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Calif. auto wreckers lose yards to city project

Keywords: Tags  auto wreckers, shredders, eminent domain, Schnitzer Steel Industries Inc., Sims Metal Management Ltd., Atlanta Auto Dismantler, American Auto Dismantlers, Depot Auto Wreckers Dorris Auto Wreckers

PITTSBURGH — Four auto wreckers will be displaced when the California city of Hayward completes eminent domain proceedings to build a new road to alleviate congestion and provide better access to an industrial area.

American Auto Dismantlers, Atlanta Auto Dismantler, Depot Auto Wreckers and Dorris Auto Wreckers Inc. all supply shredder operations owned by Schnitzer Steel Industries Inc. and Sims Metal Management Ltd. and directly supply a local foundry.

The city estimates it will cost $8.4 million to acquire all necessary property, which includes businesses unrelated to the metals industry. But the businesses, which are expected to vacate sometime in 2014, are concerned that the purchase price will be inadequate and that it will be difficult to find a new location.

Baryalai Feroz told AMM that he has owned American Auto Dismantlers for 15 years and is having trouble finding a new site. "The places for sale are just too much money, starting at $1 million, and the places for rent don’t want an auto salvage yard as a tenant," he said.

Dorris Auto Wreckers has been at its location for 50 years, owner Howard Dorris said. The new road will go straight through the middle of the 7.8-acre yard. "On a positive note, I will own the commercial property on both sides of the road," he said.

Dorris also is having trouble finding a new home for the salvage yard. The parcels are either too small or in a remote and undesirable location, he said.

Atlanta Auto Dismantler and Depot Auto Wreckers could not be reached for comment.

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