Terrence Militello 5/1/2014 ENGL 311

Formal Proposal to Expand R & M

Automotives Workshop

Terrence Militello
Introduction
R & M Automotive was once a staple of Bay City used car maintenance and repair. It has existed
since 1985 and provided affordable options for those seeking work on their new and used
vehicles. Nearly two years ago, R & M Automotive was forced to move locations from Bay City
to Canadian Lakes, MI.
Problem
The new location, unfortunately, only had a 2-car attached garage measuring 24 x 24 ft (576 ft
2
).
This is in stark contrast to the previous buildings amenities. It contained both a 24 x 28 (672 ft
2
)
attached garage for standard car parking and storage while having an unattached 28 x 30 (840 ft
2
)
workshop to perform most of the work required for R & M customers. By these measurements, R
& Ms potential work space has been reduced by 936 ft
2
. R & M Automotive continues to work,
but at a severely reduced rate compared to its Bay City location.
Objective
The goal is return R & M Automotive to its standard work rate. The company as it currently
exists is not financially solvent and will continue to lose value in its current condition due to tool
degradation, lack of consistent work, increasing light and heat costs, and overall team member
declining morale.
There are two approaches to fixing these problems: relocation to a larger facility or an additional
facility added to the current location. These represent the best options for rejuvenating business.
An appropriate solution would need to provide the following:
Significant space for storage
Proper heating and electrical to run standard automotive equipment
Adequate workroom for mechanics and
Relocation
R & M Automotive is unique in that its previous location also served as the home of the
president and vice president of the organization. It creates an unfortunate situation where the new
location must provide both adequate workspace for the company and living quarters for its two
most important positions. The previous location was sold as part of a divorce settlement for
$220,000. The 2900 ft
2
house and facility, as listed above, provided excellent amenities for the
two members of R & M, but its large scale house provided too expensive to run and maintain. As
it was sold under Michigans no fault divorce laws, proceeds were split between the president
and his ex-wife, leaving him with $110,000 in house assets to use towards a new location. As
$30,000 was strictly spent to purchase a home in the Canadian Lakes area, the president is now
working within a restricted spending limit of $80,000.
A possible move to Saginaw would be considered an ideal solution. This would place R & M
Automotive near RPM Auto Salvage of Saginaw. R & M and RPM previously had a strong
business relationship that allowed for discounts to R & M and technical expertise to RPM. This
loss was another key reason to R & Ms struggling work levels since the move. Saginaw also
places R & M near Total Resource Auctions of Davidson and Copart Auto Sales of Flint. Both
locations would be within 30-45 miles of a possible Saginaw based R & M Automotive. As of
right now, the closest private auto auction is Copart Auto Sales of Ionia. This is nearly 60 miles
away.
Current searches have failed to yield any facilities similar to the Bay City location. Even with
shifting standards, no housing has also provided enough garage space to match the previous
facilities. This means that there is no current relocation option that would be acceptable without
building an additional workshop.
Building
The option to relocate and build a new workshop or adding a workshop to the current location
remains the best options for R & M Automotive. Canadian Lakes does have restrictions on what
type of buildings can be placed on properties and what qualifications they must meet:
Garage must be attached to main housing. Unattached garages were grandfathered in.
Garage must be located no closer than 5 feet of the property lines
These restrictions must be taken into consideration when proposing any new buildings at the
Canadian Lakes housing.
Zoning laws for other cities have varied. Most allow for unattached buildings but require a 10
feet distance from property lines. All require pre-approval from local city officials.
Cost
Estimates were taken to build a 24 x 24 attached garage in the Canadian Lakes area. Several
contractors were contacted under the assumption of strictly the cement pour, framing, roofing
and siding. The following cost estimates were found based solely on over the phone interviews
and on-site assessments:
Cement Pour $6,000 - $8,500
Framing $4,000 - $5,500
Roofing $3,000 - $4,000
Siding $2,500 - $3,500
Total: $15,500 - $21,500

R & M Automotives previous electrical, insulation, and drywall experience allows them finish
the garage while only suffering cost of raw materials. This means minimal additional cost
beyond those listed above. It does, however, mean time and labor lost that could be used towards
vehicle repair.
Conclusion
A location movement on the east side of the state is the ideal solution due to having previous
relationships with key retailers, familiarity with previous cliental, and more exposure due to
location. Cost estimates of a building would allow R & M to relocate first to housing lacking a
proper garage while falling under the $80,000 limit and sell the Canadian Lakes location to raise
revenue to build the unattached garage in another location. Canadian Lakes offers too many
hindrances even with an improved garage situation.