Update: At its meeting Sept. 11, the Des Moines City Council approved preliminary terms of an urban renewal development agreement with Maverik owner FJ Management Inc. for the acquisition and retention of 250 jobs and a new 10-year lease for 40,000 square feet of office space at 1100 Locust St. in Des Moines, a communications specialist for the city told CSP Daily News. The approval also includes a $250,000 economic development grant to be paid in annual installments of $25,000 over 10 years to FJ Management.
Maverik, Kum & Go’s new owner, is looking to establish a new regional headquarters in downtown Des Moines, home of the convenience-store chain it just purchased from Krause Group.
A resolution on the Des Moines City Council agenda for Sept. 11 called for approving preliminary terms of an urban renewal agreement with FJ Management, Salt Lake City-based Maverik’s owners, to acquire and retain 250 jobs and a new 10-year lease for 40,000 square feet of office space at 1100 Locust St.
The location, a few blocks from Kum & Go’s headquarters, the Krause Gateway Center, is in a Nationwide Insurance building, according to the Des Moines Register.
In a first for Des Moines, according to the Register, “employees would be required to work in person at least part of the week in exchange for financial incentives.”
Plans for the regional headquarters come after Maverik closed on the purchase of Kum & Go and Solar Transport in late August.
Maverik employees are expected to move into the space before the end of the year, Taylor Boland, Kum & Go’s director of communications, told CSP, and Krause Group employees will continue working out of the Krause Gateway Center.
Chuck Maggelet, the CEO of Maverik, told Axios Des Moines last month it plans to retain Kum & Go’s 250 employees currently working at Kum & Go’s headquarters.
- Maverik is No. 21 on CSP's 2023 Top 202 ranking of the largest c-store chains in the country. Kum & Go is No. 22.
If the city council approves the plan, Des Moines would give a $250,000 economic development grant to FJ Management in annual installments of $25,000 over 10 years, “which will be based on FJ Management Inc.’s commitment to maintaining at least 250 jobs at or above an average salary of $98,000, and primarily officing from their downtown Des Moines office location, averaging three or more days per work week,” according to the agenda item.
Maverik plans to spend about $1 million renovating the location, according to the city, the Register said.
Emails by CSP to Maverik and Kum & Go were not immediately answered.
After the deal was finalized, to show appreciation, the Krause Group gave more than 5,000 of its employees bonuses in connection with the sale of Kum & Go convenience stores and Solar Transport to Maverik.
The bonuses were sizable enough to help in the purchase of a home for at least one convenience-store manager, Krause Group Founder and CEO Kyle Krause told Axios Des Moines.
Seniority and an approximated level of employee contribution to the company determined the amount of the bonuses, Axios said.
Krause told Axios that he and his wife, Sharon, gave the bonuses to demonstrate their appreciation “to the employees who helped create value in the companies.”
Maverik said the closing of this transaction creates a “best-in-class convenience-store network across the Midwest and Rocky Mountain regions,” growing Maverik’s footprint to more than 800 stores (from 400) in 20 states with approximately 14,000 team members. It makes Maverik the 12th biggest c-store chain in the nation.
“We are excited to welcome Kum & Go and Solar Transport Team Members to Maverik,” Chuck Maggelet, CEO and chief adventure guide of Maverik, said at the time. “Together, we’ll offer our customers an adventurous and differentiated convenience-store experience across fuel, foodservice and inside-store offerings. We look forward to using our combined resources to grow our business and further elevate our product offerings to provide the best service to our customers.”
Kum & Go CEO Tanner Krause will transition out of the company. “Tanner leaves behind a strong legacy from his six years of leadership as president and CEO of Kum & Go,” Maverik said.
In appreciation of Maverik’s Des Moines-based team and the local community, Maverik will donate $50,000 to The Des Moines Public Schools Foundation. The donation will provide fresh fruits, vegetables and toiletries at Des Moines Public Schools’ 53 food pantries in schools.
The sale marks a big transition for the Krause Group, Kum & Go’s now-former parent company, according to Axios Des Moines. The real estate arm of the Krause Group is trying to broker a downtown Des Moines development deal valued at $500 million. It includes a soccer stadium.