Committee rejects pawn shop application

Hey there, time traveller!
This article was published 02/05/2016 (3466 days ago), so information in it may no longer be current.

The City of Winnipeg appeal committee voted unanimously to stop a proposed pawn shop from opening in Elmwood after an outpouring of opposition.

The vote was taken on April 28 by the committee, which consists of councillors Jenny Gerbasi (Fort Rouge – East Fort Garry), Ross Eadie (Mynarski), and Shawn Dobson (St. Charles).

Joe and Mario Rodriguez, owners of a pawn shop on Sherbrook Street, hoped to open an additional location on the northwest corner of Hespeler Avenue and Henderson   Highway.

They initially had the support of municipal administration.

“The site is vacant,” senior planner Glen Doney said. “That is not a desirable situation. Someone wanting to occupy it was a positive.

“If other properties were available it would be a different manner.”

A drive down both Nairn Ave. and Henderson Hwy. revealed several retail locations for rent.

The Rodriguez application needed a variance because the proposed location, while meeting most zoning requirements, sat within 1,000 feet of the Money Mart at 215 Henderson Hwy. and Cash Money at 311 Henderson Hwy. Cheque cashers and other alternative lenders must sit at least 1,000 feet away from each other in order to prevent clustering of services charging high interest rates.

Area resident Michel Durand-Wood took issue with municipal staff who said pawn shops do not adversely  affect the surrounding area.

“Studies link a high concentration of alternative lenders to increased crime,” he said, before producing copies of several such studies. “(Pawn shops) act as conduits extracting wealth from the inner-city and channelling it elsewhere.”

Durand-Wood cited the work of groups such as the Chalmers Neighbourhood Renewal Corporation (CNRC), who are in the early stages of developing comprehensive plans to improve the community. He implored the committee to stop the pawn shop and give those groups more time to implement their plans without having to contend with additional obstacles.

“Their five-year renewal plan highlights six key areas, two of which are safety and attracting mainstream banking,” he said.

Durand-Wood said the community has been generating some momentum with the development of Clara Hughes Park, improvements to Elmwood Park, and the active transportation bridge, but that progress remains fragile.

“Why would we want to hinder that?” he asked. “We are saying no to being taken advantage of by predatory lenders.”

Eadie took issue with the data Durand-Wood presented.

“If someone was opening a pharmacy or a clinic would you have a problem with that?” Eadie asked. “What about people who are addicted?”

“Have you ever been laid off and accumulated stuff and needed to get rid of it? I’ve been in that spot.”

Durand-Wood was followed by a steady stream of residents who presented petitions with more than 250 signatures and further studies.

Coun. Jason Schreyer was upset with city staff for not notifying him about an issue of such importance to his constituents. He said he only learned of the issue when he walked past the area with MLA Jim Maloway.

Schreyer said he used to work in hard labour-style jobs where many of his co-workers were disenfranchised from traditional financial institutions. He drove them to alternative lenders to cash their cheques on paydays.

So while alternative lenders indeed fill a role, that does not mean it is a positive one, Schreyer added. He noted there was a precedent in the area.

“We have a history of not allowing pawn shops. There was one with Lillian Thomas but it was denied.”

Council should instead be encouraging the work of the many second-hand stores in the community, many of which are run by charities who reinvest locally, Schreyer said.

 “Prairie Crocus (930 Nairn Avenue) raises money for Dignity House, which helps people with drug addiction and gets them off the streets.

 “I can’t say a pawn shop does that, but I do know the other stores do adapt and deal with the realities of the community.”

The committee also heard from a pair of residents who collectively have spent 117 years in the neighbourhood.

Retired social worker Norma Dietz has lived in the neighbourhood for 72 years. She questioned the need for a pawn shop and chided those who did not believe the studies presented by her neighbours.

That prompted a response from Eadie.

“Business goes where the customers are,” Eadie told Dietz. “Obviously there are customers in your neighbourhood.”

Karl Ausborn said he has lived in the neighbourhood for more than 40 years, long enough to remember how the development of Henderson Highway tore the community in half.

It’s beginning to recover, Ausborn said.

“There are new faces in the community and home prices are appreciating. We’re on the upswing. These (businesses) will slowly drain the life from our neighborhood.

“We need your help to get the right businesses in the neighbourhood. This is not one of them.”

The committee also heard from organizations working to improve Elmwood. CNRC Executive Director Dale Karasiuk thanked the councilors for their past support but cautioned a pawn shop puts their collective progress at risk.

“A big part of the five-year neighborhood plan is improving our perception, our image, and our safety,” Karasiuk said. “A pawn shop does not represent any of these.”

Riverwood Church Community Pastor Jon Courtney read a letter signed by representatives of 17 area stakeholder groups. He said he works daily serving the needs of people with addictions, who are in abusive situations, and others at risk of social marginalization.

“High interest and fee options have become the solutions for those struggling in poverty,” Courtney said.

“We are not interested in seeing the growth of an industry that predominantly profits from the poverty of a community. The approval of a pawn shop would have a crippling effect on the people we are trying to support.”

After listening to three hours of presentations opposing their proposal, Joe and Mario Rodriguez had the opportunity to respond.

“Most people don’t know how pawn shops operate,” Joe Rodriguez said.

People bringing in product get fingerprinted and have their pictures taken, he explained. Items are photographed and those pictures sent to police. Items are held for 15 days before they can be sold.

“I am not sure how this will increase crime,” he said. “The only difference between a second hand shop and a pawn shop is that with a second hand shop they do not have the option to come back and pick it up.”

He added he could not find any locally-conducted studies which showed negative effects of pawn shops, despite Durand-Wood earlier providing two.

Mario Rodriguez took issue with the repeated characterizations of his business.

“I feel intimidated and stereotyped by these people telling me I’m a criminal. I don’t see people making comments about bikers going to Tim Horton’s.”

“Is that an issue for you guys?” he asked the crowd.

Upon questioning from Eadie, Rodriguez claimed he does not charge a fee for cashing cheques and charges a flat rate of five percent on pawned items. Given the short time many items remained in a pawn shop, Rodriguez did not provide an example of what an actual annual interest rate would be for a pawned item.

In the end the committee voted unanimously to deny the pawn shop application, with Eadie coming around just enough to vote with Gerbasi and Dobson.

“(A pawn shop) does create a substantial adverse effect on the surrounding community and is not compatible with the area,” Eadie said. “There are many in Point Douglas so I don’t see a need here.

“Criminals do bring stolen goods there but we already have enough pawn shops for thieves to bring stolen goods to.”

Gerbasi noted the overwhelming opposition and said she was not convinced to go against regulations by granting the variance.

 “There has not been a solid explanation for a variance. It was put there for a reason.”

Courtney was happy with the decision.

“I think it’s an incredible representation of a community coming together to voice their desire for Elmwood to be invested into and rejeuvenated.

 “Today’s news feels like a victory on one level where we have advocated for those most vulnerable in our neighbourhood.”

Courtney cautioned that structural changes like council-approved plans are required so the community does not have to repeatedly return to oppose further applications.

Karasiuk was also encouraged by the level of civic engagement.

“When we have people that are invested in their community I think you see the results that come with that.”

Improving a community is a detailed process, Karasiuk added, saying the CNRC has more than 40 action steps covering everything from safety to health to housing.

Durand-Wood agreed.

“We’re happy but it’s one small fight and there is a lot of work to get done.”

 

Facebook.com/TheHeraldWPG
Twitter: @HeraldWPG