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HomeMy WebLinkAbout04-02-2003 MOUNDS VIEW PLANNING COMMISSION April 2, 2003 -- 7:00 P.M. REGULAR MEETING AGENDA 1. Call to Order 2. Roll Call 3. Approve Minutes a. February 19, 2003 b. March 5, 2003 4. Citizens Requests and Comments on Items Not on the Agenda CITIZENS: BEFORE SPEAKING, PLEASE COME TO THE PODIUM, AND GIVE YOUR FULL NAME AND ADDRESS FOR THE MINUTES 5. Public Hearing and Consideration of a Request for a Variance to Allow Encroachment of a New Home into the Prevailing Front Setback at 7741 Long Lake Road. Applicant: Hamilton Creek, Scott & Gretchen Davis Planning Case No: VR03-002 6. Discuss Proposed No Parking Request on Greenfield Avenue Special Planning Case No. SP-115-03 7. Consideration of a Development Review Request to Expand the Business Located at 2865 County Highway 10. Applicant: Greg Johnson Planning Case No: DE03-001 8. Discuss and Review of Proposed Code Amendments to Regulate the Siting and Licensure of Pawn Shops in Mounds View. Special Planning Case No. SP-114-03 APPLICANTS: YOUR ATTENDANCE AT THIS MEETING IS REQUESTED. PLEASE NOTIFY THE COMMUNITY DEVELOPMENT DEPARTMENT AT 763-717-4020 IF YOU ARE UNABLE TO ATTEND. 9. Next Planning Commission Meeting: April 16, 2003 10. Adjournment to Agenda Session AGENDA SESSION 1. Review Minutes: March 19, 2003 2. Staff Reports 3. Chairperson and Planning Commissioners’ Reports N:\Data\Groups\Comdev \Planning Commission \PC Agendas\2003 \04-02-03 PC Agenda.doc Item No : 5 Meeting Date : April 2, 2003 Type of Business: Public Hearing City of Mounds View Staff Report To: Mounds View Planning Commission From: James Ericson, Acting City Administrator Item Title/Subject: Public Hearing and Consideration of a Request for a Variance to Allow Encroachment of a New Home into the Prevailing Front Setback at 7741 Long Lake Road. Introduction: In January of 2002, the City Council approved the final Plat for Gustafsons Fifth Addition, a replatting of land located at the northeast corner of County Road I and Long Lake Road. The subdivision was complicated due to ownership issues, variances and utility work, which was not initiated until the last months of 2002. After all of the legal and utility issues had been resolved, the City issued a building permit for a new home on Lot 1, Block 1 of the subdivision, the northernmost lot on Long Lake Road. The permit was issued on January 27, 2003. The survey attached to the permit application indicated a building s etback of 30.3 feet from the property line abutting Long Lake Road. Such a setback complies with the City’s “typical” requirements. Discussion: On February 28, 2003, one of the City Council members contacted me questioning the setback of the new home u nder construction at 7741 Long Lake Road, in that it was significantly closer to the street than other homes on the block. Staff inspected the property and verified that the home was indeed closer to the street than the other homes along that side of Long Lake Road. The survey for the property indicated the building would be set back thirty feet (30.3) from the Long Lake Road right of way. The inspection revealed that the home was being constructed according to the survey-specified set back. Setback requirements are addressed in Section 1104.01 of the Zoning Code. Each zoning district is listed with the corresponding front, side and rear setbacks. In an R -1, Single Family Residential district, the typical setbacks are as follows: Front, 30 feet; Side, 10 feet; and Rear, 30 feet. It is footnoted in the Code that sheds and garages, attached or detached, can have side and rear setbacks of 5 feet. (No accessory building can be located in a front yard unless it is attached to the principal structure, and even then the minimum set back is thirty feet.) The front yard setback is further footnoted to address the issue of “prevailing setbacks”, articulated as follows: “Where principal buildings in existence on lots within the same block on the same side of the street have front yard setbacks different from those required, the minimum front yard setback for any new principal buildings shall be the minimum front yard setback in existence for any one lot. In no case shall the front yard setback be less than thirty feet (30').” Setback Report 7741 Long Lake Road April 2, 2003 Page 2 Based on the above information regarding “prevailing setbacks”, it becomes readily apparent that the structure under construction at 7741 Long Lake Road is too close to the street. The building permit for the structure should not have been issued; the error is admittedly the City’s. Incorrect setback information was provided to the developer and/or his surveyor, and upon submission of the building permit application, another error was made in not verifying the setback of the building. After learning of the potential error, the City’s temporary inspector field- verified prevailing setbacks and at the same time staff reviewed the Long Lake Road reconstruction as-built plans, survey quality plans which include building setback information. The field inspection and review of the as-built plans indicated that the home located at 7801 Long Lake Road was the closest to the street at 41 feet, and as such, 41 feet would constitute the prevailing setback for this block of Long Lake Road. Once the prevailing setback had been determined, the building official posted a “Stop Work” order on the property and staff then notified the developer, Neal Zinser. Three options were presented to Mr. Zi nser: Remove 11 feet from the garage to satisfy the prevailing setback, slide the whole structure back by 11 feet, or apply for a variance. Mr. Zinser indicated that the second option (move the building back an additional 11 feet) was NOT an option due t o the extent of the construction already completed and immediately requested to be heard for a variance request. Mr. Zinser also requested to continue construction on the house itself, to which the building official agreed, amending the Stop Work order accordingly. One additional issue regarding the construction is inconsistent with the Zoning Code. Subdivision 1c of Section 1106.03 of the R -1 Zoning requirements indicates that no garage shall exceed 952 square feet in area except by conditional use permit. The size of the garage at 7741 Long Lake Road, at 25 feet by 42 feet, is 1,050 square feet, 98 square feet more than the maximum without a CUP. Furthermore, the Zoning Code states that the maximum square footage of accessory building space on a lot i s 1,800 square feet. A shed has been constructed on the lot which, at 30 feet by 31.66 feet, totals 950 square feet. The shed and garage space together totals 2,000 square feet, 200 square feet more than what is allowed by the Zoning Code. Thus, in addition to the front setback issue, to maintain the size of the garage, a CUP would need to be obtained; and to maintain the TOTAL square footage, a variance would need to be approved for the additional 200 square feet. Variance Considerations: For a variance to be approved, the applicant needs to demonstrate a hardship or practical difficulty associated with the property that makes a literal interpretation of the Code overly burdensome or restrictive. Minnesota statutes require that the governing body (the Planning Commission, in Mounds View) review a set of specified criteria for each application and make its decision in accordance with these criteria. These criteria are set forth in Section 1125.02, Subdivision 2, of the City Code. The Code clearly sta tes that a hardship exists when all of the criteria are met. The criteria are as follows: Setback Report 7741 Long Lake Road April 2, 2003 Page 3 a. Exceptional or extraordinary circumstances apply to the property which do not apply generally to other properties in the same zone or vicinity and result from lot size or shape, topography or other circumstances over which the owners of the property since the effective date hereof have had no control. The property is zoned R-1 and is currently being improved with a new, two -story single -family dwelling. The lot is not irregularly shaped and at 22,000 square feet, is more than double the size of a standard lot. The sole cause of the variance request, as it is well documented herein, is due to a City oversight. The Community Development Department failed to “flag” the setback encroachment and issued the permit in error. The developer began construction in accordance with the City’s approval and it was not until March 4, 2003, that he became aware of any problems. b. The literal interpretation of the provisions of this Title would deprive the applicant of rights commonly enjoyed by other properties in the same district under the terms of this Title. While the literal interpretation of the provisions of the Zoning Code would not deprive the applicant of rights enjoyed by other properties in the same zone, to apply the provisions after- the -fact would certainly deprive the applicant a right he was granted by virtue of an approved building permit. It should be noted however that mistakes and oversights do occur and that when discovered, builders are required to correct the mistakes, even if the mistakes are not their own. The question, then, is, which is preferable —preserving the intent of a uniform building setback and requiring the applicant to tear down walls, redraft plans and pour new footings, all at considerable cost, or to grant a variance because of the City’s error. c. That the special conditions or circumstances do not result from the actions of the applicant. The special conditions do not result from the actions of the applicant. d. That granting the variance requested would not confer on the applicant any special privilege that is denied by this Title to owners of other lands, structures or buildings in the same district. Granting the variance would confer upon the property owner a special privilege that would be denied other property owners. However, one could consider the investment already made by the applicant a mitigating factor. e. That the variance requested is the minimum variance which would alleviate the hardship. Economic conditions alone shall not be considered a hardship. Leaving the structure “as is” certainly could be considered the minimum variance which would alleviate the ha rdship. The cost of removing one foot of the garage, in this case, would essentially be the same as removing 11 feet. Setback Report 7741 Long Lake Road April 2, 2003 Page 4 f. The variance would not be materially detrimental to the purpose of this Title or to other property in the same zone. Granting a variance to allow the structure to remain within the setback could be viewed as materially detrimental to the purpose and intent of the zoning code. It is hard to imagine a situation where the Planning Commission would have approved this request had the setback been flagged prior to construction. Staff has not received any feedback from neighbors regarding this request. g. The proposed variance will not impair an adequate supply of light and air to adjacent property or substantially increase the congestion of the public streets or increase the danger of fire or endanger the public safety or substantially diminish or impair property values within the neighborhood. The proposed variance would not result in any of the above -cited adverse effects. Summary: All of the criteria, as indicated above, need to be satisfied to justify the granting the variance. Certainly the fact that the applicant was issued a building permit in good faith does support the requirement that the exceptional or extraordinary condition not be caused by the applicant. But does that error necessitate approval of the variance? No. The fact that the City erred in its issuance of the building permit, even given the magnitude of the oversight, does not in itself obligate variance approval. The Planning Commission needs to determine whether the City’s error in itself is sufficient justification to grant the variance. Recommendation: After holding the public hearing and taking testimony from staff, the builder, the property owner and affected neighbors, the Commission can take one of the following actions related to the request: 1. Approve the requested variance with stipulations requiring application of a conditional use permit for the oversized garage and a variance for accessory space beyond the 1,800 square foot maximum. Furthermore, a stipulation should be included which indicates that if the structure is ever damaged or destroyed, the original prevailing setback shall apply to any reconstruction. Resolution “A” is attached for this option. 2. Deny the requested variance and require that 11 feet be removed from the front of the garage to satisfy the prevailing 41-foot setback. If the Commission determines this option is appropriate, the applicants would have the right to appeal the Commission’s decision and such an appeal would be heard by the City Council on April 14, 2003. Resolution “B” is attached for this option. Setback Report 7741 Long Lake Road April 2, 2003 Page 5 3. Table the request pending receipt of additional information. Staff would NOT encourage the Commission to table the request as the applicant and building owners have stopped work on the garage construction and tabling the request would exacerbate the delay. If additional information is needed, I would strongly urge the Commission to contact me prior to the meeting and I will do my best to obtain the information for presentation at the meeting. _____________________________________ James Ericson Interim City Clerk/Administrator Attachments: 1. Certificate of Survey 2. Location Map 3. Resolutions MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 720-03 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING A VARIANCE FROM THE MINIMUM FRONT SETBACK FOR A SINGLE-FAMILY DWELLING AT 7741 LONG LAKE ROAD ; PLANNING CASE NO. VR03-002 WHEREAS , the applicant, Hamilton Creek, has applied for a variance from the minimum front setback for a single -family dwelli ng under construction at 7741 Long Lake Road; and, WHEREAS , Section 1104.02 of the Mounds View Zoning Code indicates that the minimum front setback for a principal building is 30 feet unless the prevailing setback for existing structures exceeds 30 feet, in which case the prevailing set back IS the minimum setback; and, WHEREAS , the structure under construction, set back 30.3 feet from the front property line, is located within the “prevailing” set back on this block, which is 41 feet; and, WHEREAS , the applicant was issued a building permit for the structure on January 27, 2003 based on a survey indicating a 30.3 -foot front set back; and, WHEREAS , upon discovery of its error, the City issued a “Stop Work” order on the construction prompting the applicant to request a variance; and, WHEREAS , according to Section 1125.02, Subdivision 2 of the Mounds View Municipal Code, the Planning Commission is to review a standard set of criteria, of which all must be satisfied, in order to grant a variance to the Zoning Code. NOW, THEREFORE, BE IT RESOLVED, the Mounds View Planning Commission makes the following finding of facts related to this request: 1. The exceptional or extraordinary conditions relating to the variance request is simply the City erred in its issuance of a building permit and did not discover the error until work had substantially began on the structure. 2. The literal interpretation of the Zoning Code, in conjunction with the City’s error, does deny the applicant rights commonly enjoyed by other recipients of building permits. 3. The applicant has not caused the condition which prompted the variance request. 4. Granting the variance would not confer upon the applicant a special privilege. Resolution “A” Resolution 720-03 (A) Page 2 5. The variance requested is the minimum variance which would alleviate the hardship. 6. The variance would not be materially detrimental to the purpose of this Title or to other property in the same zone. 7. The variance would not impair an adequate supply of light and air to adjacent property or substantially increase the congestion of the public streets or increase the danger of fire or endanger the public safety or substantially diminish or impair property values within the neighborhood. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Mounds View Planning Commission, based upon the above identified finding of facts, does hereby approve the variance requested for a 30.3 -foot front setback for the structure under construction at 7741 Long Lake Road, subject to the following requirements: 1. The applicant shall apply for and obtain approval of a conditional use permit for an oversized garage before the Certificate of Occupancy can be issued. 2. The applicant shall apply for and obtain approval of a variance for 200 square feet of accessory storage space in excess of the maximum allowed 1,800 square feet of space. 3. If the structure is ever damaged or destroyed beyond repair, reconstruction shall occur at the original prevailing setback of 41 feet. Adopted this 2nd day of April 2003. ____________________________________ Gary Stevenson, Chairperson ATTEST: ____________________________________ James Ericson Community Development Director (SEAL) MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 720-03 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION DENYING A VARIANCE FROM THE MINIMUM FRONT SETBACK FOR A SINGLE-FAMILY DWELLING AT 7741 LONG LAKE ROAD ; PLANNING CASE NO. VR03-002 WHEREAS , the applicant, Hamilton Creek, has applied for a variance from the minimum front setback for a single -family dwelling under construction at 7741 Long Lake Road; and, WHEREAS , Section 1104.02 of the Mounds View Zoning Code indicates that the minimum front setback for a principal building is 30 feet unless the prevailing setback for existing structures exceeds 30 feet, in which case the prevailing set back IS the minimum setback; and, WHEREAS , the structure under construction, set back 30.3 feet from the front property line, is located within the “prevailing” set back on this block, whi ch is 41 feet; and, WHEREAS , the applicant was issued a building permit for the structure on January 27, 2003 based on a survey indicating a 30.3 -foot front set back; and, WHEREAS , upon discovery of its error, the City issued a “Stop Work” order on the construction prompting the applicant to request a variance; and, WHEREAS , according to Section 1125.02, Subdivision 2 of the Mounds View Municipal Code, the Planning Commission is to review a standard set of criteria, of which all must be satisfied, in order to grant a variance to the Zoning Code. NOW, THEREFORE, BE IT RESOLVED, the Mounds View Planning Commission makes the following finding of facts related to this request: 1. The exceptional or extraordinary conditions relating to the variance reque st is simply that the City erred in its issuance of the building permit and did not discover the error until work had substantially began on the structure. 2. The literal interpretation of the Zoning Code, in conjunction with the City’s error, does NOT deny the applicant rights commonly enjoyed by other recipients of building permits. 3. Granting the variance would confer upon the applicant a special privilege. 4. The variance would be materially detrimental to the purpose of this Title or to other property in the same zone. Resolution “B” Resolution 720-03 (B) Page 2 NOW, THEREFORE, BE IT FURTHER RESOLVED that the Mounds View Planning Commission, based upon the above -identified finding of facts, does hereby DENY the variance requested for a reduced 30.3 -foot front setback fo r the structure under construction at 7741 Long Lake Road NOW, THEREFORE, BE IT FURTHER RESOLVED that the garage currently under construction at 7741 Long Lake Road shall be reconstructed to comply with the existing prevailing setback which is 41 feet. NOW, THEREFORE, BE IT FINALLY RESOLVED that the applicant shall be notified of the right to appeal this denial to the City Council. The appeal shall be submitted in writing within 10 business days of the adoption of this Resolution. Adopted this 2nd day of April 2003. ____________________________________ Gary Stevenson, Chairperson ATTEST: ____________________________________ James Ericson Community Development Director (SEAL) Item No : 6 Meeting Date : April 2, 2003 Type of Business: Commission Business City of Mounds View Staff Report To: Chair Stevenson and Planning Commissioners From: James Ericson, Interim City Administrator Item Title/Subject: Further Discussion and Reconsideration of the “No Parking” Request on Greenfield Avenue South of County Road I Introduction: On March 24, 2003, the City Council held a public hearing to consider the request to post the east side of Greenfield Avenue 350 feet south of County Road I “No Parking” Monday through Saturday, 8 am to 6 pm. Commissioners Johnson and Zwirn attended the meeting as did property owner Steve Farrell and a tenant at the property, Ted Rose. Mr. Rose operates the State Farm Insurance Agency in the building. Discussion: After taking testimony, the Council acknowledged that a parking problem existed in the area and was concerned that Mr. Farrell’s clients and employees were parking on the street causing an inconvenience for the property owners south on Greenfield Avenue. The Council discussed with staff and the property owner various alternatives that could be employed to resolve the situation without imposing parking restrictions. The Council asked Mr. Farrell if he would be willing to expand his parking lot, to which Mr. Farrell responded in the affirmative; and the Council also discussed the possibility of allowing parking on Greenfield directly across from the building, but not any further south until beyond the 350-foot location. Allowing parking on Greenfield across from the business would leave two or three stalls and if the parking lot were expanded by two stalls, that could potentially resolve the parking situation. While that may be true, the Council was told the Commission had already discussed the parking lot expansion issue at length and was concerned that any further expansion of the lot would be an aesthetic detriment to the neighborhood. The Council also suggested exploring the possibility of striping for narrower parking stalls (i.e., 8 ½ feet in width instead of the required 9 feet) and whether that would generate more stalls. After considering all of the testimony and information presented, the City Council tabled action on the request, sending the issue back to the Planning Commission for additional review and consideration. Recommendation: Reconsider the parking situation and dimensional requirements and determine if there is a need to amend the Commission’s Resolution 718-03 recommending No Parking on Greenfield Ave. _____________________________________ James Ericson Interim City Clerk/Administrator MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 718-03 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING INSTALLATION OF A “NO PARKING FROM HERE TO CORNER” SIGN ON THE EAST SIDE OF GREENFIELD AVENUE FOR PUBLIC SAFETY PURPOSES WHEREAS , the Mounds View Planning Commission has reviewed the parking situation on Greenfield Avenue between County Road I and Bronson Drive in response to complaints from residents in this area; and, WHEREAS, the business located at 2402 County Road I consistently and regularly overflows its parking lot resulting in employees and customers parking on Greenfield Avenue; and, WHEREAS , the west side of Greenfield Avenue has alr eady been posted as No Parking to control and restrict on-street parking on this block. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Mounds View, finding there to be sufficient cause and in the interest of public safety, recommends that a “No Parking from Here to Corner, Mon – Sat, 8 am – 6 pm” sign be installed on the east side of Greenfield Avenue, 350 feet south County Road I, shown as Location “C” on the attached Exhibit 1. BE IT FINALLY RESOLVED that the Planning Commission directs staff to forward this resolution to the City Council prior to approval of the minutes. Adopted this 5th day of February, 2003. ____________________________________ Jean Miller, Acting Chairperson ATTEST ____________________________________ James Ericson, Community Development Director (SEAL) No Parking Report February 5, 2003 Page 3 Recommendation: The Planning Commission may choose to act on the attached resolution, Resolution 718-03, recommending posting the east side of Greenfield Avenue “No Parking from Here to Corner.” The Resolution does not indicate the actual distance back from County Road I and would need to be added as part of its adoption. James Ericson Community Development Director Attachments: 1. Resolution 718-03 EXHIBIT 1. C Proposed Location of “No Parking from Here to Corner” Sign Item No : 7 Meeting Date : April 2, 2003 Type of Business: Commission Business City of Mounds View Staff Report To: Mounds View Planning Commission From: James Ericson, Acting City Administrator Item Title/Subject: Consideration of a Development Review Request for a 780 Square-Foot Expansion to the Business Located at 2865 County Highway 10. Planni ng Case DE03-001 Introduction: Greg Johnson, the property owner of 2865 County Highway 10, has requested a Development Review to expand his existing business located on the property. The business is operated from a 1,248 square foot building alongside the property owner’s residence. The property is zoned R-O, Residential Office, the only p roperty in the City to be so designated. Recently the applicant requested a text amendment to the Zoning Code to officially recognize his business as a permitted commercial use and to be considered a commercial use rather than a residential accessory use. The Planni ng Commission recommended approval of this text amendment and the City Council gave first reading to the corresponding ordinance at their meeting on March 24, 2003. Second reading and adoption of the ordinance will occur on April 14, 2003. Submitted for the Planning Commission’s review are copies of the Site Plan, Building Permit Application, Zoning Map, and front Building Elevation. Discussion: A Development Review is required for this expansion since the amount of the expansion exceeds ten percent of the business area. (According to Section 1006.06 of the Mounds View Building Code, expansions of less than ten percent do not requi re review.) The expansion proposed by Mr. Johnson amounts to a 38 percent increase in floor area. The expansion would allow for an additional work bay however would not increase the amount of parking needed for the business. Mr. Johnson proposes to match the architecture and design of the existing structure, adding a brick facade to the front of the building for added visual appeal. The expansion would not encroach into either the front, rear or side setback, however the building would be closer to the residence. A separation of eight feet is proposed between the house and the business, the minimum allowed by the Building and Zoning Code is three feet. The parcel is 1.25 acres in area and is wooded to the rear. Neighboring residential properties would not be impacted by the proposed expansion; no additional screening would be necessary. While not necessary, Staff sent notices to property owners within 350 feet of Mr. Johnson’s property in an effort to ensure promote awareness and to solicit feedback, encouraging residents to attend the meeting if they had questions, comments or concerns. Recommendation: There does not appear to be any negative consequences associated with the requested expansion and as such, staff is recommending adoption of Resolution 721-03, a resolution recommending approval of the requested Development Review to permit the 780 square foot expansion of Mr. Johnson’s business at 2865 County Highway 10. _____________________________________ James Ericson Interim City Clerk/Administrator Attachments: 1. Zoning Map 2. Site Plan 3. Floor Plan 4. Building Permit Application 5. Front Building Elevation 6. Resolution 721-03 Zoning Map MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 721-03 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF A DEVELOPMENT REVIEW REQUEST FOR A 780 SQUARE FOOT EXPANSION OF THE BUSINESS LOCATED AT 2865 COUNTY HIGHWAY 10; PLANNING CASE NO. DE03-001. WHEREAS, The Applicant, Greg Johnson, property o wner of 2865 County Highway 10 has requested approval of a Development Review to construct a 780 square-foot expansion to his business; and, WHEREAS, the subject property is zoned R-O, Residential Office, and is legally described as follows: Subject to Highway, Lot 49, Auditor’s Subdivision 89, Ramsey County State of Minnesota WHEREAS, according to Section 1006.06 of the Mounds View Municipal Code, any new construction or expansion of existing facilities of ten percent or more of the building area requires the approval of a development review; and, WHEREAS, the Planning Commission has reviewed the following documents regarding this proposal: a. Planning Application b. Building Permit Application b. Zoning Map c. Site Plan d. Elevation Drawing e. Floor Plan f. Staff Report WHEREAS, the proposed development satisfies all applicable requirements of the Zoning Code; and, WHEREAS , the site plan indicate s that the proposed addition would be 20 feet by 39 feet with a footprint of 780 square fe et. NOW THEREFORE BE IT RESOLVED that the Mounds View Planning Commission, finding that all of the requirements have been met, does hereby recommend that the City Council approve the development review request for the construction of a 780 square foot addition to the existing business facility located at 2865 County Highway 10. Resolution 721-03 Page 2 BE IT FURTHER RESOLVED that the Mounds View Planning Commission directs Staff to forward this Resolution to the City Council prior to approval of the minutes. Adopted this 2nd day of April, 2003. _________________________________ Gary Stevenson, Chairperson ATTEST: _________________________________ James Ericson Community Development Director (SEAL) Item No : 8 Meeting Date : April 2, 2003 Type of Business: Discussion City of Mounds View Staff Report To: Mounds View Planning Commission From: James Ericson, Interim City Administrator Item Title/Subject: Review Code Changes Related to Pawnshops Introduction: The City is in the process of amending its Zoning and Business Codes to allow for the regulation of Pawnshops in Mounds View. The City Council adopted an Interim ordinance on February 27, 2003, which directs the Planning Commission to review the zoning implications and to recommend applicable provisions. Thus far, the Planning Commission has discussed this issue at their March 5th and March 19th meetings. Discussion: Precious Metal. At the March 19th meeting, there was discussion regarding the possibility of adding language to the proposed ordinance to regulate precious metals dealers. Mr. David Przetyski, a Mounds View resident who is proposing to open a Pawnshop in Mounds View, testified that he currently holds a Precious Metals Dealer License and anticipated obtaining one for his Mounds View business as well. There was some confusion as to the purpose and intent of such a license and why some cities regulated it and others did not. Roseville’s ordinance, which was reviewed at the March 19th meeting, includes very specific requirements pertaining to precious metals dealers. I did some research and learned that a precious metals dealer license is a State requirement. The Statutes, which I have attached for the Commission to review, address persons or businesses that deal in precious metals. The County in which the business is located sets the fee and issues the license. (The State indicates that persons engaged in the buying and selling of coins, bullion and ingots are excluded from needing a precious metals dealer license, though I’m not quite sure why.) To include language in the City’s ordinance regulating precious metals dealers and requiring a local license for precious metals seems redundant and unnecessary. If the Commission agrees, our draft ordinance will simply reference Minnesota Statutes that such a license is required. Impact on Police Services. I asked the City’s police department to investigate how much additional work would result if a Pawnshop located in Mounds View by inquiring with police departments in cities where Pawnshops already exist. The results of this investigation clearly show that Pawnshops are resource intensive, which means that such a business would demand more police time than would a typical business. The Cities of Maplewood, Blaine, Coon Rapids, Roseville, Fridley, Anoka and Spring Lake Park were contacted. All of the departments contacted recommended we require the business to be on APS (Automated Pawn System) and all recommended the business NOT be allowed to deal in handguns. The departments indicate an average of 4 to 10 hours a week are spent working on pawn-related issues, which more than justifies the annual fees and per transaction fee. Pawnshop Report April 2, 2003 Pa ge 2 License Requirements. Issues that will be addressed under the licensing provisions would include application, investigation, license term and renewal, hours of operation, separation between similar uses and all other operational requirements that wo uld be associated with business licensure. Annual license fees, per-transaction fees, and investigation fees would be established by Council resolution, however staff continues to support the following fee structure as outlined in the last report: o $2,500 annual fee o $500 investigation fee o $1.50 per transaction fee o $5,000 performance bond in force for the life of the operation Attached to this report, in addition to the draft Zoning ordinance the Commission has already reviewed, is the proposed ordinance language to amend Title 500, Business License Regulation. Recommendation: Staff recommends the Commission review and discuss the attached information and provide direction to staff regarding the proposed ordinances. If the Commission determines little or no additional revision or updating is needed, staff would draft for the Commission’s approval resolutions recommending adoption of the two draft ordinances, with such resolution being considered at your April 16, 2003 meeting. _____________________________________ James Ericson Interim City Clerk/Administrator Attachments: 1. Proposed Zoning Amendments 2. Proposed License Requirements 3. Precious Metal Dealer License Requirements and Application ORDINANCE NO. 711 CIT Y OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING THE MOUNDS VIEW CITY CODE SECTIONS 1102.02, PERTAINING TO DEFINITIONS, AND 1115.02, PERTAINING TO PERMITTED USES IN B -4 ZONING DISTRICTS THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1: Section 1102.02 of the Mounds View Zoning Code pertaining to definitions is hereby amended by adding new definitions as underlined to read as follows: Subd. 86. PAWNBROKER: (a) Except as provided in paragraph (b) , "pawnbroker" means a person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. (b) The following are exempt from the definition of "pawnbroker": any bank regulated by the state of Minnesota, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, or any other federal or state authority and their affiliates; any bank or savings and loan whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings and loan associations; any state or federally chartered credit union; any industrial loan and thrift company or regulated lender subject to licensing and regulation by the department of commerce. Subd. 87. PAWNSHOP: "Pawnshop means the location at which or premises in which a pawnbroker regularly conducts business. All existing subsequent subdivisions within Section 1102.02 are hereby renumbered as appropriate. SECTION 2: Section 1115.02 of the Mounds View Zoning Code pertaining to Permitted Uses within the B4 Zoning District is hereby amended by alphabetically inserting the following underlined uses: Pawnshops, as regulated and licensed according to Chapter 516 of the City Code. SECTION 3 . This Ordinance becomes effective thirty (30) days after its publication in the official City newspaper. Read by the City Council of the City of Mounds View on this __ day of ____, 2003. Read and passed by the City Council of the City of Mounds View this __ day of ____, 2003. Jerry Linke, Mayor ATTEST: ________________________________ James Ericson, Acting Clerk / Administrator (SEAL) APPROVED AS TO FORM: _________________________ City Attorney ORDINANCE NO. 712 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING THE INDEX AND TABLE OF CONTENTS OF THE MOUNDS VIEW MUNICIPAL CODE, AMENDING THE TABLE OF CONTENTS OF TITLE 500, BUSINESS LICENSE REGULATIONS, AND ADDING A NEW CHAPTER 516, ENTITLED “PAWNSHOPS” THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1: The Mounds View Municipal Code Index is amended by alphabetically inserting the following underlined text: Pawnshops ………………………………………………………….………………………516 SECTION 2: The Mounds View Municipal Code Table of Contents is amended by inserting the following underlined text: Pawnshops ………………………………………………………….………………………516 SECTION 3: The Table of Contents for Title 500, Business License Regulations, is amended by inserting the following underlined text: Pawnshops ………………………………………………………….………………………516 SECTION 4: A new Chapter 516 entitled “Pawnshops” is hereby added to Title 500, Business License Regulations: Ordinance Page 2 CHAPTER 516 PAWNSHOPS SECTION: 516.01: Purpose 516.02: Definitions 516.03: License Required 516.04: Application for License 516.05: Investigation by Police Department 516.06: Term of License and Renewals 516.07: License Fees 516.08: Billable Transaction Fees 516.09: Bond Requirement 516.10: Ineligible Persons and Locations 516.11: General License Requirements 516.12: Alarm System Requirement 516.13: Suspension or Revocation of License 516.14: Prohibited Acts 516.15: Adoption of State Statute by Reference 516.16: Separability 516.01 PURPOSE: The City Council of the City of Mounds View finds that pawnbroker regulation is appropriate because such activities provide an opportunity for the commission of crimes and their concealment because such businesses have the ability to receive and transfer stolen property e asily and quickly. The City Council also finds that consumer protection regulation of such activities is warranted because customers of such businesses frequently seek their services during times of desperate financial circumstances. To help the City of Mounds View to better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this chapter also implements and establishes the required use of the Automated Pawn System (APS). 516.02 DEFINITIONS: As used in this Chapter, the following words and terms shall have the meanings as follows: Ordinance Page 3 ACCEPTABLE IDENTIFICATION: Acceptable forms of identification are a current valid Minnesota driver's license, a current valid Minnesota identification card, or a current valid photo driver's license or identification card issued by another state or province of Canada. AUTOMATED PAWN SYSTEM (APS): A computerized data collection system that mandates the collection of data and digitized images via modem for the purpose of regulation and review of licensed pawn dealers by city officials and authorized subscribers. BILLABLE TRANSACTIONS: Every reportable transaction conducted by a pawnbroker, except renewals, redemptions, or extensions of existing pawns on items previously reported and continuously in the licensee's possession. CONSIGNMENT: Acting as a sales agent for another, selling another person’s goods without having to first purchase said goods. ISSUING AUTHORITY: The City of Mounds View. ITEM CONTAINING PRECIOUS METAL: An item made in whole or in part of metal and containing more than one percent (1%) by weight of silver, gold or platinum. MINOR: Any natural person under the age of eighteen (18) years. PAWNBROKER: A person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. The following are exempt from the definition of "pawnbroker": any bank regulated by the state of Minnesota, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve system, or any other federal or state authority and their affiliates; any bank or s avings and loan whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings and loan associations; any state or federally chartered credit union; any industrial loan and thrift company or regulated lender subject to licensing and regulation by the department of commerce. PAWNSHOP: The licensed location in which a pawnbroker conducts business. PERSON: One or more natural persons; a partnership, in cluding a limited partnership; a corporation, including a foreign, domestic or nonprofit corporation, a trust, a political subdivision of the state; or any other business organization. Ordinance Page 4 PRECIOUS METAL DEALER: Except as exempted by MN Statutes Section 325F.731, any natural person, partnership or corporation engaging in the business of buying, selling or pawning secondhand items containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. PRECIOUS METALS: means Silver, gold or platinum. REDEMPTION PERIOD: The date by which an item of property that has been pawned must be redeemed by the pledger without risk that the item will be sold. Such date must be a day on which the pawnbroker or precious metal dealer is open for regular business. REPORTABLE TRANSACTION: Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended, or for which a unique transaction number or identifier is generated by their point of sale software, is reportable, except: A. The bulk purchase of new or used merchandise from a merchant, manufacturer, or wholesaler having an established permanent place of business, and the retail sale of said merchandise, provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. B. Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. 516.03 LICENSE REQUIRED: No person shall exercise, carry on or be engaged in the trade or business of pawnbroker within the city unless such person is currently licensed in accordance with this chapter to be a pawnbroker. Pawnbrokers shall also maintain and display at all times a current and valid Precious Metal Dealer License issued by Ramsey County. 516.04 APPLICATION FOR LICENSE: Every application for license under this chapter, whether for a natural person, partnership, corporation or other organization, shall be made on a form supplied by the City and shall contain all information as required on that form by law. Subd. 1. All applications for a license under this chapter shall be signed and sworn to under oath or affirmation by applicant. If the application is that of a natural person, it shall be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and Ordinance Page 5 if that of an unincorporated association, by the manager or managing officer thereof. Subd. 2. Any falsification on a license application shall result in the denial of a license. Subd. 3. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application within fourteen (14) days. The manager s hall be subject to the investigation required by section 516.05 of this chapter, and to payment of the investigation fee required by this chapter, which shall be paid in advance. The designation of a new manager shall not cause the license to become invalid before a decision is rendered, provided proper notice and application are made by the applicant. A proposed new manager shall be referred to as the interim manager. In the event an interim manager is rejected, the licensee shall designate another interim manager and make the required application within fourteen (14) days of the decision. If a proposed manager is rejected, the decision may be appealed to the city council by filing a written notice of appeal with the city manager within ten (10) days after being notified of the rejection. 516.05 INVESTIGATION BY POLICE DEPARTMENT: Subd. 1. Investigation and Report: All applications shall be referred to the police department for verification and investigation of the facts set forth in the application. The police department shall make a written report and recommendation to the City Council as to approval or denial of the license. The City Council may order and conduct such additional investigation that it deems necessary. Subd. 2. Cost of Investigation: An investigation fee shall be collected with each application for a Pawnshop license to cover the expense of any investigation needed to assure compliance with this chapter. The investigation fee is established by resolution of the City Council. If the investigation and verification process is conducted outside the state of Minnesota, additional fees may be required 516.06 TERM OF LICENSE AND RENEWALS: Subd. 1 Term: Licenses expire annually on December 31. The license fee will be prorated in thirty (30) day increments for licenses issued after June 30. Subd. 2. Renewal: A license under this section will not be renewed if the City Council determines that the licensee has failed to comply with the provisions of this Ordinance Page 6 chapter in a preceding license year or if there would be sufficient grounds not to issue a license in the first instance. 516.07 LICENSE FEES: To defray administrative and other costs of processing applications for Pawnshop licenses, a nonrefundable fee shall be paid at the time an application is filed with the City. The minimum fee shall be established by resolution approved by the City Council. 516.08 BILLABLE TRANSACTION FEES: Licensees shall pay a monthly transaction fee on all billable transactions. The minimum fee shall be established by resolution approved by the City Council. Such fee shall be due and payable within thirty (30) days. Failure to timely pay the billable transaction fee shall constitute a violation of this chapter. 516.09 BOND REQUIREMENT: At the time of filing an application for a license, the applicant shall file a bond in the amount of five thousand dollars ($5,000.00) with the City. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the city attorney. The bond must be conditioned on the licensee observing all ordinances of the City and all laws relating to the business of pawnbroker or precious metal dealer, and the licensee accounting for and delivering to any person legally entitled thereto any articles which may have come into the possession of the licensee as pawnbroker, or in lieu thereof such licensee paying the person or persons the reasonable value thereof. The bond shall contain a provision that it may not be canceled without thirty (30) days' advance written notice to the licensing authority. 516.10 INELIGIBLE PERSONS AND LOCATIONS: Subd. 1. Ineligible Persons: No licenses under this chapter shall be issued to an applicant who is a natural person, general or managing partner, manager, proprietor or agent if such applicant: a. Is a minor at the time the application is filed; b. Has been convicted of any offense related to the occupation licensed or involving moral turpitude; c. Is not a citizen of the United States or a resident alien; d. Is not of good moral character or repute; e. has misrepresented or falsified information on the license application; f. Holds an intoxicating liquor license under this code; Ordinance Page 7 g. Has had a pawnbroker or precious metal dealer license revoked elsewhere; or h. Other good and sufficient reason at the sole discretion of the City Council. Subd. 2. Ineligible Locations: The following locations shall be ineligible for licenses under this chapter: a. No license shall be granted or renewed for operation on any property on which taxes, assessments or other financial claims of the state, county, school district or city are due, delinquent or unpaid. b. No license shall be granted or renewed if the property on which the business is to be conducted is owned or controlled by a person who is ineligible for a license. c. The property is not properly zoned. d. A location within one thousand (1,000) feet of an existing pawnshop. Subd. 3. Multiple Brokers Or Dealers Prohibited: No license shall be issued for multiple pawnbrokers at one location. 516.11 GENERAL LICENSE REQUIREMENTS: Subd. 1. Record Keeping: All licensees shall utilize the Automated Pawn System (APS) for the creation, maintenance, and storage of transactional records regarding licensed activities. At the time of a receipt of an item of property, whether purchased or pawned, the pawnbroker shall immediately record, on computer disc or if the computer is temporarily unavailable in a book or journal which has page numbers that are preprinted and in an indelible ink, the following information: a. Description Of Item: An accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, model number, brand, brand name or other identifying mark on such item; b. Date And Time: The date and time the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee's records. Transaction identifiers must be assigned consecutively; c. Description Of Person: The name, address, residence phone number, date of birth, and accurate description including: sex, height, weight, race, color of eyes and color of hair of the person from whom the item of property was received; Ordinance Page 8 d. Identification Number: The identification number and state or nation of issue from any of the following forms of identification of the person from whom the item of property was received: (1) A valid driver's license; (2) A valid state or national picture identification. e. Price: The price of the item paid and whether the item was purchased or pawned; f. Fees: A list of all fees and charges that the transaction may be subject to; g. Statement: A signed statement from the person from whom the item of property is received that there are no liens on the item, that it is not stolen and that the person has the right to sell it. h. Photograph or Video Recording: The licensee must take a color photograph or color video recording of each customer involved in a billable transaction and every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. (1) Photo Provisions: The photograph taken must be at least two inches (2") in length by two inches (2") in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the chief of police, or the chief's designee, upon request. The major portion of the photograph must include an identifiable front facial close up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. (2) Video Provisions: If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close up of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for four (4) months, and furnish it to the police department upon request. Ordinance Page 9 (3) Digitized Photographs: Digital images shall be provided in a format specified by the issuing authority, electronically cross referenced to the reportable transaction with which they are associated. i. Renewals, Extensio ns And Redemptions: For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, the type of transaction, interest charges accrued, and any amount paid for the transaction or the article. When an article of purchased or forfeited property is sold or disposed of by a licensee the records shall contain an account of such sale with the date, the amount for which the article was sold, and the full name, current address, and telephone number of the person to whom sold. Subd. 2. Inspection Of Records: The pawnbroker shall make available the information required in subdivision 1 of this section at all reasonable times for inspection by the police department or other representatives of the licensing authority. Subd. 3. Retention of Records. The pawnbroker shall retain the information required in this section for at least five (5) years. Subd. 4 Daily Reports To Police Are Required: The pawnbroker shall submit daily to the police department all information required by this section regarding every reportable transaction by transferring it from their computer to the Automated Pawn System. All required records must be transmitted completely and accurately after the close of business e ach day in accordance with standards and procedures established by the issuing authority using procedures that address security concerns of the licensees and the issuing authority. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the police department daily. Subd. 5. Data Transfer Failures: a. If a licensee is unable to successfully transfer the required reports by electronic means, the licensee must provide the police department printed copies of all reportable transactions along with the videotape(s) for that date, by twelve o'clock (12:00) noon the next business day; b. If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports and shall be charged a fifty dollar ($50.00) reporting failure penalty, daily, until the error is corrected; or c. If the problem is determin ed to be outside the licensee's system, the licensee must provide the required reports and resubmit all such transaction electronically when the error is corrected. Ordinance Page 10 d. If a licensee is unable to capture, digitize or transmit digital photographs required by this chapter, the licensee must immediately take all required photographs with a still camera, cross reference the photographs to the correct transaction, and make the pictures available to the police department upon request. e. Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed. f. The police department may at their discretion, upon presentation of extenuating circumstances by the licensee, delay the implementation of the daily reporting penalty imposed by this section. Subd. 6. Police Order To Hold Property: Whenever the police department notifies the pawnbroker not to sell an item, the item shall not be sold or removed from the licensed premises until authorized to be released by the police department. Subd. 7. Holding Period Of Pawnbrokers: Any item sold or pawned to a pawnbroker for which a report to the police is required under this chapter shall not be sold or otherwise transferred for sixty (60) days after the date of the sale or pawn. However, an individual may redeem an item pawned seventy two (72) hours after the item was received on deposit by the pawnbroker, excluding Sundays and legal holidays. Subd. 8. Receipt: The pawnbroker shall provide a receipt to the seller or pledger of any item of property received, which shall include: a. The name, address and phone number of the pawnbroker or precious metal dealer business. b. The date on which the pawnbroker or precious metal dealer received the item. c. A description of the item received and amount paid to the pledger or seller in exchange for the item pawned or sold. d. The signature of the pawnbroker or precious metal dealer or agent. e. The last regular business day by which the item must be redeemed by the pledger without risk that the item will be sold and the amount necessary to redeem the pawned item on that date. f. The annual rate of interest charged on pawned items received. g. The name, address, and signature of the seller or pledger. Ordinance Page 11 Subd. 9. Hours Of Operation: No pawnbroker shall be open for the transaction of business on any day of the week before eight o'clock (8:00) A.M. or after eight o'clock (8:00) P.M. Subd. 10. Minors: The pawnbroker shall not purchase or receive personal property of any nature on deposit or pledge from any minor. Subd. 11. Inspection Of Items: The pawnbroker shall at all times during the term of the license allow the police department to enter the premises where the pawnbroker business is located, for the purpose of inspecting such premises and inspecting the items, wares and merchandise therein for the purpose of locating items suspected or alleged to have been stolen or otherwise improperly disposed of. Subd. 12. License Display: A license issued under this chapter must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective fo r the compact and contiguous space specified in the approved license application. Any additional required county and state licenses shall be similarly posted. Subd. 13. Maintenance Of Order: A licensee under this chapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order. Subd. 14. Prohibited Goods: No licensee under this chapter shall accept any item of property which contains an altered or obliterated serial number or "operation identification" n umber or any item of property whose serial number has been removed. Subd. 15. Payment By Check: Payment of more than two hundred fifty dollars ($250.00) by a licensee for any article deposited, left, purchased, pledged or pawned shall be made only by a check, draft, or other negotiable or nonnegotiable instrument that is drawn against funds held by a financial institution. This policy shall be posted in a conspicuous place in the premises. Subd. 16. Storage: All items shall be stored within the licensed premises. Subd. 17. Prohibited Items. Licensee shall not accept or offer for sale firearms or handguns. 516.12 ALARM SYSTEM REQUIREMENT: An alarm system, professionally installed and approved by the Police Chief shall be installed at the licensed premises. Ordinance Page 12 516.13 SUSPENSION OR REVOCATION OF LICENSES: Subd. 1. Violation: The City Council may suspend or revoke a license issued under this chapter upon a finding of a violation of: a. Any of the provisions of this chapter b. Any state statute regulating pawnbrokers or precious metal dealers c. Any state or local law relating to moral character and repute. Any conviction by the pawnbroker or precious metal dealer for theft, receiving stolen property or any other crime or violation involving stolen property shall result in the immediate suspension pending a hearing on revocation of any license issued hereunder. Subd. 2 Notice; Hearing: Except in the case of a suspension pending a hearing on revocation, a revocation or suspension by the City Council shall be p receded by written notice to the licensee and a public hearing. The written notice shall give at least ten (10) days notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker or precious metal dealer. The Council may, without any notice, suspend any license pending a hearing on revocation for a period not exceeding thirty (30) days. The notice may be served upon the pawnbroker by United States mail addressed to the most recent address of the business in the license application. 516.14 PROHIBITED ACTS: Subd. 1. No pawnbroker licensed upon this chapter shall: a. Lend money on a pledge at a rate of interest above that allowed by law; b. Possess stolen goods; c. Sell pledged goods before the time to redeem has expired; d. Refuse to disclose to the pledger, after having sold pledged goods, the name of the purchaser or the price for which the item sold; e. Make a loan on a pledge to a minor or purchase property from a minor; f. Accept consignments or sell consigned goods or items. 516.15 ADOPTION BY REFERENCE: Minnesota Statutes, Chapter 325J is hereby adopted by reference. Wherever this chapter is more restrictive than said statutes, this chapter will control. Wherever said statutes are more restrictive than this chapter, said statutes shall control. Ordinance Page 13 516.16 SEPARABILITY: Should any section, clause or other provision of this chapter be declared by a court of competent jurisdiction to be valid such decision shall not effect the validity of the ordinance as a whole or any part other than the part so declared invalid. SECTION 5. This Ordinance becomes effective thirty (30) days after its publication in the official City newspaper. Read by the City Council of the City of Mounds View on this __ day of ____, 2003. Read and passed by the City Council of the City of Mounds View this __ day of ____, 2003. Jerry Linke, Mayor ATTEST: ________________________________ James Ericson, Interim Clerk / Administrator (SEAL) APPROVED AS TO FORM: _________________________ City Attorney Minnesota Statutes Precious Metals Dealer License 325F.731 Definitions. Subdivision 1. Terms. For the purposes of Laws 1981, chapter 333, sections 1 to 17, the following terms have the meanings given them. Subd. 2. Precious metal dealer. "Precious metal dealer" means any natural person, partnership, or corporation, either as principal or agent, engaging in the business of buying secondhand items containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. Subd. 3. Precious metals. "Precious metals" means silver, gold, and platinum. Subd. 4. Item containing precious metal. "Item containing precious metal" means an item made in whole or in part of metal and containing more than one percent by weight of silver, gold or platinum. HIST: 1981 c 333 s 1 325F.732 License. Subdivision 1. Requirement. Except as provided for in subdivision 2, it is unlawful for a precious metal dealer to engage in or transact any business as such without having a valid license as provided in section 325F.733. Subd. 2. Scope. The requirements of Laws 1981, chapter 333, sections 1 to 17 do not apply to the following: (1) Transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions held at the decedent's residence, except that precious metal dealers must comply with the requirements of sections 325F.734 to 325F.742 for these transactions. (2) Transactions regulated by chapter 80A. (3) Transactions regulated by the Federal Commodity Futures Commission Act. (4) Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or agent thereof. (5) Transactions involving the purchase of photographic film, such as lithographic and X-ray film, or silver residue or flake recovered in lithographic and X-ray film processing. (6) Transactions involving coins, bullion, or ingots. (7) Transactions in which the second hand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a natural person, partnership or corporation who is a precious metal dealer by engaging in a transaction which is not exempted by this section must comply with the requirements of sections 325F.734 to 325F.742. (8) Transactions between precious metal dealers if both dealers are licensed und er section 325F.733 or if the seller's business is located outside of the state and the item is shipped from outside the state to a dealer licensed under section 325F.733. (9) Transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, and the items are resold in an unaltered condition except for repair, and the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of 12 consecutive months. HIST: 1981 c 333 s 2 325F.733 License; application; terms and conditions. Subdivision 1. Application. Any precious metal dealer desiring to engage in or transact business as such in any county of this state shall file an application for a license for that purpose with the auditor of the county in which the dealer desires to do business. The application shall include the applicant's name, date of birth, resident address, and locatio ns of the proposed principal place of business and branch offices within the county, and other locations within the county where the applicant intends to hold secondhand precious metals. If the person in charge of the business or a branch office is someone other than the applicant, the name, date of birth, and resident address of the person in charge shall be stated with the location or branches indicated. If the applicant is a corporation or partnership the name, date of birth and resident address of each officer and general partner shall be stated. Each application shall be kept by the auditor for a period of no less than three years and shall be available for inspection only by employees of the county auditor, the county attorney, the attorney general, or by a peace officer. Subd. 2. Fee. Each applicant shall pay to the treasurer of the county a license fee in an amount determined by the board of county commissioners of the county to be necessary to cover the expenses of administering this licensing function. Subd. 3. Business locations. A precious metal dealer license shall authorize the precious metal dealer to transact business only at the location or locations designated in the license. Subd. 4. Term. A precious metal dealer license shall be valid for a period of one year from the date of its issuance. Subd. 5. Branch offices. Each branch office shall be operated under the same name as the principal office. Subd. 6. Posting of license. Every precious metal dealer shall prominently post the dealer's license in a conspicuous location at the dealer's principal place of business and a copy of the license in a conspicuous location at each branch office. Subd. 7. Posting of prices; weighing. Every precious metal dealer shall prominently post in a conspicuous place and in letters exceeding one inch in height the minimum prices per ounce or pennyweight that are currently being paid by the dealer for precious metals and a warning notice that unless otherwise informed, the prices offered are based on the meltdown value of the precious metal, rather than the value of the item in its existing form. Precious metal items shall be weighed in plain sight of the prospective seller on scales approved by the division of weights and measures of the department of commerce in accordance with sections 239.011 and 239.09. Subd. 8. Public record of licenses. The county auditor shall keep a record of the licenses in a book provided for that purpose. The book shall contain the same information as required on the application for the license; provided, that the applicant's resident address and date of birth shall not be recorded. The book shall be open for public inspection. HIST: 1981 c 333 s 3; 1986 c 444; 1991 c 198 s 11; 1Sp2001 c 4 art 6 s 77 325F.734 Identification of sellers. Every precious metal dealer shall require a seller of secondhand items containing precious metals to present to the dealer at the time of the transaction an identification card of the seller containing a picture of the seller and the seller's address. HIST: 1981 c 333 s 4; 1986 c 444 325F.735 Records required. Every precious metal dealer shall keep a book at the dealer's business location in which shall be clearly written in ink, in the English language, at the time of each transaction, or as close thereto as possible, the following information: (1) an accurate description of every secondhand item containing precious metals bought, including the type of item, number of items, bra nd name of item, if any, engraving or other identifying features of the item, if any, and a description of any gems attached; (2) the amount of money paid; (3) the date of the transaction; and (4) from the identification card containing a picture of the seller, the type of card presented and the serial number of the card, if any, and the name and address of the person selling the item. The book, as well as the item in the possession of the dealer, shall at all reasonable times be open to inspection by any police officer of the city Wherein the business is located or the sheriff or any deputy sheriff of the county wherein the business is located. HIST: 1981 c 333 s 5; 1986 c 444 325F.736 Required holding period. Every precious metal dealer shall keep in possession at the dealer's business location or other location within the licensing county from the time of the transaction or as close thereto as possible, for a period of no less than 14 days, every secondhand item containing precious metal purchased by the dealer unless the item is purchased or consigned from another dealer licensed under section 325F.733. The item shall not be altered at the time of sale and shall remain unaltered during the required holding period. HIST: 1981 c 333 s 6; 1986 c 444 325F.737 Additional holding period. The sheriff or a designee may by written notification require a precious metal dealer licensed in the sheriff's county not to sell or alter a secondhand item containing precious metal if the sheriff or designee has probable cause that the item is stolen. The item shall not be sold, altered, or removed from the licensed premises until authorized to be released in writing by the sheriff or a designee. The chief of police or a designee may also exercise this same authority for licensed businesses, within the chief's jurisdiction. HIST: 1981 c 333 s 7; 1986 c 444 325F.738 Trading. It is unlawful to trade or barter in a manner intended to avoid identification and recording of transactions under sections 325F.734 and 325F.735 and payment under section 325F.741. HIST: 1981 c 333 s 8 325F.739 Certain purchases prohibited. It is unlawful for a precious metal dealer to purchase a secondhand item containing precious metals from a person und er 18 years of age unless the person is accompanied by the person's parent or guardian who is identified and whose identity is recorded in accordance with sections 325F.734 and 325F.735. HIST: 1981 c 333 s 9; 1986 c 444 325F.741 Payment by check. Payment by a precious metal dealer for the purchase of a secondhand item containing precious metal shall be made only by a check, draft, or other negotiable or non- negotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. HIST: 1981 c 333 s 10 325F.742 Governmental subdivisions may regulate. The provisions of Laws 1981, chapter 333, sections 1 to 17 shall not be construed as prohibiting, or in any way limiting, or interfering with the right of any governmental subdivision of the state to regulate or license precious metal dealers within its jurisdiction in a manner more restrictive than Laws 1981, chapter 333, sections 1 to 17; provided, that transactions described in section 325F.732, subdivision 2, shall not be regulated in a manner inconsistent with Laws 1981, chapter 333, sections 1 to 17. HIST: 1981 c 333 s 11 325F.743 Criminal penalty. Any person who violates any provision of Laws 1981, chapter 333, sections 1 to 17 is guilty of a felony and may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $40,000, or both. HIST: 1981 c 333 s 12; 1984 c 628 art 3 s 11 325F.744 Civil penalty. The attorney general or any county attorney may institute a civil action in the name of the state in the district court to revoke, deny or suspend for a period of time the license on the ground that the licensee has violated a provision of Laws 1981, chapter 333, sections 1 to 17. For this purpose, the attorney general or county attorney shall be invested with the additional powers contained in section 8.31. It is no defense to the action that the state has adequate remedies at law. HIST: 1981 c 333 s 13 PROCEEDINGS OF THE MOUNDS VIEW PLANNING COMMISSION CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting March 19, 2003 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 ______________________________________________________________________________ 1. Call to Order The meeting was called to order by Chair Stevenson at 7:00 p.m., March 19, 2003. ______________________________________________________________________________ 2. Roll Call Members Present: Commissioners Stevenson, Hegland, Song, Zwirn, Miller, and Johnson Members Absent: Scotch (excused) Also Present: Community Development Director Ericson ________________________________________________________________________ Index to Minutes Page Discussion of Text Amendme nt to Code for Pawnshops 2 ______________________________________________________________________________ 3. Approve Minutes None. ______________________________________________________________________________ 4. Citizens Requests and Comments on Items Not on the Agenda Neal Zinser addressed the Commission and explained that an error on the City’s part has led to a stop work order being placed on the home he is building. He further indicated that the home is constructed of concrete and all but a s mall portion of the concrete walls have been erected and it would be cost prohibitive to move the home back out of the setback at this point in the project. Mr. Zinser asked the Commission to consider the extenuating circumstances and grant a variance whe n heard at the next meeting. Mounds View Planning Commission March 19, 2003 Regular Meeting Page 2 ________________________________________________________________________ Commissioner Zwirn asked how this happened. Mr. Zinser indicated that the building official had signed off on the plans and granted the building permit but Staff had later learned of an additional setback requirement that newly constructed homes not be any farther forward than the forward most home on the block and that is the setback requirement they are in violation of. ______________________________________________________________________________ 5. Discussion pertaining to a Code Amendment to regulate the location and licensure of Pawn Shops in Mounds View. Community Development Director Ericson asked the Commission to discuss and provide direction to Staff as to whether they felt it necessary to include language governing precious metal dealers with this amendment. Mr. Przetycki indicated he holds a precious metal dealer’s license in Hennepin County and it is simply a $50.00 fee he pays each year to receive a certificate he hangs on the wall of his business. He then ind icated he intends to file an application with Ramsey County and the fee is $175.00 for the license. He further commented that he did not think it would be a bad thing to include the requirement for a precious metal dealer’s license. Chair Stevenson indic ated he would like to check with Ramsey County to see what the benefit of the licensing fee is. Commissioner Miller asked whether there should be any requirements for furs. Mr. Przetycki indicated he would be applying for a pawnshop license as well as a second hand dealer’s license and furs should be covered with one of those two licenses. He further commented that he did not intend to take in many, if any, fur pieces. Commissioner Zwirn commented that this license is much like the federal fire arms licensure in that it is a way to have the business registered as a way of tracking if there is a crime committed. Chair Stevenson asked if pawnshops take in guns. Mr. Przetycki indicated that some pawnshops do take in guns but others do not and he does not plan to do so as it is not something he knows about. Commissioner Zwirn asked if Mr. Przetycki would be taking in boats trailers or cars. Mr. Przetycki indicated he would need a vehicle dealer’s license to take in cars, boats and trailers. He then said that he could only take in what can be properly stored on his site. Commissioner Zwirn specifically asked if Mr. Przetycki intended to take in large items such as vehicles that he intended to store outside in the parking area. Mounds View Planning Commission March 19, 2003 Regular Meeting Page 3 ________________________________________________________________________ Mr. Przetycki indicated tha t he did not have, and would not have, a fenced storage area so he would be prevented from taking in the larger vehicles but said he intends to take in the occasional snowmobile or ATV that can, and will, be stored within his storage or retail space. Commissioner Hegland asked for an estimate of the number of transactions Mr. Przetycki expects per month. Mr. Przetycki indicated the number would be dependent upon the establishment of the business but said he expects to have 400 to 600 transactions per mont h within a year of opening. Commissioner Miller asked who determines the interest rate charged to the seller of the items. Mr. Przetycki indicated it is not really an interest rate but a storage and holding fee of 25% per month. Commissioner Zwirn asked whether Mr. Przetycki intended to handle high-end jewelry as he is a jeweler. Mr. Przetycki indicated he does expect to handle high-end jewelry and said he intends to run his pawnshop like a clean, well-run jewelry operation with glass cases. He then said he thinks his operation will be 75% jewelry. Commissioner Song asked whether Mr. Przetycki would be doing certification of precious stones. Mr. Przetycki indicated he would do appraisals on jewelry for customers but the normal procedure is that items sell as is and he will only be offering the nicest items possible for sale at his operation. He further commented that he would be verifying the diamond sizes and quality to ensure that there is no fake jewelry being sold at real jewelry prices as he is a very reputable jeweler and businessman and intends to run a reputable operation. Commissioner Song asked whether Mr. Przetycki would be taking in antique coins. Mr. Przetycki indicated he could take in older currency and trade it for new currency. Commissioner Miller indicated the Roseville sample ordinance was very detailed and asked whether it was necessary to have the Mounds View ordinance as detailed. Director Ericson indicated it was up to the Planning Commission to determine the extent of the detail to be recommended for approval. He then indicated he would contact Ramsey County for further information on the precious metal dealer’s license. Mounds View Planning Commission March 19, 2003 Regular Meeting Page 4 ________________________________________________________________________ Commissioner Zwirn indicated that Maplewood has had numerous issues with break-ins at their pawnshops especially with the high-end jewelry and asked Staff to contact them for information on their ordinance requirements. Chair Stevenson asked Staff to determine what Section 301.03 in the Roseville ordinance refers to as it may have further useful informatio n on the precious metal dealer’s license. Commissioner Hegland asked how Staff arrived at the recommendations for fees. Director Ericson indicated he looked at other City requirements and considered the work that would be required by City Staff in tracking the activity of the pawnshop. Commissioner Hegland asked if Staff contacted other cities for actual costs and whether those costs are covered by the fees charged. Director Ericson indicated he did not ask but said that it is his estimation that the fe es will more than compensate for the time involved. He then indicated that Staff would put together an ordinance for review at the next meeting. Chair Stevenson asked why Mounds View Square is a B4 property and the area across the street is not. Director Ericson indicated it is based on the size of the development and the limited parking across the street warrants the B2 designation to limit the uses to keep parking in check. ______________________________________________________________________________ 6. Next Planning Commission Meeting: April 2, 2003 ______________________________________________________________________________ 7. Adjournment to Agenda Session There being no further business before the Planning Commission, Chair Stevenson adjourned the meeting at 7:40 p.m. (The meeting immediately adjourned to the Agenda Session) Respectfully submitted, Jim Ericson Community Development Director Transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc. to: Mounds View Planning Commission from: Jim Ericson, Community Development Director re: April 2, 2003 - Planning Commission Packet date: Monday, March 31, 2003 Attached please find the April 2, 2003 Planning Commission Packet. I hope you can accept my apologies for the delay in delivering the packet; it was unavoidable. I chose to NOT e-mail the packet due to the size of some of the files. Instead, I have posted the information to the City’s website which you can view and print at your leisure. I’m hoping to find a more streamlined method to deliver the information to you, both in terms of time and format. Your suggestions are always welcome in this regard. The packet will be available online at http://www.ci.mounds-view.mn.us/Packets/04-02-03.htm If you have any questions regarding the information contained herein, please call me at 763-717- 4021. Thank you for your continued patience and understanding. ____________________________ Jim Ericson Community Development Director Inter-office M E M O