Spring Hill Mayor Proposes Limit on Alt. Non-Banks

Next week, Spring Hill Mayor Rick Graham,will propose limitations on the number of alternative financial institutions allowed to locate in Spring Hill as a measure to protect property values.

The proposed zoning limitations target non-chartered financial institutions (non-banks) offering services such as payday advance loans, check cashing, currency exchange and auto title loans as their primary business. Currently, three such institutions exist in Spring Hill.

Alternative financial institutions have been shown to have a negative impact on the appreciation of residential property values when heavily concentrated in a particular area, according to a 2006 study conducted on behalf of the City of Chattanooga. Chattanooga, Smyrna and Metro Nashville-Davidson County have each adopted similar limitations in recent years.

[quote font_size=”15″ bgcolor=”#” color=”#” bcolor=”#” arrow=”yes”]“This ordinance is not intended to prevent these types of businesses from locating in Spring Hill, and it’s not about whether they provide a useful service,” Mayor Graham said. “The intent is to allow for even distribution of these services to prevent a concentration in a particular area of town. This will balance the community’s need for these types of services with homeowners’ desire to maintain growth in property values.” [/quote]

Spring Hill City Planner Dara Sanders is drafting the proposed ordinance to permit these institutions only within a B-3-business zoning district and within a 1-mile radius of one another.

“Before proposing amendments relating to alternative financial institutions in Spring Hill, similar to that of our neighboring cities, we performed several exercises to map out different types of approaches to understand the true impact of our options,” Ms. Sanders said.

Mayor Graham will first present the proposal to the Planning Commission at its April 27 work session. It again will be presented for discussion to the Board of Mayor and Aldermen on May 4. The ordinance will require two readings after receiving a recommendation from the Planning Commission, which will take its first vote on the matter at the May 11 work session.

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