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
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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.
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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.
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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
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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
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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
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