ST. ANN: City caps number of payday loan companies
For Ward 5 Alderman Helen Weissler, that's still three too many.
Weissler joined the other nine aldermen last week in unanimously adopting a measure limiting the number of the businesses - commonly known as payday loan companies and title loan companies - to three.The move came as part of the Board of Aldermen's consideration of an application for what would have been the seventh such company operating along St. Charles Rock Road.
Jeff Schwartz, representing Cash Zone, said the distance between the proposed business and the nearest short-term loan operation met the city's requirement of being at least 500 feet apart. Cash Zone was wanting to set up shop in the former Baskin-Robbins ice cream parlor near Ashby and St. Charles Rock roads.
"We think it meets all criteria for this location," Schwartz said.
That's according to an engineer's measurement, he said.
However, as part of a two-pronged effort to deal with payday loan companies, the board the same night approved legislation establishing the procedure for measuring the distance between like companies. By using that procedure, and another method of measuring, the companies would have been too close to each other, city officials said.
The Planning and Zoning Commission had recommended the new way of determining distance - by measuring from the juncture of a perpendicular line from the front door of one business to the middle of the street and the juncture of a similar line from the front door of the nearest similar business.
The commission also recommended a maximum of three short-term loan companies in St. Ann.
"We felt three was appropriate for this size community," said St. Ann Building Director Bill Anderson.
City Attorney Steve Garrett said municipalities are beginning to tighten regulations regarding such companies, especially in areas designated for commercial operations, because of the lack of tax revenue the companies produce.
"If we get too many short-term loan establishments, it eats away at our sales tax," he said. "If all we're going to have are short-term loan establishments, we're not going to generate any sales tax."
Schwartz told the board he felt the legislation limiting the number of the businesses is "anti-competitive."
Weissler has long argued against this type of business in St. Ann. During a workshop session several weeks ago, she said she favored having none of the companies.
But Garrett argued that banning all short-term loan operations might be unwise and persuaded Weissler and other members of the board to accept a limited number of the businesses.
