The town of Palmer Lake has reached an agreement with Buc-ee's on the details of their fiscal relationship, if the Texas-based company known for giant travel stores is allowed to build a new location at the top of Monument Hill off Interstate 25.
The terms of the annexation agreement could come to a vote of the town's Board of Trustees on August 28. It addresses upgrades to the town's water infrastructure, as well as needed road improvements and tax benefits and incentives related to the proposed development.
While the agreement stipulates that Buc-ee's will pay for infrastructure improvements, the company would also receive a 1 percent sales tax rebate for 20 years.
The plans before the Palmer Lake Board of Trustees would set the ground rules for the development of Colorado’s second Buc-ee's, a chain that holds the world record largest convenience store. The travel plazas are also known for BBQ, walls of jerky and sparkling bathrooms. Stores are open 24 hours a day, every day of the year.
Buc-ee’s has set its sights on a parcel on the southwest side of Interstate 25 in northern El Paso County, where it wants to construct a 74,000 square-foot building surrounded by gas pumps, likely rows upon rows of them. The land is around 2 miles from Palmer Lake’s existing border and across the road from Douglas County open space. The company wants the land annexed in order to tap into the town's water supply.
The negotiated agreement comes as Palmer Lake continues to reel from opposition to the project that has resulted in lawsuits, recalls, and the resignation of the town's mayor.
Here are some key details of the proposed arrangement, released Friday:
Water
According to the agreement, Buc-ee's would pay for a previously planned redundant well for the town, as well as a new well and water treatment plant. The company would also pay for the water line necessary to transport water to the giant travel store.
A report released by the town earlier this year said the massive travel center would increase potential maximum water demands by 19 percent each day. Factor in other potential annexations and development along the water line, and that adds another 11 percent.
"It is clear that the proposed development would result in increased demands on the water system attributable to not only the Buc-ee's development, but also the potential future annexation customers," the report said.
The new well identified in the agreement, "would increase the Town's overall well capacity and reduce strain on the existing wells."
However, opponents to the project have emphasized that looking at Buc-ee’s water use purely as an issue of capacity ignores elements of the town code that expressly prioritize water conservation. "Water conservation is a year-round responsibility of all town citizens," the code reads.
"How is Buc-ee's going to be restricted in their water use if they're part of our town water system?" asked long-time resident Colleen Means at a meeting in May that determined the eligibility of the annexation.
The new agreement acknowledged some of the concerns residents and neighbors have about the potential strain on water supplies. "The Town should pursue renewable water sources," the agreement reads, recognizing that the Denver basin aquifers are not recharging at a sustainable rate.
"The most likely source," the agreement said, "would be some type of participation interest in a larger, regional or multi-entity project." It cites the Colorado Big Thompson Project, Northern Integrated Supply Project and the Southern Delivery System as examples.
The agreement also specifies that the development will not include a car wash, which is also often part of Buc-ee's Travel Centers. The Buc-ee's in Katy, Texas, holds the record for the world's longest car wash.
Road improvements
County Line Road from Interstate 25 toward Palmer Lake is a small, two-lane road that needs improvements, which are not currently the town's responsibility. That changes, however, if the annexation moves forward. Buc-ee's would assume responsibility for the cost and construction of upgrading the route, regardless of whether the improvements are required by the town of Palmer Lake, the Colorado Department of Transportation, or Buc-ee's own development plans.
"The roadwork to be performed by Buc-ee's includes, among other items, substantial improvements to the I-25 and County Line Road Interchange," the agreement said. "Under no circumstances will the Town pay for any road improvements related to or the result of the Buc-ee's development."
Additionally, Palmer Lake is in preliminary negotiations with El Paso and Douglas counties regarding the maintenance of the portion of County Line Road it may annex. "This is an item that needs substantial further discussion," the agreement reads.
A traffic report released earlier this year estimated only 3 percent of traffic to Buc-ee's would come from within Palmer Lake, suggesting that most of the major improvements will be along that area immediately related to the I-25 interchange.
"Traffic impacts west of the proposed site are expected to be minor," said the study.
Tax sharing
Palmer Lake currently has a 3 percent sales tax, which excludes gas sales. When it comes to tax collected at the proposed Buc-ee’s, the town has agreed to hold onto only two-thirds of that revenue, rebating the other third back to the company for 20 years. According to the agreement, Buc-ee's estimates that the town would collect $1,000,000 annually from that 2 percent sales tax.
The agreement also suggests the town will see an estimated one-time payment of $379,500 in taxes on materials used to build the Buc-ee's.
Additionally, the agreement estimates an annual property tax collection for the town of $124,066, plus a fiscal impact to others, including El Paso County, School District 38 and the Monument Fire District.
The physical development
The agreement does not address a number of potential impacts from the design of the travel center itself, leaving those details to the possible planning process. Those include landscaping and irrigation, lighting, drainage, and more. "All those plans will be subject to review and approval by the Town as part of the PD (planned development) process."
For many residents of the Tri-Lakes area, the extensive exterior lighting the project will involve and its impact on their quality of life is a top concern.
Palmer Lake itself has lighting standards. According to the agreement, Buc-ee's lighting plan will follow those regulations, except in areas like driveways where safety concerns require additional lighting.
Agreement arrives even as controversy around the project continues to upend local politics
The Town of Palmer Lake will hold a special election on Sept. 9 to consider recalls of two board members, as well as an initiative requiring voter approval for future annexations. That measure would apply retroactively for one year, meaning even if the Board of Trustees ultimately approves the annexation, it could still be subject to a vote by residents should the ordinance pass.
The timing of the special election has generated a controversy of its own. An opposition group, Integrity Matters, has argued Palmer Lake could have coordinated with the county for the November election at a significantly cheaper cost.
Candidates running to unseat current trustees Shana Ball and Kevin Dreher are Roger Mosley, John Marble and Elizabeth Harris.
Current town mayor, Dennis Stern, was also the subject of a recall effort; however, when the trustees appointed him mayor after the resignation of Glant Havenar, that effort no longer applied.
