Alternative Finance Firms Face the Limits of Spring Hill

SPRING HILL – Mayor Rick Graham is seeking the city to join other Midstate communities in limiting the number of alternative financial institutions seeking to locate within its boundaries.

Alternative financial institutions are considered to be unlicensed financial institutions that provide short-term loans to high-risk clients through various products such as installment loans, title loans, and payday loans.

Graham will present the proposal to the Planning Commission at its Monday evening working session, which will begin at 5:30 pm at Town Hall, 1999 Town Center Parkway.

“This ordinance is not intended to prevent these types of businesses from moving to Spring Hill, and it is not about whether they are providing a useful service,” Mayor Graham said in a statement. Press. “The intention is to allow a uniform distribution of these services to avoid a concentration in a particular area of ​​the city. This will balance the community’s need for these types of services with the owners’ desire to maintain the growth in the value of the properties. properties. “

Spring Hill has three of these institutions in operation.

The ordinance will then be presented to the council of mayors and aldermen for discussion on May 4. After receiving a recommendation from the planning commission, the proposed ordinance must pass two readings with the council of mayors and aldermen, with the final vote scheduled for June. .

“If the ordinance passes both readings in May and June, it would come into effect immediately after being approved in June,” city spokesman Jamie Page said.

A 2006 study by the Chattanooga-Hamilton Regional Planning Agency found that the rapid growth and concentration of alternative financial services there can hamper the appreciation of residential property values.

Spring Hill’s proposed ordinance would allow such facilities to take place in the B-3 commercial zoning district, but they must be more than a mile apart, city planner Dara Sanders said.

“Before proposing amendments relating to alternative financial institutions in Spring Hill, similar to those in our neighboring towns, we conducted several exercises to map different types of approaches to understand the true impact of our options, said Sanders in the press release.

The city of Smyrna adopted its ordinance on March 10. Before the new rule was adopted, the city had 23 such alternative financial services, including pawn shops. The limits include the prohibition of such businesses from downtown Smyrna, residential areas, and business and office areas. Businesses are also prohibited from locating within a quarter of a mile of each other or residential areas.

Passed in November, the Metro Nashville-Davidson County policy also prevents new institutions from locating within a quarter of a mile of each other.

Contact Mealand Ragland-Hudgins at 615-259-8062 or on Twitter @ mrhudgins4.

Leave a Reply

Your email address will not be published.