David Piehl asked:

Why are private firms in Minneapolis charging so much?  Is it like plumbers
and electricians where city licensing requirements reduce competition to the
point that the remaining firms have near monopoly conditions?


My response:

The short answer is "Yes."  Read chapter 349 and 478.1040 of the city of
Mpls municipal code for details.

The restrictive part of the ordinance is here:

349.140.  Location of storage lot, Class A.  No licensee shall tow a motor
vehicle from private property under orders of one not the owner or operator
of the vehicle to a storage lot which is outside the limits of the City of
Minneapolis. All licensees shall, immediately upon hooking up to a vehicle
to be towed from private property under orders of one not the owner or
operator of such vehicle, tow the vehicle directly to a twenty-four-hour
on-duty storage lot owned or operated by such licensee and such towed
vehicle shall not be temporarily dropped, placed or left at any other lot or
on any other property.

So, if you want to open a competing tow truck operation, you must: find a
large lot zoned correctly IN MPLS, "own or operate" it, and provide "24
hour, on-duty storage."  Any idea how much that would cost?  Any idea where
there is a lot big enough to justify 24 hour a day employees?  Only the big
providers can justify such costs.

So David, the answer to your question is simple:  The city is making sure
your acquaintance doesn't have to travel to some suburb (gasp!) to get their
car back.  And, you can pick it up at 3:19 AM!  Your acquaintance just got
the bill for such convenience.

Just like plumbers and HVAC providers, this oligopoly is created by our
leaders.

Regards, Bill Cullen.
Whittier Landlord.

P.S. My tow truck driving friend claims that when this law was passed,
existing tow truck companies were grand fathered in.  Therefore, it is still
possible to have your vehicle towed out of the city of MPLS.  I was unable
to confirm this allegation.

P.P.S. I am stunned and disappointed that Mr. Driscoll would call tow truck
operators "the scum of private enterprise."

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