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

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DEVELOPMENT SERVICES MEMORANDUM No. 13-11 February 27, 2013 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Billy Tyus, Assistant City Manager SUBJECT: Amendments to Zoning Ordinance (Ordinance#3512) SUMMARY RECOMMENDATION: Staff recommends approval of amendments to the City of Decatur Zoning Ordinance (Ordinance #3512) as proposed. The City Plan Conanission voted 8-0 to recommend approval of this petition at the February 7, 2013 hearing; the minutes of the meeting are attached. BACKGROUND: The City of Decatur's current Zoning Ordinance does not define certain state licensed credit services such as pawnbroker/pawn shops, title loan, payday' loan and consumer installment loan businesses ("Consumer Credit Services"). The Zoning Ordinance does recognize and define "financial institutions," including banks, mortgage lenders, credit unions under its definition of Financial Institutions and Services. Staff hasre ared amendments for inclusion in Section II p p (Definitions) and Section XII.A (Permitted uses in B-2 Commercial District) to define "Pawnbroker" and "Consumer Credit Services" as they are defined by the State of Illinois and to allow these as permitted uses in the B-2 District. The proposed amendment would also require a minimum distance of 1,500 feet between Consumer Credit Service establishments. The Illinois Department of Financial and Professional Regulations (IDFPR) hays exclusive authority to license and regulate pawnbrokers/pawn shops and Consumer Credit Services. Our proposed changes are being put forth to define these entities and determine appropriate land use, changes which are in line with the goals of the Macon County & Decatur Comprehensive Plan. The Comprehensive Plan includes both "Quality of Life" and "A Diversified Ec nomy" in its list of goals. The Plan refers to Decatur's Downtown District and its older, surround ng neighborhoods as the "Heart" of Decatur and Macon County. The Plan further identifies the need and benefits of economic stability within this "urban core," which it calls the "Regenerat ve 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 them within B-2 Districts. Staff further proposes to regulate the density of Consumer Credit Services by requiring a 1,500 feet minimum distance between said establishments.