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
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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
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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
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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
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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
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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
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