After a brief public hearing Tuesday, the Sherburne County Board approved $481,848 in tax abatement financing for GATR Truck Center to build a facility in Elk River.

The facility will be the first project to break ground in the city-owned Nature’s Edge Business Center second addition.

 

The proposed project consists of a 42,912 square foot facility with an estimated taxable value of $3,900,000. Sherburne County Assistant Administrator Dan Weber said the property is estimated to generate approximately $160,500 in property taxes per year, with about $40,150 going to the county.

 

The project would create 10 to 15 jobs by the end of 2015 and a minimum of 63 jobs by 2018, with an expected hourly wage of $32.39.

 

 The county’s abatement is $40,154 per year over the course of 12 years. GATR has also applied for a 15-year tax abatement from the City of Elk River totalling $546,810. 

 

GATR, a full-service truck dealership, currently has three locations. It headquarters in Sauk Rapids, with other dealerships in Cedar Rapids and Des Moines, IA. 

 

GATR President Robert Neitzke said when he purchased the site in 2000 in Sauk Rapids there were 45 employees. Today there are 92. He started the Cedar Rapids site from scratch  three years ago and now employs 72 people. The site in Des Moines, which he bought two years ago, has grown from 45 to 58 employees.

 

“I think this is a better market for us because our home base is in Sauk Rapids. And being on Hwy. 10 is a nice niche for us,” he said. “Our business is growing right now. It’s a good time to be a truck dealer.”

 

The board approved the abatement because of the company’s good track record of creating jobs, a high demand for trucking and its economic benefits to the entire county.

 

Based on an economic impact study by the third-party firm CTG Research, the project will create 22 indirect and induced jobs throughout the local economy, which will pay an average annual salary of $32,636. 

 

The study also showed the business will increase consumer expenditures by $1,559.808 a year; bring a total of 82 direct and indirect jobs into the area; bring 43 new residents to Elk River and 110 residents to Sherburne County.

 

Commissioner Felix Schmiesing said he was in favor of expansion, rather than just having a business move from one location to another.

 

“I really like the idea of growing a business here,” he said. “I think that’s what we wanted to accomplish - to start things up, bring new business, new jobs and help you grow.”

 

Neitzke said he has already hired six people from Sherburne County for the new site and is training them at the Sauk Rapids site. He said he expects to be operational by Thanksgiving.

 

“We’re excited to be here,” he said.