HomeMy WebLinkAboutCOR-2021-24 - Appeal - Payday Loan Establishment - New Location
REPORT TO:Committee of the Whole
DATE OF MEETING: September 20, 2021
SUBMITTED BY: Tarling, Christine, Director of Legislated Services City Clerk, 519-
741-2200 ext. 7809
PREPARED BY: Fylactou, Helen, Manager of Licensing, 519-741-2200 ext. 7854
WARD(S) INVOLVED: 9 & 10
DATE OF REPORT: September 1, 2021
REPORT NO.: COR-2021-24
SUBJECT: APPEAL PAYDAY LOAN ESTABLISHMENT NEW LOCATION
RECOMMENDATION:
That Council supports the decision of the Manager of Licensing to refuse the
business licence application for Floaters, Inc. to relocate their payday loan
establishment to the property municipally addressed as 78 King Street West in
accordance with Schedule 17.1 of Chapter 599 (Business Licensing) of the City of
Kitchener Municipal Code.
REPORT HIGHLIGHTS:
The purpose of this report is to outline the decision to deny the request of the Payday
Loan Establishment to relocate by the Manager of Licensing.
This report supports the delivery of core services.
BACKGROUND:
Chapter 599 Business Licensing By-law (the By-law) of the City of Kitchener Municipal
Code regulates all Payday Loan Establishments under Schedule 17.1. The Payday Loan
Establishment schedule (the Schedule) was approved and added to the Business Licensing
By-law by Council in June 2019.
The Payday Loan Establishment Schedule regulates:
a) the total number of Payday Loan Establishments citywide;
b) the total number of Payday Loan Establishments per ward;
c) the requirements and inspection of each location; and
d) the current recognized addresses.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
The By-law limits the total number of payday loan establishments to no more than ten (10)
citywide and no more than two (2) locations per ward. As all business licences are non-
transferable, and any location that closes and looks to move to a new address is deemed a
new application; therefore a new location would only be approved if the business met the
regulations and conditions within the By-law.
The Manager of Licensing (the Manager) has the authority to approve, add conditions, or
deny a licence if the business or location does not meet the By-law regulations. A business
owner may then choose to appeal that decision to Council or Committee of Council.
REPORT:
In July 2021, the owner of Floaters, Inc. (Floaters) made Licensing staff aware that the
business would no longer be able to operate at its current location at 25 Frederick Street
and the owner was looking for a new location. Floaters requested approval to move to 78
King Street West. The Manager advised Floaters that the application for a new licence would
be denied because the business did not meet the regulations within the Schedule. The
Business Licences being non-transferable and therefore any relocation of a Payday
Loan Establishment would be considered a new licence.
The Schedule only permits 10 citywide Payday Loan Establishments and the total
number of locations would have to be under 10 before a new location can be
approved. Approval of this location would not reduce the overall number of Payday
Loan Establishments but would maintain the current total of 14 licensed Payday Loan
Establishments.
The Schedule permits two (2) Payday Loan Establishments per ward and the number
of Payday Loan Establishments would need to be under two (2) to approve another
in ward 9 or 10. This would not reduce the number of Payday Loan Establishments
in ward 10. There are currently two (2) Payday Loan Establishments in ward 9 and
four (4) in ward 10. The number in ward 10 would remain at four (4) locations.
Consistent messaging provided to other new Payday Loan Establishments which
have been told they cannot apply as the City does not permit new locations at this
time in accordance with the Schedule.
In addition, the proposed location at 78 King Street West was previously licensed as a
Payday Loan Establishment, however, that licence was previously surrendered and the
business at that location has been operating with an Old Gold business licence only. As
such, when the Schedule was amended in January 2021 this address was removed which
has rendered it ineligible under the Schedule to operate as a Payday Loan Establishment.
If Council approves the appeal for relocation to the proposed location, the applicant will have
to complete a new application including the requirement to submit payment, required
documentation, and to obtain any required permits.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services
FINANCIAL IMPLICATIONS:
The cost of a new 2021 Payday Loan Establishment Licence is $575.00
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
COR-21-001 Housekeeping Amendments to Payday Loan Establishment
Schedule
COR-19-024 Payday Loan Establishments
APPROVED BY: Victoria Raab, GM Corporate Services