Plans for a Buc-ee’s supermarket between Madison and Wisconsin Dells include a $15 million upgrade of Interstate 39/90/94 – with Buc-ee asking to split project costs between the company and taxpayers – and the request has left the timeline for the start of construction uncertain.
Buc-ee’s is offering to spend up to $8.1 million to build a new Interstate 39/90/94 interchange in DeForest, in northern Dane County, according to a proposal sent to city officials. The new development is being applied for at the County V junction, with the popular supermarket and other new developments expected to dramatically increase traffic in the area.
DeForest Village Administrator Bill Chang said Wednesday that the financing proposal was a “challenging number” for the village, which is exploring financing through options such as a tax improvement district.
The Buc-ee’s location is outside of any current tax improvement district in the village, Chang said. The village is also hampered by a state law that limits its ability to expand an existing tax improvement district or create a new one to include the Buc-ee site, he said.
“It’s a big ask, something that a community our size generally wouldn’t be willing to take on,” Chang said. “(The tax improvement district) can potentially assist with public improvements. … That’s a policy decision for the village board.”
Negotiations will delay a construction start date originally scheduled for this summer, Chang said. He said the proposal was “very early in the process” and that DeForest will have to conduct his own analysis of the Buc-ee’s proposal.
Chang noted that the interchange, which includes a freeway and a county highway, is outside the village’s jurisdiction, raising further funding questions.
“So the question is… should the village bear the full brunt of this?” he said. “There’s not necessarily a number that we would feel comfortable with. It just depends on who all the players are.”
Buc-ee’s announced plans for its first Wisconsin location in early 2023, sparking a lot of excitement. Part of that is due to its sheer size and reputation: The 75,000-square-foot convenience store would have about 120 gas pumps, for example, and is expected to become a major hub for travel commerce.
The proposed cost-sharing agreement was discussed during a closed-door meeting of the DeForest Village Board on June 18. In an email, Chang said no action was taken during or after the closed session.
Buc-ee’s must still submit a site plan approval request, a document that gets the green light from local authorities before construction is given permission. Chang said financing for the infrastructure project will likely need to be secured before that happens.
Buc-ee’s previously told the Journal Sentinel that the company hoped to begin construction this summer.
In a memo, Stan Beard, Buc-ee’s real estate director, wrote that the proposal is in line with the company’s agreements in other states “where existing transportation infrastructure is not suitable for a Buc-ee.”
“The scenario obviously requires that ‘others’ participate in the remaining 46.33% of the costs,” Berard’s memo reads. “I have no doubt that the economic impact of this Buc-ee project will deliver significant returns on this investment for many years to come. We have too many examples of success to think otherwise.”
More: What’s so bad about Buc-ee’s, the gas station chain coming to Wisconsin? Let this native Texan tell you.
The Buc-ee memo shows that a traffic analysis by engineering firm Kimley-Horn showed that in 2034, 53.67% of the total traffic volume at the intersection would come from the supermarket.
The proposed improvements to the interchange would create a divergent diamond interchange, according to the memo. DeForest’s Chang said the Wisconsin Department of Transportation agrees that if Buc-ee’s were to come, it would need an upgrade to the interchange.
The interstate corridor is under investigation by the Wisconsin Department of Transportation and, without the development of Buc-ee, will see less extensive updates.
“As a result of this work, the parties have ultimately agreed that the Interchange Project is necessary for the operational integrity of the Buc-ee’s Project and the anticipated future growth of the areas surrounding this intersection,” the Buc memo said -ee.
This article originally appeared in the Milwaukee Journal Sentinel: First Wisconsin Buc-ee’s in DeForest postponed as cost-sharing was in question
