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HomeMy WebLinkAboutOrd. 1508-2015 ORDINANCE NO. 1508-2015 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA AN ORDINANCE AMENDING CHAPTER 20.090 ("COMMERCIAL, OFFICE, AND MIXED-USE DISTRICTS"), CHAPTER 20.110 ("EMPLOYMENT DISTRICTS"), CHAPTER 20.280 ("DOWNTOWN STATION AREA SPECIFIC PLAN DISTRICT"), CHAPTER 20.350 ("STANDARDS AND REQUIREMENTS FOR SPECIFIC USES AND ACTIVITIES"), AND CHAPTER 20.620 ("COMMERCIAL USE CLASSIFCATIONS") OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO REFLECT CHANGES TO THE DOWNTOWN STATION AREA SPECIFIC PLAN DISTRICT AREA TO CONDITIONALLY ALLOW PAWNBROKERS IN THE DOWNTOWN TRANSIT CORE ZONING SUB- DISTRICT, TO MAKE PAWNBROKERS A SEPARATE USE CLASSIFICATION, UPDATE LAND USE REGULATIONS TABLES CITYWIDE, AND TO ADD SPECIFIC PERFORMANCE STANDARDS FOR PAWNBROKER USES. WHEREAS, on January 28, 2015 the City Council for the City of South San Francisco considered and adopted the Downtown Station Area Specific Plan ("Plan") and associated Draft and Final Environmental Impact Reports; and WHEREAS, as part of the Plan adoption, the Downtown Station Area Specific Plan Zoning District ("Zoning District") was adopted to provide the framework for new development in the downtown area; and WHEREAS, the Zoning District prohibited all uses not consistent with the Bank and Credit Union classification within the Zoning District, and this prohibition included Alternative Loan Businesses and Pawnbroker under the Other Financial Services commercial use classification, in an effort to limit predatory lending businesses near vulnerable populations residing in the surrounding area; and WHEREAS, since the time of Plan and Zoning District adoption, an applicant has requested a revision to the Zoning District to conditionally allow pawnbrokers within certain zoning sub-districts citing the well-regulated pawnbroker industry as non-predatory compared to Alternative Loan Businesses, such as payday lenders; and WHEREAS, since pawnbrokers are a well-regulated industry distinct from Alternative Loan Businesses, regulations should be tailored to specific pawnbroker uses and pawnbrokers should be made a separate use classification in Chapter 20.620; and WHEREAS, the inclusion of the Pawnbroker commercial use classification within the Zoning District would require the addition of new performance standards in Chapter 20.350 tailored to the operation of Pawnbroker uses; and WHEREAS, these changes cumulatively would permit Pawnbroker uses, to operate within the Downtown Transit Core (DTC) zoning sub-district with approval of a Conditional Use Permit; and WHEREAS, adding Pawnbroker as a conditionally permitted use in the DTC would allow South City Pawn, a long-time business of the downtown area, to relocate due to displacement; and WHEREAS, South City Pawn has operated continuously in the downtown area for 46 years and provides retail and banking opportunities for residents and visitors; and WHEREAS, allowing Pawnbroker uses in the DTC district would preserve the existing City preference for only traditional Banks and Credit Unions on Grand Avenue; and WHEREAS, unlike Alternative Loan Businesses such as payday lenders, vehicle title lenders, and similar operations, pawnbrokers are closely regulated by the state and federal government with strict limits on loan fees in California; and WHEREAS, the typical interest fees for a pawnbroker average 36% on an annual basis compared with up to 460%interest rates for short-term payday loans; and WHEREAS, the City Council has expressed an interest in retaining certain long-term businesses, such as South City Pawn within the downtown commercial area; and WHEREAS, the City has prepared a Zoning Amendment ("Amendment") to the City's Zoning Ordinance ("Ordinance"), including refinements to Chapter 20.280 for the Downtown Station Area Specific Plan District, Chapter 20.090 for the Commercial, Office and Mixed-Use Districts and Chapter 20.110 for the Employment Districts and modifications to both Chapter 20.620.004 for Commercial Use Classifications and Chapter 20.350 for Standards and Requirements for Specific Uses and Activities; and WHEREAS, these Amendments are consistent with the previous preparation, circulation, consideration, and adoption of the Plan EIR in accordance with the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. ("CEQA"), in which the EIR analyzed the environmental impacts of adopting the Plan and associated Ordinance amendments and concluded that adoption of the Plan could have a significant effect on the environment because some of the impacts required to be analyzed under CEQA would exceed established thresholds of significance; and WHEREAS, the City Council adopted the EIR and a Statement of Overriding Considerations that evaluated the benefits of the Plan against its unavoidable impacts on January 28, 2015; 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"), in which the 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 Amendment, as they relate to use classification tables within the Zoning District, Commercial Use Classifications, and Performance Standards for Pawnbrokers, 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 EIR adopted for the Plan or the IS/ND prepared for the Zoning Ordinance Update, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review; and WHEREAS, on September 17, 2015 the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing, solicited public comment and considered the proposed Ordinance Amendments and Conditional Use Permit request, took public testimony, and made a recommendation that the City Council adopt the Ordinance Amendments. 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 I. 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: I. 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 §§ 21000, et seq. ("CEQA")) and the CEQA Guidelines (14 California Code of Regulations § 15000, et seq.); the South San Francisco General Plan and General Plan EIR, including all amendments and updates thereto; the South San Francisco Municipal Code; the adopted South San Francisco Downtown Station Area Specific Plan, prepared by BMS Design Group; the South San Francisco Downtown Station Area Specific Plan EIR, including the Draft and Final EIR, and all appendices thereto; all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed September 17, 2015 meeting; all reports, minutes, and public testimony submitted as part of the City Council's duly noticed October 7, 2015 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2) 3. The refinements, clarifications, and/or corrections set forth in this Amendment, as they relate to development regulations within the Plan area, Commercial Use Classifications and Performance Standards for Pawnbrokers, 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 EIR adopted for the Plan on January 28, 2015, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. 4. 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, Sailesh Mehra. II. Zoning Map and Text Amendments Findings 1. As described in Section II, adoption of the proposed Ordinance Amendments will include revisions to Title 20 of the South San Francisco Municipal Code, to reflect minor changes to the Downtown Station Area Specific Plan District (SSFMC 20.280), the Commercial, Office and Mixed Use Districts (SSFMC 20.090) and the Employment Districts (SSFMC 20.110), and to create a separate commercial use classification for Pawnbrokers (SSFMC 20.620) and to add specific Performance Standards for Pawnbrokers (SSFMC 20.350). 2. The proposed Ordinance Amendments are consistent with the adopted General Plan because the Ordinance Amendments will continue to reinforce many of the General Plan policies related to land use, specifically supporting retail opportunities in appropriate locations. Further the Ordinance Amendments do not conflict with any specific plans, and will remain consistent with the City's overall vision for community development, economic vitality, and redevelopment in the downtown. None of the new or revised definitions, tables, figures and land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. 3. The subject property, which is impacted by the Ordinance Amendments, is suitable for the uses permitted in the proposed Downtown Transit Core zoning sub-districts in terms of access, size of parcel, relationship to similar or related uses, and other considerations deemed relevant by the Planning Commission and City Council because the introduction of the Ordinance Amendments will allow for certain opportunities to permit Pawnbroker uses within the downtown area, but subject to performance standards to prevent an overconcentration of Pawnbrokers. 4. The proposed Ordinance Amendments are not detrimental to the use of land in any adjacent zone because the Ordinance Amendments would provide for sufficient development, land use, and performance standards related to new development or alteration. More specifically, the Ordinance Amendments include regulations to conditionally permit Pawnbroker uses within the Downtown Transit Core (DTC) zoning district consistent with Chapter 6.92 regulated by the Police Department and provide revisions to Chapter 20.350 to create performance standards that reflect the unique nature of operating a Pawnbroker use. The proposed Ordinance Amendments will not be detrimental to the public interest, convenience, or welfare of the City or land within the City since Alternative Loan Business uses would remain prohibited and only Pawnbroker uses would be conditionally permitted in the DTC. SECTION II. 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 20.280 Downtown Station Area Specific Plan District to read as follows: 1. Revise Table 20.280.003 Land Use Regulations to allow Pawnbroker use classification in the following zoning sub-districts: Uses Permitted DTC j D TOIRD LC LNC Additional t s Co 6 i x f � i1laion 4 s3 Classifications Banks and Financial Institutions Banks and Credit P MUP - Unions P MUP MUP See Section 20.350.039 Pawnbrokers C - - _ - - Pawnbrokers and 6.92 Pawnbroker/ Secondhand Dealer B. Revise Chapter 20.350 Standards and Requirements for Specific Uses and Activities to read as follows: 1. Revise Section 20.350.011 Other Financial Services to remove Pawnbrokers from the Other Financial Services performance standards 20.350.011 Other Financial Services Other financial services subject to this section, which includes alternative loan businesses, 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 feet 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 a.m. or close for business after 7:00 p.m., daily. Any alteration to these hours of operation may be granted with approval of a use permit. C. Revise Chapter 20.620 Commercial Use Classifications to read as follows 1. Revise Section 20.620.004 Commercial Use Classifications to exclude Pawnbroker uses from the definition of Other Financial Services and to create Pawnbroker as a separate Banks and Financial Institutions sub-classification: 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 and pawnbrokers, as defined by this section. 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. 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, microfinance loans, 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 casher" as that term is defined in California Civil Code Section 1789.31, 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. D. Revise Chapter 20.350 to read as follows 1. Add a new section 20.350.039 to provide performance standards for Pawnbrokers: 20.350.039 Pawnbrokers Pawnbrokers subject to this section shall be located, developed, and operated in compliance with the following standards: A. Location. Pawnbrokers shall be located at least 1,000 feet from any other Pawnbroker business. B. Queuing Area. Adequate queuing area shall be provided within the building. Queuing on the sidewalk is prohibited. C. 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 exterior of the windows, exterior phones and roll up doors are prohibited. D. Hours of Operation. The business shall not open prior to 7:00 a.m. or close for business after 7:00 p.m., daily. Any alteration to these hours of operation may be granted with approval of a use permit. E. Customer Circulation and Display. The business shall dedicate at least 25% of the gross floor area to customer circulation and the display of goods for sale to the public. The display of firearms is prohibited and any firearm sales shall be an accessory use to the operation of the Pawnbroker business. F. Compliance with Chapter 6.92. Pawnbrokers shall comply with all regulations and requirements contained in Chapter 6.92. E. Revise Land Use Regulations Tables to Reflect Separate Use Classification for Pawnbrokers 1. Revise Table 20.090.002 Land Use Regulations — Commercial, Office, and Mixed- Use Districts to remove Pawnbrokers as a sub-classification of Other Financial Services: Uses*�� CC BIRO � x 1 e t ilS u � ': r Banks and Financial Institutions See sub-classifications below Banks and Credit Unions P P P P See Section 20.350.039 Pawnbrokers C C C C Pawnbrokers and 6.92 Pawnbroker/ Secondhand Dealer Other Financial Services See sub-classifications below Alternative Loan See Section Businesses MUP MUP MUP MUP 20.350.011 Other Financial Services 2. Revise Table 20.110.002 Land Use Regulations — Employment Districts to remove Pawnbrokers as a sub-classification of Other Financial Services: Uses Permitted BC BTP Additional Regulations Banks and Financial See sub-classifications below Institutions Banks and Credit Unions P See Section 20.350.039 Pawnbrokers C C - C Pawnbrokers and 6.92 Pawnbroker/ Secondhand Dealer Other Financial Services See sub-classifications below Alternative Loan See Section Businesses MUP MUP - MUP 20.350.011 Other Financial Services SECTION III. SEVERABILITY. 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 7th day of October, 2015. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the 28th day of October, 2015 by the following vote: AYES: Councilmembers Karyl Matsumoto, Pradeep Gupta, and Liza Normandy Vice Mayor Mark N. Addiego and Mayor Richard A. Garbarino NOES: None ABSTAIN: None ABSENT: None I WI • TTE A Kri arti'� 11i, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 28th day of October, 2015. if it Richard A. arbarino, Mayor