6.15. SR 09-16-1996ITEM 6.15.
'"ity of
iver
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Scott Harlicker, Planning Assista~
September 16, 1996
City of Elk River Request for Ordinance
Amendment, Public Hearing Case No.
OA 96-8
Issue
Consider a request by the City of Elk River to amend Section 900.08 and
Section 900.12 relating to definitions and highway commercial uses to
include a definition for pawn shop and pawn broker and include pawn shops
as a conditional use in the highway commercial zone.
Attachments
Summary sheet of pawn shop survey
Ordinance 96-
Back~round
The staff is in the process of updating the licensing procedure for pawn shops.
On March 18,1996, the City Council approved an ordinance that established
a moratorium on pawn shops for one year or until the Code of Ordinances has
been updated with respect to pawn shops.
The Police Department has taken the lead in drafting the license
requirements. Staff drew from what was considered to be the best sections of
other city's license requirements, principally Fridley and Bloomington, and
combined them into one ordinance.
The planning staff and Planning Commission have been involved with the
land use and planning issues as they relate to pawn shops. From a planning
perspective pawnshops are viewed as a retail use and as part of this process
staff is looking at whether pawn shops should be considered a permitted
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Memo to Mayor and City Council
August 19, 1996
Page 2
retail use or allowed as a conditional use and in what zones they should be
allowed. The State of Minnesota's definition of pawnshop and pawnbroker
will be utilized. Under the existing ordinance, the issue of where pawn shops
are allowed is not addressed. In the past they have been treated as a
permitted retail use. At this time, the best interpretation is to permit
pawnshops as a retail use.
There are three primary planning issues that need to be addressed:
· Should pawn shops be allowed as a permitted retail use or as a
conditional use
· In which zoning districts should pawn shops be located
· Under what conditions should they be allowed i.e. setbacks from other
land uses
Staff reviewed ordinances from other cities; their requirements for setbacks,
whether it is a permitted or conditional use and other licensing requirements
are outlined on the attached summary sheet.
Analysis
Permitted or Conditional Use
Two of the seven ordinances reviewed had pawn shops as conditional uses,
they are Bloomington and Richfield. In Bloomington, they are allowed as a
conditional use in the B-3 (General Business) District. The purpose of this
district is to provide centralized areas for businesses that do not belong in
shopping centers, and for highway or automobile oriented businesses.
Bloomington did not specify in the zoning code what specific conditions or
standards will apply to pawn shops; that was addressed in the body of the
licensing ordinance. Richfield allows pawn shops as a conditional use in the
C-2 District. The remaining five cities allowed pawn shops as a permitted
retail use in certain commercial districts
By allowing pawn shops as a conditional use it provides additional time for
public comment because a public hearing is required for conditional use
permits. Secondly, by requiring a conditional use permit the City has an
opportunity to address site plan issues and a forum to correct areas of the site
that are not in compliance with the zoning code. These site plan issues
include items such as landscaping, parking, curbing and other physical
improvements.
s:\planning\scott\oa96-8cc.doc
Memo to Mayor and City Council
August 19, 1996
Page 3
Zones
All of the ordinances reviewed allow pawn shops in at least one of their
commercial zones. The commercial zones in which they are allowed seem to
be general business or highway commercial type zones.
The highway commercial zones are more accessible, are found in wider areas
of the city but the opportunity for conflicting uses is greater because of the
proximity to schools, parks, daycare centers and residences. However, pawn
shops from a land use perspective are a retail land use and would most
appropriately fit into the highway commercial zone
Conditions and Performance Standards
All of the cities surveyed had conditions or performance standards of some
type. Restrictions limiting the hours of operation was a common condition.
Five of the seven cities limited the hours of operation. Elk River currently
limits the hours of operation to 7am to 9pm Monday through Saturday.
Regulation of hours of operation will be included in the updated licensing
procedure.
Setbacks from certain land uses was a condition in three cities. Blaine and
Brooklyn Park require a 300 foot setback between pawn shops and a church
or a school. Richfield requires a 1000 foot setback from schools, churches,
daycare facilities, library, government building or other pawn shops and a
250 foot setback from any residential zone. Elk River currently has no
restrictions on separation from other land uses.
Setbacks from incompatible land uses would support the City's ordinance in
that the ordinance will prohibit minors from conducting pawn transactions.
Therefore, it seems reasonable to require a setback from land uses directed
towards youth such as schools, day care centers, parks and residential zones
and the proposed ordinance will reflect that.
Planning Commission Meeting
At the Planning Commission meeting of July 23, 1996, the Commission
discussed the possibility of including pawn shops as a conditional use in the
light industrial zone and in the business park zone.
However, by allowing them in industrial zones they are being allowed in
areas with limited accessibility and not usually conducive for retail type uses.
Also by allowing them in industrial and business park zones the City would
be introducing a retail land use into a zone in which it is not really
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Memo to Mayor and City Council Page 4
August 19, 1996
compatible and encouraging the utilization of limited industrial land for non-
industrial land uses.
Recommendation
The Planning Commission and staff recommend City Council approval of the
ordinance creating a definition for pawnbroker and pawn shops and including
them as a conditional use in the C3 (Highway Commercial) zone with
setbacks of 250 feet from residential zones and 500 feet from schools, parks,
daycare centers, churches and other pawnshops.
s:XplanningXscottXoa96-8cc.doc
SHOPS SURVEY
City Conditional Use Sctback~ from C.~rtain Hours of Other Licensing
or Permit*ed-Use Land Uses Operation Rcg~rlations
Bloommgtnn CUP No rcstriction~ 7 am o 10 pm Holding - $0 days
$I£,000 liccn.se fee
Public hearinF rcauired
Richfield CUP 1000' from schools, 7 am - 10 pm Holding - 12 day
churches, daycarc, R~iemption - 60 day
public library, $I,750 license fcc
government building, Public hearing required
or other pawn shop,
250' from rr. sidcntial
zoned property
Burnsvi[lc Pcrmittcd retail No resunctions 9 am - 9 pm Holding - 30 day
Rexicmpfion - 60 day
$10,000 license fee
No public hcaring rc.q.'d.
Blame pcrrmttcd retail 800' church or school No tv-sUnctions Holding - 8 days
Redemption - $0 days
$12,000 license
No public h~'a_t'ing rcq'd.
Fridlcy Permitted rctail No restrictions 7 am - I 0 pm Holding 72 hours
Rcdeanption - 90 days
License Fees:
Clas~ A - $I 5~000
Cla~s B - $I2,000
Class C - $I0,000
No public bemrin;g, rca'd.
P,~mscy Pcrmittexi retail No resections 7 am - 9 pm Holding - None
Monday Rt.d~mption - 80 days
through $3,000 iiccns¢
Saturday No public hearing re.q'd.
Brooklyn Park P~rmitted retail 300' from church No r~str/ctions Holding -nonc
or school Redemption - 80 days
$1,750 license
Public hearing required
Elk River Permitted usc No restrictions 7 am - 9 pm Holding - none
Monday Redemption - 30 days
through $1,750 lic=nse
Saturday No public hearing:, rcq.'d.
ORDINANCE 96-
CITY OF ELK RIVER
AN ORDINANCE AMENDING SECTIONS 900.08 AND 900.12 OF THE
CITY OF ELK RIVER CODES OF ORDINANCE RELATING TO
DEFINITIONS AND CONDITIONAL USES IN THE C3 ZONING DISTRICT
CASE NO. OA 96-8
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. The City Council finds that pawnbrokers potentially provide an
opportunity for the commission of crimes and their concealment because such
businesses have the ability to receive and transfer stolen property easily and
quickly. The Council also finds that by allowing pawn shops as a conditional use it
provides additional time for public comment, provides the city with an opportunity
to address site plan issues and a forum to correct areas of the site that are not in
compliance with the zoning code.
Section 2. Section 900.08 of the City of Elk River Code of Ordinance titled,
"Definitions" is hereby amended by adding the following 2 definitions:
Pawnbroker: A person engaged in whole or in part in the business of lending
money on the security of pledged goods left in pawn, or in the business of
purchasing tangible personal property to be left in pawn on the condition
that it may be redeemed or repurchased by the seller for a fixed price within
a fixed period of time.
Pawnshop: The location at which or premises in which a pawnbroker
regularly conducts business.
Section 3. Section 900.12 (12) of the City of Elk River Code of Ordinance titled
"Permitted, Accessory, and Conditional Uses" is hereby amended to add the
following conditional use:
12. C-3 Highway Commercial District
C. Conditional Uses
xxi. Pawnshops (250 foot setback from any residential zone and 500
foot setback from schools, parks, daycare centers, churches and
other pawnshops, measured from the property line).
Section 4. That this Ordinance shall take effect and be in full force from and after the
date of its publication.
s:\planning\scott\oa968ord.doc
Passed and adopted this~
of Elk River.
day of
· 1996, by the City Council of the City
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Thackeray, City Clerk