Dive Brief:

• American Iron & Metal cannot reopen the former Roth Steel scrap yard, which it bought in bankruptcy court. The Common Council of Syracuse, NY, recently unanimously nixed plans to restart the recycling plant.
• The city council will ask the planning commission to bar reopening of the scrap yard, according to Syracuse Media Group. The scrap yard is near Onondaga Lake, an area recently in the process of being revitalized. Millions have been spent to clean up the lake and lakefront area.
• Syracuse Mayor Stephanie Miner noted a potential problem with the rejection of American Iron & Metal’s plans for the site: the city’s law department believes the city cannot stop a new scrap business from opening at the old site.

Dive Insight:

The situation seems to be a simple zoning problem, albeit one that could require a zoning change to correct. Given American Iron & Metal’s ownership of the property in dispute, the city of Syracuse could be in for a legal battle.