Politics & Government

Planning and Development Commission Closes Gold-Buying Loophole

Commissions recommend an amendment to the special-use process tightening zoning requirements for cash-for-gold businesses.

Oak Lawn Planning and Development commissioners approved a change to the village’s zoning code that they hope closes a loophole allowing some precious metal dealers to potentially skirt the special-use permit process.

The village zoning code nor does it specify what percentage of the business must be dedicated to retail.

Last summer, an existing cash-for-gold store applied to open a second store in Oak Lawn, but changed its application at the last minute to include a few trays of retail fashion jewelry to avoid the special-use process to avoid having its application denied. by the planning and development commission—a stalemated vote— to open the second store on appeal.

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The amendment more clearly defines the difference between a precious metal dealer, such as a cash-for-gold store, and a retail jewelry store as one that does at least 80 percent of its business in retail sales of jewelry and gems.

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“The idea is to address recent issues the village has been having with gold-buying stores by defining and setting requirements for them,” village attorney Patrick Connelly said. “The problem is it hasn’t been defined because gold-buying is clearly an evolving use.”

Village Manager Larry Deetjen, speaking to the commission, concerning how many days’ pieces of jewelry purchased from the public are held.

“It’s out the door almost like a pawn shop,” Deetjen said. “It turns it’s a theft or regulation issue. We’ve run into that problem.”

Deetjen described and defining what is or isn’t a retail jewelry store.

“Seeing that issue, everyone should be treated the same way so there’s fairness across the board,” the village manager said. “We’re trying to nip it in the bud so we don’t have a preponderance of pawn shop arrangements [in the village.]”

The proposed amendment defines precious metal dealers as “an establishment primarily engaged in the business of purchasing precious metals including gold and silver in any form, stones or gems from the public.” Businesses whose revenue comes from 20-percent or more of gold or other precious metal buying are subject to the amended ordinance.

Excluded are retail jewelry stores that occasionally dabble in buying gold or other precious metal pieces, and wholesale precious metal dealers.

Neighboring Worth and other municipalities have placed a moratorium on new cash-for-gold stores. Oak Lawn currently has five existing gold-buying stores.

Connelly, the village attorney, said the amendment to the special-use process offered the village more leeway in imposing reasonable conditions on special-use permits, such as signage and security cameras.

“Some have done moratoriums until they figure out [zoning] or until the gold price goes down,” Connelly said. “We not saying [gold-buying stores] can’t come here, they just have to come for a special-use permit.”

The Planning and Development Commission voted 6-0 to recommend the change, which goes before village board trustees for a final vote at their upcoming Feb. 14 meeting.


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