Item 17: Chapter 380 Economic Development Incentive Agreement with Buc-ee’s

[COSM_Admin]

Consider approval of Resolution 2024-21R, on the first 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.

 

[JHughson]

380 agreement
"Article III
3.5 Additional Developer Agreements. Developer also agrees to the following requirements of the Project:
e. Make an effort to hire qualified residents of the City of San Marcos for the travel center."

Please find what we have used in previous agreements regarding seeking employees from San Marcos. We required advertising the open positions in the daily newspaper, at the Texas State Career Services job postings, and I think somewhere else in order to give San Marcos residents a first look at the open positions.

 

[COSM_Admin]

Response provided by Christian Smith, Economic and Business Development Manager:
I looked at our most recent 380 agreements and they have not referenced this requirement. Our economic development policy states that companies receiving incentives must use local public resources to inform the local labor force of career opportunities (e.g., San Marcos Public Library, Workforce Solutions Rural Capital Area, Texas State University, San Marcos Daily Record, local job fairs). The proposed 380 agreement for Buc-ees requires them to make an effort to hire qualified residents of San Marcos. Given the jobs the project is creating, the company has expressed a strong desire to hire local as out of region employment would not be as practical.