SUBSTITUTE ORDINANCE NO. BL2014-908

An Ordinance amending Chapters 17.04, 17.08, and 17.16 of the Metropolitan Zoning Code to designate cash advance, check cashing, pawnshop, and title loan as uses permitted with conditions and adding conditions applicable to these uses (Proposal No. 2014Z-020TX-001).

WHEREAS, a study conducted by the Regional Planning Agency of Chattanooga-Hamilton County, Tennessee, concluded that the proliferation and clustering of cash advance, check cashing, pawnshops, and title loan establishments (frequently called “Alternative Financial Services”) can have a detrimental effect on local property values and economic redevelopment; and

WHEREAS, a 2009 examination of the locations of alternative financial service providers by the Board of Governors of the Federal Reserve System provides evidence that these businesses tend to locate in areas where the population is disproportionately minority and poorly educated; and

WHEREAS, the fees and lending practices used by alternative financial service establishments can have a significant negative effect on a city’s residents {Source: Baylor, Don; “The
Hidden Costs of Payday Lending,” Texas Business Review, April 2008}; and

WHEREAS, as shown on Exhibits A and B attached hereto and made a part of this ordinance, Nashville, Tennessee has a high concentration of alternative financial service establishments along the major thoroughfares in the city; and

WHEREAS, in order to protect local property values and economic redevelopment in Nashville, Tennessee, the Metropolitan Council deems it to be in the best interest of the residents of the city that the proliferation and clustering of alternative financial services be further regulated through the Metropolitan Zoning Code.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That Section 17.04.060 of Title 17 of the Code of The Metropolitan Government of Nashville and Davidson County, Zoning Regulations, is hereby amended by adding the following provision at the end of the definition of “financial institution”:
“, but excluding cash advance, check cashing, and title loan establishments”

Section 2. That Section 17.08.030, District Land Use Tables, is hereby amended by designating “cash advance” “check cashing”, “pawnshop” and “title loan” as uses permitted with conditions (PC) in all zoning district in which they are currently permitted (P).

Section 3. That Section 17.16.050, Office Uses, is hereby amended as follows:
1. By deleting subsection A. in its entirety and substituting with the following new subsection A.:
“A. Financial Institution. Financial institutions in the MUN, MUN-A, ON, and CN zoning districts shall be limited to two thousand five hundred (2,500) square feet of gross floor area per establishment.”
2. By adding the following provision as subsection D.:
“D. Cash Advance, Check Cashing and Title Loan.
1. No cash advance, check cashing, or title loan establishment shall be located less than one thousand three hundred twenty (1,320) linear feet from the property line of another property upon which another cash advance, check cashing, or title loan office is located.
2. Cash advance, check cashing, or title loan offices in the MUN, MUN-A, ON, and CN zoning districts shall be limited to two thousand five hundred (2,500) square feet of gross floor area per establishment.”

Section 4. That Section 17.16.070, Commercial Uses, is hereby amended by adding the following provision at the end of subsection P:
“3. No pawnshop establishment shall be located less than one thousand three hundred twenty (1,320) linear feet from the property line of another property upon which another pawnshop establishment is located.”

Section 5. If any provision of this Ordinance shall be declared unconstitutional or otherwise invalid by the judgment or decree of any court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any of the remaining provisions of the Ordinance.

Section 6. Be it further enacted that this Ordinance shall take effect immediately after its passage and such change be published in a newspaper of general circulation, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Jacobia Dowell, Karen Johnson, Fabian Bedne

View Exhibits

LEGISLATIVE HISTORY
Introduced:	October 7, 2014
Passed First Reading:	October 7, 2014
Referred to:	Planning Commission - Approved with Amendment 8-0 Planning & Zoning Committee
Passed Second Reading:	November 4, 2014
Substitute Introduced:	November 18, 2014
Passed Third Reading:	November 18, 2014
Approved:	November 19, 2014
By:
Effective:	November 21, 2014