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Request for Council Action

TO: Mayor and City Council THROUGH: Tim Murray, City Administrator Deanna Kuennen, CED Director FROM: Peter Waldock, AICP Planning Coordinator MEETING DATE: November 13, 2018 SUBJECT: Ordinance 2018-14 Amending the Unified Development

Ordinance, Section 7-30, Development Standards Regarding Pawn Shops

Background:

On October 23, 2018 the City Council approved the second reading of Ordinance 2018-11 to establish Pawn Shop / Pawn Broker License Requirements and Automated Pawn System (APS) Compliance. As part of the City Council discussions of the pawnshop ordinance, the owner of Pawn MN asked that the City consider requiring a minimum distance between pawnshops. The City Council agreed, and directed Staff to process the appropriate ordinance amendment. City Staff has determined that a separation requirement for Pawn Shop businesses can best be established by zoning regulations within the Unified Development Ordinance (UDO).

Two maps were presented to the Planning Commission that showed

suggested separation distances. One depicted a 3,500 foot separation radius and the other a 1 mile radius. The owner of Pawn MN indicated that he would prefer a single license in the City. City Staff reviewed the commercial corridors in the city, and evaluated both the proposed radius maps. Based on this review, it is the staff recommendation to approve a 1 mile separation radius between pawn shops.

On November 5, 2018 after proper notice, the Planning Commission held

a public hearing regarding this matter. No one from the public commented on this matter during the hearing. The City received emails comments from the owner of Pawn MN prior to the meeting in support of a minimum separation requirement and asking the City to expedite the process for this application.

The Planning Commission members discussed the request at some length. They found that the proposal should not be approved because they felt it was not consistent with the Land Use Plan policies to attract and grow businesses in the City and the application appeared to be for the benefit of one business owner in the City.

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Since this zoning text amendment application is made by the City, if the City Council agrees with the Planning Commission findings and recommendation against the zoning text amendment in this case, it can simply withdraw the application for zoning text amendment. If a motion to approve the proposed ordinance fails to receive a 4/7 majority vote of City Council members, the ordinance will fail on first reading and no further action will be taken. The proposed ordinance is provided with this staff report should the City Council wish to consider its approval on first reading. Recommendation:

By a vote of 6-1 the Planning Commission approved a motion to deny the zoning text amendment proposal for pawn shop separation requirements based on the following findings against the application:

1. The proposed requirement to establish a minimum separation between pawn shops is not consistent with City Land Use policies that promote more businesses.

2. The proposed zoning text amendment appeared to only be for the benefit a single business owner.

Attachments: • Ordinance 2018-14 • Staff Report to the Planning Commission

State of Minnesota County of Rice

CITY OF FARIBAULT

ORDINANCE 2018-14

Amending the Unified Development Ordinance, Section 7-30, Development Standards Regarding Pawn Shops

WHEREAS, the City of Faribault has initiated a proposal to amend the City’s Unified

Development Ordinance to establish development standards for Pawn Shop businesses that requires a minimum separation between such business uses in the City; and

WHEREAS, the City Council and the Planning Commission each held work sessions to discuss Pawn Shop business separation standards. Based on the consensus of these discussions, staff prepared and presented a report to the Planning Commission on proposed zoning text amendments to establish proposed business separation requirements for Pawn Shop businesses in the City; and

WHEREAS, the Planning Commission, on the 5th day of November, 2018 following proper notice, held a public hearing regarding said zoning text amendment proposal; and

WHEREAS, following said public hearing, the Planning Commission made appropriate findings and recommended approval of the proposed ordinance amendments; and

WHEREAS, the City Council hereby finds the proposed ordinance amendments are appropriate with the following findings as required by Section 2-180 of the City’s Unified Development Ordinance:

1. Criteria: Whether the amendment is consistent with the applicable policies of the City’s Land Use Plan.

Finding: The City’s Comprehensive Plan seeks to attract, grow and sustain quality businesses in the City. The proposed ordinance amendment is consistent with the policies of the City’s Land Use Plan.

2. Criteria: Whether the amendment is in the public interest and is not solely for the benefit of a single property owner.

Ordinance 2018-14 Page 2

Finding: The amendment is not intended to benefit only one property owner. It will be effective Citywide in all residential areas.

3. Criteria: Whether the existing uses of property and the zoning classification of property within the general area of the property in question are compatible with the proposed zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: This finding is not applicable as this proposal will amend zoning regulations for certain business uses and will not alter the zoning classification of specific properties.

4. Criteria: Whether there are reasonable uses of the property in question permitted under the existing zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: The zoning classification of specific property would not be changed, nor would the allowed uses be expanded residential districts. The proposed Ordinance amendment establishes a minimum separation between Pawn Shop businesses in the City.

5. Criteria: Whether there has been a change in the character or trend of development in the general area of the property in question, which has taken place since such property was placed in its present zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: This zoning text amendment will not be applicable to one particular property within the City. It will be applicable Citywide.

NOW, THEREFORE, THE CITY OF FARIBAULT ORDAINS:

Section 1: Amendment of Section 7-30 of the Unified Development Ordinance related to Development Standards and Table 11-1 related to Principal Uses in Commercial Districts. The aforesaid sections of the Unified Development Ordinance are hereby amended to replace the original text with the text as follows:

Sec. 7-30 Development Standards

Pawn Shops / Pawnbrokers

(1) Pawn Shops / Pawnbrokers shall be licensed to operate in the City in accordance with requirements of Chapter 14, of the City of Faribault, Code of Ordinances.

(2) A minimum separation distance of 1 mile shall be provided between Pawn Shop locations in and near the City limits.

Ordinance 2018-14 Page 3

Table 11-1. Principal uses in the commercial districts.

Use District Development Standards

C-1 C-2 C-3 CBD SH

Commercial uses Retail sales and services

Pawn shop - P P P C X

Section 2: Effective Date. This ordinance shall be effective immediately upon its passage and publication, in accordance with Chapter 3 of the Faribault City Charter.

Public Hearing: November 5, 2018 First Reading: November 13, 2018 Second Reading: ___________, 2018 Publication: ___________, 2018

Faribault City Council ___________________________________ Kevin F. Voracek, Mayor ATTEST:

__________________________________ Timothy C. Murray, City Administrator

Page 1 of 5

FARIBAULT PLANNING COMMISSION NOVEMBER 5, 2018 – PUBLIC HEARING

Case Numbers and Requests: ZTA 34-18 Zoning Text Amendment to establish standards for a minimum distance between pawnshop businesses in the City.

Applicant: City of Faribault

Request: Zoning Text Amendment to the Unified Development Code Section 7-30 regarding development standards to establish a minimum separation requirement for Pawn Shop businesses

Location: City Wide

Deadline for Council Action: Not Applicable

Staff Recommendation: Approve proposed ordinance to amend the Unified Development Code requirements as proposed.

From: Peter J. Waldock, AICP, Planning Coordinator

BACKGROUND

On October 23, 2018 the City Council approved the second reading of Ordinance 2018-11 to establish Pawn Shop / Pawn Broker License Requirements and Automated Pawn System (APS) Compliance. APS will allow the Police Department to better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of this industry, and increase identification of criminal activities through the timely collection and sharing of pawn transaction information.

As part of the City Council discussions of the pawnshop ordinance, the owner of Pawn MN asked that the City consider requiring a minimum distance between pawnshops. The City Council agreed, and is seeking to establish a minimum separation requirement for Pawn Shop businesses in the City. This will limit the total number of Pawn Shops that can operate in the City and prevent a concentration of such businesses in one area of the City. City Staff has determined that a separation requirement for Pawn Shop businesses can best be established by zoning regulations within the Unified Development Ordinance (UDO).

Two maps were presented to the City Council that showed suggested separation distances. One depicted a 3,500 foot separation radius and the other a 1 mile radius. The City Council did not indicate a preference between the two. The owner of Pawn MN indicated that he would prefer a single license in the City but the City Council preferred to pick between the 3500 foot and 1 mile radius. The City Council directed staff to begin the process to amend the UDO to establish separation requirements for Pawn Shop businesses in the City.

Attachment to item 7H

Page 2 of 5

Currently, the City’s Unified Development Ordinance (UDO) allows pawnshops in the C-2: Highway Commercial District; the C-3: Community Commercial District; and the CBD: Central Business District. At this time, there is one operating pawnshop in Faribault (Pawn MN - located at 230 Central Avenue).

DISCUSSION OF THE PROPOSALS In examining the separation distances shown on the mapped examples, it is noted that the 3,500

foot separation would result in 9 locations that could accommodate Pawn Shops. With a 1 mile

radius the map shows 7 potential sites. Staff is only aware of two other Cities in MN that require

a minimum separation distance for Pawn Shops. Columbia Heights uses a 3,000 foot minimum

separation that was chosen because it was a similar distances used for other codes in their City

and Hopkins requires a 1,000 foot separation to reduce concentration of this type of business in

one area. The State of Minnesota has no set standards for separation of pawnshops.

In determining which separation distance is appropriate for Faribault, the Planning Commission

can consider the following factors:

In recent years there has only been two pawn shops operating in the City.

There is only one licensed Pawn Shop in the City at this time.

No other Pawnbrokers have expressed an interest in opening another shop in the City.

A City of Faribault’s size is limited in the number of shops the population here can support.

The Central Business District is roughly 2,400 feet from north to south. If Faribault adopted a minimum separation of 3,500 feet, the ordinance would essentially limit the number of pawnshops in the Central Business District to one. A 1 mile radius would clearly the CBD to one pawnshop.

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The 4th Street Corridor is roughly 4,300 feet from east to west (see map below). Again,

depending on the location of the pawnshops, a 3,500 foot separation would likely limit the

number of pawnshops in this area to one. See the attached maps showing both the 3,500 foot

and 1 mile radius for comparison.

The Highway 60 Corridor is roughly two miles long from Lyndale Avenue to the western city limits (see map below).

Page 4 of 5

The Lyndale Avenue/Highway 21 Corridor is roughly 2-1/2 miles long (see map below).

Based on these factors and after reviewing the separation radius maps, staff feels a 1 mile radius

will serve the City with enough sites to meet the needs of the Residents and avoid concentration

of similar uses near each other in the City.

APPLICABLE CODE SECTIONS

Unified Development Ordinance, Chapter 2, Article 5, Zoning Amendments Process and Approval

Unified Development Ordinance, Chapter 7, Section 7-30 Development Standards

Unified Development Ordinance, Chapter 11, Article 1, Table 11.1 Principal Uses in Commercial

Districts

REQUIRED FINDINGS

Section 2-180 of the UDO includes five required findings as a prerequisite for approval of zoning amendments. The draft ordinance prepared by staff and provided with this report includes detailed findings specific to this application recommended by staff to address all of the required findings of this section of the UDO. No additional findings have been determined.

Page 5 of 5

RECOMMENDATION Staff recommends that the Planning Commission hold the requisite public hearing and approve the

proposed ordinance with findings in support of a zoning text amendment adopting a development

standard establishing a 1 mile separation requirement between Pawn Shop businesses in the City.

Attachments:

Ord. 2018-14

Separation Radius Maps

Background Discussion Memos

State of Minnesota County of Rice

CITY OF FARIBAULT

ORDINANCE 2018-14

Amending the Unified Development Ordinance,

Section 7-30, Development Standards

WHEREAS, the City of Faribault has initiated a proposal to amend the City’s Unified Development Ordinance to establish development standards for Pawn Shop businesses that requires a minimum separation between such business uses in the City; and

WHEREAS, the City Council and the Planning Commission each held work sessions to discuss Pawn Shop business separation standards. Based on the consensus of these discussions, staff prepared and presented a report to the Planning Commission on proposed zoning text amendments to establish proposed business separation requirements for Pawn Shop businesses in the City; and

WHEREAS, the Planning Commission, on the 5th day of November, 2018 following proper notice, held a public hearing regarding said zoning text amendment proposal; and

WHEREAS, following said public hearing, the Planning Commission made appropriate findings and recommended approval of the proposed ordinance amendments; and

WHEREAS, the City Council hereby finds the proposed ordinance amendments are appropriate with the following findings as required by Section 2-180 of the City’s Unified Development Ordinance:

1. Criteria: Whether the amendment is consistent with the applicable policies of the City’s Land Use Plan.

Finding: The City’s Comprehensive Plan seeks to attract, grow and sustain quality

businesses in the City. The proposed ordinance amendment is consistent with the

policies of the City’s Land Use Plan.

2. Criteria: Whether the amendment is in the public interest and is not solely for the benefit of a single property owner.

Ordinance 2018-14 Page 2

Finding: The amendment is not intended to benefit only one property owner. It will be

effective Citywide in all residential areas.

3. Criteria: Whether the existing uses of property and the zoning classification of property within the general area of the property in question are compatible with the proposed zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: This finding is not applicable as this proposal will amend zoning regulations

for certain business uses and will not alter the zoning classification of specific

properties.

4. Criteria: Whether there are reasonable uses of the property in question permitted under the existing zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: The zoning classification of specific property would not be changed, nor

would the allowed uses be expanded residential districts. The proposed Ordinance

amendment establishes a minimum separation between Pawn Shop businesses in the

City.

5. Criteria: Whether there has been a change in the character or trend of development in the general area of the property in question, which has taken place since such property was placed in its present zoning classification, where the amendment is to change the zoning classification of a particular property.

Finding: This zoning text amendment will not be applicable to one particular property

within the City. It will be applicable Citywide.

NOW, THEREFORE, THE CITY OF FARIBAULT ORDAINS:

Section 1: Amendment of Section 7-30 of the Unified Development Ordinance related to Development Standards and Table 11-1 related to Principal Uses in Commercial Districts. The aforesaid sections of the Unified Development Ordinance are hereby amended to replace the original text with the text as follows:

Sec. 7-30 Development Standards

Pawn Shops / Pawnbrokers

(1) Pawn Shops / Pawnbrokers shall be licensed to operate in the City in accordance with requirements of Chapter 14, of the City of Faribault, Code of Ordinances.

(2) A minimum separation distance of 1 mile shall be provided between Pawn Shop locations in and near the City limits.

Ordinance 2018-14 Page 3

Table 11-1. Principal uses in the commercial districts.

Use District Development Standards

C-1 C-2 C-3 CBD SH

Commercial uses Retail sales and services

Pawn shop - P P P C X

Section 2: Summary Publication. City Staff shall, upon an affirmative vote of no fewer than five of seven City Council Members, have the following summary printed in the official City newspaper in lieu of the complete ordinance:

On November 27, 2018 the Faribault City Council adopted Ordinance 2018-14 that amends and revises the Unified Development Code, Zoning Regulations regarding specific development standards to establish minimum separation requirements for Pawn Shop businesses in the City. A printed copy of the ordinance is available for inspection during regular business hours at Faribault City Hall.

Section 3: Effective Date. This ordinance shall be effective immediately upon its passage and publication, in accordance with Chapter 3 of the Faribault City Charter.

Public Hearing: November 5, 2018 First Reading: November 13, 2018 Second Reading: November 27, 2018 Publication: November 30, 2018

Faribault City Council __________________________________ Kevin F. Voracek, Mayor ATTEST:

__________________________________ Timothy C. Murray, City Administrator

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extracted f rom this m ap.Octob er, 20 18

Pawn Shop BuffersCity of Faribault

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This map is neither a legally recorded map nor a survey. This map is a compil at ion data affecting the area shown; and is for reference purposes only. In usi ng the m ap, you assum e responsi bi lity for the correctness al l inform at ion

extracted f rom this m ap.Octob er, 20 18

Pawn Shop BuffersCity of Faribault