SANTA ANA : Hearing Set for Pawnshop Proposal

The City Council has decided to hold a public hearing April 20 on a controversial proposal to open a new pawnshop downtown.

After that hearing, the council will decide whether to approve Rio’s Jewelry and Loan Inc., a 10,000-square-foot shop located at 301 1/2 N. Main St..

Although no one formally spoke for or against the shop at the council’s Monday meeting, Councilman Richards L. Norton asked the audience to raise their hands to show their position. About 20 indicated they opposed the shop; two indicated they supported it.

Washington Square Neighborhood Assn. members have said the shop would attract crime and hurt the image of the downtown area that redevelopment projects are now trying to improve. Members of the Sandpointe and Wilshire Square neighborhood associations also have opposed the project through letters to council members and before the Planning Commission.

On March 9, the Planning Commission approved the permit for the pawnshop on a 4-3 vote, with Commissioners Dan Miller, John Casteix, Molly Doughty and Steve Oliver voting in favor of the application and Lisa Mills, Glenn Mondo and Hector Godinez voting against it.

Rio Tambara, who proposed the pawnshop with partner Steve Simmons, arrived at Monday’s meeting after the council’s decision to hold a public hearing, but both said that opposition to the plan was based on an outdated conception of pawnshops.

Tambara emphasized that such shops are a crucial source of loans for people without cash or credit. “I don’t think these people in opposition realize that even their neighbors might be in need someday,” he said. As a pawnbroker, his clients often include doctors, real estate agents and also business owners who need to meet their payrolls, he said.

Also, pawnshops have changed over the years and are not the seedy shops that many people may imagine, he said. The shops, which resemble retail stores in appearance, are strictly regulated by the local, state and federal law enforcement agencies, including the police and the state Department of Justice, he said.

City staff has recommended that the council approve the permit, but with conditions including an annual review of the business and the prohibition of gun sales there. The staff also proposed limiting the number of pawnshops downtown to three. There are two other pawnshops downtown, both located in the 100 block of East 4th Street.

During an impromptu debate in the council chambers lobby after the meeting, opponents of the plan said they think pawnshops are bad for the city’s image and would discourage other businesses from moving into the area.

However, shop supporter Richard File responded that the owners “are very responsible and they certainly aren’t going to start a sleazy operation. I think they ought to be given a chance.”