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Thursday, October 29, 2009 12:00 PM

Planners eye tighter regulations on payday loan companies in Ottawa

By VICKIE MOSS, Herald Public Affairs Editor

City attorney Bob Bezek had a couple of analogies for payday loan and title loan businesses — neither flattering.

First, he compared the business practice to a form of extortion. Then, he compared payday loan companies to adult entertainment businesses.

And, like adult businesses, Ottawa has options to regulate them.

What form that regulation takes — whether the city focuses on licensing the businesses, restricting locations or both — likely will be discussed at future meetings of the Ottawa Planning Commission.

Officials have talked with Wynndee Lee, director of planning and zoning for the city, for the past several months, she said. She researched regulations at 10 other cities in the Kansas City metro area and presented the results at the commission’s monthly study session Wednesday.

Most cities she surveyed restrict businesses to being no closer than 200 to 500 feet from a residential or public building, and between 200 feet and one mile of another similar business. Some of those cities also require the business to obtain a permit or license.

Bezek explained the difference to planning commission members.

“Zoning generally deals with the effects of that property on other surrounding property,” he said. “A business permit or license deals with what happens at that business.”

Regulating payday loan and title loan businesses is similar to regulating adult entertainment businesses, Bezek said.

“Not liking what happens inside the doors of a business is a licensing issue. What happens next door is a zoning issue,” he said.

Lee said she favors a combination, requiring businesses to obtain a license and restricting their location.

Some members of the planning commission said they were in favor of the most restrictive measures possible.

Richard Warren, who led Wednesday’s meeting in the absence of chairman Ed York, talked about concerns he had with local payday and title loan businesses, like obnoxious signs or a parking lot full of repossessed cars.

Lee said she would bring the commission examples of licensing requirements for its next meeting.

Because of the holidays, the planning commission will have its regular meeting at 7 p.m. Nov. 18 and a study session at noon Dec. 3.

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