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08-664Council File # �C� "�Q� Green Sheet # 3o5483Z• RESOLUTION SAINT PAUL, MINNESOTA Presented by 1 2 3 4 5 6 7 �� WHEREAS, the Legislative Hearing Officer recommends that the application for (I.D. #20080000933) a Pawn Shop license for Red Dog Holdings LLC, doing business as Maxit Pawn, 482 Robert Street North, be approved without conditions. THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license Application. Carter Adopted by Council: Date Yeas ✓ ✓ ✓ ✓ ✓ ✓ � Adoption Certified by C ncil Secretary BY� r Ser� �/ Approve y r: Date ,� �0 By: � Requested by Department of. � Fottn Approved by City Attorney By: Form Approved by Mayor for Submission to Council By: � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � ����� co -������ Contact Pereon & Phone: Marcia Moermond 266-8570 MUSt BE 0{1 11-JUN-08 Doc.Type: RESOLUTION E-Document Required: Y Document Contact: Jean Birkholz Contact Phone: 266-8673 30-MAY-08 � Assign Number For Routing Order Total # of Signatufe Pages _(Clip All Locations for Signature) Green Sheet NO: 3054832 0 ouncil 1 ouncil De artmentDirettor 2 Clerk G� Clerk 3 4 5 Approving the license application, per the Legislative Hearing Officer, for a Pawn Shop license for Red Dog Holdings LLC, doing business as Macit Pawn, 482 Robert Street North. . �oanons: /+pprove �sy or ne�ec� �rc): rersonai service con[raccs must wnswer me rouowmg Ruesnons: Planning Commission 7. Has this person/firm ever worked under a contrect for this department? CIB Commiriee Yes No Civil Service Commission 2. Has this persoNfirm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any cunent city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, lssues, Opportunity (Who, What, When, Where, Why): Advantages If Approved: Disativantages If Approved: DisadvanWges If NotApproved: 7rensaction: Funding Source: Financial I nformation: (Explain) CosURevenue Bud9eted: Activity Num6er: June 18, 2005 11:53 AM Page 1 LICENSE HEARING MINUTES � � �� Maxit Pawn at 482 Robert Street North Thwsday, May 22, 2008, 10:00 a.m. 330 City Hall, 15 Kellogg Boulevard West Mazcia Moermond, Legislative Hearing Officer The hearing was called to order at 10:05 a.m. Staff Present: Jeffrey Fischbach, Department of Safety and Inspections (DSI); and Jean Birkholz, Council Research Others Present: Gregory Daniel and Mark Smith, owners. Maxit Pawn: Request for a Pawn Shop license Ms. Moermond stated that this is an informal legislative hearing for a license application. This is a Class N notification which means that the neighborhood gets notified and has a chance to voice its concerns. If any one has a concern, it automatically triggers a hearing. Other Class N Licenses include: liquor sales, entertainment, auto sales, etc.—things that have an immediate impact on the neighborhood. The City received two (2) letters of concern regarding the issuance of this license. Ultimately, there are three (3) possible outcomes from this hearing: 1) Ms. Moermond can recommend to the City Council that they issue this license without any conditions; 2) she can recommend to the City Council that they issue this license with agreed upon conditions; or 3) she can recommend to the City Council that they not issue this license but refer it to an administrative law judge for a further hearing and findings. Ms. Moermond will begin with a staff report. Staff will be asked to explain their review of the application and will also explain their recommendation. Then, she will ask the applicant to talk about the business plan. Next, if there are other people here, she will heaz from those who are here in support of the issuance of the license and those with concerns about the issuance of the license; and, she will review the letters / emails that were sent regarding this application. Mr. Jeff Fischbach, DSI, provided the staff report. There are no conditions currently on the license and there are no conditions recommended for the new license. No correspondence was received from CapitalRiver District Council (17). Regarding inspection requirements: Building is not applicable; Environmental Health is not applicable; Fire has approved; Licensing has approved; and Zoning has approved. The Department of Safety and Inspections recommends approval with no conditions. Ms. Moermond began by asking if the applicants were new to the business or have been in the pawn shop business for a while. Mr. Smith answered that they currently operate fourteen (14) pawn shops in the Midwest: two (2) in St. Louis; four (4) in Indiana; and eight (8) in the Minnesota Metro Area. Mr. Smith has been in the pawn business for eleven (11) years. His partner, Greg, is relatively new to the business. Ms. Moermond asked if they had a chance to read the letters of concern. The applicants noted that they had. Mr. Smith added that the pawn business has a negative stigma and iYs his challenge to educate people about what they really do because the stereotypes and preconceived notions are really false. He explained that Mr. Daniel has an MBA and he has a law degree. They have a high level management and operate with a very favorable response from the police. They aze very cooperative with the APS System (a computer system that eliminates nearly all confiscations and all trafficking and stolen items). They average less that .OS percent of their business as a co�scation. They have a very good bg�l�f�� administrative process; a corporate office; bookkeeping; accounting; financial reviews. Their reports aze sent to the police every day as required. Ms. Moermond asked about their hours of operation. Mr. Smith responded that they recently changed their hours in Saint Paul by one-half hour. Now, they aze open from 9:30 a.m. to 6:00 p.m., Monday through Friday (they had been open from 10:00 a.m. unti17:00 p.m.). On Saturday, the hours are from 10:00 a.m. to 6:00 p.m.; Sunday — Noon to 6:00 p.m., depending on location. Ms. Moermond asked about the security systems that they had in place. Mr. Smith replied that they aze fully-alarmed. Every angle of the store is covered with a security camera. They have a 24-hour monitoring surveillance system in place with a wireless back-up system in case any of the phone lines go down. The store relies on digital photography while open and surveillance when the store is closed. Mr. Daniel added that all of the expensive items are stored either in a safe or in a secure location with a lock. Ms. Moermond asked how the store handles a problem person. Mr. Smith responded that in Minnesota, people need a valid driver's license, a digital photograph, or a state I.D., etc., and all this information is computerized. There are requirements that need to be followed; otherwise, store employees can't serve them. If there's a problem, they have a 911 non-emergency number. Ms. Moermond asked how they would know if property is stolen. Items that aze brought in are digitally photographed; they are also put into the computer system (APS System) by make, model and serial number. The police will confiscate an item if they believe that it has been stolen. Mr. Daniel added that there's a qualification process up front, as well. It depends upon the item but many times, just asking them where they got the item, if they have a receipt or how the item works helps to discern if an item is stolen. Ms. Moermond asked if they have an exterior camera. Ms. Smith replied that, at the present, they do not; however, he is looking into it. They do have a camera pointed at the entrance along with the other ones they have. Ms. Moermond asked if they had some idea about what people used their money for. Mr. Smith replied that recently they were the lead story on WCCO, and they interviewed about six (6) customers and asked the same question. People said they needed brakes, tires, household supplies, tires, etc. Some had no more credit left on their card or didn't have anyone from whom to borrow. There are a lot of people who are in a crisis and don't have a support resources. And, about 60 per cent of the people who come into the pawn shop come back to pick up their items. The average loan is about $80. He noted that he feels good about being in a business thaYs able to help people who aze in an emergency situation. Ms. Moermond will recommend approval with no conditions. The hearing was adjourned at 10:28 a.m. rab 2