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Apr. 24, 2009

RPC favors minimum distance between check-cashing firms

By MARK WAITE
PVT

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Some Pahrump Regional Planning commissioners want to write "void" on a request to eliminate a 1,500-foot distance requirement between check-cashing and payday loan businesses.

The RPC last week decided to table a recommendation to Nye County commissioners, who decided Tuesday to set a public hearing for June 16 on the amendment.

A summary of the request states the provision in Title 17 of the Nye County Code, enacted in September 2000, was to avoid unchecked proliferation of those businesses in the community.

County commissioners in January upheld an RPC recommendation to deny a conditional use permit and waiver for Cash AdvantEdge inside the Rent-a-Center at 661 S. Highway 160, next door to Super Pawn.

Attorney Liz Sorokac told commissioners her client would be located in a commercial shopping center. She said the provision is more designed to protect residential neighborhoods.

Commissioner Butch Borasky directed planning staff to come up with a revision to the code eliminating the minimum distance.

RPC Chairman Mark Kimball last Wednesday said some people argue the minimum distance is an unnecessary restriction on the free market, while others point to restrictions on other businesses like bars and brothels.

"Some people feel payday loan centers are somewhat in a gray area because of the large interest rates they charge," Kimball said. "Some say they have restrictions on this because they don't want a large prolieration of these types of businesses."

RPC member Jacob Skinner questioned why the code should to be changed.

"I have no problem with the rule. I think it exists for good reason because we don't want to have too many of these businesses around, partly because of the high amount of interest they do charge people," Skinner said.

North Las Vegas requires a 2,500-foot buffer between deferred deposit loan or short-term loan establishments. Henderson requires a distance of 1,000 feet from other check-cashing and/or deferred deposit services.

RPC member Nevada Tolladay said Henderson also limits these businesses to one per 50,000 residents.

"I would favor a restriction of one in 10,000 which would keep our limit of four until the next census," Tolladay said.

Commissioners last year approved a Dollar Loan Center on Frontage Road. That's just down the street from Sun Loan Company and Express Pawn and Payday Loans.

Las Vegas requires 1,000 feet from other specified financial institutions, auto title loan companies or auto pawn services. Clark County requires a 1,000-foot distance from other check-cashing services. St. Louis, Mo., requires a whole mile between the businesses.

Kimball said other communities determined a proliferation of these businesses isn't in the best interest of the community.

"Somewhere inside of me is a guy that says if a business is legal, let them do it," Kimball said. "On the other hand, there is a tradition around the country -- you have to wonder if it doesn't have some basis in fact."

RPC member Carrick "Bat" Masterson said when planners looked at zoning, they considered businesses like adult video stores and tattoo parlors. The sheriff's department felt locating too many of those businesses in one area would create crime, Masterson said, adding he didn't want to equate payday loan companies with adult stores.

"We're better off spreading them out than leaving them in a group," he said.

RPC member Norma Jean Opatik felt it would be "irresponsible" to go from a 1,500-foot separation to nothing.

Borasky, the county commission's liaison to the RPC, asked, "Where's the science why this 1,500-foot rule was put in there to begin with?"

When resident George Cole suggested law enforcement problems, Borasky asked whether it would be easier for the sheriff's department to monitor these businesses if they're concentrated in one place instead of spread out around the valley.

Borasky said the RPC needs input from the sheriff, which led to the call to continue the discussion.

"Competition is what's going to regulate this business," Borasky said. "I don't think it's for us to determine who has a business, who doesn't have a business, if it's a legal business, even though they may charge exortbitant rates."

County Manager Rick Osborne told planning commissioners there was nothing in state law mandating the minimum distance.

"We looked for if there was any type of health or safety reason why you should have to have some type of separation. We didn't find that either. We just felt it was something the board wanted to do," Osborne said.










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