Detroit places moratorium on scrapyards

Detroit will place a one-year moratorium on the establishment and expansion of used auto and scrap-related facilities to address concerns over the proliferation of such operations in the city.

Mayor Michael Duggan this week issued an executive order stating that "no city department may accept any application for a permit or license to establish or expand a junkyard, scrap tire processing and recycling facility, scrap tire storage facility, minor or major motor vehicle repair or used car lot for a period of 12 months" beginning on 1 April.

The city defines a "junkyard" to include junk dealers, scrap iron and metal processors and automobile dismantling and wrecking yards.

Existing businesses will have 90 days to come into compliance with city regulations or face closure. Those that are closed will have to wait until after the ban is lifted to re-open.

The move comes in response to community concerns over the rapid growth of such facilities and is designed to limit the impact of the operations on surrounding areas. It is estimated that the order will impact more than 1,000 businesses, hundreds of which opened within the last few years.

"In light of the expansion of these types of businesses, we need to make sure we can effectively regulate them so they do not negatively impact our neighborhoods," said David Bell, director of Detroit's Buildings, Safety Engineering and Environmental Department.

The city plans to use the one-year moratorium period to review existing regulations and determine the appropriate measures to "limit overconcentration, increase compliance with property maintenance and zoning standards, decrease crime and curtail illegal business operations," according to a statement from the mayor's office.

Existing operators welcomed the city's efforts to weed out the "bad apples" that they say tarnish the image of the rest of the industry. Such players can sometimes distort competition in a region by skirting rules to reduce costs, such as operating unlicensed scales and purchasing vehicles without titles.

"Too many bad apples get into this business when times are good, and they tend to circumvent the rules that the legitimate players deal with on a daily basis," a source said. "[It's] not good for anyone."