Ban On Scrap Metal Yards In Detroit

scrap yard with a ban icon

Breaking News: No New Scrap Yards In Detroit, Michigan For One Year

Detroit Mayor, Mike Duggan, has issued an executive order to establish a moratorium on auto and salvage yards throughout the Detroit, MI communities.

If you’re unfamiliar with what the term moratorium means, it is a temporary ban on any sort of activity. Mayor Duggan’s moratorium will temporarily prevent any new auto and salvage yards from opening in Detroit’s neighborhoods. It also temporarily prohibits the expansion of any current auto and salvage yards in the area.

The purpose of the mayor’s executive order is the growing concern within communities of the rapid growth that is occurring in auto and salvage yards within their neighborhoods.

So why is growth in the Detroit community bad?

There is a concern with the whether or not the majority of these businesses operate within compliance. Scrap yards can have a negative connotation associated with them. Some believe they attract car thieves and criminals to their neighborhoods since scrap yards will give you cash on the spot for any unwanted metal.

Auto and salvage yards are not the only businesses that will be affected by the moratorium. It also includes used tire storage and sales, used auto sales, junk dealers, auto dismantling and wrecking and major and minor auto repair.

Mayor Duggan’s Ban On Scrap Yards In Detroit

The City of Detroit’s concern comes from the idea that the majority of these businesses are operating without a permit, certificate of compliance or a business license. That is why this moratorium was issued to provide time to crack down on regulating scrap yards and other similar businesses.

During this period, the city will update zoning and ordinances related to auto facilities which include scrap yards in Detroit. Neighborhood Departments and Planning Commissions will be getting together to revise and alter the current framework as well as recommend suggestions to the City Council about changes they find necessary.

Some topics they plan on incorporating into their provision is limiting overconcentration, increasing zoning standards, decreasing crime and closing down illegal businesses within the Detroit community.

What The New Ban Means For Scrap Metal Buyers

The moratorium will not go into effect until April 1, 2019, and will last for one year. That means all local Detroit business owners that operate any businesses affected by the moratorium have 90 days to come into compliance with current standards.

As a scrap metal business, it is best that you check to be certain that you are within the parameters for compliance and meet the city’s standards. The city has said that if you are operating a legal business but fall out of compliance, they will work with local scrap metal buyers to establish a timeline for them to get their business into compliance.

If you are trying to sell scrap metal in Detroit, you may be seeing a decrease in scrap yard choices near you over the next year and a half. The price of steel is expected to drop sometime this month. However, there are plenty of surrounding cities like Hazel Park, Chesterfield and Troy with conveniently located scrap yards that are within compliance and operate legally. Even though there seems to be a crackdown on scrap yards, it is in the best interest for the neighboring communities. Limiting crime and shutting down illegal businesses will be beautiful for Detroit. If you are looking for a scrap metal recycler, as long as they are operating legally and in compliance with the moratorium it will not affect your ability to do business with them.