Officials cut ribbon at new Best Buy e-commerce sales center

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Best Buy San MarcosOfficials with the city of San Marcos, Best Buy and Greater San Marcos Partnership cut the ribbon at the new Best Buy e-commerce sales center in San Marcos on Nov. 2. Brett Thorne/Community Impact Newspaper

Officials from the city of San Marcos, the Greater San Marcos Partnership and Best Buy gathered Wednesday to commemorate the opening of the electronics retailer’s new e-commerce sales center, 900 Bugg Lane, San Marcos.

Mayor pro tem John Thomaides said the new Best Buy facility will be one of the top five sales tax generators in the city of San Marcos.

“We’re so proud to be in partnership with you all,” Thomaides told the crowd of Best Buy employees. “We’re so proud that one of our biggest priorities in San Marcos is economic prosperity across our entire city. Your location in our community … is definitely adding to that prosperity.”

The company agreed to an economic development incentive with the city and Hays County. The city’s agreement was one of the first to be subject to the city’s “family living wage” incentive policy, which requires businesses receiving jobs-based incentives from the city to pay employees counted in the incentive a living wage of at least $15 per hour with benefits.

The facility is the first of its kind in Texas.

Shawn Strassburg, Best Buy director of customer care, said the company is training employees and expects to fully launch operations at the sales center on Nov. 7.

“For customers that want to either purchase over the phone or order over the phone, we’re going to handle those contacts here,” Strassburg said. “This site is going to be primarily focused on those who live in Texas.”

The company opened in San Marcos after agreeing to an economic development incentive package with the city of San Marcos and Hays County.

Under terms of the economic development agreement, the city and county will rebate 75 percent of sales taxes generated at the site with two automatic renewal 10-year terms, assuming the company meets the agreement’s terms. The company will also be granted a 10-year personal property tax rebate of 50 percent.

Best Buy will be required to employ 25 people in the facility’s first year of operation, 40 people in the second year and 50 people in the third year. Those jobs must be permanent, full-time positions earning at least $15 per hour.

The project is expected to generate $43 million and $14.4 million for the city and Hays County, respectively, at the end of the term of the agreement.