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Pawn shops, payday loan stores and video gambling have been the hot topics at recent City Council meetings, but the national pawn lobby and Elmhurst resident Jeff Houston aren’t too excited with what Houston calls the council “legislating morality.”
Houston, who ran unsuccessfully for 6th Ward alderman this spring, questioned why the city would turn down a revenue source like video gambling.
“They’re trying to appear like this righteous organization; they can be righteous if they want, but they’re going to be righteous and broke,” Houston said. “And bankrupt the city if they go on with this.”
Houston said he and several neighbors are concerned with the city turning down revenue when facing a multimillion dollar deficit.
At a September meeting, City Manager Tom Borchert estimated a city deficit of more than $1.5 million for 2009-10, and more than $4.18 million for 2010-11. At the same meeting, he forecasted a “potential budget gap of $4 million to $6 million.”
Houston said by turning away the revenue created by video gambling, and effectively turning away funds from regulating and taxing pawn shops and payday loan stores, the city is presenting no options to shrink the deficit than raising taxes.
“I would be looking for every little morsel, every nugget to put into the city coffer,” he said.
Borchert’s report calls for a review of the 2009 property tax levy, and targets a levy approval in December. Elmhurst has the second-lowest property tax in DuPage County, next to Oak Brook, which has none.
The city already has unanimously passed an ordinance banning video gambling within Elmhurst after Gov. Pat Quinn signed a bill legalizing video gambling terminals in July.
A statewide study from the Illinois Municipal League reported each establishment operating the maximum of five gaming terminals would generate $11,250 for its town.
Houston said he does not see much of a difference between video gambling terminals in bars and lottery ticket sales at every convenience store in the city.
But video gambling isn’t the only source of revenue the council is going after.
The council has shifted its attention to restricting pawn shops and payday loan stores for, among other factors, acting as “catalysts for neighborhood decline,” as 3rd Ward Alderman Susan Rose put it.
Should the council pass the ordinance as it was written in the Development, Planning and Zoning committee, any future pawn shops would have to meet seven criteria in the eyes of the full council and committees to open up shop in the C3 zoning district.
Pawn shops, payday loan stores and video gambling have been the hot topics at recent City Council meetings, but the national pawn lobby and Elmhurst resident Jeff Houston aren’t too excited with what Houston calls the council “legislating morality.”
Houston, who ran unsuccessfully for 6th Ward alderman this spring, questioned why the city would turn down a revenue source like video gambling.
“They’re trying to appear like this righteous organization; they can be righteous if they want, but they’re going to be righteous and broke,” Houston said. “And bankrupt the city if they go on with this.”
Houston said he and several neighbors are concerned with the city turning down revenue when facing a multimillion dollar deficit.
At a September meeting, City Manager Tom Borchert estimated a city deficit of more than $1.5 million for 2009-10, and more than $4.18 million for 2010-11. At the same meeting, he forecasted a “potential budget gap of $4 million to $6 million.”
Houston said by turning away the revenue created by video gambling, and effectively turning away funds from regulating and taxing pawn shops and payday loan stores, the city is presenting no options to shrink the deficit than raising taxes.
“I would be looking for every little morsel, every nugget to put into the city coffer,” he said.
Borchert’s report calls for a review of the 2009 property tax levy, and targets a levy approval in December. Elmhurst has the second-lowest property tax in DuPage County, next to Oak Brook, which has none.
The city already has unanimously passed an ordinance banning video gambling within Elmhurst after Gov. Pat Quinn signed a bill legalizing video gambling terminals in July.
A statewide study from the Illinois Municipal League reported each establishment operating the maximum of five gaming terminals would generate $11,250 for its town.
Houston said he does not see much of a difference between video gambling terminals in bars and lottery ticket sales at every convenience store in the city.
But video gambling isn’t the only source of revenue the council is going after.
The council has shifted its attention to restricting pawn shops and payday loan stores for, among other factors, acting as “catalysts for neighborhood decline,” as 3rd Ward Alderman Susan Rose put it.
Should the council pass the ordinance as it was written in the Development, Planning and Zoning committee, any future pawn shops would have to meet seven criteria in the eyes of the full council and committees to open up shop in the C3 zoning district.
The council is expected to pass the ordinance at its next meeting Monday, Oct. 5.
‘Seedy’ called a stereotype
Fran Bishop, a pawn store owner and chairwoman of government relations for the National Pawnbrokers Association, said the city is misguided by negative stereotypes.
“The pawn industry has been around since the beginning of time; there’s the rumor that Queen Isabella pawned her jewels to fund Christopher Columbus,” she said. “Customers just borrow what they need, they need $50 to get a flat tire fixed on their car, these are small loans ... most are repeat customers, we know these people and we have a relationship with them.”
NPA President and pawn store owner Dave Crume said a seedy pawn shop would not be successful in Elmhurst, but many stores are upscale and serve a purpose to honest residents trying to make ends meet.
“Traditionally, the customers that come to the pawn shops are generally within a two-mile radius; the notion that it’s going to bring all these people out of the inner city is unfounded,” he said. “Our customers don’t really want to get rid of their stuff, they bring in the same item from time to time because they know it’s worth something.”
NPA spokesman Emmett Murphy said it’s not fair to group a heavily regulated business such as pawn shops with more loosely regulated payday loan stores.
“Pawnbroking is regulated by 12 federal laws, at the state level and by local police,” he said. “Payday loan stores are in the business of selling money, we’re in the business of collateral.”
Regardless of the differences between payday loan stores and pawn shops, Houston thinks neither would hurt the morals or economy of Elmhurst.
“Glen Ellyn had both pawn shops and payday loan stores within city limits, they’re an equally nice community as ours, I looked in Naperville ... I don’t see the social fabric breaking down in either one,” he said.
Houston accused the council of making the easy choice of going against businesses that cater to the working class, but sidestepping how to close the deficit.
Sixth Ward Alderman Jim Kennedy, who defeated Houston in this year’s election, said allowing video gambling in the city was not worth the baggage, and he has his constituents’ support.
“I think the risks outweigh the reward,” he said. “The people I have come across and (citizens who) have talked in public forum have unanimously said they don’t want (video gambling terminals, pawn shops, and payday loan stores) in town.”
