Springfield City Council votes on community improvement sales tax for new Buc-ee development
SPRINGFIELD, Missouri (KY3) – The Springfield City Council will vote Monday night on implementing a new sales tax as part of the Cottle Range Improvement Project district, where developers will build a new convenience store Buc-ee.
The 5/8 cent Community Improvement District Sales Tax will pay for road improvements and the operation of power lines and utilities in the district. If approved, the sales tax will only be implemented in this district.
“The CID will help cover the public extension of utilities to include things like power or water to open up areas north of I 44 for potential future development,” said Vitality Director Economic Amanda Ohlensehlen. “So it will add three-phase power, which is really important for large customers. Whereas now this area really doesn’t have those public improvements to allow for development.
The duration of the sales tax will be 20 years or until the reimbursable cost is covered. There are $9.2 million in public improvements needed for the project.
“If the council approves, (it) authorizes the city manager to enter into a cooperation agreement with Buc-ee’s,” Ohlensehlen said. “It will be one of the last steps to see the development come to fruition.”
Buc-ees will be a 53,000 square foot travel center with 100 gas pumps. In January, the council approved entering into an agreement with Buc-ee’s to fund the public improvements needed to complete the project. Under the agreement, the city will use sales tax to reimburse the Buc-ees up to $4.1 million for improvements.
“It’s important to note that the estimated annual taxable sales for Buc-ee’s are approximately $30 million,” Ohlensehlen said. “So that’s going to generate a lot of additional sales tax for Springfield. It’s a very exciting project. It probably creates over 200 jobs with high salaries and benefits. It’s definitely a great addition to the community.
The Cottle Range District covers just over 36 acres and is located off I-44 on Mulroy Road. To view the full ruling, CLICK HERE.
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