HomeMy WebLinkAboutOrd. 1492-2014 ORDINANCE NO, 1492-2014
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
AN ORDINANCE MAKING MODIFICATIONS TO THE
SOUTH SAN FRANCISCO ZONING CODE, RELATED TO
BANKS AND FINANCIAL INSTITUTIONS USES CITYWIDE
WHEREAS, in July of 2010, the City Council for the City of South San Francisco
adopted a comprehensive update to the City's zoning ordinance, which repealed the then-existing
Title 20 of the South San Francisco Municipal Code ("Zoning Ordinance"), and replaced it with
an entirely new Title that, among other actions, established new zoning districts, revised and
reformatted many then-existing zoning provisions, eliminated inconsistent and outdated
provisions, and codified entirely new zoning provisions, including new land use regulations and
development standards; and,
WHEREAS, since adoption of the Zoning Ordinance in July 20 1 O�, the City has identified
areas of the Zoning Ordinance that require refinement, clarification, and/or correction, including
revisions to the City's Chapter regulating Banks and Financial Institutions uses Citywide, as
further set forth in the Ordinance; and,
WHEREAS, the City Council has expressed concern about the potential impact(s) that
certain financial institution uses might have on the City; and
WHEREAS, more specifically, Other Financial Institutions uses, as defined herein, which
include check cashing businesses, payday lenders, pawnbrokers and other alternative loan
products, may put financially vulnerable residents at risk with very high interest rates or fees;
and
WHEREAS, research has indicated that these Other Financial Institutions could trap
users in a cycle of debt that could contribute to increased rates of poverty in the City; and
WHEREAS, research identifies that Other Financial Institutions are more likely to target
low-income residents or minority communities by locating their business nearby; and
WHEREAS, these Other Financial Institutions are clustered near the City's lower income
census tracts adjacent to the downtown zoning districts in the City; and
WHEREAS, this overconcentration of Other Financial Institutions can contribute to
blight and prevent high quality development and economic activity in the downtown zoning
districts; and
WHEREAS, the City Council now desires to amend the City's land use regulations
applicable to Banks and Financial Institutions uses; and
WHEREAS, City staff prepared this Zoning Code text amendment ("Zoning
Amendment") to limit the zoning districts where Other Financial Institutions such as alternative
loan businesses or pawnbrokers may locate, and strengthen the performance standards for these
uses; and
WHEREAS, said Zoning Amendment revises or adds definitions and regulations for
Banks and Financial Institution, including Banks and Credit Union, Alternative Loan Business,
and Pawnbroker uses to the City's Zoning Code; and
WHEREAS, the Zoning Ordinance was adopted after preparation, circulation,
consideration, and adoption of an Initial Study/Negative Declaration ("IS/ND") in accordance
with the California Environmental Quality Act, Public Resources Code Sections 21000, et seq.
("CEQA"), which IS/ND analyzed the environmental impacts of adopting the Zoning Ordinance
and concluded that adoption of the Zoning Ordinance could not have a significant effect on the
environment because none of the impacts required to be analyzed under CEQA would exceed
established thresholds of significance; and,
WHEREAS, the refinements, clarifications, and/or corrections set forth in this Zoning
Amendment, as they relate to Banks and Financial Institutions uses Citywide, are minor in
nature, the adoption of which would not result in any new significant environmental effects or a
substantial increase in the severity of any previously identified effects beyond those disclosed
and analyzed in the IS/ND prepared and circulated for the Zoning Ordinance, nor do the
refinements, clarifications, and/or corrections constitute a change in the project or change in
circumstances that would require additional environmental review.
NOW, THEREFORE, BE IT ORDAINED that based on the entirety of the Record before
it, as described below, the City Council of the City of South San Francisco does hereby
ORDAIN as follows:
SECTION 1. FINDINGS.
Based on the entirety of the record as described above, the City Council for the City of
South San Francisco hereby makes the following findings:
A. General Findings.
1. The foregoing recitals are true and correct and made a part of this Ordinance.
2, The Record for these proceedings, and upon which this Ordinance is based,
includes without limitation, Federal and State law; the California Environmental Quality Act
(Public Resources Code §§ 21400, et seq. ("CEQA")) and the CEQA Guidelines (14 California
Code of Regulations § 15000, et seq.); the South San Francisco 1999 General Plan and General
Plan Environmental Impact Report, including the 2001 updates to the General Plan and 2001
Supplemental Environmental Impact Report; the South San Francisco Municipal Code; the
Initial Study and Negative Declaration prepared for the Zoning Ordinance Update, including all
written comments received; all reports, minutes, and public testimony submitted as part of the
Planning Commission's duly noticed meeting on September 18, 2014; all reports, minutes, and
public testimony submitted as part of the City Council's duly noticed meeting on October 8,
2014; and any other evidence (within the meaning of Public Resources Code §21080(e) and
§21082.2).
3. The documents and other material constituting the record for these proceedings
are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue,
South San Francisco, CA 94080, and in the custody of Chief Planner, Susy Kalkin.
B. Zoning Amendment Findipes
1. The proposed Zoning Amendment is consistent with the adopted General Plan
because the Zoning Amendment will reinforce the General Plan policies, is consistent with the
relevant specific plans, and is consistent with the City's overall vision for community
development, economic vitality, and protection of the downtown area as a center of commercial
activity and interaction without an overconcentration of Other Financial Services that could
contribute to blight as set forth in the General Plan. None of the new or revised use definitions
and modifications to allowable land uses will conflict with or impede achievement of any of the
goals, policies, or land use designations established in the General Plan.
2. The Zoning Amendment to revise the Banks and Financial Institutions definitions
and limit locations for Other Financial Services would protect future land uses in the downtown
zoning districts but would not affect any particular subject property. The zoning districts where
Other Financial Services would be permitted or conditionally permitted are generally suitable in
terms of access, size of parcel, relationship to similar or related uses, and other considerations as
deemed relevant by the Planning Commission and City Council because the proposed uses are
consistent with General Plan policies, specifically those policies related to maintaining a
balanced land use program with appropriate performance standards to prevent an
overconcentration of Other Financial Services.
3. The proposed change in permitted or conditionally permitted uses in certain
zoning districts will not be detrimental to the use of land in any adjacent zone because the
proposed Zoning Amendment will strengthen performance standards for Other Financial Uses
that pertain to overconcentration and safety, preserve the downtown zoning districts by removing
Other Financial Services such as alternative loan businesses and pawnbrokers as permitted uses,
and permit these uses on major arterial streets only that are not in close proximity to sensitive
uses.
SECTION 11. AMENDMENTS.
The City Council hereby amends the following sections of the South San Francisco Municipal
Code to read as follows. Sections and subsections that are not amended by this Ordinance are
not included below, and shall remain in full force and effect.
A. Revise Chapter 20.620.004 "Banks and Financial Institutions" definitions
(Commercial Use Classifications) as follows:
20.620.004 Commercial Use Classifications
Banks and Financial Institutions.
Banks and Credit Unions. Financial institutions, including federally-chartered banks, savings
associations, industrial loan companies, and credit unions that provide retail banking services to
individuals and businesses. This classification includes only those institutions engaged in the on-
site circulation of money, and whose deposits are insured by the state or federal government
and/or a state or federal sponsored entity, including credit unions. This classification specifically
excludes Other Financial Services, as defined by this section.
Other Financial Services Other Financial Services are business establishments that provide
customers with some form of currency in a transaction as part of an alternative loan product.
This use classification may include check cashing, payday loans, vehicle title loans,
microfinaDce loans, pawnbrokers, or similar. This use classification specifically excludes Banks
and Credit Unions, as defined by this section.
Alternative Loan Businesses. Establishments that conduct a check cashing business,
and/or engage in the business of cashing checks, warrants, drafts, money orders, or other
commercial enterprise defined herein. The term "check cashing business" as used herein
includes a retail business owned or operated by a "check rasher"" as that term is defined in
California Civil Code section 1789.3 1, as amended from time to time. This classification
also includes the business of deferred deposits, or "payday lending," which is defined as
an establishment owned or operated by a "licensee," as that term is defined in California
Financial Code section 23001(d), as amended from time to time. Similar lending services
that provide vehicle title loans or microfinance loans shall also be included in this
classification. Microfinance institutions are characterized by their use of interest rates
that are higher than traditional banks and credit unions and typically targeted towards
low-income borrowers or borrowers with limited or no credit history. Alternative Loan
Businesses do not include state or federally chartered banks, savings associations, credit
unions, or industrial loan companies. They also do not include retail sellers engaged
primarily in the business of selling consumer goods, such as consumables to retail buyers,
that cash checks or issue money orders incidental to their main purpose or business.
Pawnbroker. Means every person who keeps a place of business where personal
property is received and for which money is advanced, with the right of privilege granted
to the person to whom said money is advanced to reclaim such property upon repayment
of said money, together with all legal charges incident thereto. This does not include
Banks and Credit Unions, as defined by this section.
B. Revise Section 20.350.011 "Check Cashing Businesses to read as follows:
20.350.011 Other Financial Services
Other Financial Services subject to this section, which includes Alternative Loan Businesses and
Pawnbrokers, shall be located, developed, and operated in compliance with the following
standards:
A. Maximum Size. Limited to 2,500 square feet in size.
B. Location. Other Financial Services shall be located on a major arterial or higher
classification street, and at least 1,000 ,fect from any Other Financial Services business.
C. Queuing Area. Adequate queuing area shall be provided within the building.
Queuing on the sidewalk is prohibited.
D. Security. A security plan shall be provided for review and approval by the Chief
Planner and the City of South San Francisco Police Department. The plan shall provide
for adequate security, including a central station alarm system to the Police Department.
Bars on the windows, exterior phones and roll up doors are prohibited.
E. Hours of Operation. The business shall not open prior to 7:00 AM or close for
business after 7:00 PM, daily. Any alteration to these hours of operation may be granted
with approval of a Use Permit.
C. Update Table 20.090.002 – Land Use Regulations, Commercial, Office and Mixed-
Use Districts, as indicated below:
TABLE 20.090.002: LAND USE REGULATIONS—COMMERCIAL, OFFICE, AND
MIXED-USE DISTRICTS
Use Classification CC BP(I I C ECRtIY Additional Regulations
Banks and Financial See sub-classifications below
Institutions
Banks and Credit P P P P
Unions
Other Financial See sub-classifications below
Services
Alternative Loan MUP MUP MUP MUP See Section 20.350.011
Businesses Other Financial Services
Pawnbroker C C C C See Section 20.350.011,
Other Financial Services
and Chapter 6.92
Pawnbroker/Secondhand
Dealer
D. Update Table 20.100.002 – Land Use Regulations, Downtown Districts, as indicated
below:
TABLE 20.100.002: LAND USE REGULATIONS—DOWNTOWN DISTRICTS
Use Classification Q_C I RM--x I D—U j 811 I QRH I Additional Regulations
Banks and Financial See sub-classifications below
Institutions
Banks and MUP(3) MUP
Credit Unions
E. Update Table 20.110.002 – Land Use Regulations, Employment Districts, as
indicated below:
TABLE 20.110.002: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS
Use Classification BC BTP C I ALI I Additional Regulations
Banks and Financial See.sub-classifications below
Institutions
Banks and Credit P P - P
Unions
Other 17iinaneial See sub-classifications below
Services
Alternative Loan MUP MUP - MUP See Section 20.350.011 Gather
Businesses Financial Services
Pawnbroker C C - C See Section 20.350.011 Other
Financial Services and Chapter
6.92 Pawnbroker/ Secondhand
Dealer
SECTION III. SE'VERABILITY.
If any provision of this Ordinance or the application thereof to any person or
circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the
application of such part or provision to other persons or circumstances shall not be affected
thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are
severable. The City Council of the City of 'South San Francisco hereby declares that it would
have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof
irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs,
sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION IV. PUBLICATION AND EFFECTIVE DATE.
Pursuant to the provisions of Government Code Section 36933, a summary of this
Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council
meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the
Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within.
fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the
summary, and (2) post in the City Clerk 's Office a certified copy of the full text of this
Ordinance along with the names of those City Council members voting for and against this
Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and
after its adoption.
Introduced at a regular meeting of the City Council of the City of South San Francisco,
held the 8th day of October, 2014.
Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the
City Council held the 22°d day of October, 2014 by the following vote:
AYES: Councilmembers Mark N. Addiego, Pradeep Ggpta, and Liza Normandy
Vice Mayor Richard A. Garbaring and Mayor Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT: None
AT BST:
a Martinelli, City Clerk
As Mayor of the City of South San Francisco, I do hereby approve th foregoing
C
Ordinance this 22"d day of October, 20l 4.
Matsumoto, Mayor