Alon USA Proposes $12 Million Texas Travel Center

MIDLAND, Texas -- Representatives from Alon USA approached the city council of Midland, Texas, to request city funding to develop a proposed $10–$12 million truckstop and travel center, reported the Midland Reporter-Telegram .

Jeff Morris, president and CEO of Alon USA, which owns the Big Spring Refinery and 7-Eleven stores throughout West Texas, told the city council his company has agreed to enter a joint-venture agreement with Petro Stopping Centers LP to develop the Texas Star Travel Plaza along Interstate 20, but that it was necessary to secure an agreement from the city to provide infrastructure at the site prior to finalizing the joint-venture, according to the report.

The 100-acre site, of which 56 acres are initially planned for development, will need to be connected to the city's water and sewer systems.

After returning from deliberation in executive session, Mayor Mike Canon informed Morris and other representatives from the development companies that the city council needed to examine its options further and was not prepared to take any action on the request, reported the newspaper.

"I've been excited about this project for a long time and my intent in coming here was to create the same level of excitement for the city," Morris said in the report. "The type of travel center we're talking about is not your typical travel center."

Morris continued to say that the proposed travel center would be in the same class as only a dozen other facilities nationwide. He said the facility would feature restaurants, a convenience store, a service center for trucks and may feature additional amenities in the future, such as a hotel. Additionally, the plan calls for 200 to 250 spaces for trucks and 160 spots for cars.

"What this is, is a rare investment opportunity for the city of Midland," Morris told the newspaper, adding if the city committed to the approximately $900,000 in support originally requested by developers, that it could expect to recoup its expenses in two to three years. Morris said that the facility is expected to provide $300,000 to $400,000 a year in ad valorem and sales tax for the city, in addition to creating 130 new jobs — and as many as 450 if a hotel is later added to the site.

Morris said the developers involved in the project were eager to move forward, but could not wait much longer before proceeding. He said in the report if the city council did not make a determination regarding the infrastructure needed for the site by its next meeting on April 11, then the deal would not go forward.

"I think I can speak for the council when I say we're pleased you all have made a preliminary decision to locate this facility where you have," Canon told Alon USA at the meeting. "We take very seriously your proposal and all the different aspects. We need to go back to the drawing board and discuss this further with you all. At this point we're very interested in continuing a discussion and doing so on a basis that meets your timeline."