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SR-8-D (36) 80 CA:f:\atty\muni\strpts\mhs\pawnm.3 City Councll Meeting 12-13-94 Santa Monica, California DEC 1 3 199't TO: Mayor and city Council FROM: City Attorney SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PROHIBITING PAWNBROKERS IN SPECIFIED PORTIONS OF THE C3 AND C3C DISTRICTS AND PROHIBITING THE ISSUANCE OF NEW BUSINESS LICENSES FOR PAWNBROKERS ON AN INTERIM BASIS AND DECLARING ~HE PRESENCE OF AN EMERGENCY At lts November 29, 1994 Clty Councll meetingl the Councll directed the Clty Attorney to prepare an Ordinance prohibitlng pawnbrokers ln the Bayslde Dlstrict on an interim basis, but protecting the rights of persons on the pawnbroker buslness 11cense waiting list who wish to locate 1n the Bayside Distr1ct pendlng adopt1on of the Bayside District Spec1flc Plan. The Ordinance 1S presented to the Council for adopt1on as an emergency ordinance. BACKGROUND The Santa Monica Municipal Code lulits the number of business llcenses which TIay be lssued to pawnbrokers in the city ("pa\vnbroker llcenses") and also prohibits pawnbroker licenses from belng transferred or assigned. The City maintains a waiting llSt of lndlVlduals or entltles who w1sh to obtain a pawnbroker llcense DEC 1 3 199't 1 80 ("waiting list") when an existing pavmbroker license is revoked or not renewed. Seven individuals or entitles are currently on the vial tlng list. In 1990, the City sued Rlchard Manes, the holder of a pawnbroker llcense for unlawfully transferring his business license from a sole proprietorship to Ace Jewelry and Loan, Inc. The City was successful ln the trial court, and subsequently entered into a settlement wlth Mr. Manes and Ace Jewelry and Loan, Inc. WhlCh provlded that the pawnbroker license would be deewed revoked as of December 31, 1994, but that operation of the business could contlnue until that time. Prlor to the litigatlon, Mr. Manes apparently transferred hlS ownership interest in the business to the Greensteins. The Greenstelns recently requested that the Clty Council relleve them of the effect of the litigation, which would cause the pawnbroker llcense for the pawnbroker operations at Ace Jewelry and Loan to be revoked at the end of this year. Joan Greenstein is number two an the waiting list, and Ace Jewelry and Loan, Inc. is number three. In response to the Greenstein's request, at lts meeting on October 11, 1994, the city Councll directed the city Attorney to prepare an Ordlnance increasing the nuwber of pawnbroker licenses WhlCh could be issued from three to four. In thlS way, two llcenses would become available January 1, 1995, and the Greenstelns would be able to obtain a license to continue the operations of Ace Jewelry and Loan. This ordinance 2 was adopted on second reading on November 29, 1994. In connection with the discussion of pawnbroker licenses, concerns were expressed concerning the appropriateness of such use in the Bayside District. At its November 15, 1994 meeting, the Councll directed the Clty Attorney to prepare an ordinance prohlblting pawnbrokers ln the proposed Bayside District on an interim basis ("Moratorium") pending adoption of the Bayside District Specific Plan. The Moratorium Ordlnance was presented to the Council on November 29, 1994 for adoption as an emergency ordlnance. At that Councll meeting, the city Council heard testimony from a representative of Klng's Jewelers, the entlty WhlCh is first on the walting list. King's Jewelers 1S located in the Bayside District. Therefore, the effect of the Moratorium, if adopted, would be to deny Klng's Jewelers a pawnbroker license, and to allow the two llcenses which wlll become available January 1, 1995 to be 1ssued to Joan Greenstein and the next person or entity on the waiting llst ~hich is not located in the Bayslde Distrlct. The Council dld not adopt the Moratorlum at the November 29, 1994 meeting, but instead directed the City Attorney to prepare an ordinance prohlb1tlng pawnbrokers ln the Bayside District on an 1nterim basis, but protect1ng the rlghts of persons on the waitlng llst who wish to locate In the Bayside Dlstrict pendlng adoption of the Bayside Distrlct Specific Plan. That ordinance is attached. 3 The Ordinance has two main provlsions. First, it prohlbits the issuance of new pawnbroker llcenses in the Bayside District on an interim basis. Secondly, lt prohibits the lssuance of more than one new business license pending adoption of the Bayside Dlstrict Specific Plan. The effect of these provisions is as follows. On January 1, 1995 when two pawnbroker llcenses will beco~e available, assumlng all other legal requirements are met, one pawnbroker license wll1 be issued to Joan Greenstein. The other pawnbroker llcense will be held in abeyance pending adoption of the Bayside District Specific Plan. The Ordlnance further provldes that if pawnbrokers are permitted, permitted by performance standards permlt, or condltlonally permitted in the adopted Bayslde District Specific Plan, the Moratorium shall no longer be effectlve. Should this occur, assuming all other requirements were met, (including obtalnlng a performance standards permit, or conditional use permlt, if required), King/s Jewelers would be issued the pawnbroker license which had been held in abeyance. If the adopted Bayside Distrlct Specific Plan specifies that pawnbrokers are not permitted in the District, or specified portions of the District, then no pawnbroker business license may be issued in contraventlon of the speciflc Plan. The pawnbroker llcense held in abeyance would then be issued not to Kingl s Jewelers, but the next person or entity on the waiting llst which does not intend to operate ln the Bayside District. Those entities on the walting list who wlsh to locate in the Bayside District 4 would therefore not be elIgIble to receIve a pawnbroker license until such tine as the Specific Plan allowed and a license was available. We have some concerns about this ordinance which relate to its context. The Municipal Code expressly authorizes a temporary moratorium to prohibIt the establIshment of uses which may be in conflict with a proposed general plan, specIfic plan, or zonIng ordinance amendment which is being studied, such as under the current circumstances. (See Municipal Code SectIon 9.04.20.016.060) . However, the juxtaposition of this ordinance with the Council's prior amendment of Municipal Code 6.24.410 adding an addItIonal pawnbroker's lIcense, and the circumstances In "\vhICh the ordlnances arose, creates some concerns regarding a possible appearance of impropriety. Although there has been no mIsuse of the legislative process, in general, ordinances should establish rules of general application. Exceptions to those rules should also be based upon ascertainable standards of general appllcatlon rather than on speCIfIC facts or clalms. One alternatlve to the proposed ordinance is to establlsh a moratorium on the issuance of all new pawnbroker licenses until adoption of the Bayside Specific Plan. In that way, the integrity of the waIting list would be preserved, and the anomalous result of nUMber two on the waltlng list receIVIng a llcense prior to the time at which number one is eligible to receIve a lIcense would be 5 avoided. similarly, 1f no moratorium at all is enacted, the two licenses Wh1Ch w1lI be available on January 1, 1995 may be issued to numbers one and two on the waiting list. If, subsequent to that time, the adopted Bayside Distr1ct Specific Plan proh1bits pawnbrokers, that rule will apply to licenses which may be issued in the future if and when a slot becomes available. RECOMMENDATION It 1S respectfully recommended that the council adopt the accompanying ordinance, or pursue one of the other alternatives outlined above. PREPARED BY: Marsha Jones Moutrle, Clty Attorney Mary H. Strobel, Deputy city Attorney 6 CA:f:\atty\muni\laws\mhs\pawnrnor.3 City council Meeting 12-13-94 Santa Monica, California ORDINANCE NUMBER ____ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PROHIBITING PAWNBROKERS IN SPECIFIED PORTIONS OF THE C3 AND C3C DISTRICTS AND PROHIBITING THE ISSUANCE OF NEW BUSINESS LICENSES FOR PAWNBROKERS ON AN INTERIM BASIS AND DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findinqs and Purpose. The City Council finds and declares: (a) At its August 11, 1992 Clty Council meeting, the city Council lnltiated the process of establishlng a Bayside District zoning dlstr ict (IIDlstrictll) WhlCh wlll encompass portlons of the current C3 and C3C zoning districts. Since that meeting, an Environmental Impact Report concerning the proposed Bayslde District Specific Plan has been prepared, and the Bayside District Specific Plan is scheduled for conslderatlon by the Planning Comrnisslon on November 30, 1994. 1 (b) At its November 15, 1994 City Council meeting, the city Council directed staff to consider prohibiting pawnbrokers in the Bayside District, as part of the Bayside District Specific Plan under review. Further action is needed by the city Council to establish the Bayside District zoning distr~ct and to adopt the Bayside District Specific Plan. Further, the city council will consider at a later meeting the adoption of specific zoning ordinances regulating permitted uses and property development standards in the District consistent with the Specific Plan. (c) If current development activity is allowed to contl.nue in the District pending such fl.nal approval, pawnbroker establ~shments incompatible with the proposed Bayslde District Specific Plan and zonlng ordinance implementation will occur. (d) Pend~ng the establishment of the Bayside District and adoption of changes to the zoning ordinance implementing the provisions of the Bayside District specific Plan, it is necessary on an lnterim basis to proh~bit the establishment of pawnbrokers 1n the Bayside Dlstrict. The city wishes to 2 prohibit the creation of pawnbroker establishments in the District as potentially incompatible with the mix of uses to be encouraged by the adoption of the Specific Plan. There is also a risk that pawnbroker establishments will unduly burden law enforcement resources in the Bayside District. Because of these reasons, there exists a current and immediate threat to the public health, safety, or welfare, and the approval of additional administrative approvals, development review permits, condl tional use permits, business licenses, building permits, or any other applicable entitlement for pawnbroker uses in the Bayside District would result in a threat to public health, safety, or welfare. SECTION 2. Definitions. The fallowing words or phrases as uses in this Ordinance shall have the following meanings: Proposed Bayside District: That area bounded by Wilshire Boulevard on the north, Broadway on the south, Fourth Court Alley on the east, and First Court Alley on the west. SECTION 3. Interim Zoninq. 3 The Planning Commission and City staff are directed to disapprove all requests for the issuance of building permits, administrative approvals, development review permits, conditional use permits, business licenses or any other City approvals for the establishment of new pawnbroker uses l.n the Proposed Bayside District, except as exempted under section 4. SECTION 4. Exemptions. This Ordinance shall not apply to any pawnbroker who has a business license to operate in the Proposed Bayside District as of the effective date of thl.s Ordlnance. SECTION 5. Temporary prohibition on the lssuance of new licenses, and effect on Munlcipal Code Sectlon 6.24.410. Nothwithstanding the provisions of Santa Monica Municipal Code Section 6.24.410, the Director of Flnance shall not be authorized to issue any business license in violation of the provisions of this Ordinance. Additionally, the Director of Finance shall be authorized to issue no more than one new business license for pawnbrokers, except for renewal of existlng business licenses to existing license holders, until the adoption of the Bayside District Speclfic Plan. If the adopted Bayside District Specific Plan specifies that pawnbrokers shall be permitted, permltted by performance standards permit, or conditionally permitted in the District, the provisions of this ordinance shall no longer be effective. If the adopted Bayside District Specific Plan specifies that pawnbrokers are not permltted in the District, or specified 4 portions of the District, the Director of Finance shall not be authorized thereafter to issue any bus~ness license for a pawnbroker in contravent~on of the provisions of the specific Plan. SECTION 6. This Ordinance shall be of no further force or forty-five days from its adoption, unless extended in the manner required by law. SECTION 7. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconslstencies and no further, are hereby repealed or rnodifled to that extent necessary to effect the provisions of this Ordinance. SECTION 8. This Ordinance 15 an emergency ordinance adopted pursuant to the provisions of Sect10n 615 of the city Charter and section 9.04.20.16.060 of the Santa Mon1ca Municipal Code. It is necessary for preservlng the public peace, health, or safety, and the reasons for its urgency are set forth in the Findings and Purpose Sectlon above. SECTION 9. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a declsion of any court of any competent jurisdiction, such declsion shall not affect the validity of the 5 remaining portions of this Ordinance. The Clty Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared lnvalid or unconstitutional. SECTION 10. The Mayor shall slgn and the Clty Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the officlal newspaper within 15 days after its adoption. This Ordinance shall be effective upon its adoption. APPROVED AS TO FORM: ~ ~ \1 . ' '-- i ! ! / ~ /LtvIi'/-P;'l (U{4 ~ MARSHA JONE~ MOUTRIE City AttorMy 6