After the company lost its business location, it wanted to move to the city – especially somewhere further north on Vandalia – and the city told her it couldn’t.
First, according to court documents, the city said the desired new location was not zoned for such a business.
Second, the city said, there is this population issue.
City attorney Steven Giacoletto wrote in March that “it would take 37,500 residents before the third salary would qualify.” Giacoletto tells me that the city is well within its legal rights to limit the number of payday loans that can take place. Ditto for pawn shops and flea markets.
For example, he says, municipalities regularly limit the number of liquor licenses they grant.
But if you listen to Koslovsky, the problem is clear: The city violated its client’s property rights by not letting him continue to operate in Collinsville.
“It was pretty clear that this was the intention of the order,” Koslovsky said. “It wasn’t to regulate. It was to eliminate.”
According to his tally, there are now about five payday loan companies operating in the city because, like his client, they predate the 2005 ordinance.
According to Koslovsky, the city’s position is that its client should seek compensation from IDOT for its loss. The problem, he says, is that IDOT says to go and find him in town.