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City proposes controversial changes to auto dealership regulations

November 07, 2024 | South Salt Lake City Planning Commission, South Salt Lake , Salt Lake County, Utah


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City proposes controversial changes to auto dealership regulations
In a recent government meeting, significant changes to local automotive dealership regulations were discussed, aimed at clarifying existing codes and addressing community feedback. Key amendments include an expanded definition of luxury vehicles and the introduction of metal materials as an option for screening walls, responding to concerns about the high costs of required materials.

The minimum lot size for new or expanding dealerships has been reduced from three acres to 1.5 acres, while the standard lot frontage remains at 200 feet. Additionally, automotive restoration has been added as a permitted use in the business park district. The ordinance aims to ensure that existing dealerships can thrive without displacement, allowing them to improve facilities and expand operations under conditional use permits.

City officials highlighted the economic impact of auto-related businesses, noting that there are 228 such businesses in the city, with 57 not reporting sales tax. The city is working to license unregistered businesses and address sales tax reporting discrepancies. Notably, six dealerships generate 64% of the city’s sales tax revenue.

During the public comment period, concerns were raised about the potential negative impact of these changes on smaller dealerships. A representative for a local dealership argued that the new regulations favor larger dealerships and could drive smaller competitors out of business, ultimately harming the local economy.

The proposed changes will be presented to the city council for consideration next week, with community members encouraged to voice their opinions on the matter.

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