• City of Chattanooga
• The Chattanooga Area Chamber of Commerce
• University of Tennessee at Chattanooga (UTC)
• Chattanooga State Technical Community College
• A.I.R. Labs
• The Enterprise Center (TEC)
• The Company Lab (CO:LAB)
• Blue Cross Blue Shield of Tennessee (BCBST)
• Unum Group
• The Lamp Post Group
• Erlanger Hospital
• Public Education Foundation (PEF)
• TN Code Academy/ Girls Who Code
• Chattanooga Public Library -- 4th Floor
Currently there are 23 cash advance stores, payday lenders, and title pawn businesses on an approximately three mile stretch of Brainerd Road.
Take a drive down Brainerd Road or Highway 58 and you’ll see the bright signs lined up, one after another. They promise quick and easy money. Some are even open twenty-four hours a day.
But there are no billboards on these roads advertising the problems these stores bring with them.
Cash advance stores, payday lenders, and title pawn businesses don’t just cause serious financial harm to our most vulnerable Chattanooga families. These businesses negatively impact entire communities and our city as a whole. In neighborhoods with a dense concentration of payday lenders, neighbors experience lower property values, loss of capital investment, and higher crime rates.
I know this from talking to business owners and residents in these areas. New business owners simply don’t want to open up shop in between title pawn shops and payday lenders. And existing businesses are reluctant to invest in their property, knowing that they may not see a return because of the prevalence of predatory lenders. This leads to capital fleeing these areas, harming economic development in our city.
It isn’t just anecdotal; research backs up the stories. A 2009 study by George Washington University and California State University established that the presence of payday lenders in a neighborhood is directly associated with violent crime. Writing about the customers becoming easy marks for robberies, the researchers wrote that “the availability of cash in distressed neighborhoods at readily identifiable businesses, often open during evening and weekend hours, suggests a probable link between crime, particularly violent crime, and payday lending.”
The proliferation of these businesses has continued for too long. During my time in the State Senate as well as my time as Mayor, residents have repeatedly expressed their concern with the practice of predatory lending and especially the concentration of payday lenders and title pawn in their neighborhoods. Unfortunately, Tennessee’s legislature has encouraged the growth of these industries by legalizing interest rates in excess of 450% and stripping local governments of the ability to regulate their business models. While state law no longer allows local governments to protect individuals and families from the predatory practices of these businesses, it does allow cities to protect neighborhoods from the effects of concentrations of these businesses through zoning ordinances.
With this in mind, I worked with Councilwoman Berz and Councilman Gilbert to propose zoning legislation which would stop these businesses from flooding our streets. It states clearly that no new predatory lending business can be located within a quarter mile of another payday lender or pawn shop or within 500 feet of a residential home. By adopting this change, I hope we can stem the decline that follows a predatory lender’s arrival.
Everyone knows there’s no such thing as easy money. And even though easy money is exactly what payday lenders, title loans, and title pawn shops promise, they are a poor investment for the good of our city. With this new ordinance, which will be in front of City Council on Tuesday, the City will deliver on our commitment to stronger, safer neighborhoods throughout Chattanooga.
This Op-ed by Mayor Andy Berke first appeared in the February 15, 2015, publication of the Chattanooga Times Free Press.
For me, one of the best days of last year was traveling to Germany to meet with Volkswagen executives who were preparing to announce their decision to build another line in my hometown. I knew it would create thousands of direct and supplier jobs, but I have also witnessed the increased opportunity, self-esteem, and quality of life that come from those new positions. And while we all love VW, they weren’t the only economic success story of last year. Coca Cola, Amazon, Convergys -- in 2014, internationally-known companies chose to make Chattanooga their home or to grow here.
We know that not every expansion grabs the front page. There are small companies across our city who are developing innovative ideas, trying to outwork the competition, and building successful new businesses in Chattanooga. We are trying to add fuel to this fire through our Growing Small Businesses initiative, as well as a focus to expand our entrepreneurial sector and startups like BellHops, Wafflez Factory, and many others that are putting more Chattanoogans to work.
Overall, we added 3,429 new jobs this year. Our unemployment rate is down a full point below a year ago at this time. I am incredibly appreciative of our ECD employees, and our community and government partners who are helping to bring more jobs to Chattanooga.
Thousands of Chattanoogans lives changed for the better in 2014, but there is more work to do. At City Hall, I will continue working to create the conditions that bring living wage jobs here and expand our middle class, but I need your help in this effort. We need a strong workforce - so I need you to help our young people be successful. We need more employers who are considering Chattanooga - so I need you, our best spokespeople, to help promote what you love about our great City. If you have a great Chattanooga story from 2014 you want to share, email me, message me on Facebook or twitter, or tweet with the hashtag #CHA2014.
As soon as we turn out the last light on 2014, let’s roll up our sleeves in the new year and get back to work.
To send Andy questions, comments or concerns, please fill out the form below.
© 2012 Andy Berke. All Rights Reserved.
Paid for by Berke for Mayor, Cari Henderson, Treasurer Contact Andy