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September 17, 2012

Commission says financial ordinance OK as is

GREENVILLE — Members of the Greenville Planning and Zoning Commission said Monday they see no reason to change a city ordinance which limits where certain financial service businesses can locate in the city.

Commission Chairman George Gregg said he did not agree with Mayor Steve Reid’s belief that the ordinance concerning payday and auto title loan companies is too restrictive.

“Between Traders Road and Joe Ramsey there are 19 of them,” Gregg said. “To my way of thinking, that’s plenty. The ordinance as written has served us well.”

Local residents joined current and former members of the City Council in agreeing with the Commission, which was asked by Reid to review the “alternative financial services” regulations.

Craig Bird was among those thanking the Commission for supporting the ordinance as written.

“Just the fear of more of those businesses coming in would have a negative affect on the city,” Bird said.

Former Council member Betty Franklin, who assists low income residents as a social worker, said she has seen too many of her clients become trapped trying to cope with interest rates of 300 percent or more, and then turn to services agencies just trying to make ends meet.

“There is a high demand for food because the people are so far in debt to the payday loan companies,” Franklin said.

Council member Dan Perkins said he also appreciated the Commission’s stance.

“That gives me great hope,” Perkins said. “I’m just up here to say amen.”

In 2010, in response to the proliferation of the businesses along the Wesley Street general retail corridor. The Commission recommended a 1,000 foot separation requirement for AFS businesses, allowing them by right in general retail, highway retail, commercial, and industrial.

The City Council modified the Commission’s recommendation and removed retail from the list of zoning districts allowed, also eliminating nonconforming AFS businesses whenever a new Certificate of Occupancy was requested.

In early 2011, the Commission and Council enacted an ordinance regulating alternative personal services such as tattoo parlors and fortune tellers. At that time, the Commission recommended that alternative financial service businesses be required to obtain Conditional Use Permits rather than allowing them by right.

In January of this year, the Council turned down a request by a loan company which was seeking a change in zoning for the building which once housed the former Braum’s store.

William C. Pruett had asked for a change in zoning from general retail for the building at 4206 Wesley Street, which is where he wanted to open Greenville Cash Express, listed under city ordinances as an alternative financial service. Pruett said there appeared to be a bias among city leaders against his business and similar operations.

At the time, City Planner Lance Estep said he did not recommend the change because the zone change would violate the existing city ordinance and if approved could be considered spot zoning.

“That property owner didn’t do his homework, is what happened,” Commission member Benjamin Collins said Monday.

Reid is asking that more flexibility be allowed in the ordinance, to allow the Commission and Council to review the businesses on a case by base basis in the general retail zoning district.

Commission member George Warren said that would scrap the effectiveness of the ordinance.

“Doing it on a case by case, you might as well not have any of the codes,” Warren said.

Commission member Douglas Felps asked whether there was any evidence to show that any of the businesses had opened in another city, rather than Greenville, due to the ordinance.

City of Greenville Building Official Steve Methven said there had only been one such operation which wasn’t permitted due to the distance requirement.

“I’m not sure that anyone has up and left over it,” Methven said.

“My feeling is that we have made a good ordinance,” Felps said.

“It is my opinion that it should stay as approved by the City Council,” added Commission member Berniece Reeves-Brown.

Amy Herrin, wife of former Council member Bryan Herrin, also asked that the ordinance be left as is.

“I feel like what the City Council did ... is exactly what needs to be, and there is no need to have any one of them,” Herrin said. “Our city deserves better. All of the citizens deserve better.”

“Sounds like it is pretty unanimous,” Gregg said, although he noted the matter could again come before the Commission as a potential action item.

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