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<br />Pawnshop Report <br />August 20, 2003 <br />Page 2 <br /> <br />Legal Responses: <br /> <br />1. Is there a minimum amount to set aside? No, however the City must be reasonable. <br /> <br />2. Can overlay contain only unavailable land? No. “It would not be advisable for the City to <br />set up an overlay district containing only unavailable land in order to limit or effectively prohibit <br />these kinds of businesses. Such action could be deemed arbitrary and capricious. “ <br /> <br />3. Which other cities have an overlay? Brooklyn Center and Robbinsdale are two such cities. <br /> <br />4. Can a city limit or ban pawnshops altogether? Probably not. Absent specific supporting <br />facts and reasons, pawnshops should be treated in a manner similar to other commercial <br />uses. “An outright ban on pawnshops would not survive a [legal] challenge.” <br /> <br />5. What are the ramifications of creating an overlay with multiple “unwanted” land uses? <br />Landowners would probably argue that the creation of a “red light” overlay is simply irrational-- <br />that is, that such a district does not promote the public welfare and is a bad idea. <br /> <br />6. Is the City at greater risk if it creates a "red light” district ? The creation of such a district <br />would likely be met with opposition from landowners in and around such district. Obviously, <br />City action that generates real opposition is more likely to result in litigation than less <br />controversial action. Therefore, yes, creating such a district would likely increase the risk of <br />litigation. <br /> <br /> <br />Next Step: <br /> <br />The City Council has asked the Commission to comment on the overlay issue as to which of <br />the two proposed areas would be more appropriate and which properties should be included in <br />the overlay. Also, the Council would like a response regarding the proposal to include multiple <br />“unwanted” land uses within the overlay. The Commission should address these two issues in <br />light of the legal opinions offered and prepare a response (in the form of a resolution) to the <br />City Council. <br /> <br />To assist the Commission with the potential overlay boundaries, I have revised the original <br />overlay maps to reflect a smaller overlay area with fewer parcels. The Commission will need <br />to determine if the area and parcel availability would satisfy the “reasonableness” test. <br /> <br />Recommendation: <br /> <br />Review the revised overlay map and direct staff to draft a response to the City Council. <br /> <br /> <br />_____________________________________ <br />James Ericson <br />Interim City Clerk/Administrator <br /> <br />