Commission approves tax districts and bonds for major development in western Wyandotte County
Questions about tax incentives for the new Buc-ee’s travel center in western Wyandotte County were the main focus. This occurred during the October 31 Commission meeting.
Several residents voiced concern that the incentives might lead to higher taxes or added costs for the community. One resident expressed uncertainty. They did not understand why the discussion was taking place after the groundbreaking. Another resident questioned whether taxpayers would be “making it right” for a large developer.
Economic Development Director Chelsea Chisholm explained that the incentives do not come from existing local taxes. Instead, they come from new revenue generated by Buc-ee’s sales once the business opens. The financing tools are known as Tax Increment Financing (TIF) and a Community Improvement District (CID). These tools are designed to help fund public infrastructure tied to the project.
Chisholm said the TIF District works by capturing a portion of new sales tax revenue created by Buc-ee’s. This revenue is used to reimburse the developer for public improvements. These improvements include the new roundabout and street realignment at 110th Street and Interstate 70. The existing tax revenue from the area remains unchanged, and no new taxes are imposed on residents.
“This is a sales tax TIF,” Chisholm said. “Fifty percent of the new city sales tax and twenty-five percent of the new county sales tax collected at Buc-ee’s will go toward paying for infrastructure like the roundabout and street realignment. The rest still goes to the city and county.”
She added that the CID adds a one-percent sales tax only to purchases made within the Buc-ee’s development boundary. That small additional tax will also help pay for public improvements surrounding the site. Visitors, not residents, will be the ones primarily contributing to that funding.
The combined cap for the TIF and CID is about 13.3 million dollars, which matches the amount Buc-ee’s is investing in public infrastructure improvements. Once those costs are paid off, the districts will expire. Then, all future tax revenue will go directly to local government.
Commissioners emphasized that Buc-ee’s will pay full property taxes. They will also pay full Board of Public Utilities (BPU) rates. This means the project will still generate significant new revenue. “Right now, that property generates zero sales tax,” one commissioner said. “With Buc-ee’s, we will see millions in new tax dollars every year, even after the incentives are paid.”
A few commissioners noted the timing of the discussion caused frustration among residents. They felt the issue surfaced late in the process. Chisholm said that the incentives were part of the project’s original development agreement. However, the formal hearings and ordinances occur later. This happens as part of the legal process.
After public discussion, the Commission voted 9-0 to approve the creation of both the TIF District and CID for Buc-ee’s. Commissioners also approved a Resolution of Intent to issue up to 43 million dollars in Industrial Revenue Bonds (IRBs). This was for the project. The IRBs allow Buc-ee’s to avoid paying sales tax on construction materials and equipment purchases. This is a standard incentive for large-scale commercial projects.
The Buc-ee’s project is estimated at 95 million dollars. It will include a 74,000-square-foot store. There will be 120 fuel pumps and 12 electric vehicle charging stations. The travel center is expected to draw thousands of visitors daily. It will also create new jobs that pay above the typical retail wage.
Commissioners said the project would benefit nearby businesses. It would generate hotel stays. It would also provide ongoing revenue for local schools and infrastructure. The sales tax redirection is temporary and based only on new money brought in by the project.
As one commissioner put it, “This is one of those rare win-win situations. The developer pays for the public improvements, visitors pay for the sales tax, and Wyandotte County gains the long-term benefit.”
