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Molstead Motors hoping to expand

The Charles City Council discussed an expansion of Mike Molstead Motors at their April 24, planning session. Press photo by Thomas Nelson.
The Charles City Council discussed an expansion of Mike Molstead Motors at its April 24 planning session. Press photo by Thomas Nelson.
By Thomas Nelson, tnelson@charlescitypress.com

Molstead Motors has been in Charles City for more than 20 years and is hoping to expand.

A significant increase in sales over the years has increased the business’s services, said Mike Molstead, owner of Molstead Motors.

Molstead is seeking a property tax rebate from Charles City on the new assessed value from the expansion.

“We are looking to expand our service department and add more capacity so we can do a better job, and provide better service to our customers,” Molstead said.

Molstead Motors has been in Charles City since 1995, he added.

The expansion should create more employment opportunities, Molstead said.

According to a Charles City Council agenda summary document, five new jobs would be created from the expansion, with an average wage of $16 per hour.

Five new jobs is being conservative, Molstead said.

“Just in technician space we’d have room for nine more techs,” he said.

Currently Mike Molstead Motors employs 60 full-time and six part-time employees.

“We’ve grown to the point where you’re getting the kind of services typically you’d usually have to go a big city for, but we provide them right here in Charles City,” Molstead said.

The business is hoping to add nine car lifts to the 13 it already has.

“We’re expanding out customer lounge because we’ve outgrown it — a good problem to have,” Molstead said.

There isn’t a final dollar amount on what the expansion is going to cost.

“We’re just hoping for the consideration you’d get for being in a TIF district,” Molstead said of the tax-increment financing programs communities use to spur economic development.

At the City Council planning session where the tax rebate for the expansion was discussed, council member Dan Mallaro said approving the expansion proposal was a “no-brainer.”

Tim Fox, Charles City area development director, was at the council meeting and spoke in favor of the city aiding the expansion.

“Mr. Molstead has undergone a number of projects of which he has received no financial assistance from the city, for which he was theoretically eligible,” Fox said during the planning session. “Now we have a comparatively smaller project and I think it’s only right and fair and just that we not apportion benefits based on geography and that the South Grand TIF district gets an equal shake with the rest of the TIF districts.”

The city’s involvement would help, put “the leg over the fence,” Molstead said.

The expansion, with the city’s help, should be done and operating by fall, he said.

“We’ve been here a while and Charles City’s been very good to us,” Molstead said. “We’ve created a lot jobs and hopefully we continue to do that.”

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