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HomeMy WebLinkAbout688ORDINANCE NO. 688 AN ORDINANCE OF THE CITY OF IRWINDALE, CALIFORNIA EXTENDING BY 10 MONTHS AND 15 DAYS THE MORATORIUM ADOPTED BY INTERIM URGENCY ORDINANCE NO. 687, TEMPORARILY PROHIBITING THE ESTABLISHMENT, RELOCATION, OR OPERATION OF PAYDAY ADVANCE, AUTOMOBILE TITLE LOANS, AND OTHER SIMILAR SHORT-TERM CONSUMER FINANCE LAND USES, KNOWN AS ALTERNATIVE FINANCIAL SERVICES ("AFS"), CITYWIDE PENDING COMPLETION OF STUDIES AND PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE WHEREAS, on January 14, 2015, the City Council adopted Interim Urgency Ordinance No. 687 imposing a 45-day moratorium on Alternative Financial Service (AFS) businesses citywide, which said moratorium is due to expire on February 28, 2015; and WHEREAS, since the adoption of the moratorium, the City has taken certain steps towards analyzing the need for additional standards for AFS businesses and/or their permitted status within the City's land use zones. However, Additional time is needed to complete the analysis and arrive at a conclusion; and WHEREAS, staff is researching the various definitions of these business types. The Irwindale Municipal Code ("IMC") does not specifically address AFS businesses but, rather, identifies them generally under the categories of "Banks and financial institutions" and/or "Offices, business and professional", and specific standards do not presently exist with regards to location, public safety, loitering, and other factors that could help address land use concerns; and WHEREAS, staff is researching state and federal regulations on these uses that could have an impact on surrounding land uses; and WHEREAS, staff is reviewing legislative options and considering participating in drafting new legislation to help alleviate concerns in California with regards to these uses; and WHEREAS, staff is considering various enforcement strategies that will depend on the type of standards that may be necessary to ensure no significant impacts from these uses; and WHEREAS, the City requires additional time to develop appropriate standards for the regulation of AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses in a manner that is consistent with applicable laws; and Ordinance No. 688 Page 1 WHEREAS, the City Council desires to continue temporarily prohibiting the establishment of AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses within the City; and WHEREAS, the State Planning and Zoning Law (Gov. Code §§ 65000, et seq.) broadly empowers the City to plan for and regulate the use of land in order to provide for orderly development, the public health safety and welfare, and a balancing of property rights and the desires of the community and how its citizens envision their city; and WHEREAS, Government Code Sections 36934, 36937 and 65858 expressly authorize the City Council to adopt an urgency ordinance for the immediate preservation of the public peace, health or safety and to prohibit a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time; and WHEREAS, this Ordinance is being adopted in order to allow the City time to thoroughly review, study and revise the City's laws, rules, procedures and fees related to AFS businRssAs, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses, to enable the City to adequately and appropriately balance the rights of existing operators and future applicants who wish to operate such facilities in the City, with the preservation of the health, safety and welfare of the City's citizens. NOW, THEREFORE, the City Council of the Irwindale does ordain as follows: SECTION 1. Findings A. Generally, there are currently no ordinances in the Irwindale Municipal or Zoning Code (collectively, "Code") specifically regulating or monitoring the location, zoning standards, or other aspects of regulating AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses. B. The City is concerned that there is reform currently being pursued with regard to consumer financial protection by consumer, civil rights, labor and community organizations that are rallying and urging the Consumer Financial Protection Bureau to address short-term/high interest lending practices not subject to federal lending guidelines, and the City needs additional time to research and follow-up on this potential reform. C. Although the City has made a conscientious effort to plan for office uses within specified zones and to anticipate conflicts between competing land uses in order to protect the public's health, safety, and welfare, the Code does not currently provide Ordinance No. 688 Page 2 specific development regulations or definitions relative to the use or placement of AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses. D. The City has received inquiries and permit applications related to the establishment of AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses within the City and has concerns that it lacks appropriate standards to regulate the same. E. To allow time for the City to consider, study and enact regulations for AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses, it will be necessary to continue to temporarily suspend the approval of any and all use permit, variance, building permit, or any other entitlement or permit authorizing the establishment of AFS businesses, including at new or existing commercial and/or office facilities in the City as such uses may be in conflict with the development standards and implementation regulations that the City will ultimately impose after the City has considered and studied this issue, which shall be accomplished within a reasonable time. F. The extension to the moratorium will provide the City with time to draft and adopt appropriate regulations to regulate the location and operation of the above- described AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses in a manner that is consistent with the Code, compatible with surrounding neighborhoods and in the best interests of the residents of the City. G. Without the imposition of a continued temporary moratorium on the establishment of the above-described payday advance, automobile title loans, and other similar short-term consumer financing businesses, the City anticipates that (1) AFS businesses, including but not limited to, new payday advance, automobile title loans, and other similar short-term consumer financing businesses may locate in the City before a non-urgency ordinance would become effective, and/or that (2) an existing office user may enter into a lease before a non-urgency ordinance would become effective. H. There is a current and immediate threat to the public health, safety and welfare of the City and its community, thereby necessitating the immediate enactment of this extended moratorium to ensure that permits for such facilities are issued only under adequate regulations. Imposition of this extended moratorium will allow the City sufficient time to conclude the preparation of a comprehensive ordinance for the regulation of such activities. I. The extended moratorium is necessary to prevent a proliferation of land uses within the City of Irwindale before a determination can be made on any potential adverse impacts to the City's residents and business community. The extension of time Ordinance No. 688 Page 3 will allow City staff to coordinate with other jurisdictions, analyze, draft, and recommend adoption of sound regulations to address the known concerns of AFS businesses. SECTION 2. Need for Moratorium Extension The moratorium is necessary to prevent a proliferation of land uses within the City of Irwindale before a determination can be made on any potential adverse impacts to the City's residents and business community. The extension of time will allow City staff to coordinate with other jurisdictions, analyze, draft, and recommend adoption of sound regulations to address the known concerns of AFS businesses. Furthermore, staff has been in the process of updating the City's Zoning Ordinance and is working with a consultant to complete this effort. With the current concerns over AFS businesses, staff has requested that the consultant look at AFS uses within other cities and determine what standards have been put in place and how these uses are regulated in other communities. Based on the foregoing recitals and findings which are all deemed true and correct, this interim ordinance extension is needed for the immediate preservation of the public health, safety, and welfare. This interim ordinance shall take effect immediately upon adoption and shall IDA of no further force and effect 10 months and 15 days following the date of its adoption unless further extended in accordance with the provisions set forth in Government Code Section 65858. SECTION 3. Interim Prohibition During the effective period of this ordinance, no use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be accepted, processed, approved or issued for the establishment or operation of AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses, and no person shall otherwise establish such businesses upon any new or existing commercial and/or office use or other facility or use in the City (through lease or other method of assignment or agreement) for a period of 10 months and 15 days. SECTION 4. Authority Government Code Section 65858(d) provides that an urgency measure in the form of an initial interim ordinance may be adopted without prior public notice by a four- fifths (4/5ths) vote of the City Council and further provides that such an urgency measure may be extended following compliance with that section for up to an additional 22 months and 15 days beyond the original 45-day period. Ordinance No. 688 Page 4 a M. Nieto, CMC uty City Clerk SECTION 5. Penalties The definitions and penalties for land use violations that are prescribed in the Irwindale Zoning Code shall apply to violations of the provisions of this Interim Ordinance. SECTION 6. CEQA The proposed action is considered to be exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the proposed action consists of the adoption of a zoning moratorium ordinance, which does not have the potential for causing a significant effect on the environment. SECTION 7. Severability If any provision of this Interim Ordinance or the application thereof to any persons or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Interim Ordinance which can be given effect without the invalid provision or application and to this end the provisions of this Interim Ordinance are hereby declared to be severable. SECTION 8. Notice The City Clerk shall certify to the passage of this Interim Ordinance and shall cause the same to be published and/or posted at the designated locations in the City of Irwindale. PASSED, APPROVED, and ADOPTED, this 11 th day of March, 2015. Ordinance No. 688 Page 5 ura M. Nieto, CMC eputy City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES } ss. CITY OF IRWINDALE I, Laura M. Nieto, Deputy City Clerk of the City of Irwindale, do hereby certify that the foregoing Ordinance No. 688 was duly introduced for first reading on February 25, 2015 and adopted on second reading at a regular meeting of the Irwindale City Council held on the 1 1 th day of March, 2015, by the following vote of the Council: AYES: Councilmembers: Ambriz, Garcia, Miranda, Ortiz, Mayor Breceda NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None ura M. Nieto, CMC eputy City Clerk AFFIDAVIT OF POSTING I, Laura M. Nieto, Deputy City Clerk, certify that I caused a copy of Ordinance No. 688, adopted by the City Council of the City of Irwindale at its regular meeting held March 11, 2015 to be posted at the City Hall, Library, and Post Office on March 16, 2015. Dated: Ordinance No. 688 Page 6