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HomeMy WebLinkAboutPC Meeting (Reso 2778-2015) - Applicant Statement and Plans - PublicHonorable members of the Planning Commission. My name is David Newman and my family has owned and operated Cash Loan, Inc., known as South City Pawn, here on Grand Ave since 1969. What began as a small 800' storefront on the 100 block of Grand Ave has grown into a 4000 square foot retail location currently located at 337 Grand Ave. Unfortunately, the current owner has decided to put another restaurant on Grand Ave and we have been forced to relocate. While looking for a new home for our family business we have encountered a situation that has made relocating within South City very difficult and I'm here this evening to ask for your help in rectifying the situation. In 2014, our City leaders made changes to the zoning plan to make way for our future growth. Not realizing we might be forced to relocate some day we all assumed that 337 Grand would be South City Pawn's home today and long into the future. Zoning changes were made to protect our downtown, but the unforeseen results of those changes are why I'm here this evening. As you are all aware, real estate is at a premium here in town, and retail space able to accommodate our growing department store operation is even more difficult to find. When we were finally able to locate space that could accommodate our business we discovered that in protecting the downtown corridor the zoning changes made in 2014 did not allow for existing “Other Financial Services” businesses to relocate within the district. We're asking for your help in rectifying this by making the necessary changes to the zoning ordinance. While I recognize that restricting certain businesses from the downtown corridor has merit I do not believe the intent of the City Council was to force our business out of town. I'm asking for your help by recommending to Council that a change be made to the new ordinance so that our 46 year old company may continue to provide our services to the community at the new home we've secured at 230 Miller Ave. During the change to Title 20, Pawnbrokers were listed as businesses which "might put financially vulnerable residents at risk with very high interest rates" and "could trap users in a cycle of debt that could contribute to increased rates of poverty in the city". This is a false premise as it applies to pawn shops. Pawnbroking is among the most heavily regulated industries in our state. Our interest rates are among the lowest in the country and are regulated by the State Legislature. We currently write 4 month loans that average 4% interest per month and is renewable upon payment of the interest at the end of each loan period. Unlike other secondary lenders mentioned in the ordinance, our Customers face no negative mark on their credit record should they choose to default on a loan; which only a small percentage actually do (15% in this economy, even lower in good years). Unlike many other financial institutions, a pawn shop's average loan is under $300, and for those needing short term money to help make it between paydays there is no other safe place to borrow. If it wasn't for the availability of these small short term loans many people would find themselves unable to pay their bills. Our database contains the names of almost 5500 local residents that rely on us for their short term monetary needs. Unlike mainstream banks we don't judge our clients based on their income or credit score. A customer brings in an item of value (almost 80% of which is jewelry) and they are able to borrow based solely on the value of the item. Last year our company wrote approximately 14,000 loans, of which 83% (11,600) were paid off on time. Our average customer is between 18-45, married and with children in the home. Living in the Bay Area is expensive and most of our customers have good jobs that pay a fair wage, but due to circumstances they often fall short between paydays. In this area, our clients make up a diverse ethnic mix and many customers use part of the income to supplement their family's income "back home". Of the 14,000 loans we wrote last year, only 8 items were suspected of being stolen property, and of those, 4 were inter-family (civil) issues. In addition to our loan business, South City Pawn is also a retail store that prides itself in providing residents and visitors to our town a unique shopping experience. We offer a wide range of both new and previously owned merchandise and are jewelry and watch specialists. Whether shopping for a musical instrument, consumer electronics or fine jewelry, South City Pawn is known for value pricing and outstanding customer service. My family's roots go deep in this city; my grandfather as well as myself have been active members of the Chamber of Commerce (I'm a past board member) as well as the old Downtown Merchants Association. Additionally we have always been strong supporters of the area schools, churches and youth groups. Whether it be donations of band instruments, computers, tools or items to be used for auctions/raffles to raise money, we've always enjoyed the opportunity to contribute to our residents needs as they arise. Our business operates Monday through Friday, 10am until 5:30pm and Saturdays from 10am until 4pm. We are proud of what we do and would welcome an opportunity to give any of you so interested the grand tour any time. I do have to warn you that our store is also home to 3 very loving German Shepherd dogs, 2 of which have been our official greeters since they were pups, and who think the only reason people walk in is to visit them, so be prepared to take home a few stray dog hairs when you do come by. We love this city and wish to remain part of the downtown corridor for a long time. Please consider my request favorably.