2013-12 AMENDING ZONING ORDINANCE - CONSUMER CREDIT SERVICES AND PAWNBROKER

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1 Excerpts from Plan Commission Minutes of February 7,2013 continued: surrounding neighborhoods as the "Heart" of Decatur and Macon County. The Ian further identifies the need and benefits of economic stability within this "urban core," which it c lls the "Regenerative Neighborhoods." Licensed Pawnbroker and Consumer Credit Services regularly charge interest rates that are higher than traditional licensed financial institutions (such as banks, mortgage lenders, credit unions, etc.), which in our opinion, works in opposition to the goal of community economic stability. Most of these types of establishments are located within the boundary of the "Regenerative Neighborhoods." Since the Zoning Ordinance is a tool to further the goals of the comprehensive plan, Staff recommends clearly defining Pawnbroker and Consumer Credit Services and permitting thern within B-2 Districts. Staff further proposes to regulate the density of Consumer Credit Services by �equiring a 1,500 feet minimum distance between said establishments. It is staff's opinion that these amendments are in line with the goals of the Comprehensive Plan and should assist the City revitalizing its "Regenerative Neighborhoods." Mr. Kent Newton asked why buy here, pay here car dealerships were not included. Mr. Tyus stated that these types of car dealerships are licensed as all the other car dealerships are licensed and not separately defined. Mr. Jim Grady asked if there were any existing businesses that have conflicting locations and would they be forced to move. Mr. Tyus stated existing businesses listed as non-confo ing would be able to continue to operate. Mr. Bruce Frantz asked how so many of these businesses came about being nonconforming. Mr. Tyus the uses were not specifically defined in the Zoning Ordinance and this amendm nt creates a definition for these uses. Mr. Michael Hoy, pastor of Lutheran Church and Chairman of the Decatur Cha�ter of Illinois Peoples Action, was sworn in by Mrs. Poland. Mr. Hoy stated in the state of Illinois it is legal for these types of businesses io charge 400 percent interest. The average interest rate is 340 percent. These businesses prey on the poor, minorities and the elderly. Decatur has more payday and car title stores per capita than Chicag and ranks second in the state of Illinois in this category. Mr. Hoy said while the Illinois Peoples Action (IPA) appreciates the amendment that is being proposed they would like it to go further. Mr. Hoy said a letter was sent to each of the Plan Commission members prior to this meeting. The IPA would like the Plan Commission to consider adding two additional stipulations. Mr. Jerry Pelz, Director of Northwest Community Fund, was sworn in by Mrs. P land. Mr. Pelz said he has not seen anything impact this community more than the payday lending and car title businesses. Mr. Pelz handed out three (3) examples of loan applications. The applications showed interest rates of 304.17 percent to 398.05 percent being charged. Any payment that is late or missed compounds the amount of money that is required to be paid back. Northwest Community Fund has been blessed to have a grant to help people pay back some of these loans. These businesses tear at the fiber of the community. Mr. Pelz said this issue has gotten out of hand and this problem needs to be attacked in a much more aggressive way. Mr. Matt Dial asked if the additional conditions listed in the letter from the IPA could be considered by staff today. Mr. Tyus stated he has been meeting with these gentlemen for a few months and he has