pf08-014 - Laserfiche WebLink

Home

-. -� C'��mF�rcht n.i� eAci��hb�wrh��u�i ti�,_i�!ic�� ('haructerii.in�� Derline Virtually any low-income inner-city community has billboards and other large signs advertising "check-cashing" services. According to Miller (2001), in the USA, there are more than 5,000 check cashers and the number is growing at a 10 per cent annual rate. The number of various pawn shops, offering "Quick Loans" or "Instant Cash" is also growing: since 1986 their yellow page listings across the country more than doubled to roughly 9,500 in 1995. Fringe iinancial service firms are also a growing phenomenon to varying degrees throughout Canada and the UK (Buckland et al. 2003). In the United States Miller found the explanation for this rapid change in the structure of inner-city iinancial markets in imintended consequences of regulation aimed at rehabilitating the inner cities. In an effort to stimulate inner-city loans by banks, American Congress passed the Community Reinvestment Act of 1977. Under the terms of this act, banks were required to solicit loans in older and lower income neighbourhoods, so that residents of these areas would be able to participate in the economic redevelopment of these inner-city areas. However, the result of these changes has been to actually discourage banks from doing any business in the nation's inner cities (Miller 2001). With traditional bank branches moving out of low-income neighbourhoods, fringe banking services are becoming the "banking" service of choice for inner-city residents. With easy terms, extended hours of operation, and locations throughout the poorest neighbourhoods, fringe-banking services are flourishing, despite very high interest rates (Buckland et al. 2003). These high fees and service charges lead to further impoverishment of disadvantaged inner-city neighbourhoods. But many inner-city dwellers prefer to use the nearby fringe-banking services because going to a traditional bank might mean transportation costs, time lost from work to make inconvenient banking hours, or bank service charges (ibid.). Decaying inner-city neighbourhoods are also characterized by high concentration of "adult land uses". It has been documented in many North American cities that the location of adult entertainment uses degrades the quality of life in the areas of a community where they are located. Studies have shown secondary impacts such as increased levels of crime, decreased tax base, and blight resulting from the clustering and concentration of adult entertainment uses. Late night noise and traffic also increase due to the late hours of operation of many of these establishments. The National Law Centre for Children and Families presents summaries of the land use studies of the secondary impacts of adult land uses on communities in the United States. The study of the secondary effects of adult entertainment uses in New York City reports that recent trends in sexually oriented businesses (SOBs) show a 35% increase over the last decade (National Law Centre for Children and Families 1994). SOBs have continued to concentrate in specific areas, in particular in three communities within Manhattan. Concentration of SOBs had resulted in signiiicant economic decline, decreased property values, and deterrence of customers, and significantly increased crime incidence. The study speciiically examined the negative secondary impacts documented in Islip, NY, Indianapolis, IN, Whittier, CA, Austin, TX, Phoenix, AZ, Los Angeles, CA, New Hanover Co., NC, Manatee Co., FL, and MN, which evidenced problems with 24