Buc-ee’s development may take 5 years, cost Goodyear $8.6 million

The Goodyear City Council voted unanimously on Jan. 29 to approve a development agreement that requires the city to reimburse the cost of roadways for a proposed Goodyear Buc-ee’s and surrounding commercial area, which could cost $8.6 million and take up to five years to finalize.

Goodyear staff said the development agreement will bring jobs and also significant sales tax revenue to the city of Goodyear, but in turn, will require the city to reimburse the developer for investments they're making in the public infrastructure that's associated with the development.

New road construction, which may cost $8.4 million.

City of Goodyear

According to the agreement, a roadway installation to house the influx of traffic will take place from Bullard Avenue to 143rd Avenue. Additionally, an entrance road will be installed to divide the west commercial/industrial side and the east Buc-ee’s side of the development.

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“The estimated reimbursement is approximately $7.1 million with an estimated maximum reimbursement of $8.6 million,” reads the development agenda item. “The retail user must receive a certificate of occupancy, and the road improvements must be accepted by the city within five years of the effective date of the agreement, or the agreement shall terminate.”

The city plans to reimburse 50% of the sales taxes collected for taxable activities conducted on the property to reimburse the party or parties for their proportionate share of the actual cost. 

According to the staff slide for the resolution, the developer has to deliver the “large retail user” (Buc-ee’s) within five years.

Agenda item PowerPoint related to the development agreement of roads for Buc-cee's.

City of Goodyear

The development agreement also states such legalese. 

"However, if the retail project and the phase I road improvements, and/or (the) phase II road improvements have not been completed on or before the date that is five (5) years following the effective date, this agreement automatically shall terminate," it reads.

Deputy city manager Kini Knudson at the January city council meeting said he believes it can be done much quicker, despite the  language affording the developer some wiggle room.

“We do not anticipate it's going to take the entire five years, we actually expect it to be much earlier,” he said. “But obviously, you can't predict the future as far as what might happen if it goes a little slower. But everything we've gotten from talking with the developer is, this is something that's going to be happening very quickly after the action that's taken this evening.”