5.2 PCSR 09-23-2014 GATR TRUCK CENTER
Company Background
GATR Truck Center is a full service heavy and medium truck dealership which began in 1962. Purchased in 2000 by
owner Bob Neitzke, GATR currently has three locations:Sauk Rapids, MN,Cedar Rapids, IA and Des Moines, IA,
which employs approximately 200 people,with wages ranging from$12 to$100 an hour.
GATR Truck Center sells and leases trucks throughout the United States and offers competitive financing packages
for consumers. GATR offers an extensive parts department, exceeding$1 million in inventory and offering parts
for cars, up to Class 8 trucks. All three locations offer well-trained,certified GM gas engine and diesel engine
technicians, backed by their extensive parts departments, body shops and full service detailing facility. Roughly
30%of their business is through the sale of new trucks(fleets),and 70%is the sale of new trucks to individual
owners. Highway visibility is crucial to the success of GATR's operations.
Having served the trucking industry for over 50 years, GATR Truck Center was named Volvo Dealer of the Year in
2004,2011 and 2012,and Volvo Parts Dealer of the Year in 2013. GATR prides themselves in their service;
company culture is second to none and GATR attributes their success to the people they employ. They
differentiate themselves from their competitors through the exceptional service they provide to their customers.
GATR currently employs 200 FTE between the three locations, paying wages$12/hr-$125 an hour.
Proposed Project&Location
With their rapid growth,GATR Truck Center is looking to open a location in the City of Elk River. This location
would offer new and used truck sales, rental, leasing, parts and service. GATR anticipates having 100-150 trucks in
inventory,with periodical customer and service trailers stored on the lot. GATR is open Monday through Friday,
from 7am-midnight,Saturday from 7am to 3:30pm and closed on Sundays. GATR averages 100 trucks a day, in and
out of their location; approximately 25%of these trucks have trailers. This pales in comparison to a car dealership.
The average car dealership in a community comparable to Elk River averages 377.4 vehicles and 9 heavy trucks a
day;this does not include test drives or mechanic road tests(could easily add another 100 vehicles).
GATR is currently working with M &I Bank to purchase the old Saxon Motors building, located at 17354 Zane
Street. This building has been vacant for nearly five years and has suffered severe vandalism,theft of copper and a
fire in 2010. In speaking with the Elk River Building Official,and realtor representing the building,there have been
12-15 potential buyers for the building whom have walked away because of the significant investment required to
repair the facility.
GATR would make all necessary improvements to bring the property up to code, including an all new electrical
system (minimum of$825,000 investment)and is currently researching the potential of taking advantage of the
newly adopted City of Elk River/Sherburne County PACE(Property Assessed Clean Energy)program. In addition to
the necessary improvements,GATR would like to add an additional 18,000 square feet service area on the north
side of the existing facility.
Job Creation
With their new Elk River location,GATR anticipates hiring 15 to 18 employees to open their facility, and plans on
hiring an additional 40 to 50 employees within the next two years. GATR offers phenomenal benefit packages and
competitive salaries,offering wages up to$125/hr.
Within a year of opening, GATR would like to expand to include a full service body shop and hire an additional 10
to 12 employees, resulting in the creation of a total of up to 70 new jobs in the City of Elk River.
The property was granted a CUP in 1989 to permit an automotive dealership,and has been amended several times
since then(1993,2002, and 2005)to expand the facility for showroom,office and service area.
Project Benefits
Locating in this facility would not only bring up to 70 well-paying jobs to the Elk River community and fill a building
which has been vacant and deteriorating for nearly five years,but would result in a minimum of$3.5 million
dollars in capital investment,an additional$500,000 in taxable market value and an additional$16,300 in taxes.
Dan Weber,Sherburne County Assessor,estimates the proposed project to generate an additional$16,300 a year
in taxes,totaling$75,300/yr per current tax rates.
GATR Truck Center works closely with the communities they're located in, providing community
event sponsorships,contributions and internships for high school and local vocational school students. GATR is a
well-respected truck dealership in the trucking industry,and looks forward to joining the Elk River community.
Current Zoning
The current zoning does not permit truck sales,and after meeting with staff on August 13,2014 to discuss options,
we determined the next step would be to apply for a Concept Review,to determine our next steps.
Research of surrounding communities shows that communities generally do not differentiate between truck and
car dealerships;in fact,the following communities consider truck, car, and Implement(farm equipment)to fall
under the same zoning:
• Ramsey: B-2
• Rogers: B-3
• St. Cloud:C-5