Tuesday, Nov. 5, 2002 | 9:45 a.m.
Companies that offer high-fee check cashing, payday loans and auto title loans in Las Vegas could face some new restrictions soon.
The Las Vegas City Council will consider on Wednesday a moratorium on new licenses for the businesses, and on Thursday the Planning Commission will weigh the appearance of the buildings they occupy.
"Overall we're looking at changing zoning codes to look at special use permits ... regulating location and aesthetics," Jim DiFiore, city business services manager, said.
But the head of a state trade group representing such money-lending businesses said restrictions are unnecessary and unfairly target the industry.
The moratorium the City Council will consider Wednesday will give planners time to propose changes to zoning law, Planning Manager Margo Wheeler said.
The Planning Commission is expected to begin discussing those changes Thursday.
The proposed amendments would require the businesses to get special zoning permits to open, Wheeler said. They would need to be at least 1,000 feet away from each other, and no closer than 200 feet from any home, similar to Clark County regulations, she said.
Also, building design and colors would be reviewed by city staff to make sure the building would be compatible with the surrounding neighborhood, and the businesses would have to apply for a waiver to be open beyond 8 a.m. to 8 p.m., Wheeler said.
The proposed amendments could go to the City Council in January, she said.
The amendments are being considered because some residents have complained about the appearance of some check-cashing, payday loan, and title loan businesses, Wheeler said. Current city zoning law treats those businesses like banks and other financial institutions, she said.
Jim Marchesi, owner of Check City and president of the Nevada Financial Services Association, said Councilman Michael McDonald asked for changes to zoning law because constituents were complaining about the bright colors some of the businesses painted their buildings.
McDonald did not return telephone messages Monday, but DiFiore said McDonald requested the moratorium be considered.
If the colors of the businesses are the problem, then the city should address that through a condition on their business licenses, Marchesi said.
Making the businesses get special zoning permits could delay an opening for weeks, which would be a problem for businesses because landlords are often reluctant to hold space, he said.
Also, the city is unfairly singling out his industry, Marchesi said, because some fast-food restaurants and other businesses sometimes use bright colors too.
"It's a bad idea if you're not going to apply it to everybody" he said.
DiFiore said Wednesday will be the first time the council will discuss a moratorium on the money-lending firms.
Currently there are 188 business licenses for the lenders in the city. But the number of those businesses in operation is fewer than 188 because some have both a license for check cashing and a license to issue payday and title loans, DiFiore said.
The businesses make their money by charging fees and/or interest for cash.
Payday loans typically cost $7 to $10 per week per $100 borrowed; check cashing usually costs $4 or $5 for a payroll check; and auto title loans generally come with a 10 to 15 percent interest rate, Marchesi said.
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