The Moody City Council approved a development agreement that will bring Love’s Travel Center to the city at its council meeting Monday night.
The center will locate at Exit 147, right across from the Valero Travel Center that agreed to a development agreement that the council ratified in November. The agreement for Love’s is similar, with the city agreeing to rebate 1 cent of its 3 cent tax on diesel fuel to the travel center. The city voted to raise its tax on diesel fuel to its current rate at its Dec. 10 meeting.
The St. Clair County Commission will vote on the agreement at its regular meeting Thursday; as part of the agreement, the county agrees to rebate half its sales tax revenue to the center.
Mayor Joe Lee said the agreement is a step forward for the city.
“It’s going to directly affect our budget,” he said Tuesday. “We’re going to be able to do some things we’ve not been able to do the past few years, due to the economy.”
Included in that is road repair, which Lee said has not taken place in the city for several years. The mayor said the city anticipates around $500,000 per year in revenue from the two centers, and over 1.5 million gallons of diesel fuel to be sold per month.
“I believe it’s going to help the other growth in the city,” Lee said. “I believe these two are going to help the city as a whole.”
The development agreement provides that the city may keep 2 cents of its diesel tax revenue, provided the rate does not exceed 3 cents per gallon. The total amount of the rebate, with both entities combined, should not exceed $2 million, and will last for a period of 16 years.