According to NWI.com, the Planning and Zoning Board in Lansing, Michigan, is attempting to revise ordinances in order to drive out payday lenders. Some say that local government efforts to restrict a legal business from offering payday loans are questionable.
Though there is proven demand for cash advances, the Lansing economy is floundering.
Michigan House Bill (HB) 4214 allows the governor of Michigan to declare “financial martial law” when the economy of a city fails. The governor is permitted to appoint an emergency financial manager (EFM) who may take steps like kicking businesses out of town.
However, removing a business that boosts the city economy and allows consumers to avoid insolvency could be a problem.
The Lansing Planning and Zoning Board of Appeals is currently focusing on “special use” zoning regulations. It does not seem coincidental that its recommended changes target payday lenders. These would prevent payday lenders from locating in Lansing.
The Board claims the move is designed to encourage variety in the kinds of companies within the city. Critics claim it is the initial move against a business that lawmakers want to expunge.
Detroit Rep. John Conyers believes that HB 4214 grants the EFM, whom he calls a “financial czar,” enough power to drive a city like Lansing to bankruptcy. The bill has already been exercised in the city of
Benton Harbor. The EFM has the power to dissolve the economy of this small town, if deemed necessary.
In Benton Harbor, per capita income stands at $8,965, the lowest within the state. Benton Harbor happens to be the headquarters of Whirlpool. Across the St. Joseph River lies St. Joseph, which has a per capita income of $24,949.
Whirlpool opted to hold its 100th anniversary celebration in St. Joseph. Lansing should take note of this and hope that an EFM does not drive out its moneymaking businesses.
