SR-8-D (36)
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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
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("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
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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.
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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
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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
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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
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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.
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(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
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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.
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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
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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
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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:
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\1 . ' '-- i ! !
/ ~ /LtvIi'/-P;'l (U{4 ~
MARSHA JONE~ MOUTRIE
City AttorMy
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