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V. 1. 2020-14 Pawn America Variance658764.v1 June 23, 2020 Planning Application 2020-14 1409 & 1413 Variance Request – Pawn America Proposed Action: Staff recommends the Planning & Zoning Commission adopt the following motion: • Move to adopt Planning & Zoning Commission Resolution 2020-03, recommending the City Council deny the variance request from Robin Franks with Pawn America, LLC for the properties located at 1409 (PID 24-117-22-32-0099) and 1413 Mainstreet (PID 24-117-22- 32-0100). Overview The applicant, Robin Franke with Pawn America, LLC, requests variance from Ordinance Number 2017-1125 to allow a pawnshop use at 1409 & 1413 Mainstreet. The subject properties are located on the north side of Mainstreet between 13th and 14th Avenues. Based on the findings detailed below, the applicant seeks a use variance, which is expressly prohibited pursuant to Minnesota Statutes, section 462.357, subd. 6. Additionally, the applicant has not demonstrated practical difficulties as required under Minnesota law. As a result, staff recommends the City deny the applicant’s request. Primary Issues to Consider • Background • Legal Authority • Variance Review Supporting Documents • Planning & Zoning Commission Resolution 2020-03 • Site Location Map • Public Comments • City Council report 2017-127 • Ordinance 2017-1125 _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Planning Application 2020-14 Page 2 658764.v1 Notes: BACKGROUND Robin Franke with Pawn America, LLC, requests variance from Ordinance Number 2017-1125 to allow a pawnshop use at 1409 & 1413 Mainstreet. Ordinance 2017-1125 was approved by the City Council on November 21, 2017 and updated the City’s zoning standards for pawnshops, payday loan agencies, currency exchanges and coin dealers. This ordinance was approved after the City enacted a moratorium and studied these uses and their standards for nearly a year. The history and process for reviewing and updating these regulations is detailed in City Council report 2017-127 (attached) and summarized below. 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. This moratorium was put in place in part because Metro Transit planned to extend the Metro Green Line through Hopkins and, as part of this project, planned to acquire the City’s only pawnshop. The City anticipated this process would likely facilitate this business relocating to another site within the community. As a result, the City believed it was the appropriate time to review the development regulations for these businesses. The revised and updated zoning regulations in Ordinance 2017-1125 are the result of that study. According to the applicant’s narrative (see attached), its previous pawnshop location in Hopkins was in fact acquired by the Metropolitan Council to allow development of the Blake Road Station for the Southwest Light Rail Transit project. The applicant believes that under the revised zoning regulations established by Ordinance 2017-1125, there are only two sites in the City of Hopkins eligible for a pawnshop use and neither are available to them. Those locations are 303 – 11th Avenue South (Wendy’s) and 540 Blake Road North (Walgreens and White Castle). Public Comments. Due to the ongoing coronavirus pandemic and the related statewide emergency declaration, notice of the public hearing for this item directed all interested parties to make their comments to City Planner Jason Lindahl by mail, phone or e-mail before noon on Tuesday, June 23, 2020. As of the writing of this report, the City had received six letters opposing the requested variance (see attached). Staff will provided an update on all public comments received prior to the Planning & Zoning Commission Meeting during the public hearing. LEGAL AUTHORITY City review of variance applications is a Quasi-Judicial action. Generally, if the application meets the review standards, the variance should be approved. However, the City may choose to add conditions of approval that are directly related to and bear a rough proportionality to the impact created by the variance. The standards for reviewing variances are detailed in Minnesota State Statute 462.357, Subdivision 6. In summary, variances may be granted when the applicant demonstrates there are "practical difficulties" in complying with the zoning regulations. Under this law, economic considerations alone do not constitute a practical difficulty. Additionally, the City may not permit as a variance any use that is not allowed under the zoning ordinance for property in the zone where the affected person's land is located. Staff recommends denial of the applicant’s variance request because not only would permitting said variance amount to an unlawful use Planning Application 2020-14 Page 3 658764.v1 variance, but further the applicant is unable to demonstrate practical difficulties. According to the applicant, there are at least two locations within the City of Hopkins that are eligible for a pawnshop use under the standards in Ordinance 2017-1125 but neither are currently available to them. Staff finds the applicant has the ability to acquire either of these properties through the terms and conditions dictated by the private market. In addition, staff finds the applicant’s variance request constitutes a use variance which is expressly prohibited under Minnesota State Statute 462.357, Subdivision 6. The zoning regulations for pawnshops established by Ordinance 2017-1125 were codified into the City Code in Article VII, Section 102-216(18). These regulations establish pawnshops as a conditional use within the B-3 and B-4 districts subject to certain standards. Provision 2 of these regulations states “The use shall be located at least 200 feet from any residential or institutional use or district.” The applicant requests to locate a pawnshop at 1409 & 1403 Mainstreet, which is adjacent to residential uses that exist to the north. Additionally, provision 4 of these regulations states “Within the B-3 - General Business District, no such use shall be located on a property that has frontage on or abuts Mainstreet.” The applicant’s requested site is located in the B-3 district and, as the address indicates, has frontage on Mainstreet. VARIANCE REVIEW Staff reviewed the variance request against the standards detailed in Minnesota State Statute 462.357, Subdivision 6 and finds that, first and foremost, the application amounts to an unlawful use variance because it seeks to use property for a use that is not otherwise authorized pursuant to the City’s zoning regulations. Additionally, and notwithstanding the proposed unlawful use inherent in the application, the applicant does not demonstrate practical difficulties. As a result, staff recommends the City deny the applicant’s request. Practical difficulties are determined through review of the five questions listed below. Staff’s review and finding for each question are detailed below. By comparison, in justifying their request, the applicant merely states on its application they believe their practical difficulty is “never being able to operate in the City of Hopkins again without the granting of their variance request.” 1. Is variance in harmony with purposes and intent of the ordinance? Finding: The requested variance is not in harmony with the purpose and intent of the zoning ordinance. The City’s Supplemental Data for Variance form asks applicants to specify the section of the ordinance from which a variance is sought. In response to this question, the applicant listed the entire Ordinance No. 2017-1125, which includes all of the specific conditional use permit standards for pawnshops. As stated above, two particular standards contained in the City’s zoning ordinance expressly prohibit this use in the location requested. Ignoring these standards has the practical effect of eliminating these standards and changing pawnshops from a conditional to a permitted use circumventing the City zoning authority to determine the appropriate location and development regulations for this type of use in Hopkins. 2. Is the variance consistent with the comprehensive plan? Finding: The requested variances is inconsistent with the comprehensive plan. The 2030 Comprehensive Plan’s Future Land Use Map guides the subject property as Commercial. Planning Application 2020-14 Page 4 658764.v1 Chapter 4 of the 2030 Comprehensive Plan details the City’s land use plan and includes a set of overall goals that provide a framework for land use initiatives in Hopkins. Of these goals, the most applicable to this variance request is: Maintain appropriate transitions between land uses. Hopkins is a fully developed community and will likely see new development through redevelopment initiatives. The City will work to ensure appropriate transitional uses and buffering between new and existing land uses. One of the ways the City’s zoning regulations seeks to implement this goal in relation to pawnshops is by requiring minimum separation distances between pawnshops and other uses such as other pawnshops, residential or institutional uses or districts and off-sale liquor. Granting the requested variance and allowing a pawnshop use at the subject property would violate the minimum separation standards from the single family residential zone to the north just across the alley and the institutional use to the southeast across Mainstreet (Chesterton Academy). The Land Use and Development chapter goes on to state the City regards the preservation and protection of its existing residential neighborhoods as one of its most important priorities. The City will work to protect land use patterns that continue to support single family homes. In order to address residential land use patterns, the comprehensive plan provides the following implementation strategies, all of which support staff’s recommendation to deny the requested variance. • Work to protect the integrity and long-term viability of its low-density residential neighborhoods and strive to reduce the potential negative effects of nearby commercial or industrial land through zoning, site plan reviews, and code enforcement. • Ensure that the infilling of vacant parcels and the rehabilitation of existing developed land will be in accordance with uses specified in the Comprehensive Plan. • Ensure that incompatible land uses will be improved or removed where possible and the land reused in conformance with the Comprehensive Plan. • Work to assure strong and well-maintained neighborhoods. 3. Does proposal put property to use in a reasonable manner? Finding: The proposal does not put the property to use in a reasonable manner. As detailed in the Background section above, in 2017 the City Council enacted a moratorium on pawnshops, currency exchanges and coin dealers to give City staff sufficient time to study these uses and evaluate various options for regulation. The result of this review was adoption of Ordinance 2017-1125 which established pawnshops as a conditional use in the B-3 and B-4 district, subject to certain standards. Approving the applicant’s variance request would have the practical effect of waiving these standards and using the property in an unreasonable manner. 4. Are there unique circumstances to the property not created by the landowner? Finding: There are not unique circumstances to the property that were not created by the landowner that support granting the requested variance. Under this standard, the applicant must Planning Application 2020-14 Page 5 658764.v1 demonstrate the issues that prevent them from using the subject property as a pawnshop were caused by circumstances unique to the property and were not caused by them. The applicant does not provide, and staff cannot find, any evidence supporting a position that there are unique circumstances to the subject property not created by the landowner that prevent them from meeting the zoning regulations for pawnshops. 5. Will the variance, if granted, alter the essential character of the locality? Finding. Granting the requested variance would alter the essential character of the surrounding area. Chapter 4 of the 2030 Comprehensive Plan provides more detailed land use planning in 8 planning districts. The subject properties are located in Planning District 8 – Downtown Hopkins. The residential neighborhood directly north of the subject properties is located Planning District 2 – Central Hopkins. The Narrative for Planning District 2 states this district needs to be protected from outside intrusions that might threaten the integrity of the existing low density neighborhoods. Potential intrusions are most likely to occur on the common boundary between Planning District #8 and Planning District #2. Staff finds granting the requested variance would be inconsistent with this portion of the 2030 Comprehensive Plan and alter the essential character of the surrounding neighborhood. ALTERNATIVES 1. Recommend approval of the requested variance. By recommending approval of the application, the City Council will consider a recommendation of approval. Should the Planning & Zoning Commission consider this option, it must also identify specific findings that support this alternative. 2. Recommend denial of the requested variance as recommended by staff. By recommending denial of the variance application, the City Council will consider a recommendation of denial. 3. Continue for further information. This item should be continued if the Planning & Zoning Commission finds that further information is needed. 1 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA PLANNING & ZONING COMMISSION RESOLUTION 2020-03 RESOLUTION RECOMMENDING THE CITY COUNCIL DENY THE VARIANCE REQUEST FROM ROBIN FRANKS WITH PAWN AMERICA, LLC FOR THE PROPERTIES LOCATED AT 1409 (PID 24-117-22-32-0099) AND 1413 MAINSTREET (PID 24-117-22-32-0100) WHEREAS, the City of Hopkins (the “City”) is a municipal corporation, organized and existing under the laws of the State of Minnesota; and WHEREAS, Robin Franke with Pawn America, LLC (the “Applicants”) was authorized by the fee owner to apply for this application for the properties at 1409 & 1413 Mainstreet legally described below: Lots 12, Block 73 of West Minneapolis 2nd Division, Hennepin County, Minnesota. And Lots 13 & the East ½ of Lot 14, Block 73 of West Minneapolis 2nd Division, Hennepin County, Minnesota. (Together the “Properties”); and WHEREAS, the Properties are zoned B-3, General Business District; and WHEREAS, the City has adopted a zoning ordinance and other official controls for reasons that include, but are not limited to, protecting the character of properties and areas within the community, promoting the proper use of land and structures, fixing reasonable standards to which buildings, structures and land must conform for the benefit of all, and prohibiting the use of buildings, structures and lands in a manner which is incompatible with the intended use or development of lands within the specified zones; and WHEREAS, Ordinance 2017-1125 details the zoning regulations for Pawnshops; and WHEREAS, pursuant to the aforementioned code provisions, the Applicant has made a request to the City for a variance from Ordinance 2017-1125; WHEREAS, pursuant to Minnesota Statutes, section 462.357, subd. 6(2), “[v]ariances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance and when the variances are consistent with the comprehensive plan. Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. "Practical difficulties," as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the zoning ordinance; the plight of the landowner is due to circumstances unique to the property not created by the landowner; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties.”; and 2 WHEREAS, on June 23, 2020, pursuant to the procedural requirements contained in Article III, Section 102-91 of the City Code, the Hopkins Planning and Zoning Commission (the “Commission”) held a public hearing on the Applicant’s requested variance and all persons present were given an opportunity to be heard. The Commission also took into consideration the written comments and analysis of City staff; and WHEREAS, based on a review of the Applicant’s request and their submissions, the written staff report, and after careful consideration of all other written and oral comments concerning the requested variances, the Commission makes the following findings of fact with respect to the aforementioned criteria provided in Minnesota Statutes, section 462.357, subd. 6(2): 1. Is variance in harmony with purposes and intent of the ordinance? Finding: The requested variance is not in harmony with the purpose and intent of the zoning ordinance. The City’s Supplemental Data for Variance form asks applicants to specify the section of the ordinance from which a variance is sought. In response to this question, the applicant listed the entire Ordinance No. 2017-1125, which includes all of the specific conditional use permit standards for pawnshops. As stated above, two particular standards contained in the City’s zoning ordinance expressly prohibit this use in the location requested. Ignoring these standards has the practical effect of eliminating these standards and changing pawnshops from a conditional to a permitted use circumventing the City zoning authority to determine the appropriate location and development regulations for this type of use in Hopkins. 2. Is the variance consistent with the comprehensive plan? Finding: The requested variances is inconsistent with the comprehensive plan. The 2030 Comprehensive Plan’s Future Land Use Map guides the subject property as Commercial. Chapter 4 of the 2030 Comprehensive Plan details the City’s land use plan and includes a set of overall goals that provide a framework for land use initiatives in Hopkins. Of these goals, the most applicable to this variance request is: Maintain appropriate transitions between land uses. Hopkins is a fully developed community and will likely see new development through redevelopment initiatives. The City will work to ensure appropriate transitional uses and buffering between new and existing land uses. One of the ways the City’s zoning regulations seeks to implement this goal in relation to pawnshops is by requiring minimum separation distances between pawnshops and other uses such as other pawnshops, residential or institutional uses or districts and off-sale liquor. Granting the requested variance and allowing a pawnshop use at the subject property would violate the minimum separation standards from the single family residential zone to the north just across the alley and the institutional use to the southeast across Mainstreet (Chesterton Academy). The Land Use and Development chapter goes on to state the City regards the preservation and protection of its existing residential neighborhoods as one of its most important priorities. The City will work to protect land use patterns that 3 continue to support single family homes. In order to address residential land use patterns, the comprehensive plan provides the following implementation strategies, all of which support staff’s recommendation to deny the requested variance. • Work to protect the integrity and long-term viability of its low-density residential neighborhoods and strive to reduce the potential negative effects of nearby commercial or industrial land through zoning, site plan reviews, and code enforcement. • Ensure that the infilling of vacant parcels and the rehabilitation of existing developed land will be in accordance with uses specified in the Comprehensive Plan. • Ensure that incompatible land uses will be improved or removed where possible and the land reused in conformance with the Comprehensive Plan. • Work to assure strong and well-maintained neighborhoods. 3. Does proposal put property to use in a reasonable manner? Finding: The proposal does not put the property to use in a reasonable manner. As detailed in the Background section above, in 2017 the City Council enacted a moratorium on pawnshops, currency exchanges and coin dealers to give City staff sufficient time to study these uses and evaluate various options for regulation. The result of this review was adoption of Ordinance 2017-1125 which established pawnshops as a conditional use in the B-3 and B-4 district, subject to certain standards. Approving the applicant’s variance request would have the practical effect of waiving these standards and using the property in an unreasonable manner. 4. Are there unique circumstances to the property not created by the landowner? Finding: There are not unique circumstances to the property that were not created by the landowner that support granting the requested variance. Under this standard, the applicant must demonstrate the issues that prevent them from using the subject property as a pawnshop were caused by circumstances unique to the property and were not caused by them. The applicant does not provide, and staff cannot find, any evidence supporting a position that there are unique circumstances to the subject property not created by the landowner that prevent them from meeting the zoning regulations for pawnshops. 5. Will the variance, if granted, alter the essential character of the locality? Finding. Granting the requested variance would alter the essential character of the surrounding area. Chapter 4 of the 2030 Comprehensive Plan provides more detailed land use planning in 8 planning districts. The subject properties are located in Planning District 8 – Downtown Hopkins. The residential neighborhood directly north of the subject properties is located Planning District 2 – Central Hopkins. 4 The Narrative for Planning District 2 states this district needs to be protected from outside intrusions that might threaten the integrity of the existing low density neighborhoods. Potential intrusions are most likely to occur on the common boundary between Planning District #8 and Planning District #2. Staff finds granting the requested variance would be inconsistent with this portion of the 2030 Comprehensive Plan and alter the essential character of the surrounding neighborhood. NOW, THEREFORE, BE IT RESOLVED by the Planning and Zoning Commission of the City of Hopkins that the recitals set forth in this Resolution are incorporated into and made part of this Resolution, and more specifically, constitute the express findings of the Commission. NOW, THEREFORE, BE IT FURTHER RESOLVED by the Planning and Zoning Commission of the City of Hopkins that based on the findings of fact contained herein, the Commission hereby recommends that the City Council of the City of Hopkins deny the Applicant’s requested variance. Adopted this 23rd day of June, 2020. ____________________________________ Gerard Balan, Chair Site Location Map – 1409 & 1413 Mainstreet Pawn America Variance Request Subject Properties From:Deb Zeller To:Jason Lindahl Subject:[EXTERNAL] Public Hearing Input Date:Monday, June 15, 2020 4:23:43 PM Jason, Thanks for reaching out and allowing us to respond remotely. Hopkins has a beautiful Mainstreet. It consists mainly of small, independent business with very few chain businesses. I think that is one of the things that makes our town so charming. My business, Zeller Studio, is a Mainstreet business that is proud to have moved from the North Loop in Minneapolis to Hopkins. My goal is to work hard keeping my little piece of Mainstreet classy and a joy for both our residents and visitors to our fine city. Pawn America Minnesota, LLC is not a good fit for Mainstreet or within 200 feet of a residential district. We have a great Ordinance and I would be very disappointed if it is not upheld. Thank you for your consideration, Deb Zeller 952-201-8583 Zeller Studio 1421 Mainstreet Hopkins, MN 55343 From:noreply@civicplus.com To:Courtney Pearsall; Jason Lindahl Subject:[EXTERNAL] Online Form Submittal: Planning & Zoning Commission Virtual Meeting Participation Date:Saturday, June 13, 2020 9:43:08 AM Planning & Zoning Commission Virtual Meeting Participation Due to the technical requirements associated with virtual meetings, we strongly encourage you to provide your question/comment prior to the meeting in one of two ways listed below: -Via the question/comment box on this form -Via phone at 952-548-6342 during normal business hours (8 a.m. - 4:30 p.m.) All comments must be submitted by noon on June 23 in order to be included. If, despite technical difficulties, you want to make your comment online or via phone during the meeting, please check the box at the bottom of the form, provide your email and phone number, and someone will be in contact with you with further instructions. First Name Elyssa Last Name McIntyre Address 25 15th Ave N City Hopkins State MN Zip Code 55343 Phone Number 9529356486 Email Address historyiscool@gmail.com Question/Comment (will be read at meeting) I’d like to object to giving a variance for a potential Pawn Shop on Main Street for three reasons: that it is not in character with the type of business we strive for on Main Street, that the existing city ordinance is right to ban this sort of establishment, and that there is no compelling reason to advocate for this business against city regulation. First, downtown Hopkins is a place of unique and family friendly businesses like Kiddywumpus, the Zeller Art Gallery, and Monkabeans. The city has done great work to create a friendly “artery” and put sculpture art alongside many of our unique local businesses. A Pawn Shop does not fit with this vision for Hopkins’ Main Street. Second, city ordinances currently ban Pawn Shops or Payday loans within 200 feet of Main Street or residential housing. This is a great ordinance. Since no one is considering repealing it, why make an exception in this one case? What is the compelling argument for violating this ordinance? Lastly, I would say that there is no reason to push for this business in this location at this point. It is true the location has been empty for some time, but that is due to the greed of the owner. My previous mechanic in this location, Hometown Auto, left after the owner raised the rent due to a perceived upcoming real estate boom caused by the completion of the light rail. I had another friend that was considering investing in the property, but again said that the price was too high for what the property was worth. This owner is greedy and has scared away opportunities for more wholesome and typical Hopkins business that could fit into this location without a variance. I want to provide verbal comment during the meeting: Field not completed. Email not displaying correctly? View it in your browser. From:Jeff Carriveau To:Jason Lindahl Subject:[EXTERNAL] Pawn America zoning variance Date:Thursday, June 18, 2020 11:01:14 AM Good Morning, I’m writing to voice my opinion against any sort of zoning variance for Pawn America. Pawn shops and check cashing businesses are a black eye on a community. They attempt to take advantage to the disadvantaged and bring in a percentage of unsavory clientele. As a resident of Hopkins for 15+ years I’ve watched as this community has thrived and has kept main street and the neighborhoods as diverse places that people can be proud of. Allowing a pawn shop a variance is a step in the wrong direction. Sincerely, Jeff and Megan Carriveau 14 14th Ave N 952-356-5709 Get Outlook for iOS From:Laurel Lungstrom To:Jason Lindahl Subject:[EXTERNAL] Pawn America Date:Tuesday, June 16, 2020 8:47:21 AM To whom it may concern, I do not think bringing in Pawn America on our quaint main street would fit. Downtown Hopkins has been doing an amazing job updating the look and feel of a small town atmosphere. As a business owner, I would be disappointed with this variance. Sincerely, Laurel Lungstrom Laurel LungstromOwner Anoka, MN 55303 Phone: 763-427-0531 Fax: 763-427-6096 Hopkins:952-933-4500 Fax: 952-933-7294 email: Laurel@anokamerrymaids.com From:RANDY LEVY To:Jason Lindahl Subject:[EXTERNAL] Fwd: Pawn America Date:Tuesday, June 16, 2020 7:45:40 AM > Seems like it’s basically authorizing a gun dealer > To locate On Main Street within 200 Feet Of residential. Trading guns is typical pawn business. > > I am at 1315 Mainstreet and think that is really lame development idea. > > Feel Free To call > > Please Add My comments to Hopkins virtual Meeting. And please Share w council members. > > Thank you. > > Rand Levy > 6128898776 cell From:Sue Gallucci, LICSW, Psychotherapist/Life Coach To:Jason Lindahl Subject:[EXTERNAL] Pawn America = Please do not let them in! Date:Friday, June 12, 2020 4:19:13 PM Hi Jason, Hope you are doing well? I feel very strongly against letting them in. We will already be incurring the negative impact of all the riffraff the light rail will be bringing into Hopkins.If we add a Pawn Shop and all the shady characters that attracts = Not good at all! When I moved here 3 years ago and told people I had moved to Hopkins, they'd say, with a grimace saying "Oh Hopkins, well, I hear it's getting better?!" Apparently Hopkins use to be really scroungy and kinda shady. As it is there are already so many empty storefronts from the east end all the way to the west end of Mainstreet. If you add a pawn shop you will just loose the grip we have on continuing to improve Hopkins. Plus we alter the Ordinance this one time then it will open the door to other similar business's and then there goes Hopkins. Please do not do this!!!! Please! Sue Gallucci, LICSW, Psychotherapist and Life Coach 1521 Mainstreet, Hopkins, MN 55343 Phone: 952-463-0600 E-mail: tosuegallucci@gmail.com Web: www.suegallucci.com November 6, 2017 City Council Report 2017-127 Zoning Code Text Amendment Related to Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers Proposed Action Staff recommends the following motion: Move to adopt Resolution 2017-069, recommending approving an ordinance amending Sections 515.07 (Definitions) and 535 (Business Districts) of the City Code related to zoning standards for Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. Overview This application was initiated by staff to update the City’s zoning regulation for Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. This memo reviews the City’s legal authority for this type of application, the proposal’s consistency with the Comprehensive Plan, the proposed zoning standards and potential non-conformity issues. Based on the findings made below, staff recommends approval of this request. 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. Primary Issues to Consider • Consistency with the Comprehensive Plan • Zoning Standards • Potential Non-Conformity Issues Supporting Documents • Resolution 2017-069 • Ordinance 2017-1125 • Zoning Map _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: City Council Report 2017-127 Page 2 Background 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. This moratorium was put in place in part because Metro Transit plans to extend the Metro Green Line through Hopkins and, as part of this project, will acquire the City’s only pawnshop. This will likely facilitate this business relocating to another site within the community. As a result, the City believes this is the appropriate time to review the development regulations for these businesses. During their regular May and June meetings, the Planning & Zoning Commission reviewed the zoning and licensing standards for pawnshops, currency exchanges and coin dealers for Hopkins, selected metropolitan communities and the State of Minnesota. During that discussion, staff reviewed each of these regulations and asked the Commission for comments on appropriate zoning districts, classification (permitted vs. conditional use), and standards (separation, number per population, storefront appearance, etc.). Commissioners’ comments included: St. Louis Park provided the best model for zoning and licensing standards; with the possible exception of coin dealers, these uses should be eliminated from the B-2 zoning district and along Mainstreet; change zoning districts where practical or mandate CUP; City licensing standards should address business operation not zoning standards; the City Council should consider whether Hopkins should require a city license for these uses in addition to the state licensing requirements. Based on this discussion, staff prepared draft zoning regulations for these uses and presented them to the City Council during their September 12, 2017, work session. The City Council was generally supportive of the draft regulations, agreed to maintain city licensing for pawnshops but state licensing for the other uses, and suggested the Planning & Zoning Commission consider limiting the number of these uses in Hopkins based on population. The Council then directed staff to hold a public hearing on this item with the Planning & Zoning Commission before bringing it back to the City Council for final action. Planning & Zoning Commission Action The Planning & Zoning Commission held a public hearing to review this item during their regular meeting on October 24, 2017. During the public hearing, the Commission heard a summary presentation from staff and no comments from the public. Staff noted the proposed zoning changes were provided to Pawn America and they have not provided comment. Overall, the proposed zoning changes will bring most of the existing businesses closer to compliance. After some discussion, the Commission decided to not add a provision limiting the number of these businesses based on population. The Commission then voted unanimously to recommend the City Council approve this item. Primary Issues to Consider Legal Authority. Zoning Code amendments are legislative actions in that the City is creating new standards to regulate the development of certain types of uses and/or structures. Under the law, the City has wide flexibility to create standards that will ensure the type of development it desires; however, zoning regulations must be reasonable and supported by a rational basis relating to promoting the public health, safety and welfare. Consistency with the Comprehensive Plan. The proposed zoning ordinance text City Council Report 2017-127 Page 3 amendment would update the City’s zoning regulation for Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. Staff finds the proposed changes consistent with the applicable goals and implementation strategies from the Comprehensive Plan. The applicable goals or implementation strategies from the Comprehensive plan, along with staff’s findings for each, are detailed below. 1. Protect and Enhance Downtown Hopkins Findings: The Comprehensive Plan identifies eight primary goals to guide future development in Hopkins. The most applicable goal to this application is to “protect and enhance downtown Hopkins.” The proposed zoning changes would meet this goal by prohibiting Pawnshops, Payday Loan Agencies, Currency Exchanges or Coin Dealers in the B-2, Central Business district, or on properties in the B-3 district along Mainstreet. Overall, the proposed zoning changes move these uses to more compatible areas in the B-3 and B-4 districts where there are larger commercial areas along higher capacity roads. 2. Review and Update Zoning and Subdivision Regulations Findings: In addition to the eight primary goals, the Comprehensive Plan identifies strategies to implement these goals. Specifically, the Comprehensive Plan identifies the implementation strategy to review and update the City’s zoning and subdivision regulations. Updating the zoning regulations for Pawnshops, Payday Loan Agencies, Currency Exchanges or Coin Dealers will detail the specific standards necessary to implement the City’s goal to protect and enhance downtown. Zoning Standards. The proposed zoning ordinance text amendment would make five changes to the zoning standards for Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. These changes are consistent with the goals and implementation strategies of the Comprehensive Plan and will protect the health, safety and general welfare of the community by clarifying definitions, reorganizing and reclassifying these uses, updating conditions for Currency Exchanges and establishing new conditions for Pawnshops, Payday Loan Agencies and Coin Dealers. Each of the five proposed changes is detailed below. 1. Establish new zoning definition for Pawnshops and Payday Loan Agencies. Currently, the zoning ordinance does not define either of these uses. In addition, staff found there is often confusion between these uses and Currency Exchanges. Staff recommends establishing the following definitions for these uses which are consistent with the definitions used in state licensing statutes and surrounding communities. 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. 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. City Council Report 2017-127 Page 4 2. Reorganize Pawnshops, Currency Exchanges and Coin Dealers into more appropriate zoning categories and reclassify Pawnshops and Coin Dealers from permitted to conditional uses. Pawnshops are currently a permitted use in the B-2 and B-3 districts; however, the only existing pawnshop in Hopkins (Pawn America located at 168 Blake Road North) is located in the B-4 district. Similarly, Currency Exchanges are currently a conditional use in the B-2 district, but the two existing uses (Casablanca Market at 716 - 11th Avenue South and the US Grocery & Tobacco store at 520 Blake Road North) are both located in the B-3 district. Therefore, reorganizing Pawnshops from a permitted use in the B-2 and B-3 districts to a conditional use in the B-3 and B-4 districts and moving Currency Exchanges from conditional use in the B-2 district to a conditional use in the B-3 and B-4 districts will make these existing uses conforming. There are no existing commercial Coin Dealers in Hopkins (only one that operates as a home occupation), so reorganizing Coin Dealers from a permitted use in the B-1 and B-2 districts to a conditional use in the B-3 and B-4 districts will not impact an existing business. Reorganizing these uses will also help achieve the City’s goal to protect and enhance Downtown Hopkins while allowing these uses in zoning districts more consistent with their business needs and separating them from other incompatible land uses. 3. Establish Payday Loan Agencies as a new, distinct use. Currently, the zoning ordinance does not address this use. This use is becoming more common and has both similar and different characteristics to both Pawnshops and Currency Exchanges. Based on its characteristics, staff finds Payday Loan Agencies should be classified as a conditional use in the B-3 and B-4 districts. 4. Revise conditional use standards for Currency Exchanges. Changes to these standards are necessary to bring the existing currency exchange uses closer to compliance with the zoning ordinance while still maintaining the City regulatory goals. The proposed zoning changes are detailed in the attached draft ordinance and include: • Prohibiting this use on properties in the B-3 district that abut Mainstreet. • Removing separation requirements from both residential and off-sale liquor uses. The two existing currency exchange uses do not meet these standards, and staff believes they are not necessary. • Revising window transparency standards. • Prohibiting outdoor storage, display or sales. • Requiring these businesses to obtain and maintain a State of Minnesota license. 5. Establish new conditional use standards for Pawnshops, Payday Loan Agencies and Coin Dealers. Reclassifying Pawnshops and Coin Dealers from permitted to conditional uses and establishing Payday Loan Agencies as a conditional use requires establishment of specific conditional use standards. As previously directed by the Planning & Zoning Commission and City Council, staff drafted these standards based on the City’s standards for Currency Exchanges as well as those standards used by the City of St. Louis Park. These standards are detailed in the attached draft ordinance and require these uses: • Are at least one thousand (1,000) feet from another pawnshop, payday loan agency, or coin dealer. • Are at least two hundred (200) feet from any residential or institutional use or district. City Council Report 2017-127 Page 5 • Are at least three hundred fifty (350) feet from an off-sale liquor establishment. • Are prohibited in the B-3, General Business District, along Mainstreet. • Do not have back-lighted signs, back-lighted awnings, portable signs, temporary signs or freestanding signs. • Have clear, transparent glass, free of obstruction for at least three feet into the store. • Do not cover more than 30 percent of the window area. • Do not have bars, chains or similar security devices that are visible from a public street or sidewalk. • Take place completely within an enclosed building. Outdoor storage, display or sales are prohibited. • Obtain and maintain a City of Hopkins and/or State of Minnesota license. Nonconformities. As with any change to the City’s regulations, this zoning ordinance text amendment has the potential to create sites that are non-conforming or do not meet the new proposed standard. According to Minnesota Statute 462.357, Subdivision 1e., legal nonconformities generally have a statutory right to continue through repair, replacement, restoration, maintenance, or improvement, but not through expansion. These rights run with the land and are not limited to a particular landowner. If the benefited property is sold, the new owner will have the same rights as the previous owner. As mentioned above, many of the proposed changes will bring these uses closer to compliance while still maintaining the City’s regulatory goals. Alternatives 1. Approve the proposed Zoning Code text amendment related to Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. By recommending approval, the City Council will approve new zoning standards for these uses. 2. Deny the proposed Zoning Code text amendment related Pawnshops, Payday Loan Agencies, Currency Exchanges and Coin Dealers. By denying this request, the existing standards for these uses will remain in effect. If the City Council considers this option, findings will have to be identified that support this alternative. 3. Continue for further information. If the City Council indicates that further information is needed, the item should be continued. CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 2017-069 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 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; and, 6. That the written comments and analysis of City staff were considered; and 7. That the Hopkins Planning & Zoning Commission voted unanimously that the City Council approve this item. 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. Adopted this 6th day of November 2017. _______________________ Molly Cummings, Mayor ATTEST: ______________________ Amy Domeier, City Clerk CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 2017-1125 AN ORDINANCE AMENDING SECTIONS 515.07 AND 535 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. 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 all existing 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. 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 R-2 R-1-D R-1-E INS R-1-C BP BP B-1 R-6 R-4 PUD BP I-2 I-2 I-1 I-2 BP R-1-B INS INS R-1-D R-1-C R-1-D I-1 R-4 R-5 B-4 I-2 R-2 R-1-A R-1-A INS I-2 R-!-B B-3 R-1-A R-4 R-4 I-2 I-2 I-1 INS INSB-2 R-1-C R-3 R-4 B-4 R-3 R-1-D INS R-1-A B-1 R-2 B-3 B-3 R-2 R-4 PUD B-3 B-4 R-4 R-1-C R-4 B-3 R-1-C R-4 B-3 R-1-A I-2 R-4 R-4 R-3B-3 B-3B-3 B-3 R-5 I-1 I-1 R-1-A R-4 B-2 B-3 B-3 B-3 R-4 R-3 R-1-C R-1-CR-2 R-2 B-3 B-3 B-3 R-4 R-4 B-1 I-2 B-1 R-5R-5 R-4 R-3 R-1-C B-4 TextR-2 Closed Landfill Restricted BP BP City of Hopkins Zoning Map ³ ZONING DISTRICTS R-1-A Single and Two Family High Density R-1-B Single Family High Density R-1-C Single Family Medium Density R-1-D Single Family Low Density R-1-E Single Family Low Density R-2 Low Density Multiple Family R-3 Medium Density Multiple Family R-4 Medium High Density Multiple Family R-4 PUD R-5 High Density Multiple Family R-6 Medium Density Multiple Family B-1 Limited Business B-2 Central Business B-3 General Business B-4 Neighborhood Business Business Park Institutional I-1 Industrial I-2 General Industrial Mixed Use Closed Landfill Restricted (CLR) 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 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. district; 3. Back-lighted signs, back-lighted awnings, portable signs, temporary signs and freestanding signs shall be prohibited; 4. The window and door arca of any existing first floor façade that facos a public street or 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. 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 DT CTC Blake) (8th Ave) (Shady Oak) 20. Currency Exchange X-053 X(b) 551 lops X X Conditional Uses b. Currency Exchange The use shall be located at least one thousand (1,000) feet from any other currency 2 The use shall be located at list three hundred fifty (350) feet from an off sale 3, Back lighted signs, back lighted awnings, portable signs, temporary signs and 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 nidIty Molly mmngCis, Mayor ATTEST: 0/2/AALeA/CA Amy Domeier, City Clerk