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Gate Petroleum

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Gate Petroleum
Company typePrivately held company
IndustryConvenience store, petroleum transport, precast concrete, hospitality, real estate development
FoundedJuly 9, 1960; 64 years ago (1960-07-09)
FounderHerb Peyton
HeadquartersJacksonville, Florida, US
Area served
Southeastern United States
Key people
John Peyton (President & CEO)
Mitchell Rhodes (COO)
Herb Peyton (chairman of the board)
ProductsGasoline, Construction material, Real estate, Food services, lodging, conventions, meetings,
Revenue$1.44 billion (2021)
Number of employees
3,500 (2021)
Subsidiaries
List
  • Gate Marketing
    • Gate Retail Stores
    • Gate Express Car Wash
    • Gate Fleet Service
    • Gate Fuel Service
    • Gate Lubricants
    Gate Hospitality Gate Construction Materials
    • Gate Precast
    • Gate Concrete Products
    Gate Real Estate
    • Gate Lands
    • Gate Maritime Properties
    • Ponte Vedra Club Realty
    • Gate Title Company
WebsiteGate Petroleum

Gate Petroleum is a privately held diversified corporation headquartered in Jacksonville, Florida, the 11th largest in Florida in 2022.[citation needed] In FY 2022, the company ranked No. 338 on the Forbes list of America's Largest Private Companies and had sales of $1.44 billion and employment of 3,500.[citation needed]

History

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Herbert Hill Peyton started the company in 1960 with a single gas station on Jacksonville's Northside. The company grew during the 1960s with additional stations in Jacksonville and then the southeast United States. The name "Gate" comes from the city of Jacksonville's slogan at that time, "The Gateway to Florida". In response to the 1973 oil crisis, the company began to diversify and added convenience items to their filling station shelves.

Corporate HQ in Mandarin

Filling stations and convenience stores are still the core business of the company, which operates from a 57,000 sq ft (5,300 m2) corporate headquarters in Mandarin. Elkins Constructors built the facility in 1999.[19] The Peyton family owns 80% of the company, and the rest belongs to "Brothers": long-term employees (both male and female).[20]

John Peyton, the oldest son of company founder Herb Peyton, took an eight-year leave from Gate to serve two terms as Jacksonville's mayor from 2003 to 2011. John returned to the family business and was named company President when his father, Herb retired on January 3, 2012. Herb remained chairman and Mitchell Rhodes was promoted to chief operating officer. Hill Peyton became Vice President of Marketing.[21] In Jacksonville, Gate is Northeast Florida's 16th-largest private sector employer.[22]

Divisions

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Gate Construction Materials

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The Construction Materials division consists of two companies and operates throughout the eastern, southeastern, and midwestern United States. They are members of the AltusGroup national partnership of companies that provide precast concrete products and services.

Gate Precast manufactures architectural precast concrete at facilities in Kissimmee, Florida; Monroeville, Alabama; Oxford, North Carolina; Ashland City, Tennessee; Dallas, Texas; Winchester, Kentucky and until they closed due to lack of market demand, Little Rock, Arkansas and Sarasota, Florida.

Gate Concrete Products manufactures structural precast and hollow core concrete fabrication at facilities in Jacksonville, Florida and Pearland, Texas.[23] Surplus concrete is donated to non-profit organizations to build artificial reefs miles out in the Atlantic Ocean.[24]

Gate Hospitality Group

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The company owns and operates four private clubs in the Jacksonville area. Management of the four resorts and clubs was consolidated in 2013 under the banner, Gate Hospitality Group.[25] Nearly 900 employees work in the group:

Deerwood Country Club was owned by Gate from 1983 to 1999, when it was purchased by the club membership.[28]

Real estate development

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Gate Lands is the commercial real estate division of Gate, created after the acquisition of SWD. Herb Peyton hired Ken Wilson in 1983 to work with the new real estate partly because Wilson had worked with Joe Davin and SWD properties.[29] Epping Forest, the 58-acre (23 ha) former estate of Alfred I. du Pont, was developed into the Epping Forest Yacht Club and the Epping Forest gated community, comprising 90 – $1 million homes and 80+ condominiums.
Other real estate projects have included Deerwood Park, a 1,000-acre (400 ha) office park on the south side of Jacksonville, the adjacent 250-acre (100 ha) Southpoint Office Park, the Shops at Ponte Vedra, the Shops at Bartram Walk, Riverplace Tower, 150 West Main Street (in Norfolk, Virginia), the 5,400-acre (2,200 ha) Cummer Trust Property in northern St. Johns County[30] and Kendall Town at Regency.[31][32]

The Gate Outpost is a 100-acre parcel of land effectively surrounded by the Guana River Wildlife Management Area in St. Johns County, Florida. Gate's long-term plans were to create the Vista Tranquilla development of 66 homes in 2016. Opposition to the plan was voiced by hundreds of area residents who attended a zoning board meeting. Gate decided to withdraw their development plans from consideration by the county commission and resume at a later date.[33]

Gate's most recent development is the 1,600-acre (650 ha) Durbin Park in St. Johns, Florida. Plans for the large project included 2,800,000 sq ft (260,000 m2) office, 2,400,000 sq ft (220,000 m2) retail, 350 hotel rooms and 999 multi-family units.[34] By late 2019 much of the retail space had been built and occupied.[34]

Gate Maritime Properties (GMP) handles waterfront industrial land, primarily at Blount Island. In 1986, the United States Marine Corps established the Biennial Maintenance Command (BMC) at Blount Island, Jacksonville, Florida on 262 acres (106 ha) leased from GMP for $11 million per year. The lease between GMP and the Marine Corps was due to end in 2004, so in 2000, the Corp stated their intention to purchase the property when the lease expired. The Marine Corps budget included $115.7 million for the acquisition, but extended negotiations did not result in an agreement. Gate contended that the land was worth between $160 million and $200 million, so in August 2004, the Marine Corps seized 1,100 acres (450 ha) on Blount Island (Gate's entire Blount Island holdings) by eminent domain and paid $101 million. When land is seized for uses that benefit the public, the government is required to pay landowners "just compensation", so Gate asked for a jury to decide the land's value. On November 14, 2005, a jury determined that the government should pay $160 million for the parcel.[35]

Ponte Vedra Club Realty is a full service real estate company in business since 1937.[36] It was acquired from the SWD purchase in 1980.[37]

Gate Title Company offers title insurance and closing services in north Florida. Their first office opened in December 2006 at Ponte Vedra with a staff of 4.[38][39]

Gate marketing

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Gate Retail Stores once encompassed 225 gas and convenience stores in 6 states.[40] The retail management uses Retalix software and is split into two divisions. The southern division in Jacksonville includes Gate stores in Florida, and the northern division, managed from Charlotte, controls the stores in Georgia, South Carolina, North Carolina, Virginia and Kentucky.[13] Since 2000, the company's Modus operandi has been to renovate or rebuild the profitable stores, close the marginally profitable locations, and create new stores where a good opportunity exists. Stores in Virginia and Kentucky have since been sold.

As of 2016, the division operated 73 Gate Stores. They also provided fuel to +/-150 dealer fuel/convenience stores. The company had petroleum sales of 1 million gallons per day.[13] In 2021, Gate Stores numbered 72.[41] The company updated their brand name in 2016 by using all capital letters for GATE.[13] Their store format changed in 2019. The average store size had been 2,500–4,000 square-foot (230–370 m2).[13] They began featuring 6,400-square-foot (590 m2) buildings that included an in-store café making fresh sandwiches and pizza, smoothies and iced coffee plus frozen yogurt with toppings.[41]

GATE Express Car Wash was launched in 2016 led by Hill Peyton. Some installations are standalone while others are beside retail store locations. All offer a 3-minute Tunnel car wash and free self-service vacuums.[41][42][43]

Gate Fleet Service is a fleet management tool used to control purchases and increased driver accountability. The software has been sold to other petroleum distributors.

Gate Fuel Service distributes fuel throughout Florida, Georgia and the Carolinas, including convenience stores owned by Gate Petroleum and others, deliveries to storage tanks at job sites, marine and bulk fueling.[44] Their location at 9100 Philips Highway in Jacksonville has an 8,800-square-foot (820 m2) office and a 15,000-square-foot (1,400 m2) warehouse. It was purchased in 2006 for $6 million.[45]

Gate Lubricants, initiated in September 2003, supplies lubricants and hydraulic fluid to commercial customers in north and central Florida.

Gate purchased majority ownership of InMotion Entertainment in 2006. InMotion is the largest airport based entertainment & electronics retailer in the United States with over 80 locations in major airports.[21] On October 2, 2013, private equity firms Palladin Consumer Retail Partners and Bruckmann, Rosser, Sherrill & Co. announced the acquisition of InMotion Entertainment from Gate Petroleum.[46]

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Gate sponsors numerous civic activities and charitable events in the Jacksonville area. The most well known is the Gate River Run, the 15K US National championship race that attracts more than 15,000 runners each year—the largest 15K in the USA. Another big event is the Gate Open, a charity golf tournament for the area's best amateur and professional golfers. The Jacksonville Fishing Rodeo, begun in 2010, is a popular family-oriented event held in June.[47]

Gate Foundation

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On September 24, 2008, Gate Petroleum's parent company, Gate Corporation, officially announced the establishment of the GATE Foundation, the philanthropic affiliate of Gate companies. The announcement was made during Gate's annual charity golf tournament at the Ponte Vedra Inn & Club.[22] The 501(c)(3) non-profit, tax-exempt entity was established "to support efforts and services that nurture and protect the well-being of family and community," according to its mission statement. Hill Peyton, another son of company founder Herb Peyton, was named as its first President and Chairman of the GATE Foundation. The foundation's first major gift was $100,000 to Big Brothers Big Sisters (BBBS) of Northeast Florida.[22]

The Gate Open in 2009 provided $75,000 for the Police Athletic League in St. Johns and Duval counties.[48]

In 2010, Gate started an annual in-store fundraising campaign with change drop boxes at cash registers and the sale of $1 donation cards. A total of $36,000 was raised during that April for the American Red Cross. Different charities have been chosen in succeeding years.[49]

Future

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Gate Ethanol and Hamilton County, Florida officials reached an agreement in early 2004 for Gate to build a $160 million ethanol plant on 90 acres (36 ha) north of White Springs, Florida. The plant would have the capacity to produce 50 million gallons of ethanol annually and employ almost 50. In late 2006, the company announced that due to soaring costs of construction and the fluctuation in the price of ethanol, their original plan was no longer viable and would be scrapped.[50]

In October, 2007 Gate Biofuels announced plans to construct a terminal at the port in Jacksonville to receive and store Ethanol, which would be blended with gasoline before distribution to gas stations. Nationwide, ethanol production increased 33% from the prior year creating an oversupply because few distributors were prepared to perform the blending process. Another product under consideration was biodiesel, which is made from natural oils. The $90 million, 55 million gallon facility would have both rail and ship capabilities and was expected to be completed in 2010.[51][52] However, the Financial crisis of 2007–2008 caused plans to be put on hold, and the project was never resumed.

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References

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  1. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 142, Herbert Hill Peyton, ISBN 0-9658277-0-4
  2. ^ "914 HALL PARK DR, GCS" Clay County Florida Property Appraiser
  3. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 144-145, Herbert Hill Peyton, ISBN 0-9658277-0-4
  4. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 163-181, Herbert Hill Peyton, ISBN 0-9658277-0-4
  5. ^ Barton, Susanna (Dec 11, 2000). "Gate plans to pump new life into Regency". Jacksonville Business Journal. Retrieved 16 March 2022.
  6. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 186-189, Herbert Hill Peyton, ISBN 0-9658277-0-4
  7. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 145, Herbert Hill Peyton, ISBN 0-9658277-0-4
  8. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 148-150, Herbert Hill Peyton, ISBN 0-9658277-0-4
  9. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 154, Herbert Hill Peyton, ISBN 0-9658277-0-4
  10. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 158, Herbert Hill Peyton, ISBN 0-9658277-0-4
  11. ^ "Across the State"[dead link] Orlando Sentinel, November 3, 1990
  12. ^ Conte, Christian: "7-Eleven re-enters Northeast Florida" Jacksonville Business Journal, October 14, 2011
  13. ^ a b c d e "Gate Stores 2016". Cspdailynews.com. Convenience Stores Products Business Media. Retrieved 13 March 2022.
  14. ^ "Special Warranty Deed". OR.Duvalclerk.com. Duval County Clerk of the Court. Retrieved 11 March 2022.
  15. ^ "Special Warranty Deed". OR.Duvalclerk.com. Duval County Clerk of the Court. Retrieved 11 March 2022.
  16. ^ Newboy: the Autobiography of Herbert Hill Peyton, page 159, Herbert Hill Peyton, ISBN 0-9658277-0-4
  17. ^ "Special Warranty Deed". OR.Duvalclerk.com. Duval County Clerk of the Court. Retrieved 11 March 2022.
  18. ^ "CB Richard Ellis retains leasing and management of 150 W. Main in downtown Norfolk" CB Richard Ellis, February 8, 2008
  19. ^ "Property record: 9450 San Jose Blvd". Duval County Property Appraiser. Retrieved 5 September 2013.
  20. ^ Finotti, John: "Gate tycoon reveals self, business secrets" Florida Times-Union, July 20, 1997
  21. ^ a b Bull, Roger: "Herb Peyton retires as president of Gate Petroleum" Florida Times-Union, January 3, 2012
  22. ^ a b c Jacksonville Business Journal: September 23, 2008-Gate launches charitable foundation
  23. ^ [1] Concrete Products, April 1, 2006, Gate Precast
  24. ^ Hong, Christopher (January 15, 2019). "Nonprofit creates 2 artificial reefs". Florida Times-Union. Retrieved 22 March 2022.
  25. ^ a b c d "Gate Petroleum Co. forms Gate Hospitality Group". Jax Daily Record. July 3, 2013. Retrieved 15 March 2022.
  26. ^ Geddes, Ryan: "Gate completes purchase of River Club" Jacksonville Business Journal, March 15, 2004
  27. ^ "Lodge and Bath Club sold to Gate Petroleum subsidiary". Jacksonville Business Journal. Jacksonville Business Journal. December 4, 1996. Retrieved 26 March 2023.
  28. ^ Trinidad, Alison: "Rift develops in Deerwood" Florida Times-Union, August 25, 2005
  29. ^ Mathis, Karen Brune (October 8, 2018). "Gate Lands President Ken Wilson to retire". Observer Media Group Inc. Jacksonville Daily Record. Retrieved 15 March 2023.
  30. ^ Geddes, Ryan: "Gate buys Cummer tract" Jacksonville Business Journal, January 16, 2004
  31. ^ Mathis, Karen Brune (December 14, 2020). "Land sold for Novo Kendall Town apartments". Jax Daily Record. Retrieved 22 March 2022.
  32. ^ Ivice, Paul (Jun 14, 2004). "Prospecting in Regency". Jacksonville Business Journal. Retrieved 22 March 2022.
  33. ^ Korfhage, Stuart (September 14, 2019). "Outpost item removed from county agenda". St. Augustine Record. St. Augustine.com. Retrieved 4 April 2023.
  34. ^ a b Mills, Gary (November 21, 2019). "Durbin Park: What stores, restaurants are now open, coming soon". Gannett. Florida Times-Union. Retrieved 14 March 2023.
  35. ^ "Florida Times-Union: November 16, 2005-Marines to pay $160M for Blount property". Archived from the original on August 12, 2011. Retrieved April 30, 2023.
  36. ^ Marbut, Max (January 19, 2018). "A fortune was run from SWD building, now proposed for a Hotel Indigo". Jax Daily Record. Retrieved 15 March 2022.
  37. ^ "About Ponte Vedra Club Realty". Realtor.com. Realtor.com. Retrieved 22 March 2023.
  38. ^ Jacksonville Business Journal: February 16, 2007-Gate Petroleum diversifies
  39. ^ "Gate Title Company". Manta.com. Manta. Retrieved 22 March 2023.
  40. ^ Penland, Dolly (Oct 18, 2010). "Herb Peyton builds on area's quality of life". Jacksonville Business Journal. Retrieved 15 March 2022.
  41. ^ a b c "Gate Petroleum". Cspdailynews.com. Convenience Stores Products Business Media. Retrieved 13 March 2022.
  42. ^ "Gate Petroleum History". Gatepetro.com. Gate Petroleum. Retrieved 22 March 2023.
  43. ^ Bull, Roger (October 17, 2016). "Jacksonville-based Gate to build new line of car washes". Florida Times-Union. Jacksonville.com. Retrieved 22 March 2023.
  44. ^ Bulk Transporter: Oct 1, 2003-New equipment part of Gate Fuel Service efforts to drive service, efficiency
  45. ^ Conte, Christian (August 21, 2006). "Gate Properties buys Philips Highway site for $6M". Jacksonville Business Journal. Retrieved 15 March 2022.
  46. ^ "BRS and Palladin form InMotion Entertainment Group". Reuters PE Hub. October 2, 2013. Retrieved 26 December 2013.
  47. ^ McNally, Bob (May 25, 2013). "Plenty of chances to win in Fishing Rodeo". Florida Times-Union. Retrieved 5 September 2013.
  48. ^ "Foundation helps Jacksonville University seniors" Florida Times-Union, October 24, 2009
  49. ^ Holifield, Cindy: "Braggin' Rights" Florida Times-Union, May 1, 2010
  50. ^ Jacksonville Business Journal: October 5, 2006-Gate scraps plans for ethanol plant
  51. ^ Florida Times-Union: Oct 19, 2007-Gate Petroleum says demand is driving plans for ethanol plant
  52. ^ Jacksonville Business Journal: October 18, 2007-Gate planning $90M biofuels terminal