Agenda Packets - 2003/10/27 - Laserfiche WebLink

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Pawn Overlay District October 27, 2003 Page 2 On August 6, 2003, we received a legal opinion from the City Attorney in response to the questions asked by the Planning Commission. The responses are as follows: Legal Responses: 1. Is there a minimum amount to set aside? No, however the City must be reasonable. 2. Can overlay contain only unavailable land? No. “It would not be advisable for the City to set up an overlay district containing only unavailable land in order to limit or effectively prohibit these kinds of businesses. Such action could be deemed arbitrary and capricious. “ 3. Which other cities have an overlay? Brooklyn Center and Robbinsdale are two such cities. 4. Can a city limit or ban pawnshops altogether? Probably not. Absent specific supporting facts and reasons, pawnshops should be treated in a manner similar to other commercial uses. “An outright ban on pawnshops would not survive a [legal] challenge.” 5. What are the ramifications of creating an overlay with multiple “unwanted” land uses? Landowners would probably argue that the creation of a “red light” overlay is simply irrational-- that is, that such a district does not promote the public welfare and is a bad idea. 6. Is the City at greater risk if it creates a "red light” district? The creation of such a district would likely be met with opposition from landowners in and around such district. Obviously, City action that generates real opposition is more likely to result in litigation than less controversial action. Therefore, yes, creating such a district would likely increase the risk of litigation. Location: Two locations were identified by the City Council as potential overlay districts. The first proposed district was that area north of Highway 10, encompassing Sysco, the golf course and the office buildings on Coral Sea Street. The second proposed overlay was in the area south of County Road H, south of the Townsedge Terrace manufactured home community. These two areas are shown on the attached Exhibit 2. The Planning Commission determined that if separation from residential areas was a primary factor in establishing an overlay zone, the area south of County Road H would be unsuitable location given the density of housing at the adjacent Townsedge Terrace community. (There are approximately 240 homes in Townsedge.) Focusing their attention on the proposed overlay north of Highway 10, the Planning Commission then considered the size of the proposed overlay, indicating that the overlay as presented in Exhibit B was too large and would allow for multiple pawnshops. The Commission removed Sysco and the Golf Course from the proposed overlay, agreeing on a scaled back overlay as shown on Exhibit 3. A scaled back overlay was also created on Mustang Drive but again that was rejected due to the proximity of the housing.