SIOUX CITY (KTIV) – Monday, August 25, the Sioux City City Council passed the first of three readings regarding updates to an ordinance that deals with car dealerships in city limits.
Back in June of 2024, the Sioux City City Council passed a 6-month moratorium on car dealerships in city limits, which prevented any new dealerships from moving to Sioux City. This allowed city staff to look into all the locations of car dealerships to set new standards.
Once that ended, a second moratorium was passed this past January, giving city staff more time to find an effective way to address “the community’s issues regarding automobile sales locations”.
Now, the council is considering changes to an ordinance to officially set those new standards. Those changes would include defining automobile sales, rental, and service into different categories:
Motor Vehicle Sales (New and Used)Motor Vehicle Sales (Used)Automobile Service and RepairMoto Vehicle Sales Indoor Showroom Only
The changes would also set standards for landscaping, spacing on the lots, and how cars are displayed.
The new ordinance would not put a permanent cap on the total number of all dealerships in the city limits.
During the moratorium, the city found that Sioux City has “roughly twice as many automobile sales establishments compared to the total population”. Sioux City also has the fourth-highest concentration of automobile dealers in the state.
“I guess the council will have to review that when we see, when we open this up in a couple of weeks, the onslaught of how many new dealerships we have in town, and maybe that will convince the others that it’s time to put a permanent cap on it. That’s what South Sioux did, and I understand why,” said Bob Scott, Mayor of Sioux City.
The vote passed 4 to 1, with Mayor Bob Scott against the changes.
The council still needs to vote on this new ordinance two more times before it can take effect.
The soonest the Council could revisit this topic is Sept. 8, since they won’t meet on Sept. 1 due to the Labor Day holiday.
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