on beaver nuggets, brisket sandwiches and beaver-branded apparel and accessories.
The Springfield City Council voted to pass a law allowing an economic development incentive for Buc-ee’s to build a mega gas station and store in northeastern Springfield off of Interstate 44. The bill allowing the additional tax incentive passed by an 8-0 vote without any additional discussion or debate. The agreement from the June 13 council vote brings Buc-ee’s up to $9.2 million in local tax incentives tied to the store that promotes beaver-branded everything in a family atmosphere.
A community improvement district (CID) is a taxing designation outlined in Missouri law and used in Springfield to offset some of the cost of developing Buc-ee’s. The CID adds $5.1 million to Buc-ee’s previously approved $4.1 million tax increment financing agreement the Springfield City Council enacted Jan. 24. In a CID, shoppers pay an additional sales tax on top of what they already pay in sales tax when they make purchases inside the store.
Buc-ee’s store No. 62 projects to be a 53,000-square foot store with 100 fuel pumps, food service, groceries, souvenirs and other goods for sale on the northeast corner of the I-44 interchange with Mulroy Road. If Buc-ee’s delivers on its claim of $30 million in revenue in a year, it will generate around $2.4 million total in sales tax, of which about $639,000 would normally go to the City of Springfield, and $525,000 would go to Greene County.
Springfield's electronic filing system for filing permits show applications for a land disturbance permit, a commercial building project, public street improvements, a sewer connection, a parking lot and a food service permit are all under review. An inspection is scheduled for the land disturbance, which will be the first step in developing the gas station and store.
The $4.1 million tax increment financing agreement allows Buc-ee’s to hold half of the revenue generated from Springfield’s existing 1-cent general sales tax and its ¼-cent capital improvement sales tax. The CID sales tax will reimburse the developer for up to $5.1 million worth of work to North Mulroy Road, which will carry cars from Interstate 44 to the to-be-constructed Buc-ee’s Boulevard, a service road leading to the megastore. Some of the money will also go toward utility line extensions for Buc-ee’s.
Documentation provided to the Springfield City Council shows that Buc-ee’s expects to attract about 6 million customers per year, and 88 percent of the customers will come from places more than 20 miles from Springfield. The store is expected to generate more than $30 million per year in non-fuel sales revenue, which is also taxable under the CID agreement.
The CID territory will be the 36 acres where Buc-ee’s will sit. The CID’s appointed board of directors may impose an additional sales tax of ⅝-cent, or 0.625 cents, for every dollar spent. The tax will be imposed until the revenue it collects reaches a cap of $5.2 million, or 20 years passes, whichever happens first. The community improvement district will be governed by a five-member board of directors: Caleb Colbert, Robert Johnson, Melissa Mooney, Ryan Mooney and Alex Woodson.
Buc-ee’s developers told Springfield city staffers that the store will employ 175 workers, and also has the potential to open up about 400 acres of neighboring farm land for purchase and development.
The Buc-ee’s company expects to spend $56 million to build its store and gas pumps in Springfield, with a target completion date in the summer of 2023.
The city also will pay Buc-ee’s a 2 percent interest rate for what the company spends upfront.
