Developers eyeing $3.5M travel center for Red Rooster property
Photo by Jody Isaackson Dale Johnson and John Lanoue appear before the Tracy City Council meeting Monday evening to propose a developer’s plan for the Red Rooster property.
TRACY — A pair of developers are interested in the vacant Red Rooster property with the intent to build a $3.5 million travel center, according to two local economic boosters.
Dale Johnson and John Lanoue proposed a multi-million dollar idea to the Tracy City Council Monday night. They were representing a non-profit corporation dedicated to the economic growth and development of the Tracy Area called the Tracy Development Corporation.
The center would include fuel pumps, laundromat, car wash and an off-sale liquor store.
“There are just two hurdles for them,” Johnson said. “They want to do a feasibility study first, and see if they can cash flow.”
One way they could do that was to add a liquor store in the gas station, Johnson said. Obtaining an off-sale liquor license was the second hurdle. It would provide the potential for the city to sell their municipal liquor store business to the developers.
“They don’t want to see the current liquor store close and would even run it until their own facility is up and running,” Johnson said.
A further description of the proposed car wash indicated the automatic power washer would be in the back along with a manual car wash, a diesel island and gas islands in the front.
There would be a convenience store in addition to the liquor store, a 14-machine laundromat and a seating area for dining and watching the weather channel on television, which would be handy for truckers, they said.
“The developers’ names will not be available until at least next week,” he told the council members. “The developer do currently operate two other facilities like this one and would like to take over the first of the year. And, they want zero interruption of the off-sale (business) from the close of the downtown site to the opening of the new facility.”
“A $3.5 million business on Highway 14 far outweighs any loss potential,” Councilman Tony Peterson said.
“We’d be smart to at least entertain the idea and walk along their timelines,” Councilman Dave Tiegs said.
City Administrator Kris Ambuehl reminded the council that they cannot sell a municipal liquor license to a private party.
“I think you can have up to two liquors stores in a town our size,” Peterson said.
“This would also give the potential of a second location to open,” Johnson said. “There may be other businesses in town that’ll want to do it.”
Councilpersons discussed the potential tax revenue. This proposed business would compare in size to the Dollar General, with similar number of employees, they said.
Ambuehl encouraged council members to consider what would be best for the city. The sale of the municipal liquor store could comprise two sales: one of the “chattel” (what’s inside) and one of the building.
“You can’t just sell a municipal business,” he said again. Other potential buyers would also have to be given the opportunity to bid on the components.
Johnson replied that the developers were primarily interested in the contents of the municipal liquor store, not the building.
“We need to discuss it again at the next meeting and bring some perimeters,” Tiegs said.
The council members were amenable to considering the proposed business and set a special meeting for Monday, July 30 to begin at 6:30 p.m. in the council chambers. The agenda includes a portion of time for public comments.



