SANTA ANA : Pawnshop Pitch Denied by Council

The City Council has denied a controversial proposal to allow a new pawnshop to open downtown, which opponents argued would have attracted crime and further tarnished the city’s image.

The council voted 6 to 1 to reject the proposal, with Councilman John Acosta casting the sole vote in favor of the pawnshop. The council made no decision on a companion proposal to limit the number of pawnshops downtown to three.

During the two-hour hearing, dozens of residents and business owners spoke for each side, sparking frequent applause and moans from the audience.

“All I’ve seen so far is smoke and mirrors,” said Brian Bist, who spoke against Rio’s Jewelry and Loan, the proposed 10,000-square-foot shop at 301 1/2 N. Main St. “This is nothing more than a nail in the coffin of future downtown development.”

Other residents, many of them members of the Washington Square Neighborhood Assn., also opposed the plan, saying it would undermine the Community Development Agency’s efforts to improve the downtown area.

However, downtown businessman and auctioneer Richard File said he supported the plan and countered that its opponents were relying on an outdated notion of how pawnshops operate.

“This is no longer a stolen TV and stereo business,” File said. “It hasn’t been for years.”

Rio Tambara, who proposed the shop with partner Steve Simmons, noted that pawnshops are strictly regulated by local, state and federal law enforcement agencies, including the police and the state Department of Justice.

After the vote, Simmons said that although he and Tambara lost $40,000 attempting to meet the city’s requirements, the real losers in the decision were residents who could not get loans elsewhere.

“I’m very disappointed with the decision. Obviously it’s an election year and I think they took that into account,” Simmons said. He added that he and Tambara would not appeal the decision, but would instead attempt to open a shop in Costa Mesa.

However, Bist said he believed the council action was independent of political considerations and added, “I’m pleased. I think (the council) showed the correct amount of understanding with the issue. Nobody wants to run a business out of town or stop one from coming in . . . but there’s no inherent benefit in having a pawnshop.”