New downtown Woodstock gas station to receive up to $925,000 in incentives

A new and larger gas station and convenience store could replace the BP station near the center of town after the Woodstock City Council approved a new development agreement at its meeting Tuesday.

The agreement includes reimbursements for up to $925,000 for the development through the city’s tax increment financing, or TIF, district, Economic Development Director Garrett Anderson said. The overall budget for the project is expected to come in at $3.5 million, according to city material.

The project would include demolishing the current BP building at Country Club Road and Route 47, and building a new one, as well as fixing a nearby road.

While the council approved the agreement, two members were against it due to certain aspects of the business that may be included, including the sale of liquor and video gambling.

The agreement calls for Graham Enterprises Inc., which owns the BP, to demolish the current business and build a larger store that will run about 6,000 square feet, according to city material. It could include a drive-thru restaurant on one end.

The development agreement sets the foundation for a future project, but building plans and licensing from both the city and state will be needed before anything can be done, Anderson said. The plan calls for building to begin in July 2023, provided all approvals are done.

The new station will still use BP gas, but the convenience store will be a TRIO, Anderson said Thursday.

While the new business would be classified as a “truck stop” per the state’s definition, Business Development Director Danielle Gulli said it’s not intended to be an overnight truck resting spot. The plan does not include showers or other amenities typically included in a truck stop.

However, the truck stop definition means that it can have video gambling, which the business does plan to pursue. It will also sell alcohol, which would need to be approved by the city.

These were aspects that council member Lisa Lohmeyer took issue with. She voted against the agreement along with with council member Tom Nierman.

“This is a prime intersection in our community,” Lohmeyer said. “At this time, I don’t find this to be worthy of the incentives from the city.”

While the construction of the new facility is not eligible for TIF reimbursement, the demolition, potential carwash, removal of the current gas tanks and rebuilding the nearby road are all eligible, city material states.

For rebuilding the road, Graham could seek up to $800,000 in reimbursements, and demolishing the building could be eligible for up to $125,000, Anderson said. The money for the reimbursement would come from new property tax revenue generated within the TIF district.

A TIF is a financial tool used by governments to help fund various redevelopment projects by earmarking newly created property tax revenue within the district for redevelopment and improvement projects.

The business will also be able to take advantage of the city’s enterprise zone benefits, according to documents.

Nierman agreed with Lohmeyer and said he also worries about trucks being parked in the center of town.

“I just think it’s not what we’re looking to look like,” Nierman said.

Mayor Mike Turner said at Tuesday’s meeting he was initially against the project, but after meeting with the developer and seeing their presentations, he became more open minded.

He said that the corner the business will go on has been “unattractive for a long time.”

“I think the concerns are ... justifiable and understandable,” Turner said. “This has potential to finally be a catalyst for some improvement to what has been just an unattractive piece of roadway in Woodstock.”

Diesel pumps are expected to be placed at the back of the property and the developers hope to eventually add a car wash later on, material shows. It’s expected the station could have 20 total pump stations between both diesel and regular fuel, Anderson said.

A cut-through road near the BP also will be maintained by Graham as part of the deal, Anderson said.

Council member Bob Seegers said he was also initially not in favor of the project, but said he likes what the company has built in the past. Echoing similar thoughts to Turner, he added he worried that if the city didn’t take the agreement, the property could sit blighted for years.

Council member Darrin Flynn said he hopes the project will spur other development around the area. The business currently is surrounded by a few vacant spots.

The new development could act as the anchor that drives other projects in the area, said John Graham, who owns the company looking to develop the site.

“I’m optimistic there will be lots of development opportunities,” Graham said. “We’ll put this [gas station] here, and we’ll embrace and encourage more development.”