IV.7. Second Reading of Ordinance 2017-1125 Amending Zoning Standards Related to Pawnshop, Payday Loan Agencies, Currency Exchange and Coin Dealers; Lindahl (Memo)MEMO
To: Honorable Mayor and City Council
From: Jason Lindahl, City Planner
Date: November 21, 2017
Subject: Second Reading of Ordinance 2017-1125 Amending Zoning Standards
Related to Pawnshop, Payday Loan Agencies, Currency Exchange and
Coin Dealers
Proposed Action
Adopt Resolution 2017-078 approving the second reading of Ordinance 2017-1125 amending the
City Code related to zoning standards for pawnshops, payday loan agencies, currency exchanges and
coin dealers and authorizing its publication.
Overview
In January 2017, the City Council approved a one-year moratorium on pawnshops, currency
exchanges and coin dealers to give City staff sufficient time to study these uses and evaluate various
options for regulation. In response to the moratorium, City staff initiated this application to update
the City’s zoning regulation for these uses and address payday loan agencies.
It should be noted that two changes were made to this ordinance since the first reading. First, the
definition of pawnshop was revised so payday loan agencies may operate as an ancillary use within a
pawnshop business provided the two businesses are in common ownership and are located within
the same leased or owned spaced. This change is in response to Pawn America’s request to allow
them to continue to operate both of these businesses within one location without violating the new
separation standards. Second, this ordinance now eliminates pawnshops and currency exchanges
from the Mixed Use district. This change was made to comply with direction from the Planning &
Zoning Commission and City Council to limit these businesses to the B-3 and B-4 districts. Should
the City approve the proposed zoning code text amendment, it would:
1. Establish new zoning definitions for “Pawnshops” and “Payday Loan Agencies.”
2. Reorganize Pawnshops, Currency Exchanges and Coin Dealers into more appropriate zoning
categories and reclassify Pawnshops and Coin Dealers from permitted to conditional uses.
3. Establish Payday Loan Agencies as a new, distinct use.
4. Revise conditional use standards for Currency Exchanges.
5. Establish new conditional use standards for Pawnshops, Payday Loan Agencies and Coin
Dealers.
On November 6, 2017, the City Council approved Resolution 2017-069, approving the first reading
of Ordinance 2017-1125 amending Sections 515.07 and 535 of the City Code related to zoning
standards for pawnshops, payday loan agencies, currency exchanges and coin dealers. Prior to the
City Council’s action, the Planning & Zoning Commission held a public hearing to review this item
during their regular meeting on October 24, 2017. During that meeting, the Commission voted
unanimously to recommend the City Council approve this request.
Attachments
Resolution 2017-078
Ordinance 2017-1125
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2017-078
A RESOLUTION APPROVING ORDINANCE 2017-1125 AMENDING SECTIONS 515.07 AND
535 OF THE CITY CODE RELATED TO PAWNSHOPS, PAYDAY LOAN AGENCIES,
CURRENCY EXCHANGES AND COIN DEALERS AND AUTHORIZING ITS PUBLICATION
WHEREAS, the City of Hopkins initiated an application to amend Sections 515.07 and 535 of
the City Code related to zoning standards for Pawnshops, Payday Loan Agencies, Currency Exchanges
and Coin Dealers;
WHEREAS, the procedural history of the application is as follows:
1. That the City Council adopted a moratorium regarding the regulation of Pawnshops,
Currency Exchanges and Coin Dealerships on January 3, 2017;
2. That an application to amend Sections 515.07 and 535 of the City Code related to zoning
standards for these uses was initiated by the City of Hopkins on April 21, 2017;
3. That the Hopkins Zoning and Planning Commission reviewed and discussed this item
during their regular May 23 and June 27, 2017, meetings;
4. That the Hopkins City Council reviewed and discussed this item during their September
12, 2017, work session;
5. That the Hopkins Planning & Zoning Commission, pursuant to published notice, held a
public hearing on the application and reviewed such application on October 24, 2017: all
persons present were given an opportunity to be heard;
6. That the written comments and analysis of City staff were considered;
7. That the Hopkins Planning & Zoning Commission voted unanimously that the City
Council approve this item; and,
8. That the City Council approved the first reading of this item on November 6, 2017.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins
hereby approves Ordinance 2017-1125 amending Sections 515.07 and 535 of the City Code related to
Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers based on the findings
detailed in City Council Report 2017-127.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Clerk shall cause
the following summary of Ordinance 2017-1125 to be published in the official newspaper in lieu
of the entire ordinance:
Public Notice
In summary, Ordinance 2017-1125 makes the following changes to Sections 515.07 and 535 of
the City Code related to zoning standards for Pawnshops, Payday Loan Agencies, Currency
Exchanges and Coin Dealers:
1. Establish new zoning definitions for “Pawnshops” and “Payday Loan Agencies.”
2. Reorganize Pawnshops, Currency Exchanges and Coin Dealers into more appropriate zoning
categories and reclassify Pawnshops and Coin Dealers from permitted to conditional uses.
3. Establish Payday Loan Agencies as a new, distinct use.
4. Revise conditional use standards for Currency Exchanges.
5. Establish new conditional use standards for Pawnshops, Payday Loan Agencies and Coin
Dealers.
Adopted this 21st day of November 2017.
ATTEST:
______________________ _______________________
Amy Domeier, City Clerk Molly Cummings, Mayor
CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE NO. 2017-1125
AN ORDINANCE AMENDING SECTIONS 515.07, 535 AND 543 OF THE CITY CODE
RELATED TO PAWNSHOPS, PAYDAY LOAN AGENCIES, CURRENCY EXCHANGE
AND COIN DEALERS
THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1. Section 515.7, Definitions, is hereby amended to add the following:
Pawnshop: A facility where money is loaned based on the value of goods deposited at the facility
by the borrower of the money, which goods are held by the lender of the money occupying the
facility as collateral for the loan. Items held by the lender which are not redeemed by a borrower
may be put up for sale at the facility to the general public. The term pawnshop includes a facility
where all or any part of the pawnshop activities are conducted. Pawnshops may include payday
loan agencies as an ancillary service provided the two businesses have common ownership and are
physically located within the same leased or owned space.
Payday Loan Agency: Any business that has as its primary activity the providing of short-term
loans for the borrower's own personal, family, or household purpose which are usually for a period
of forty-five (45) days or less. Payday loan agencies do not include banks.
SECTION 2. 535 Subdivision 3, Permitted Uses, is hereby amended to add the following:
Permitted Uses B-1 B-2 B-3 B-4
5. Antiques-Used Goods X X
34. Coin Dealer & Stamp X X (2)XKK (2)XKK
37. Currency Exchange (2)XEE (2)XEE (2)XEE
83. Pawnshops – Antiques-Used Goods X X (2)XKK (2)XKK
84. Payday Loan Agencies (2)XKK (2)XKK
SECTION 3. 535 Subdivision 3, Conditional Use Requirements, is hereby amended as follows:
EE) Currency Exchange provided:
1. The use shall be located at least one thousand (1,000) feet from another currency exchanges,
secondhand goods stores, pawnshops and missions;
2. Within the B-3, General Business District, no such use shall be located on a property that has
frontage on or abuts Mainstreet.
3. The use shall be located at least two hundred (200) feet from a residential or institutional
district;
4. The use shall be located at least three hundred fifty (350) feet from an off-sale liquor
establishment;
3. Back-lighted signs, back-lighted awnings, portable signs, temporary signs and freestanding
signs shall be prohibited;
4. The window and door area of any existing first floor façade that faces a public street or
sidewalk shall not be reduced, nor shall changes be made to such windows or doors that block
views into the building at eye level;
4. Windows must be of clear, transparent glass and be free of obstruction for at least three (3) feet
into the store. Products may be displayed in the window provided the display, including
signage, does not occupy more than 30 percent of the window area.
5. For new construction, at least thirty (30) percent of the first floor facade that faces a public
street or sidewalk shall be windows or doors of clear or lightly tinted glass that allows views
into and out of the building at eye level;
5. The use of bars, chains or similar security devices that are visible from a public street or
sidewalk shall be prohibited.
6. The use shall take place completely within an enclosed building. Outdoor storage, display or
sales are prohibited.
7. Conformance of all applicable licensing requirements from the State of Minnesota. In any
instance where the zoning regulations and the applicable licensing requirements conflict, the
more restrictive shall apply.
KK. Pawnshop, Payday Loan Agency or Coin Dealer provided:
1. The use shall be located at least one thousand (1,000) feet from another pawnshop, payday loan
agency, or coin dealer.
2. The use shall be located at least two hundred (200) feet from any residential or institutional use
or district.
3. The use shall be located at least three hundred fifty (350) feet from an off-sale liquor
establishment.
4. Within the B-3, General Business District, no such use shall be located on a property that has
frontage on or abuts Mainstreet.
5. Back-lighted signs, back-lighted awnings, portable signs, temporary signs and freestanding signs
shall be prohibited.
6. Windows must be of clear, transparent glass and be free of obstruction for at least three feet into
the store. Products may be displayed in the window, provided the display, including signage,
does not occupy more than 30 percent of the window area.
7. The use of bars, chains or similar security devices that are visible from a public street or sidewalk
shall be prohibited.
8. The use shall take place completely within an enclosed building. Outdoor storage, display or
sales are prohibited.
9. Conformance of all applicable licensing requirements from the City of Hopkins and the State of
Minnesota. In any instance where the zoning regulations and the applicable licensing
requirements conflict, the more restrictive shall apply.
SECTION 4. 543.02. Permitted and Conditional Uses, is hereby amended as follows:
Commercial UN
(Blake)
DT
(8th Ave)
CTC
(Shady Oak)
20. Currency Exchange X (b) X(b)
51. Pawnshops X X
Conditional Uses
b. Currency Exchange
1. The use shall be located at least one thousand (1,000) feet from any other currency
exchanges, secondhand goods stores, and pawnshops.
2. The use shall be located at least three hundred fifty (350) feet from an off-sale
liquor establishment.
3. Back–lighted signs, back-lighted awnings, portable signs, temporary signs and
freestanding signs are prohibited.
SECTION 5. This ordinance shall take effect and be in force upon its publication, in accordance
with Section 3.07 of the City Charter.
First Reading: November 6, 2017
Second Reading: November 21, 2017
Date of Publication: November 30, 2017
Date Ordinance Takes Effect: November 30, 2017
______________________
Molly Cummings, Mayor
ATTEST:
_______________________
Amy Domeier, City Clerk