City approves Buc-ee's incentives, now to county

They say everything is bigger in Texas. Such is the case with the wildly popular – Texas based travel center – Buc-ee’s. Known for its familiar mascot Buc-ee the Beaver, clean restrooms and reasonably priced gas, the iconic business is on its way to a location in San Marcos.

In a final reading Tuesday night, the San Marcos City Council approved a Chapter 380 Economic Development Incentive Agreement to provide incentives for the construction of a new Buc-ee’s to be located on Interstate 35 south, just off Yarrington Road. The vote was 5-1 in favor of the agreement with Councilmember Alyssa Garza voting against. Councilmember Saul Gonzales was absent. 

The city expects to collect $5.9 million in property taxes over the 15 years, and projects Hays County will receive $2.8 million, while Hays Consolidated Independent School District will receive $11.4 million. The city is projected to collect $3.2 million in net sales taxes.

“We’re excited to welcome Buc-ee’s to San Marcos,” San Marcos Mayor Jane Hughson said. “The company’s travel centers provide a great option for both residents and visitors to stop for everything from fuel to snacks and will generate welcome sales and property tax revenue. They will be a good corporate partner in our city.'

Under the agreement, the city will rebate 50 percent of the sales taxes generated at the site to the company for 15 years. The agreement requires Bucee’s to maintain a minimum of 175 full time jobs at the San Marcos location and incorporate sustainable building practices into the project, including high efficiency lighting, water conservation and oil water separators. The incentive structure is designed to be performance based, with sales tax rebates reflecting the store’s commercial activity.

“Buc-ee’s is excited about our partnership with the city of San Marcos and Hays County,” said Stan Beard, Director of Real Estate and Development for Buc-ee’s. “We still have some work to do before closing on the property, but the city’s show of support is certainly a huge step in the right direction.”

The 175 full-time jobs will include benefits and add more than $7 million in payroll annually to the local economy. Bucee’s will also contribute $100,000 to a city community fund.

“Throughout the process, the Buc-ee’s team has shown that they share the city of San Marcos’ values and commitment to sustainability,” said City of San Marcos Economic & Business Development Manager Christian Smith. “We appreciate their willingness to reflect those values in the project, including the addition of their first-ever rainwater harvesting system. We believe this agreement secures a mutually beneficial project that the community can be proud of.”

Buc-ee’s filed an application to begin the incentive process with the Greater San Marcos Partnership in October 2023. The location will include: 1. The construction of a $50 million, 74,000-square-foot facility with a projected 120 fueling stations and capacity for electric vehicle charging on the 22-acre site.

2. A rainwater reclamation system and the use of oil/water separators to handle storm water runoff.

3. Integrated timed/ light-sensing controls. All exterior light fixtures will be fully shielded, full cut-off, 100 percent downward directional and mounted as low as practical.

4. Typical starting wage of $18 per hour with benefits including-employer sponsored health insurance starting after 60 days, and a 401k with a 100 percent match up to six percent.

The Hays County Commissioners Court will consider a similar incentive agreement with the company on March 12.

Founded in 1982 and based in Lake Jackson, Buc-ee’s operates more than 45 travel centers, with 37 locations in Texas.

This story has been updated to reflect that the council's vote was not unanimously in favor of the incentive agreement. The story has been corrected. We apologize for the error.