A vehicle auction business looking to locate in Seymour has the support of half of the city’s plan commission.

The other half isn’t convinced the area, which is visible from Interstate 65 and U.S. 31, is the right place for Insurance Auto Auctions Inc.

Carver Construction Group LLC has requested the city change the zoning of 36.60 acres at 10699 E. County Road 400N and 22.79 acres at 3760 N. U.S. 31 for a total of nearly 60 acres from residential to industrial zoning to allow for the development.

Although not in city limits, the properties, which are currently owned by Linda, Thomas and David Trimpe and Larry and Angela Burton, are within the city’s 2-mile fringe jurisdiction area.

Ryan Matthews, vice president of real estate and development with Carver Construction, provided details of how the business would operate and what the facility would look like.

Insurance Auto Auctions is a publicly traded company that stores and sells a high volume of vehicles damaged in wrecks and natural disasters, such as hurricanes, floods and tornadoes. They conduct online and weekly in-person auctions and have more than 170 locations across the United States and Canada, including two in Indiana.

Matthews said the business operates regular daytime hours during the week and limited hours on Saturdays if there is a high influx of vehicles that needs to be moved out.

The company sells to buyers all over the world who purchase the vehicles for parts or to be reconditioned and reused.

“They typically like to turn their inventory every 60 to 90 days,” Matthews said of the company. “The cars are not parted out. They’re not sold as scrap. They’re not dismantled. They’re not junked. It’s not a crushing facility. The cars are sold as they come in.”

One of the benefits of the business is it keeps damaged vehicles from sitting around unused and puts them back into service, Matthews said.

Since the vehicles are typically owned by insurance companies, it’s in the best interest of Insurance Auto Auctions to turn the inventory as fast as possible, he said.

“It’s not a junkyard,” he said.

Besides the lot space, which would hold roughly 100 vehicles per acre, Carver would construct a 10,000-square-foot office/garage and warehouse facility.

The business will provide 12 to 15 new jobs starting out and possibly more in the future. The development also will increase the city’s real estate tax base.

“Once it’s developed, it’s going to be substantial,” Steve Tibell with Carver Construction said of the increase in property tax revenue for the city.

During Thursday night’s plan commission meeting, commissioners voted 5-5 with one member, Dave Eggers, abstaining from the vote for personal reasons.

Those voting in favor of the rezone were Jeri Wells, Don Bruce, J.J. Reinhart, Gary Colglazier and Mark Hays. Those voting against it were Don Myers Jr., Danny Sloan, Rick Schleibaum, Bret Cunningham and Bernie Hauersperger.

Without a majority vote, the rezone goes to the Seymour City Council with an unfavorable recommendation. It will be heard by the council at the June 22 meeting.

Two neighboring property owners spoke against the petition Thursday, citing concerns with potential contamination, drainage issues, aesthetic value and access to adjacent farm ground.

Jeff Haag lives at 3872 N. U.S. 31 and is strongly against the proposal.

He said his biggest concern is the potential for contamination of the watershed in the area, which extends into Muscatatuck National Wildlife Refuge.

As an automotive engineer and technician with 40 years experience, Haag said he knows what happens with wrecked vehicles.

“They leak uncontrollably,” he said. “The ground will be contaminated. I think this would be a terrible, terrible thing for the area.”

Tibell said the company carries a $25 million environmental insurance policy, and reviews are completed annually for compliance.

The vehicles are first taken to an impound yard, where they sit until the insurance company inspects them. The vehicles are then taken to the auction site, and when the title work comes back from the state, the car is sold at the next auction.

Most of the fluids would have already leaked out by the time it gets to the auction lot, Matthews said.

Kenny Pfaffenberger farms the 16 acres to the south of the Trimpe parcel. He says the development would block him from being able to access his ground.

Jonathan Isaacs with Independent Land Surveying, who is working with Carver Construction on the project, said an easement would be granted for access.

Pfaffenberger also is worried about poor drainage on the city’s east side.

“It’s terrible, and any concrete or asphalt lots for vehicle storage will make it worse,” he said.

The development will be required to have stormwater retention ponds and by state and city standards cannot create more stormwater runoff than already exists.

“From an environmental perspective or in regards to flooding or erosion problems, that will not happen,” Tibell said.

By rezoning the property, Pfaffenberger said the city won’t have any control over future uses if it were to be sold.

He’s also concerned about the visual appeal of the project, even though the auction lot would be enclosed by fencing.

“I think an I-2 zoning on this property for this use would be a mistake,” he said. “This is the front door to our community, and with all due respect to the applicant, these are junk vehicles. You can’t dress that up any better. I don’t care how they store them. It’s going to look like a junkyard.”