10.2 SR 02-07-2022it ci
Elk*
River
Request for Action
To
Item Number
Mayor and City Council
10.2
Agenda Section
Meeting Date
Prepared by
Work Session
February 7, 2022
Zack Carlton, Planning Manager
Item Description
Reviewed by
Purchase City Property: GATR Truck Center
Cal Portner, City Administrator
Reviewed by
Action Requested
Discuss GATR Truck Center's request to purchase 6.875 acres of land in the city's new business park.
Background
On January 17, 2022, Decklan Group, on behalf of GATR Truck Center, submitted a Letter of Interest (LOI) for
the purchase of 6.875 acres of land in the planned city owned business park adjacent to their current operation.
The LOI was reviewed by the City Council during a closed session on January 18, 2021, and Council decided that
they were not in a position to sell the land to GATR at this time. Development of larger lots for manufacturing and
other industrial uses had long been a Council goal and they would like to market the entire 27 acres to those users.
The applicant asked for a work session with Council to review their proposal and the importance of sale for the
growth of their business. A narrative, submitted by the applicant, along with a location map is attached.
Should the Council wish to re -visit the land sale, a closed session will be scheduled for February 22, 2022, to revisit
the LOI submitted on January 17.
Financial Impact
The city is funding development of the business park at a cost of approximately $2.4 million. Sale of the land will
reimburse the city for development costs.
Mission/Policy/Goal
■ Support the growth and development of the city.
Attachments
Applicant's Narrative
Aerial Overlay
The Elk River Vision
A n elcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
PR�ERER Ri
[NATURE
Updated. August 2020
From: Annie Deckert <annie@decklangroup.com>
Sent: Tuesday, February 1, 2022 1:45 PM
To: Carlton, Zachary <zcarlton@ElkRiverMN.gov>
Subject: Re: Property - GATR
We appreciate you revisiting our LOI to purchase additional land adjacent to our property to support the continued
growth of our company.
Unlike businesses surrounding us (i.e.: Sportech, Preferred Powder Coating), when we chose Elk River for our 3rd
location, we were unable to purchase a site from the city that would support our future growth, we made ourselves
comfortable with our current site, due to the vacant land to the east. We felt that should Cargill decide to market the
adjacent property, or we approached the capacity of our existing site, we would negotiate for the additional space
we needed at that point to secure our future in Elk River.
That option was eliminated by the city's off -market negotiations with Cargill to acquire the property for speculative
development. This is why we have approached the city with our offer and desire to negotiate a purchase of adjacent
acreage.
We invested over $12M in our facility, we have seen continued revenue growth, added employees (currently over 70),
partnered with many local businesses, local schools, and community organizations, also generating millions of dollars
in taxable sales that contribute a substantial sum to Elk River's local option sales tax.
Our annual property taxes are comparable to our neighbors, and our average employee wages are higher than most
manufacturers in the area.
We've seen consistent success and revenue growth over the past two years (despite the pandemic) and we are asking
you to continue supporting our business and growth by allowing us to purchase a portion of the property adjacent to
us for future business expansion.
This property will ensure we are able to expand our building in Elk River in the future, and in the interim, we will be
able to increase our sales revenue through using the property in the near -term for additional vehicle sales and
repairs. This land acquisition has the ultimate goal of building expansion, which will also result in job creation,
property tax growth and local option sales tax growth.
If we aren't able to acquire the property, as we reach capacity, we will need to explore sites outside Elk River for our
expansion needs, which would be a loss to the city's economy and is an avoidable burden for our business through
your partnership today.
We appreciate you reconsidering our offer and look forward to continuing a positive partnership with the city.
Annie B. Deckert, EDFP MPA
Decklan Group, President, Co -Founder
763-568-9498 1 mobile
annie@decklangroup.com
decklangroup.com
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