VII.3. Interim Ordinance Regarding the Regulation of Pawnshops, Currency Exchanges and Coin Dealerships; Lindahl (CR2016-128)
December 20, 2016 City Council Report 2016-128
Interim Ordinance Regarding Pawnshops, Currency Exchange and Coin Dealerships
Proposed Action: Staff recommends the following motion: Move to adopt Resolution 2016-
084, approving Interim Ordinance 2016-1118, regarding the regulation of pawnshops, currency
exchanges and coin dealerships.
Overview
Staff recommends approval of the attached Interim Ordinance 2016-1118, placing a one-year
moratorium on pawnshops, currency exchanges and coin dealerships. This ordinance was
drafted by the City Attorney in conformance with state law. Both staff and the City Attorney
find the interim ordinance would give City staff sufficient time to study these uses, evaluate
various options for regulation, and protect the planning process and the health, safety and
welfare of Hopkins’ citizens.
The City believes that regulation of pawnshops, currency exchanges, and coin dealerships
deserves careful reconsideration because of the extension of the METRO Green Line through
the City. These industries have the potential for the presence of stolen goods, as well as the
possibility of questionable lending practices. In addition, the City has concerns regarding the
potential for these businesses to develop into nuisance properties and create problems for law
enforcement. Moreover, the City is aware of various business practices associated with
pawnshops, currency exchanges, and coin dealerships that can take advantage of individuals who
are vulnerable.
Supporting Documents
• City Council Resolution 2016-084
• Interim Ordinance 2016-1118
_____________________
Jason Lindahl, AICP
City Planner
Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________
Related Documents (CIP, ERP, etc.): _________________________________________
Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2016-084
A RESOLUTION APPROVING INTERIM ORDINANCE 2016-1118 REGARDING THE
REGULATION OF PAWNSHOPS, CURRENCY EXCHANGES AND COIN
DEALERSHIPS.
WHEREAS, the City of Hopkins initiated an application to consider an interim ordinance regarding
the regulation of pawnshops, currency exchanges and coin dealerships.
WHEREAS, the procedural history of the application is as follows:
1. The application to consider an interim ordinance regarding the regulation of pawnshops,
currency exchanges and coin dealerships was initiated by the City of Hopkins on December
9, 2016;
2. The City Council of the City of Hopkins reviewed this application and ordinance during the
December 20, 2016, City Council meeting; and,
3. The written comments and analysis of City staff were considered.
WHEREAS, Subdivision 4 of Minnesota Statutes, Section 462.355, allows cities to adopt an interim
ordinance for the purpose of protecting the planning process and the health, safety and welfare of its
citizens; and,
WHEREAS, an interim ordinance may regulate, restrict or prohibit any use, development or
subdivision within the City for a period not to exceed one year from the effective date of the interim
ordinance.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby
approves Interim Ordinance 2016-1118 regarding the regulation of pawnshops, currency exchanges
and coin dealerships within the City of Hopkins pursuant to Minnesota Statute 462.355, Subdivision
4.
Adopted by the City Council of the City of Hopkins this 20th day of December 2016.
_______________________
Molly Cummings, Mayor
ATTEST:
______________________
Amy Domeier, City Clerk
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CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE 2016-1118
AN INTERIM ORDINANCE REGARDING THE REGULATION OF PAWNSHOPS,
CURRENCY EXCHANGES, AND COIN DEALERSHIPS WITHIN THE CITY OF
HOPKINS, ADOPTED PURSUANT TO MINN. STAT. §462.355, SUBD. 4
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS
FOLLOWS:
Section 1. Authority and Findings.
A. Minn. Stat. §462.355, Subd. 4, provides that if a municipality is conducting studies or has
authorized a study to be conducted for the purpose of considering adoption or amendment
of a comprehensive plan or official control, the City Council may adopt an interim
ordinance for the purpose of protecting the planning process and the health, safety and
welfare of its citizens. An interim ordinance may regulate, restrict or prohibit any use,
development or subdivision within the City for a period not to exceed one year from the
effective date of the interim ordinance.
B. The Metropolitan Council is currently in the process of extending light rail service
through the City via the METRO Green Line. Engineering has commenced on the project
and heavy construction is scheduled to begin soon. Light rail stations will be constructed
in and around various zoning districts within the City and a significant transformation of
the Hopkins downtown area is expected as a result of these developments.
C. The Hopkins City Code currently contains certain provisions regarding pawnshops,
currency exchanges, and coin dealerships. The City Council believes that regulation of
pawnshops, currency exchanges, and coin dealerships deserves careful reconsideration
because of the extension of the METRO Green Line through the City. These industries
have the potential for the presence of stolen goods, as well as the possibility of
questionable lending practices. In addition, the City Council has concerns regarding the
potential for these businesses to develop into nuisance properties and create problems for
law enforcement. Moreover, the City Council is aware of various business practices
associated with pawnshops, currency exchanges, and coin dealerships that can take
advantage of individuals who are vulnerable.
D. The City Council believes that authorizing a study regarding pawnshops, currency
exchanges, and coin dealerships is necessary to reevaluate various regulatory options
available to the City, including maintaining current regulations or enacting amended or
additional official controls.
E. The City Council believes an interim ordinance is necessary and prudent to complete the
study, to give the Council sufficient time to evaluate various options for regulation, and
to protect the planning process and the health, safety and welfare of Hopkins’ citizens.
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Section 2. Study. The City Council hereby authorizes a study of the issues relating to City
regulation of pawnshops, currency exchanges, and coin dealerships including, but not limited to,
a review of the following:
A. Public health, safety, and welfare issues relating to pawnshops, currency exchanges, and
coin dealerships with specific emphasis on risks associated with stolen goods and other
criminal activity, demands placed on law enforcement, risks to vulnerable individuals,
inappropriate or predatory lending activities, consumer protection issues, and the effect of
these businesses on surrounding properties and neighborhood vitality.
B. Whether a continuation of the current regulations regarding pawnshops, currency
exchanges, and coin dealerships within Hopkins is appropriate.
C. Whether it would be appropriate to make changes to the current restrictions as to specific
zoning districts within the City and, if so, which ones.
D. The experience of other cities that regulate these industries in a manner similar to
Hopkins, or that have used different regulatory approaches.
E. The experience and preference of law enforcement personnel regarding these industries.
F. Consideration of any other potential amendments to the current regulatory scheme which
may be appropriate for the City Code.
Section 3. Moratorium. The following are hereby enacted in accordance with the above
findings and authority:
A. No application for any permit, license or approval of any nature concerning a pawnshop
shall be accepted by the City during the term of this interim ordinance. No additional
review or other work on any previously accepted application concerning a pawnshop
shall be conducted during the term of this interim ordinance. Previously received
applications shall be withdrawn by the applicant or the application shall be acted upon by
the City in accordance with this interim ordinance.
B. No application for any permit or approval of any nature concerning currency exchanges
shall be accepted by the City during the term of this interim ordinance. No additional
review or other work on any previously accepted application concerning a currency
exchange shall be conducted during the term of this interim ordinance. Previously
received applications shall be withdrawn by the applicant or the application shall be acted
upon by the City in accordance with this interim ordinance.
C. Coin dealerships are no longer a permitted use in any of the City’s zoning districts. This
provision does not apply to coin dealerships that already exist and were appropriately
licensed by the State of Minnesota on the date this ordinance takes effect.
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Section 4. Enforcement. In addition to any criminal penalties allowed by law, the City may
enforce this interim ordinance by injunction or any other appropriate civil remedy in any court of
competent jurisdiction.
Section 5. Separability. Every section, subsection, provision or part of this interim ordinance is
declared separable from every other section, subsection, provision or part. If any section,
subsection, provision or part of this interim ordinance is adjudged to be invalid by a court of
competent jurisdiction, such judgment shall not invalidate any other section, subsection,
provision or part.
Section 6. Effective Date; Duration. This interim ordinance shall take effect immediately after
its adoption and publication. It shall be effective as follows: (a) one year from the effective date
of this ordinance, or (b) the date upon which Hopkins reaffirms, amends, or repeals its
ordinances and official controls relating to pawnshops, currency exchanges, and coin dealerships.
Amendments to ordinances or official controls relating to one or two of these industries but not
the other(s) shall not affect this interim ordinance with respect to those other industries unrelated
to such amendments.
First Reading: December 20, 2016
Second Reading: January 3, 2017
Publication Date: January 12, 2017
Date Ordinance Takes Effect: January 12, 2017
By: ______________________________
Molly Cummings, Mayor
ATTEST:
___________________________
Amy Domeier, City Clerk