HOOVER – The Hoover City Council narrowly approved a one-year moratorium on the issuance of new licenses for certain types of businesses in the city at its meeting on Monday, Oct. 15.

The moratorium applies to businesses whose primary activity is payday loan or advance, car title loan, check cashing or cash-and-go, pawn shop and vape shop.

Councilman Casey Middlebrooks proposed the resolution and was joined by Curt Posey, John Greene and Derrick Murphy in voting in favor.

Voting against were Mike Shaw, John Lyda and Gene Smith.

Middlebrooks said he thought the moratorium was necessary in light of a proliferation of these types of businesses in certain parts of the city, and until Hoover could adopt a comprehensive plan that would address zoning issues.

“Many of us campaigned on protecting our older, established neighborhoods,” Middlebrooks said about where many of the targeted businesses have located. “I feel like this resolution is one step in fulfilling that promise.”

Shaw said there are 15 of these types of operations out of Hoover’s about 4,000 businesses.

“I have to say the premise here that we have a proliferation of these businesses—I don’t think it crosses that threshold,” Shaw said and added that he has not seen evidence that such businesses hinder efforts to recruit desirable industries like technology companies and restaurants. “I think this is an abuse of government power.”

The moratorium would not apply to current businesses re-applying for a license at their current location, but Lyda said the measure would undoubtedly affect those businesses at some point.

Lyda offered an example of a current business being destroyed by fire and not re-opening for longer than 60 days, in which case a license would not be re-issued.

“We’re saying you’re not welcome here,” Lyda said. “That is a very, very poor message to send. I’m embarrassed about it.”

Lyda also said the city’s comprehensive plan, a draft of which has already been presented, will not address specific types of businesses, so the premise that the moratorium is needed until the plan is adopted is “disingenuous.”

“Don’t be fooled by the word ‘temporary,’ Lyda said. “It will become permanent. There are those that just don’t like the business.”

Posey objected to a part of the resolution that would have made it applicable to current businesses that change locations, and asked Middlebrooks to consider an amendment striking that portion.

Middlebrooks agreed to the request, and the Council approved the amended resolution.

Fran Bishop, past president of the National Pawn Brokers Association, said Hoover’s pawn shops provide a valuable service to residents and said the Alabama Pawn Brokers Association will no longer hold its annual conference in Hoover.

The owner of a vape shop spoke against the moratorium, while a Hoover resident thanked the Council for its approval.

Council members indicated they could consider zoning regulations related to the businesses in the coming weeks.