RIVERDALE -- After a recent change to a city ordinance, title loan companies do not have to worry about the distance their establishments are from residential areas.
The council unanimously approved allowing title loan companies as a conditional use in C3 commercial zoning areas and removing any reference to measurements from residential areas.
Payday loans and check cashing companies, along with banks and credit unions, are also listed as permitted uses in the same ordinance under a financial institution category.
The change removes the requirement that such establishments must be at least 500 feet from any residential zone or dwelling use.
"It seems to be a reasonable compromise," Councilman David Gibby said.
The change would allow American Title Loans to locate at 4224 Riverdale Road in the former Truly Nolen Pest Control location. The location is near a residential area that is slated to convert to commercial zoning in the future.
"There are worse businesses you could put in next to residential," Councilman Norm Searle said. Community Development Administrator Randy Daily said the city council would still be able to consider a company's impact to adjacent properties when considering applications that routinely come before them.
Daily researched ordinances in five dozen cities, and Layton's was the only one that mentioned title loan companies by name. In Layton, title loan companies are classified the same as payday loan and check cashing services.
City Administrator Larry Hansen said some cities attempt to regulate the proximity of one payday loan establishment to another such establishment, suggesting they are at least 1,000 feet away from each other.
Councilman Alan Arnold said he didn't want to limit the number of title loan establishments in Riverdale, just the location of them. He said title loan companies should be allowed along the Riverdale Road corridor, regardless of the proximity to residential areas.