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Joyce Clark Unfiltered

For "the rest of the story"

Tonight, June 10, 2014 at 6 PM in Glendale City Hall Council Chambers the city council will hear an appeal for a Conditional Use Permit by USA Pawn at the southeast corner of 67th Avenue and Bethany Home Road.

I urge the city council to DENY the siting of yet another pawn shop in south Glendale.

When a governmental agency allows the concentration of this type of use in one area of its city it is applying “negative zoning.” Negative Zoning is the permitting of property uses that affect property values and quality of life of adjacent neighborhoods.

Whether you live in the adjacent area or not, I encourage residents of Glendale to attend the council meeting tonight and to speak to the council during the public hearing on this item. Please let them know that yet another pawn shop within spitting distance of nearly a half dozen other pawn shops in south Glendale is not something our community wants or needs.

Tuesday, July 10     6 PM City Council meeting

Glendale City Council Chambers

5850 W. Glendale Avenue

One of my blog readers sent me the following article about Craig McCall, owner of USA Pawn. I thought it worthy of posting. It relates Mr. McCall’s activites within the pawn shop industry:

 Craig McCall of USA Pawn is a Las Vegas Pawnbroker who came into Arizona after selling his Las Vegas pawnshops to EZCorp in 2008 for 34.5 Million Dollars.  Please see the article below:

EZCORP Acquires Eleven Nevada Pawnshops

PRNewswire-FirstCall

AUSTIN, Texas Sep 5, 2008

EZCORP, Inc. (NASDAQ: EZPW) announced today that it has entered into a definitive agreement to acquire the assets of eleven pawnshops located in Las Vegas and Henderson, Nevada that operate under the Pawn Plus and ASAP Pawn brands. EZCORP will acquire approximately $6.6 million of pawn loans, $2.2 million of inventory, $1.2 million of auto title loans and all other operating assets at the eleven locations for a total purchase price of $34.5 million. Half of the purchase price will be paid with the issuance of EZCORP’s Class A Non-voting Common Stock and half in cash. The acquisition is expected to close by early November. EZCORP’s President and Chief Executive Officer, Joe Rotunda, stated, “We believe this is an excellent acquisition in a very good pawn market and will complement our existing four Las Vegas locations. These stores have an average pawn portfolio of roughly $600,000 per store, almost three times our chain average, and on a proforma basis, generated approximately $5.5 million of EBITDA during the last twelve months.

In our fiscal 2009, we expect these stores to contribute five to six cents in earnings per share.” Rotunda continued, “In conjunction with this acquisition, we are pleased to announce that Craig McCall, the seller, will be joining our team in a long term consulting capacity. Craig has done an excellent job in building this business in the Las Vegas market and we see Craig as a real asset to our company as we jointly fulfill the commitments he has made in developing this quality operation. Craig also will be our landlord at eight of these locations.”

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. In 294 U.S. EZPAWN and 30 Mexico Empeno Facil locations open on June 30, 2008, the Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 461 EZMONEY locations and 71 EZPAWN locations open on June 30, 2008, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

This announcement contains certain forward-looking statements regarding the Company’s expected performance for future periods including, but not limited to, the completion and anticipated benefits of an acquisition and expected future earnings. Actual results for these periods may materially differ from these statements. Such forward-looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company’s services and merchandise, changes in the regulatory environment, and other factors periodically discussed in the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. For additional information, contact Dan Tonissen at (512) 314-2289. First Call Analyst: FCMN Contact: Laura_Jones@ezcorp.com  

Mr McCall then opened 12 Arizona pawnshops and again sold them to EZCORP.  Please see article below.  

EZCORP Enters the High Potential Arizona Market

EZCORP has also completed the acquisition of 12 USA Pawn & Jewelry stores in Tucson  and  Bullhead City, Arizona.  This investment marks the Company’s initial move into  Arizona  and its key markets.  The Company intends to grow its presence over time into a market-leading provider of instant cash, by expanding its storefront position, supported by both online and mobile channels.  

USA  Pawn & Jewelry represents the second set of stores that the Company has purchased from owner  Craig McCall, who continues to consult with and assist the Company in executing its multi-market growth strategy. Mr. Rothamel stated, “The  Arizona  acquisition demonstrates our continued focus on growing and expanding our core pawn business.  Not only will the addition of these 12 successful stores enhance our profitability in the near-term, it will also provide us with a robust base from which to expand further, through in-fill opportunities and possible additional acquisitions.  Craig is an extremely talented pawn entrepreneur and operator, and we look forward to continuing our relationship to develop further growth opportunities.  

Mr. McCall is on his third set of Pawnshops for sale to EZ Corp  To make his future deal even sweeter Mr McCall along with EZCORP and Cash America,another large public company, spent a huge amount of money having the interest rates pushed to a unconscionable interest rate that will take effect this summer.  Please read legislative report below:

 HB2537 – pawnbrokers; interest; military members – DO PASS   In the Arizona legislature Vice-Chairman Shope moved that HB2537 do pass. Jason Theodorou, Majority Research Intern, advised that HB2537 increases the interest rate a pawnbroker can charge and requires pawnbrokers to waive any unpaid interest and hold pledged goods for military members and their spouses for 60 days after returning from active duty deployment (Attachment 18).  

Vice-Chairman Shope, sponsor, stated that the HB2537 has two components.  The first allows pawn brokers to raise interest rates.  The second is a military member component, which he is working on with Representative Sonny Borrelli. 

Craig McCall, USA Pawn and Jewelry, representing self, testified in support of HB2537.  He said that the pawn industry is unable to raise interest rates on its own and the Legislature has not reviewed the cap rate in 16 years.  Surrounding states have much higher interest rates, i.e. Colorado has a 20 percent monthly cap rate, Nevada at 13 percent and Idaho and Utah have no monthly rate caps with market rates at 15 to 25 percent.  Mr. McCall cited the following reasons for increased business expenses:   Rental costs Building size – the pawn industry holds a large amount of collateral Healthcare insurance; Labor intensive process – the average pawn loan is $80; Municipality requirements for technology – daily transaction downloads to the police departments  to have taken the place of payday loans.

Question was called on the motion that HB2537 do pass.  The motion carried by a roll call vote of 6-3-0-0 (Attachment 19).    Without objection, the meeting adjourned at 11:45 a.m.

People who borrow money from pawnbrokers may soon have to pay higher interest. Current law caps pawnshop interest at 8 percent a month for the first two months and 6 percent for every month afterwards. HB 2537 would raise the initial rate to 13 percent, with an 11 percent cap for the third and following months. HB 2537, which was approved by the Senate 22-8, does require pawnbrokers to waive unpaid interest charges and hold pledged goods for members of the military who are on active duty until 60 days after that person returns from deployment. It now goes to the governor.

To get a 80.00 Pawn Loan for a TV for 30 days now cost  $25.80 in fees  There is a $5.00 service charge, a $5.00 storage charge, a $3.00 police ticket fee and $12.80 in interest.  The APR on this loan is 400.04% 

But Mr. McCall  who takes in Millions flipping pawnshops wanted to burden the residents of Arizona even more with increases to this already insane rate.  This summer when rates increase this loan will cost an additional 8.00 or a whopping $33.80 interest on a $80.00, 30 day loan. This is over a 500% APR  

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

On Thursday, March 6, 2014 the Glendale citizen Planning Commission voted to deny a Conditional Use Permit for USA Pawn Shop. Thank you to the citizen members of the Planning and Zoning Commission for your decision.

Recently I received an email from a Glendale resident who told me it’s not over yet. USA Pawn, as is their right, has appealed the Planning Commission’s decision to the Glendale City Council. It will be heard before council at their Tuesday, May 27, 2014 meeting at 6 PM.

USA Pawn is asking to locate a mere 300 to 500 feet away from another pawn shop, Go Daddy Pawn at 59th Avenue and Bethany Home Road, in zip code 85301. It’s time to give south Glendale a break. There are at least a half dozen pawn shops within spitting distance of one another in the area.

Whether you live in the immediate area or not, you have the right to let your voices be heard. Share your opinion on the granting of yet another pawn shop in south Glendale by emailing the Glendale City Council. Here are their city email addresses:

You can let them know that you oppose the granting of a conditional use permit for the USA pawn shop and your reason(s) why you oppose it.

Or you can speak to the issue on the night of May 27, 2014 by appearing before the city council and speaking when it is presented on the agenda. Either means is effective but only when there are many voices. It doesn’t take many to persuade council. I have seen 20 or 30 people mount a charge on an issue and succeed. The danger is that you assume someone else will participate so your voice isn’t necessary. Never make that assumption for then no one comes forward. Silence indicates to council that there is tacit public approval. I am always reminded in these situations of a poem in which the author says, paraphrasing, they came for others and I said nothing. When they came for me there was no one left to speak for me. Public silence and apathy are the hallmarks of bad ideas that are allowed life. Another pawn shop in south Glendale is a bad idea that should not be given life.  

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

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