ROCK ISLAND — City council members are considering a limit on the number of payday-loan businesses allowed in the city.
Ald. Dylan Parker, 5th Ward, said the idea was discussed during a study session prior to Monday night’s council meeting. Pawn shops, used-car lots and video-gaming parlors also were considered for moratoriums, but aldermen were not as concerned about those businesses.
Parker said the ban would not affect payday-loan operations already in business.
“It’s a proposed moratorium on future businesses,” he said. “We would not be allowing any more. It would be citywide, not just limited to a certain section.”
Parker said city staff and attorneys are drafting an ordinance for consideration by council members.
“During the course of the discussion, council didn’t seem as interested in (limiting) used-car lots,” he said. “There was consensus on payday-loan shops and pawnshops. The payday shops we agreed to putting into an ordinance and not allowing any more in town. If any more wanted to move to Rock Island, they wouldn’t be allowed to.”
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Randy Tweet, city manager, said the decision by council members was not unanimous, with some aldermen opposed to limiting businesses and the potential sales tax revenue they would generate.
“The council has asked staff to gather more information on two business types: short-term loan facilities, and establishments with video-gaming terminals,” Tweet said. “They also asked for public input, so we expect to solicit input from citizens in the near future.
“At some point staff will come back to council with a recommendation, possibly in late September or October.”
Parker said there are currently 18 video-gaming sites in the city, with four more pending approval.
“City council has the authority to deny licenses,” he said. “But with the currently policy in place, we aren’t going to ban them, but there’s got to be some limit. You don’t want a gaming parlor on every corner of every neighborhood.
“Everybody would like more retail business in Rock Island. We admittedly lack the retail sales tax revenues some of our neighboring communities have.”
Ideally, Parker said, the city would like to have more retail outlets and restaurants.
“With respect to payday loans, there are already nonprofits in Rock Island that offer low-interest loans,” Parker said. “We understand there are people who need to go get quick loans to pay rent, but I don’t think it’s appropriate to charge high interest on loans people need in emergency situations. If we could educate people on where to find low-interest loans, that would be ideal.
“Moving forward, we will explore an ordinance preventing any more payday-loan businesses,” Parker said “We may find we don’t have legal authority to do it.”
Ald. Ivory Deaon Clark, 1st Ward, agreed there are enough payday loan outfits in the city.
“I have no problems with pawnshops, but I do want a moratorium on payday loans and others who are predatory lenders,” he said. “We aren’t getting rid of the ones already there, but we have enough.”
Clark said he would consider three more video-gaming sites at the most.
“I don’t want a slot machine on every block,” he said. “We are going to add four more, and there’s room for three more at the most; that would be enough. City staff and attorneys are looking into the logistics of everything.”
Clark said he would like to see a grocery store open at the former Watchtower Plaza location on 11th Street.
“It would be great for people to have fresh produce so they don’t have to go so far from home,” he said. “Our city has to look toward the future, and what our young people need. Rock Island needs to be a place that is prepared to do business in the 21st century and beyond.”