08-20-2003 - Laserfiche WebLink

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EXHIBIT A. M E M O R A N D U M TO: Bob Vose FROM: Mary Tietjen DATE: August 6, 2003 RE: Mounds View Pawnshop Overlay District This is in response to Mr. Ericson’s email regarding the creation of a pawnshop overlay district. Minn. Stat. § 325J, the state statute governing pawnbrokers, allows a city to regulate the business transactions of pawnbrokers. The only provision in the statute relating to the location of pawnshops is Section 325J.10 which provides that a pawnshop may not be located within 10 miles of a gambling casino and that any pawnshop lawfully operating as of April 2, 1996 does not have to relocate or close. The zoning and regulation of pawnshops involves different issues than apply to adult uses. There are no first amendment/free speech issues that would affect the city’s ability to create an overlay district for pawnshops. In other words, there is no requirement that a city provide a “reasonable opportunity” for pawnshops in the same manner that it must do for adult uses. Moreover, I cannot find any authority that either requires the City to set aside a minimum amount of land for a pawnshop overlay district, or prevents the City from limiting the number of pawnshops or prohibiting them altogether. However, as with any zoning or land-use decision, a decision to limit or ban pawnshops would need to be supported by reasons and an adequate factual basis. A ban or significant limitation on pawnshops may be difficult to justify unless the City could demonstrate a factual basis (such as detrimental impact on the community) to treat pawnshops differently than other commercial enterprises. Particularly, the establishment of a pawnshop overlay district must have some rational basis. See, e.g., Billy Graham Evangelistic Assoc. v. City of Minneapolis, 653 N.W.2d 638 (Minn. Ct. App. 2002) (city’s designation of historic-district designation will be overturned only when it is unreasonable, arbitrary, or capricious). 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. See id. (zoning decision is arbitrary when it is based on whim or is devoid of articulated reasons).