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Pawn Ordinances Report <br />May 12, 2003 <br />Page 4 <br /> <br />The Planning Commission, in their resolution, recommends the following fee structure: <br /> <br />??Annual License: $5,000 <br />??Per transaction fee: $1.50 <br />??Investigation fee: $750 <br />??License bond: $10,000 <br /> <br />One of the concerns raised at the Planning Commission meetings was whether the <br />proposed fees would actually cover the cost that would be incurred by our police <br />department. While it is “believed” that the amounts listed above would be adequate, we <br />have received feedback from other police departments that would indicate to the contrary. <br />The Council will need to determine whether the fees proposed by the Planning <br />Commission would be sufficient and if not, what would be appropriate. <br /> <br />Sections 516.10 and 516.11 address persons and locations ineligible for a license. The <br />language in these two sections are fairly common and straightforward, the Planning <br />Commission recommended limiting the size of the premises to 5,000 square feet to <br />eliminate the possibility of a pawn superstore locating in the City. It is in this section also <br />that places the 1,000 foot separation requirement between two pawnshops. With the <br />separation requirement, only one pawnshop could locate in the City. <br /> <br />Section 516.11 establishes most of the operating conditions of a Pawnshop, the first being <br />that the business shall be a member of the Automated Pawn System (APS). The city of <br />Minneapolis created the database system to track items pawned and purchased, giving <br />police departments in the metro area the opportunity to query the system for items that <br />may have recently been stolen. Everyone pawning or selling goods to a pawnbroker is <br />photographed and/or videotaped and they are required to provide proper identification. <br />Pawnbrokers are required to “hold” (not resell) an item for periods of time. This is another <br />area that deviates from city to city, however the typical hold times are 90 days for pawned <br />goods and 30 days for goods purchased outright. The Police Department recommended <br />90 day holds on BOTH pawned and purchased goods to allow for the maximum amount of <br />time to recover any potentially stolen goods before they are resold. Once sold, the items <br />would not be traceable unless the sell price exceeded $100. For goods sold in excess of <br />$100, the licensee must collect the name, address and phone number of the person <br />purchasing the item. The Planning Commission decided to follow suit with most other <br />cities and recommended the 30-day hold. <br /> <br />Section 516.11 also addresses handguns and firearms in general. The Police department <br />asked many surrounding communities whether they allowed or prohibnited the <br />pawing/purchase or sale of firearms. While some cities prohibit handguns, no ordinance <br />we found prohibited the pawn, purchase or sale of sport rifles and shotguns. The Planning <br />Commission, based upon the recommendation of the Police Department, added language <br />that prohibits the pawn, purchase and sale of ANY firearm. <br /> <br />In this same section of the ordinance, it is required that signage be posted to inform <br />persons seeking to pawn, pledge, sell, leave, or deposit articles of property with the licensee <br />of the following requirements: <br />