Glendale Close to Passing Payday Loan Ordinance
By Paul RizzoPayday Loan Writer
Last week, Glendale took a step toward limiting the concentration of quick payday loan stores in the city.
The city council passed a text amendment to the zoning ordinance that said the cash advance operations cannot locate within a minimum of 300 feet from any agricultural or residentially zoned property located within the city or in an adjoining city or county, measured from property lines.
In addition, they must be a minimum of 1,320 feet from any other pay day loan store, said The Glendale Star.
This issue was first raised at an Oct. 4, 2005 council workshop when Mayor Elaine Scruggs requested staff research what could be done at the municipal level to regulate establishments that service payday advance loans. It came in light of Dist. 12 Representative John Nelson’s comments that cities can control payday loan locations and that the cities of Peoria and Avondale have both passed ordinances.
Instant cash loan lenders were discussed again at a Jan. 3 workshop, at which time Planning Director John Froke noted that payday loan institutions gravitate toward military bases.
“This was an extremely important issue for former Luke AFB Commander Gen. Rand,” Scruggs said. “This is an issue throughout the state. We can do this band-aid, but the real fix needs to be at the legislative level.”
City Planner Ray Jacobs said the providers of cash advance loans have been a real issue for the military that has been raised in Congress.
“The State of Arizona opened the door in 2000 by passing legislation allowing them, prior to that they did not exist here,” Jacobs said. “In May we had 40 stores in Glendale, now there between six to 10 more.”
Scruggs said limiting the concentration and location of the bad credit payday loans will help, but she doesn’t think it is the answer.
“These places take advantage of people who are most vulnerable,” Scruggs said. “These stores give people a place to turn to, but unfortunately the remedy only makes a bigger problem for them. It is very sad.”
The intent of council’s text amendment is to limit the likelihood of an increase in payday loan stores in order to maintain property values and preserve the character of basic retail businesses and the quality of life in Glendale.
