The Starkville Board of Aldermen Tuesday extended the moratorium on new check-cashing and high-interest loan businesses in the city.
Approximately 20 companies, commonly referred to as “payday loan” businesses, car title loan businesses and check-cashing businesses operate in Starkville, with a majority of them located on Highway 12.
Aldermen Tuesday voted 6-1 to continue denying privilege licenses and certificates of occupancy for new high-interest loan and check-cashing businesses for another 12 months, or until the board amends its comprehensive plan or zoning ordinance to regulate those businesses. A privilege license and certificate of occupancy are required for a lending business to operate in Starkville.
The moratorium does not affect lending businesses already in the city, although upon the cessation of operations of existing businesses, for whatever reason, their privilege licenses and certificates of occupancy will not be valid for renewal or transference to another entity.
Ward 3 Alderman Eric Parker was the only board member to vote against the moratorium extension, saying he fears family-owned businesses might not be able to renew or transfer privilege licenses and/or certificates of occupancy if “something happens” to the owner.
Ward 2 Alderwoman Sandra Sistrunk proposed the moratorium extension and said she hopes the board can address lending businesses in the city”s comprehensive plan or zoning ordinance before another 12 months passes. She promised not to propose another extension.
Sistrunk would not comment after the meeting on why she feels the city needs a moratorium on lending businesses and instead cited her statements from January of this year, when the board originally passed the moratorium. Then, she said check-cashing and loan businesses prey on low-income residents and make the city look unattractive.
“These businesses impact our community economy, frequently taking out more money than they put back into the economy,” Sistrunk in January. “They do tend to cluster in areas and they will crowd out other businesses because of that …”
In other business Tuesday, aldermen held the first of two public hearings on a proposed amendment to the city”s sidewalk ordinance which would exempt four roads on the west side of town, just south of Highway 12, from sidewalk construction requirements.
A handful of residents and transportation committee members spoke out against the exemptions to Miley Drive, Pollard Road and portions of Industrial Park and Airport roads, but the measure also had supporters, including Golden Triangle Planning and Development District Director Rudy Johnson, former judge Jim Mills and others. Ward 1 Ben Carver proposed the exemptions and said the city should take a “common sense” approach regarding sidewalk construction.
“I”m for sidewalks in residential areas,” Carver said. “I think there is a need in certain parts of town. I think a prioritized list of streets to consider (for exemptions) is a good idea. Systematic planning is a good thing.”
But, Carver, said, “There has to be a common sense approach to where we need them.”
The next public hearing is set to take place during the Board of Aldermen”s regularly scheduled meeting on Jan. 4 at 5:30 p.m. in City Hall.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 32 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.