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
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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
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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.
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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
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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.
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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
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BP
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INS R-1-A
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TextR-2
Closed Landfill Restricted
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City of Hopkins Zoning Map
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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