09-1386Substitute 1/06/10
Council File # 09-1386
Green Sheet # 3092257
ORDINANCE
OF SAINT PAUL, MINNESOTA
3�
1 An ordinance pursuant to Minn. Stat. § 462355, Subd. 4 to preserve the status quo
2 pending the completion and report of a zoning study and possible action on the
3 study including amending the City's zoning ordinances as they may pertain to
4 opening currency exchanges under the auspices of a state issued banking permit or
5 certificate and thereby evade City ordinances regulating the location of currency
6 locations to certain commercial and indush dish
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
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Section 1
Statement ofLeQistative Intent.• The Council of the City of Saint Paul finds that it is necessary to
undertake certain actions in the form of an interim zoning ordinance to preserve the status quo regarding
the City's regulation of "currency exchanges." The Council is apprised that new ^�•--�r�-� �°�w°����
businesses which cash ne�otiable instruments for a fee are being established within existing businesses,
including pawn shops, which are located where currency exchanges would not otherwise be permitted by
the City as a conditional or permitted use.
The Council finds that ���~�~�-� �°�'�°~��� ''�°* these new businesses have been established and operated �
�r;'°:� ��r:r� a;°'���° where they would not otherwise be permitted under the City's present zoning
regulations,'�°°�'���r ��'°'-'�°'��a under the auspices of a'�°�'������ certificate of authorization
issued by the State of Minnesota to onerate a business known as an"industrial loan and thrift." The
Council finds that these state issued �� certificates of authorization are being used as a subterfuge
to establish what are, in fact, currency exchanges. The Council also notes that the state issued certificates
further permit these businesses to make secured and unsecured consumer loans including "pay da�' loans.
The Council finds that ^���-�-°„�° °°�'�°r°°° business established in Yhis manner are contrarv to the zoning
code and are detrimental to the public health, welfare and safety.
The Council notes that the zoning code presentiv regulates the location of pawn shops and currency
exchanges within the City. For instance, pawn shops and currency exchanges are first permitted as
conditional uses in the City's B3 zoning districts and are permitted uses in B4 and BS districts. In the
City's industrial districts, currency exchanges are first permitted in Il districts while pawn shops are
classified as conditional uses in Il districts. Neither use is permitted in the City's residential districts, B2
districts :,._.. ,...,a ,.:.,.,._....,. w,...,......:..,.a :., .. TN districts ...:,,,,...+.. ,,e.e.,,,;....+:,... ,.r..:,..:�...-,.�e
However, the Council finds that the State of Minnesota's banking regulations have been used in a manner
that disregards the City's zoning regulations.
Therefore, the Council finds that a planning study is necessary to determine whether the City's exisring
zoning regulations are adequate to regulate businesses that operate what are currency exchanges "in-facP'
usin_ a state issued certificate of authorization and whether it is necessary to adopt new regulations to
regulate �� these businesses in light of how the State of Minnesota's banking regulations
have been used to skirt the City's zoning regulations.
I-s tc (� f�.lrll►fc
09-1386
43 Accardingly, it is the desire of the Council to establish under this interim ordinance, a moratorium
44 protecting the general health, welfaze, and safety of the public, and to preserve the status quo with respect
45 to currency exchange regulations, pending the conclusion of a zoning study on the subject, until such time
46 as the study has been completed and reported to the Council and the effective date of any Council action on
47 any recommendations arising therefrom. The interim ordinance shall immediately prohibit the issuance of
48 any building or zoning permit or approval necessary to open or operate a currency exchange business or a
49 business known as an industrial loan and thrift, in any zoning district of the City, �-�y
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Section 2
Maratorium Imnosed: On any parcel of land, lot, or part thereof within the boundaries of the City, pending
the completion of the said zoning study noted in Section 1 and any action by the City Council on the said
study, the issuance of any building or zoning permit or approval necessary to open or operate a currency
exchange, ar industrial loan and thrift in any zoning district of the City is nrohibited. �°�.�ni�=��
�:���-°� �°° ��' �"�°�� ;�° �°�:`�°a This moratorium also annlies a�}d where the currency exchange or
the industrial loan and thrift is operated or �� ��« � ��'°a �� *'�° � �-,° ����:��, , �P ���. ��-�°' � . :*'�;�
u.�uib�� ��"�`��"� � '^� '^'k v�kL��« n A����A....� w..+ is intended to be operated in conjunction with or
accessory to another principal use on the same parcel, ar within the same building or commercial unit
within that building �reYr�te� This moratorium is effective until the expiration of twelve months or
until such earlier time as the City Council has taken action on the recommendations contained in the said
study.
Section 3
71 Moratorium. Effective Date: The effective date of the moratorium enacted under this interim ordinance is
72 deemed to be as of the effective date of Council Resolution No. 09-1349.
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09-1386
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Section 4
Effe�tive Date oflnterim Ordinance to Supersede and Discharge the Council's Resolution Pertainin� to
the Same Matter: This interim ardinance shall take effect and be in force 30 days from and after its
passage, approval and publication. Pending the effective date of this interim ordinance, applications
regazding permits for currency exchanges to be operated as discussed is Section 1, within the boundaries of
the City and regulated by this interim ordinance, shall be processed in conformance with the terms and
conditions set forth in Council File No. 09-1349. As of the effecrive date of this interim ordinance,
97 Council Resolution No. 09-1349 shall be discharged without additional action of this Council.
'���LiSHE�
�EB 1 i 1010
Bos�om
Carter
Hazris
Helgen
Thune
Yeas � Nays � Absent II Requested by Deparhnent of:
By:
Approved by the Office of Financial Services
By:
Approved b ty Attomey
By: ��vqiy�._ /,. J'- / �
Adopted by Council: Date � Approved by Mayor for Submission to Council
Adoption Certified by Cound Secretazy B
BY� i/il4 SQ/J
Approved,]�y Date � J�( 7iO10
By: ���-
� t�fif.
09-1386
Interdepartmental Memorandum
CITY OF SAINT PAUL
DATE: January 6, 2010
TO: Councilmember Dave Thune
310-B City Hall
FROM: Peter W. Warner
Assistant City Attorney
RE: Substitute Ordinance for the Currency Exchange Moratorium
CM: Thune: Attached please find a substitute copy of the Currency Exchange interim ordinance
scheduled today for a public. This substitute version clarifies exactly what the City is intending
to regulate by the interim ordinance. Commissioner Rich Kramerhas provided valuable input on
the language. We feel that this substitute better explains exactly the problem that needs to be
addressed.
I would ask that you introduce this subsritute version at the beginning of the public hearing.
Further, it is my opinion that this substitute language does not reach the threshold of a
substantive change that would require new notice the public hearing. As Commissioner Kramer
explained, the City has not received a currency exchange application in quite some time because
the industry laiows that they can circumvent the Ciry's zoning regulations regulating currency
exchanges by applying for and receiving from the State of Minnesota a certificate of
authorization to operate an industrial loan and thrift.
Also keep in mind that the City does not intend to regulate the actual business operations of
industrial loan and thrifts. The City seeks only to regulate the districts where businesses can
locate and whether or not this type of use should be subject to conditional use requirements.
If you have any questions, please don't hesitate to contact me.
PWW
"An Affirmative Action Equal Opportunity Employer."
�
09-1386
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
, CO—Councii
Contact Person & Phone:
',, David Thune
�- Must Be on Council Agenda by (Date):
i 16-DEG09 ..
Doc. Type:ORDINANCE
E-Document Required: Y
Document Contact: Barb Benson
Contact Phone:
16DEC2009 ! Green Sheet NO: 3092257
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Assign i
Number 3
For
Routing 4
Order g
Total # of Signature Pages _(Clip All Locations for Signature)
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Adopt an interim ordiance pursuant to Minn. S[at. Section 462355, Subd. 4 regulating currency exchanges within eacisting businesses
pending the adoption of new ciry ordinances regulating the same.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
Personal Service Contracks Must Answer the Following Questions:
1. Has this person/firm everworked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
caRent city employee?
Yes No
Euplain all yes answers on separate sheet and attach to green sheet.
Initiating Problem, lssues, Opportunity (Who, What, When, Where, Why):
Cuirency exchanges have opened using a state issued banking license or certificate which has resulted in currency exchanges being
located in zoning districts whexe they aze not permitted.
Advantages If Approved:
Regain control of ciry neighborhoods through the zoning process.
Disadvantages If Approved:
None.
Disadvantages If Not Approved:
Will have illegal land uses in city neighborhoods.
Total Amount of
Transaction:
Punding Source:
Financial Information:
(Explain)
CostlRevenue Budgeted:
Activity Number:
December 16, 2009 2:48 PM Page 1
Council File # 09-1386
Green Sheet # 3092257
CITY
Presented
ORDINANCE
SAINT PAUL, MINNESOTA
An ordinance pursuant to Minn. Stat. § 462355, Subd. 4 to preserve the status quo
pending the completion and report of a zoning study and possible action on the
study including amending the City's zoning ordinances as they may pertain to
opening currency exchanges within existing businesses under the auspices of a
state issued banking permit or certificate and thereby evade City ordinances
regulating the location of currency locations to certain commercial and industrial
districts.
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11
12
13
14
15
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Statement ofLeQislative Intent: The Council of the City of Saint Paul finds that it is necessary to
undertake certain actions in the form of an interim ordinance to preserve the status quo regarding the City's
regulation o£"currency exchanges." The Council is apprised that new currency exchanges are being
16 established within existing businesses, including pawn shops, that are located where currency exchanges
17 would not otherwise be permitted by the City as a conditional or permitted use.
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The Council finds that currency exchanges that have been established and operated in the City in zoning
districts where they would not otherwise be permitted under the City's present zoning regulations, have
been established under the auspices of a banking license or certificate issued by the State of Minnesota.
The Council finds that these state issued licenses or certificates are being used as a subterfuge to establish
currency exchanges. The Council finds that currency exchanges established in this manner are detrimental
to the public health, welfare and safety.
The Council notes that the zoning code regulates the location of pawn shops and currency exchanges
within the City. For instance, pawn shops and currency exchanges are first permitted as conditional uses in
the City's B3 zoning districts and are permitted uses in B4 and B5 districts. In the City's industrial
districts, currency exchanges are first permitted in Il districts while pawn shops are classified as
conditional uses in Il dish Neither use is permitted in the City's residential dishicts nor would either
use be permitted in a TN district without a determination of similar use. However, the State of
Minnesota's banking regulations have been used in a manner that disregards the City's zoning regulations.
Therefore, the Council finds that a planning study is necessary to determine whether the City's existing
zoning regulations aze adequate to regulate currency exchanges and whether it is necessary to adopt new
regulations to regulate currency exchanges in light of how the State of Minnesota's banking regulations
have been used to skirt the City's zoning regulations.
Accordingly, it is the desire of the Council to establish under this interim ordinance, a moratorium
protecting the general health, welfare, and safety of the public, and to preserve the status quo with respect
to currency exchanges regulations, pending the conclusion of a zoning study on the subject, until such time
as the study has been completed and reported to the Council and the effective date of any Council action on
any recommendations arising therefrom. The interim ordinance shall immediately prohibit the issuance of
(�i tx.ic_es
��i�rc�xa
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any building or zoning permit or approval necessary to open or operate a currency exchange, in any zoning
district of the City where currency exchanges are not otherwise permitted, and where the cunency
exchange is not operated as the single principal use of any pazcel or within a single building or commercial
unit within a building, but is intended to be operated in conjunction with or accessory to another principal
use on the same parcel, or within the same building or commercial unit within that building.
Section 2
Moratorium Imnosed: On any parcel of land, lot, or part thereof within the boundaries of the City, pending
the completion of the said zoning study noted in Section 1 and any action by the City Council on the said
study, the issuance of any building or zoning permit or approval necessary to open or operate a currency
exchange, in any zoning district of the City where currency exchanges are not otherwise permitted, and
where the currency exchange is not operated as the single principal use of any parcel or within a single
building or commercial unit within a building but is intended to be operated in conjunction with or
accessory to another principal use on the same parcel, or within the same building or commercial unit
within that building is prohibited until the expiration of twelve months or until such earlier time as the
City Council has taken action on the recommendations contained in the said study.
Section 3
63 Moralorium. Effective Date.• The effective date of the moratorium enacted under this interim ordinance is
64 deemed to be as of the effective date of Council Resolution No. 09-1349.
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Section 4
E�'fective Date oflnterim Ordinance to Sunersede and Discharge the Council's Resolutio� Pertainin¢ to
the Same Matter.• This interim ordinance shall take effect and be in force 30 days from and after its
passage, approval and publication. Pending the effective date of this interim ordinance, applications
regarding permits for currency exchanges to be operated as discussed is Section 1, within the boundaries of
the City and regulated by this interim ordinance, shall be processed in conformance with the terms and
conditions set forth in Council File No. 09-1349. As of the effective date of this interim ordinance,
Council Resolution No. 09-1349 shall be discharged without additional action of this Council.
Yea.s Nays Absent
Bostrom
Carter
Harns
Helgen
Lanhy
Stazk
Thune
Adopted by Council: Date
Adoption Cexrified by Council Secretary
By:
Appioved by Mayor: Date
By:
Requested by Department of:
By:
Approved by the Office of Financial Seivices
By:
Approved b ity Attomey
BY. �d�l. !� �� ( 2 _!S � �
Approved by Mayor for Submission to Council
By: