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<br />Pawn Report <br />June 23, 2003 <br />Page 2 <br /> <br />identified—either north of Highway 10 or south of County Road H in the Mustang Drive/Circle <br />industrial area. To establish an overlay district, all that would be needed is to revise <br />proposed Ordinance 711 to reflect the creation of the new “Pawn Overlay District” with <br />associated supporting language. There was some question at the worksession as to <br />whether or not the Planning Commission should review and make a recommendation <br />regarding the overlay provisions if the Council does in fact determine an overlay is the <br />preferred approach. My response was and is that the Planning Commission had considered <br />the possibility of an overlay district prior to making their recommendation and no further <br />review is necessary, unless the Council feels additional Commission input would be <br />beneficial. <br /> <br />At the worksession the City Council also discussed the proposed fee structure for <br />Pawnshops, referring to the recommendations made by the Planning Commission, which <br />proposed a $5,000 annual license fee, a $10,000 operations bond, a $750 investigation fee <br />and a $1.50 per-transaction fee. There was some concern however that the fees as <br />proposed by the Planning Commission would not be enough to cover the added <br />administrative and potential investigative costs to the police department. The Council <br />examined fees charged by other communities and indicated a preference to be more in line <br />with communities such as Spring Lake Park, Columbia Heights and Blaine, which charge an <br />annual fee of $10,000, $12,000 and $15,000 respectively. While Blaine’s fee is the highest <br />of those communities polled, they do not charge a “per transaction” fee. <br /> <br />One other issue discussed at the June worksession was the possibility of requiring <br />background checks on ALL pawn employees in addition to the license holder and <br />manager(s). I contacted the City Attorney regarding this question and his response was that <br />such a requirement could be considered a violation of one’s human rights and civil liberties. <br />The Attorney recommends against imposing such a requirement. <br /> <br />Last, Mr. David Przetycki, the individual currently interested in opening a pawnshop at <br />Moundsview Square, has drafted a letter dated June 16, 2003, which I am including for <br />your reference. <br /> <br />Recommendation: <br /> <br />Review and discuss all of the issues associated with Pawnshops and direct staff to <br />provide more information or to place the item on the agenda for further discussion or <br />consideration. <br /> <br /> <br /> <br />_____________________________________ <br />James Ericson <br />Interim City Clerk/Administrator <br /> <br />Attachment: <br />1. Letter from Mr. Przetycki <br />2. Draft Ordinances 711 & 712