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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: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 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 50 51 ' , 52 , 53 .,u...� �,,;,,,;,,,, ,, :..� . .,:....:«w:., «w..« w,,:i,�:,,,. 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 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. 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 [Lines 73 — 88 intentionally left blank] �^S- Io f�, ✓'.L4.lr6. 09-1386 89 90 91 92 93 94 95 96 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 � j 0 � � Assign i Number 3 For Routing 4 Order g Total # of Signature Pages _(Clip All Locations for Signature) _ � ' i 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. 10 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. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 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 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 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. 65 66 67 68 69 70 71 72 73 74 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: