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Item No: 9I <br />Meeting Date: June 23, 2003 <br />Type of Business: Discussion <br />City of Mounds View Staff Report <br /> <br />To: Honorable Mayor and City Council <br />From: James Ericson, Acting City Administrator <br />Item Title/Subject: Pawnshop Regulation Discussion <br /> <br />Introduction: <br /> <br />The City Council adopted an Interim ordinance on February 27, 2003, which directed the <br />Planning Commission to review the licensing and zoning implications related to pawnshops <br />and to recommend applicable provisions. The Planning Commission discussed this issue at <br />meetings in March, April and May of this year, reviewing State statues, ordinances from <br />adjoining communities and ordinances from communities where pawnshops currently <br />operate. The Commission also heard testimony from representatives of the Mounds View <br />Police Department who did research on their own, discussing the potential impacts of a <br />pawnshop with other police departments. After significant discussion and input from <br />interested parties including residents and tenants from Moundsview Square, the Commission <br />adopted a resolution forwarding two ordinances on to the City Council for their consideration. <br /> <br />Background: <br /> <br />Pawnshop regulation is a contentious, emotional issue for most communities. And while <br />there have been major advancements and improvements in the pawn industry with the <br />proliferation of new Pawn Americas and other pawn chains designed to look like any other <br />retail establishment, there still remains negative connotations and images associated with <br />such businesses. <br /> <br />The adoption of ordinances to regulate such a business is imperative to protect and preserve <br />local control over the siting and operation of such a business. Without such controls, a <br />Pawnshop could operate unregulated in a city, locating in an area that would otherwise be <br />deemed inappropriate. Adoption of requirements is not an invitation for such a use, it is a <br />proactive measure as opposed to a less effective and more expensive reactive response. <br />The last point which needs to be emphasized is that the City cannot prohibit a Pawnshop <br />from locating here if there are other commercial uses present and zoned for in the City. The <br />City can, however, regulate WHERE in the community such a use would be appropriate and <br />can adopt regulations and licensing requirements to control the operation and to protect the <br />health, safety, well-being of the community. Regulations should not be so unreasonable as <br />to effectively prohibit the use, especially if it can be proven that the underlying intent of the <br />regulations is exactly that. <br /> <br />Discussion: <br /> <br />The City Council held a public hearing on May 12, 2003 at which time public comment was <br />accepted. The Council chose to delay action until they had an opportunity to discuss the <br />proposed ordinances at the next worksession, June 2, 2003. At the worksession, the <br />Council discussed the possibility of creating an overlay zoning district that would allow for a <br />pawnshop outside of the central business district of the City. Two potential overlays were