New regulations that aim to slow the spread of pawnshops and payday loan stores won approval from the Des Moines City Council tonight.

Council members approved new zoning restrictions and stronger separation requirements on a 7-0 vote. Three readings are required for final passage.

Under the new rules, pawnshops and payday lenders would be prohibited in two business districts and subject to a half-mile separation requirement. The restrictions would bar pawn and payday loan operations in neighborhood retail and neighborhood pedestrian commercial districts. The businesses would be allowed in eight other business and industrial districts. The businesses would also be subject to a 250-foot buffer from residential districts. Exceptions would require a variance from the city’s Zoning Board of Adjustment.

Des Moines pawnshops and payday lenders would be prohibited in two business districts and subject to a half-mile separation requirement under new regulations that will be considered by the City Council.

Restrictions proposed by city staff include barring pawn and payday loan operations in neighborhood retail and neighborhood pedestrian commercial districts. The businesses would be allowed in eight other business and industrial districts.

Des Moines pawnshops and payday lenders would be prohibited in two business districts and subject to a half-mile separation requirement under new regulations put before the City Council this week.

Restrictions proposed by city staff and Plan and Zoning Commission members include barring pawn and payday loan operations in neighborhood retail and neighborhood pedestrian commercial districts. The businesses would be allowed in eight other business and industrial districts throughout Des Moines.

Restrictions proposed by a Plan and Zoning Commission subcommittee include the prohibition of pawn and payday loan operations in neighborhood retail and neighborhood pedestrian commercial districts. The businesses would still be allowed in eight other business and industrial districts.

A quarter-mile separation between the businesses and a 150-foot buffer from residential districts could also apply.
“I want the strongest, legally sound ordinance” possible, City Councilman Brian Meyer said.

In mid-May, the City Council enacted a 180-day moratorium on new pawnshops and payday lenders amid growing concerns about their proliferation and impact on neighborhoods.

Who:  The Plan and Zoning Commission

When:  7 p.m. today in council chambers at city hall

Where:  4200 Mills Civic Parkway.

Activity at pawn and loan stores can be a barometer of economic conditions. If pawns are up but sales are down, tough times are likely. If sales are swift and few people need loans, good times may be ahead. At Money & More, 1516 La Porte Road, sales are up, but so are loans.

“It’s a schizophrenic business right now,” said Lynea Davis, owner of Money & More.

Loans are still steadily increasing after taking a big jump in the summer of 2008 when gas prices hit record highs, Davis said. Loans at the store are up about 20 percent from last year. Sales fell flat for a while but have grown recently. While that’s good for business, Davis said it doesn’t necessarily mean easy times are ahead.

Pawn and loan stores are some of the first businesses to feel economic trends. Area pawn owners say they see some signs of recovery, but even more signs of uncertainty.

Des Moines leaders have backed a temporary ban on new pawn shops and payday loan stores in the city and called upon state lawmakers to enact tighter regulations throughout Iowa.

City Council members voted 6-0 during a special meeting Thursday to have City Attorney Bruce Bergman draft an ordinance to create a six-month moratorium on such businesses. Councilman Robert Mahaffey was absent.

Long-term restrictions will be debated during the 180-day freeze. The council will meet again Monday morning to vote on the moratorium.

Possible restrictions on new payday loan and pawn shops in Des Moines will be discussed when the City Council holds a special meeting today at 4 p.m. at City Hall, 400 Robert D. Ray Drive.

City Councilman Brian Meyer said he will ask for a six-month moratorium on such businesses to study the issue.

I know we have bigger fish to fry, but if you live in Des Moines and have the time, why not let the City Council know how you feel?