HomeMy WebLinkAboutOrd 2005-3001-B
ORDINANCE NO. 3001-B
URGENCY ORDINANCE OF THE CITY OF CHULA VISTA
EXTENDING FOR TEN MONTHS AND FIFTEEN DAYS
URGENCY INTERIM ORDINANCE NO. 300l-A,
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 a of 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
Ordinance No. 3001-B
Page 2
WHEREAS, on April 26, 2005, the City Council adopted Urgency Ordinance No. 3001-
A prohibiting the pennitting or approval of any new or expanded fee-based check cashing and
deferred deposit uses for forty-five days; and
WHEREAS, if the City needs additional time to conduct the required studies and develop
appropriate policy recommendations to alleviate the condition which led to the adoption of the
original Urgency Ordinance, Government Code Section 65858 allows the City Council to extend
said Ordinance for an additional ten (10) months and fifteen (15) days to protect the public
health, safety, and welfare, if passed by a four-fifths vote; and
WHEREAS, the City's Environmental Review Coordinator has reviewed the proposed
project for compliance with the California Environmental Quality Act and has detennined that
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.
Furthennore, 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, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby ordain:
SECTION 1. Findings.
A. The City of Chula Vista has, in recent years, experienced a proliferation of check cashing
and deferred deposit businesses.
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 ofland use controls.
Ordinance No. 3001-B
Page 3
E. Additional time is needed in order to complete the studies and prepare the
recommendation on check cashing and deferred deposit uses, which were contemplated
in the original Urgency Ordinance.
F. The City Council will not have the ability to make an informed decision regarding the
approval or permitting of check cashing or deferred deposit businesses until staff has
completed the necessary studies.
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.
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 urgency ordinance is adopted under the provisions of Govemment Code Section 65858 and
shall take effect and be in full force immediately upon its passage by a four-fifths vote of the
City Council.
SECTION 5. Expiration Date.
This urgency ordinance shall extend the effective date of Urgency Ordinance No. 3001-A,
adopted on April 26, 2005, for a period often (10) months and fifteen (15) days and thereafter
shall be of no further force and effect.
Ordinance No. 3001-B
Page 4
Presented by
Approved as to form by
'''' -(\A~ ~
Ann oore
City Attorney
Ordinance No. 3001-B
Page 5
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 24 day of May, 2005, by the following vote:
AYES:
Councilmembers:
Castaneda, Davis, McCann, Rindone and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
Jfc162JL
, Stephen C. adilla, Mayor
ATTEST:
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Susan Bigelow, MMC, City Cl rk
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-B was passed as an urgency measure on the 24th day of May, 2005.
Executed this 24 day of May, 2005.
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Susan Bigelow, MMC, City Cle