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Council adopts ordinance to license and regulate towing companies after complaints of predatory behavior

Shakopee City Council · November 19, 2025
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Summary

Council adopted Ordinance 2025‑023 to establish a towing licensing program and regulate consensual and nonconsensual towing, responding to complaints about towing companies taking vehicles without clear notice and charging excessive fees.

The council voted to adopt Ordinance 2025‑023, creating licensing standards and complaint procedures for towing companies operating in Shakopee.

Staff described a pattern of complaints to the police about noncontract towing companies removing vehicles and owners not being able to locate their cars. The presenter said the ordinance will allow the city to license tow companies, set standards, and establish an appeals process that starts with the chief of police and could proceed to the council. “If we have issues with them, they could appeal to the chief of police, and then it would end up back with you,” the presenter said, explaining how complaints would be handled.

Council members and staff described predatory practices including excessive storage and drop fees and vehicles being taken without clear justification. City Administrator Reynolds said similar ordinances have been adopted elsewhere and noted predatory towing has appeared in other jurisdictions. Councilor Lara moved to adopt the ordinance; the motion was seconded and approved by voice vote.

The ordinance creates a licensing framework and complaint/appeal pathway; enforcement details and penalties will be implemented through the licensing program and police coordination.