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HomeMy WebLinkAbout687 (2)INTERIM URGENCY ORDINANCE NO. 687 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA, 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 THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE WHEREAS, the City of Irwindale ("City") has been receiving requests for land use entitlements from payday advance, automobile title loans, and other similar short- term consumer financing businesses, known as alternative financial services (AFS), citywide; and WHEREAS, the Irwindale Municipal Code ("IMC"), including the Irwindale Zoning Code, currently does not specifically address short-term loan businesses but, rather, groups them generally under the categories of "Banks and financial institutions" and/or "Offices, business and professional". Standards do not presently exist in the IMC with regards to location, public safety, loitering, and other factors that could help address certain land use concerns for alternative financial services ("AFS") businesses; and WHEREAS, the City is concerned that AFS businesses may be targeting the City of Irwindale's commercial and industrial centers, which could lead to a proliferation of these uses; and WHEREAS, the City is also concerned with the social impacts that these uses may have on a community based on the lack of supporting income documentation and known practice of charging high fees and interest rates far exceeding reasonable compensation for a lender's costs or risks, which according to the Federal Home Loan Mortgage Corporation (better known as "Freddie Mac"), is considered a predatory lending practice; and WHEREAS, predatory lending is known to target low-income families, minorities, the elderly, and people with less education and also preys on people with needs for immediate cash to cover unexpected medical expenses, emergency home or car repairs, and/or creditors threatening to repossess or foreclose, which can leave victims with ruined credit, unmanageable debt, and/or homeless; and WHEREAS, without appropriate standards to regulate AFS businesses, the City lacks the enforcement or contract powers to address any potential impacts from the establishment of such businesses; and Interim Urgency Ordinance No. 687 Page 1 WHEREAS, the City requires 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 WHEREAS, the City Council desires, on an urgency basis, to temporarily prohibit 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, City staff have begun to analyze whether the existing zoning and other land use regulations pertaining to AFS businesses, including but not limited to, payday advance, automobile title loans, and other similar short-term consumer financing businesses are sufficient to protect the public health, safety and welfare; 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 businesses, 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; and 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. Interim Urgency Ordinance No. 687 Page 2 B. The City is concerned that there is reform currently being pursued with regards 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 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 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. A 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 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. Interim Urgency Ordinance No. 687 Page 3 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 moratorium as an urgency ordinance in order to ensure that permits for such facilities are issued only under adequate regulations. Imposition of a moratorium will allow the City sufficient time to conclude the preparation of a comprehensive ordinance for the regulation of such activities. SECTION 2. 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 45 days. SECTION 3. Urgent Need Based on the foregoing recitals and findings which are all deemed true and correct, this interim ordinance is urgently needed for the immediate preservation of the public health, safety, and welfare. This interim ordinance shall take effect immediately upon adoption and shall be of no further force and effect 45 days following the date of its adoption unless extended in accordance with the provisions set forth in Government Code Section 65858. SECTION 4. Authority Government Code Section 65858 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, which shall be effective for only 45 days following its date of adoption. Government Code Section 65858 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. 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 Interim Urgency Ordinance No. 687 Page 4 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. U PASSED, APPROVED, and ADOPTED, this 14th day of January, 2015. Mar A. Breceda, Mayor M. Nieto, CMC ✓ City Clerk Interim Urgency Ordinance No. 687 Page 5 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 Interim Urgency Ordinance No. 687 was duly introduced and adopted at a regular meeting of the Irwindale City Council held on the 14th day of January, 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 AaA M. Nieto, CMC V City Clerk AFFIDAVIT OF POSTING I, Laura M. Nieto, Deputy City Clerk, certify that I caused a copy of Interim Urgency Ordinance No. 687, adopted by the City Council of the City of Irwindale at its regular meeting held January 14, 2015 to be posted at the City Hall, LibraryAand Post Office on January 15, 2015. Dated: j[ M. Nieto, CMC y City Clerk Interim Urgency Ordinance No. 687 Page 6