Who Will Prevail on the Elk Grove Mayor, City Council - Maverik Sales Tax Revenue or Constituent Concerns?

On Wednesday, November 12, the Elk Grove City Council is expected to receive several public comments on a proposed truck stop in Elk Grove.

Many of those comments will be urging Mayor Bobbie Singh-Allen and her city council to agree with appellants and overturn a decision by the Elk Grove Planning Commission that allows for the construction of a Maverik [sic] fueling station on Highway 99 and Grantline Road.

Individuals and a group calling themselves Protect Elk Grove are opposing the convenience store and large fueling depot on quality of life issues, as seen in the images posted on social media below (see photo array below). They contend that the facility is a truck stop in disguise and will negatively impact Elk Grove neighborhoods with increased traffic, pollution, and crime.

Among other things, the appellants argue that the city incorrectly bypassed a California Environmental Quality Act (CEQA) Environmental Impact Report. The city asserts that since the area is an infill project in an area zoned for light industrial and commercial uses, it is exempt from the requirement.

While the appellants and their supporters will attempt to persuade Mayor Bobbie Singh-Allen to overturn the Planning Commission's decision, there is one significant aspect lurking in the argument. That is additional sales tax revenue that will be generated from what could be a high-volume gas and diesel fuel.

Sales tax revenues from all sources account for approximately 40 percent of the city's general fund, which is around $35 million. As shown in the chart below, fuel sales revenues generated over $500,000 during the third quarter of calendar year 2024, resulting in an annual total exceeding $2 million.

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Interestingly, one of the city's top 25 sources of sales tax revenue (see photo array below) is the Grant Line Arco gas station and convenience store. Given this facility's status as one of the city's top generators of sales tax revenue, it is likely that the proposed Maverik fueling depot will also become a significant source of sales tax revenue.

While fuel sales revenues have declined due to falling fuel prices and the increasing use of electric vehicles, they remain a significant source of revenue, especially since the adoption of Measure E in Elk Grove, which adds one percent to consumer purchases. If history has shown us anything about the Elk Grove City Council, it is that any project that generates more general fund revenue is met with open arms.

When Mayor Singh-Allen presides over Wednesday's appeal, it will be like the ongoing proposed Summer Villas project in rural Elk Grove. Will they stand up to constituent concerns, or be lured by the temptation of more revenue for the city's general fund?