After more than 45 years Alan Stroeh is retiring from the automotive business and is selling his Stroeh’s Auto Center on East Main Street.
And, after more than 40 years of turning wrenches for service shops and racing pit crews, Stroeh’s serviceman Doug Flier is going into business for himself.
“Owning my own auto repair business has been a goal of mine for quite some time,” said Flier, Valley Springs.
He is buying the East Main Street business after working the past nine years for Stroeh.
The Luverne Economic Development Authority has assisted Flier with local business financing, which was approved this month.
Flier was approved for LEDA “gap financing” to purchase Stroeh’s business, which will be renamed Doug’s Auto Repair.
EDA director Holly Sammons praised Flier’s business plan in email correspondence prior to the Nov. 14 meeting.
“I’m really excited for your new venture,” she wrote. “Your loan request was one of the best applications I’ve seen, and it was very well put together. I greatly appreciate your organization and communication.”
Flier is purchasing the existing Stroeh’s business, making some improvements, and will continue to provide complete service of automobiles and repairing and maintaining all types of vehicles, ranging from cars and SUVs to full-size pickups.
He’s also been working with the Small Business Development Center to compile the financial package and loan request for the business acquisition project.
The total acquisition and start-up costs will be funded through owner equity, bank financing and a gap loan in the amount of $17,000 from the LEDA.
It’s a seven-year loan, to be secured by mortgage, at 4 percent interest.
The LEDA’s revolving loan fund guidelines state that the equity participation must be at least 10 percent and gap financing should not exceed 20 percent of the total project cost.
Doug’s Auto Repair meets requirements for the loan, and closing on the business purchase is set for Jan. 3.
“It’s been great working for Al over the past several years,” Flier said. “And it’s been a rewarding experience to buy his business from him.”
For Stroeh, selling his Stroeh’s Auto Center represents an end of an era.
He started in the industry in 1975, working for Herman Motor when it was located downtown Luverne. He worked there until 1990 when he went to work for Lyle Nelson at Nelson Automotive on West Main Street (where Schomacker Cleaning is now located).
In 2004 Stroeh bought Nelson’s business and also Bush’s 66 from Eldon Bush and combined the two businesses into one at the current Stroeh’s location.
Stroeh said he’s looking forward to retirement but will continue farming northwest of Luverne.
“I’ll be 63 in March, and I’d like to just farm,” he said. “Someone once told me, ‘You’ll know when it’s time to retire when it’s time.’ … Well, it’s time.”
Flier said he’ll retain current employees and will look to hire another automotive technician.
Sammons is also assisting Flier with a new logo and signage, which will go up in January.