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MEMORANDUM DATE: 10/9/02 MEETING DATE: 10/15/02 I TO: Chair Melsha & Planning Commission Members FROM: Susan M.H. Hall, Assistant City Managerd� SUBJECT: Second Hand Goods Dealers Ordinance/Moratorium Requested Action: The City Council is asking the Planning Commission for a recommendation on a revised Second Hand Goods Dealers ordinance and a new ordinance regulating pawn shops in St. Anthony while a moratorium has been placed on issuance of any aforementioned licenses. Background: It has come to staffs attention that the ordinance for the second hand goods dealers license is in need of updating. In St. Anthony's ordinance, pawn shops fall under the second hand goods dealers' section. In doing some research on the subject, city staff has learned it will be necessary to have a separate pawn shop ordinance to address separate concerns arising from this type of business. Today there are requirements for pawn shops that are not addressed in the City's ordinance. On October 8, 2002, the St. Anthony City Council approved the moratorium for second hand goods dealers' licenses, waiving all three readings. The purpose of the moratorium is to put on hold all applications for licenses while city staff can study and provide recommendations to the Planning Commission and City Council on revised ordinances. Captain John Ohl of the Police Department mentions in the attached memorandums some of the problems associated with these businesses and what the City needs to look at to deal with the concerns. The course of action likely is that the City's second hand goods dealers' ordinance will be revised and the new pawn shop ordinance will be adopted. City staff has identified two City of Minneapolis' ordinances as good models for pawn shops and second hand goods dealers' ordinances, which are enclosed for review. As Capt. Ohl has stated, it is imperative the City's pawn shop ordinance is similar to Minneapolis's, or the suggested "minimum language paperwork," both of which require membership in the Automated Pawn System (APS), among other requirements. In addition, staff has obtained pawn shop ordinances from Fridley and Hopkins; these are also enclosed for review. The enclosed ordinances have also been forwarded to the City Attorney's Office for review and comment. The timeline on the review will depend on what Commissioners deem appropriate and what the City Attorney's Office and city staff will need to complete the assessment. The moratorium will be in place for one year, unless changed by the City Council.