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HomeMy WebLinkAboutOrd 2005-3001-A ORDINANCE NO. 300I-A URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PROHIBITING THE PERMITTING OR APPROVAL OF ANY NEW OR EXPANDED FEE-BASED CHECK CASHING AND DEFERRED DEPOSIT USES WHEREAS, the City of Chula Vista ("City") has, in recent years, experienced a proliferation of businesses engaged primarily in the cashing of checks and/or deferring the depositing of a customer's personal check until a specific date - both for a fee ("check cashing/deferred deposit establishments"); and WHEREAS, staff believes that the current land use policies regarding fee-based check cashing/deferred deposit establishments are inadequate to address the effects of these uses on the community; and WHEREAS, cashing/deferred deposit establishments may decrease neighboring property values; displace/discourage other desirable businesses, including full-service financial institutions; and should be operated with adequate security; and WHEREAS, the Planning Commission, on January 26, 2005, recommended that the City Council adopt a temporary moratorium on fee-based check cashing and deferred deposit businesses until the land use impacts caused by a proliferation of such establishments can be more thoroughly studied; and WHEREAS, the Planning Commission was particularly concerned with the potential interference with revitalization efforts of the City and Redevelopment Agency in Western Chula Vista; and WHEREAS, staff requires enough time to conduct the required studies and develop appropriate policy recommendations that address where, when, and under what conditions check cashing/deferred deposit establishments would be compatible with surrounding land uses and consistent with land use plans and policies, such as the General Plan, redevelopment area plans, specific plans and the Broadway Revitalization Strategy; and WHEREAS, individuals have recently expressed interest in establishing new or expanded land uses involving fee-based check cashing or deferred deposits; and WHEREAS, Government Code Section 65858, allows the City Council to adopt an interim zoning ordinance as an urgency measure to protect the public safety, health, and welfare without following the procedures otherwise required preliminary to the adoption of a zoning ordinance, if passed by a four-fifths vote; and WHEREAS, the interim ordinance shall be of no further force and effect forty-five days from the date of adoption thereof; provided however, that after the required notice and public hearing the City Council may, by a four-fifths vote, extend the interim ordinance for an additional ten months and fifteen days (with the option of an additional one-year extension) or twenty-two months and fifteen days (with no extension); and WHEREAS, the City's Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that Ordinance 3001-A Page 2 the project qualifies for a Class 8 categorical exemption (actions by regulatory agencies for protection of the environment) pursuant to Section 15308 of the State CEQA Guidelines. Furthermore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. NOW, THEREFORE, the City Council of the City ofChula Vista does hereby ordain: SECTION I. Findings. A. The City of Chula Vista has, in recent years, experienced a proliferation of check cashing and defcrred deposit businesscs. B. The City Council believes that the current land use policies regarding fee-based check cashing and deferred deposit establishments are inadequate to address the effects of these uses on the community. C. Unchecked proliferation of check cashing or deferred deposit uses may displace existing full-service financial institutions in generally lower income commercial areas. These financial institutions may close or choose not to open where the market share is significantly eroded. In addition, new full-service financial institutions and other desired commercial development must compete with check cashing/deferred deposit establishments for the limited commercial space in each district. Unchecked, this may result in a reduction or displacement of needed goods and services. D. Some check cashing and deferred deposit businesses lack adequate security measures, especially when compared to banks. Security personnel (if present) are often not certified. Surveillance cameras may be sub-par or non-existent. Exterior lighting and other measures are not in place to protect patrons - even though they operate with extended hours. Combined, these factors may facilitate the commission of crimes at a greater rate than at banks, thereby necessitating a different set of land use controls. SECTION 2. Findings of Urgency. The immediate adoption of this ordinance is necessary to protect the public safety, health, and welfare in order to prevent the frustration of studies on these matters and the adoption of adequate land use policies. The absence of this ordinance would perpetuate the negative impacts caused by unregulated fee-based check cashing/deferred deposit uses and create a serious threat to the orderly and effective implementation of any land use policies that would be adopted as a result of the necessary studies. SECTION 3. Prohibition of New Check Cashing or Deferred Deposit Uses. A. The establishment or expansion of a fee-based checking cashing or deferred deposit business/use shall be prohibited. No application, building permit, certificate of occupancy, or entitlement for the establishment or expansion of check cashing or deferred deposit business/use shall be accepted, processed, or approved while this ordinance is in effect. B. "Check cashers" are entities in the business of cashing checks, warrants, drafts, money orders, or other commercial paper. "Check cashers" are not state or federally chartered banks, savings associations, credit unions, or industrial loan companies. They also do not include retailers that cash checks or issue money orders (for a fee ofless than two dollars) as an incidental service to its customers. Ordinance 3001-A Page 3 C. "Deferred deposit businesses" are those businesses that defer depositing a customer's personal check until a specific date, pursuant to a written agreement. SECTION 4. Effective Date. This interim zoning ordinance is adopted under the provisions of Government Code Section 65858 and shall take effect and be in full force immediately upon its passage by a four-fifths vote ofthe City Council. SECTION 5. Expiration Datc. This interim ordinance shall be of no further force and effect forty-five (45) days from the date of adoption. Presented by Approved as to form by ¡) s D. Sandoval ing and Building Director l/\~ AIÙÍ Moore City Attorney Ordinance 3001-A Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 26th day of April, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: McCann ~-,JarLiL Stephen C. Padilla, Mayor ATTEST: ;~w~~~~~~r! ~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 3001-A was passed as an urgency measure on the 26th day of April, 2005. Executed this 26th day of April, 2005. ~.-U éL..., -==?~ Susan Bigelow, MMC, City C rk