Current business operators will have 90 days to be in compliance with city ordinances prior to enactment of moratorium or face closure

Moratorium comes in response to community concerns over rapid growth of automotive/salvage facilities in neighborhoods across the city

City will use moratorium period to review and update zoning and ordinances related to auto facilities.

In response to the rapid expansion of used auto and scrap related facilities in Detroit, city officials announced today plans to implement a one-year moratorium on accepting applications to establish or expand these types of business. The moratorium will go into effect on April 1, 2019 and expire March 31, 2020.

Today, Mayor Mike Duggan issued Executive Order 2019-1 to establish the moratorium, which does not affect the ability of existing legally established businesses in these categories to renew their business licenses or obtain Certificates of Compliance, which is a city requirement. The Buildings, Safety Engineering, & Environmental Department (BSEED) will send letters to all of the following known establishments already operating in the city advising them of the moratorium:

Used Tire Storage and Sales

Used Auto Sales

Scrap Iron and Metal Processors

Junk Dealers

Auto Dismantling and Wrecking

Major and Minor Auto Repair

The City’s Law Department, BSEED, City Planning Commission and Department of Neighborhoods plan to use the one-year moratorium period to review the regulatory framework already in place for these establishments and to make or recommend to City Council changes that might be necessary. Specifically, the City’s review is designed to determine appropriate measures to limit overconcentration, increase compliance with property maintenance and zoning standards, decrease crime, and curtail illegal business operations.

"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 BSEED Director David Bell. “We are giving the operators of all existing businesses of these types 90 days to come into compliance before the moratorium begins. Existing businesses that are operating legally but may be out of compliance will have the opportunity to enter into a consent agreement with the City to establish a firm timeline for getting into compliance.”

Bell added that any establishments that fail to obtain all necessary city approvals allowing them to legally operate by April 1st will have to close and wait until after the moratorium is lifted and the City’s new regulations are in effect to re-apply.