Otsego Planning Commission says no to auto auction facility

This 13-acre site in Sioux Falls, South Dakota is one of Insurance Auto Auctions sites. It is located next to a park, church/school, commercial and industrial areas. IAA hopes to locate an auction site in Otsego.

Otsego Council does not yet take up the matter but   is expected to at it next regular meeting

by Beth Balmanno

Contributing Writer

Insurance Auto Auctions’ proposal to develop an auto auction facility in Otsego found little support from the Otsego Planning Commission at its July 15 meeting.

The proposed facility for the 100-acre parcel of land located west of Kadler Avenue and south of 80th Street received just one favorable vote from the commission.

The proposal was sent to City Council to be heard and voted on at its July 22 meeting but was pulled from the agenda during the opening minutes of the meeting. City staff cited the developer’s inability to attend the meeting as the reason for removal.’

IAA is expected to be before the council at its next regular meeting.

The agenda item indicated that Insurance Auto Auctions, or IAA, had planned to update its presentation for discussion with the City Council before the vote.

The proposed facility would consist of a 9,750-square-foot building, as well as outdoor areas for vehicle drop off, load out and outdoor storage of vehicles, all of which have been deemed total losses due to crashes or theft recovery. The developer described tax and employment benefits of the proposed facility, citing increased tax revenue for the site compared to its existing agricultural use and the addition of 20 or more jobs, as well as road improvements to Kadler Avenue that would be funded by IAA.

IAA operates more than 150 facilities across the United States and Canada, including sites in Kansas City and Sioux Falls.

A spokesperson for the company said: “IAA is a growing company that continues to explore opportunities in the market and elsewhere to meet customer demands. We invest significant resources and time working with municipalities in locations where there is a need for our services.”

Minutes from the Planning Commission meeting are not yet available; however, the summary provided to the City Council cites the commission’s concerns regarding the proposal, including potential environmental impacts from damaged vehicles leaking fluids, traffic generation and impacts to area roadways, and screening provided for the outdoor storage area. Another concern involved the requested 35-year timeframe of the interim use permit, which is required to rezone the site. The commission recommended an interim use permit of not more than 20 years.

The commission’s vote was 4-1 against supporting the proposed project facility.

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