Loading...
HomeMy WebLinkAbout2006-03-08 PC MINS MINUTES OF THE CITY OF CHULA VISTA PLANNING COMMISSION MEEING 6:00 p.m. Wednesday, March 8, 2006 Public Services Building Council Chambers 276 Fourth Avenue Chula Vista, CA 6:04:29 PM CALL TO ORDER: ROLL CALL / MOTIONS TO EXCUSE: Present: Absent: Madrid, Felber, Bensoussan, Nordstrom, Tripp Hom MSC (FelberlTripp) to excuse Cmr. Hom. Motion carried. Staff Members: Jim Hare, Assistant Planning Director Michael Walker, Senior Planner John Mullen, Deputy City Attorney III APPROVAL OF MINUTES: February 8, 2006 Approval of minutes tabled due to lack of quorum for Commissioners in attendance at that meeting. INTRODUCTORY REMARKS: Read into the record by Chair Madrid ORAL COMMUNICATIONS: No public input. 6:08:27 PM 1. PUBLIC HEARING: PCS 06-10; Consideration of a Revised Tentative Subdivision Map for Brookfield Shea Otay Ranch Sectional Planning Area (SPA) Village 11. Staff recommends that public hearing be opened and continued to March 22, 2006. MSC (Madrid/Felber) that the public hearing be opened and continued to March 22, 2006. Motion carried. 2. PUBLIC HEARING: PCS 06-02; Consideration of application for the proposed conversion of the existing 336-unit Missions at Sunbow apartment complex to 336 condominium units for individual ownership. LDM Sunbow, LLC. Staff recommends that public hearing be opened and continued to March 22, 2006. MSC (Madrid/Felber) that the public hearing be opened and continued to March 22, 2006. Motion carried. Planning Commission Minutes -2- March 8, 2006 6:11 :12 PM 3. PUBLIC HEARING: peA 05-02; Consideration of an amendment to various Sections of Title 19 to regulate fee-based Check Cashing, Deferred Deposit, Payday Advance and similar businesses. Background: Michael Walker reported that on April 26, 2005, the City Council adopted an Urgency Ordinance prohibiting the approval of any new or expanded check cashing businesses, granting staff a 45 day period in which to study the effects of these establishments. On May 24, 2005, the City Council adopted an ordinance extending the period to 10 months and 15 days, which will expire in April 2006. The draft ordinance: · Setting forth the findings and need for regulating check cashing establishments · Defines check cashing as a particular land use, distinguished from other financial institutions · Allows check cashing by CUP within four commercial zones · Establishes separation standards from each other for new establishments and from five types of sensitive uses · Establishes base performance criteria to be applied as conditions for approval of future check cashing establishments Staff Recommendation: That the Planning Commission recommend to the City Council adoption of an ordinance amending various section of Title 19, Zoning and Specific Plans, regulating fee-based check cashing, deferred deposit, payday advance and similar businesses. Commissions Comments: Cmrs Bensoussan, Tripp, Nordstrom and Felber disclosed for the record that they had met with industry reps and visited some check cashing stores. 6:18:05 PM Cmr. Felber questioned why 7-11 stores and liquor stores, which have a high incidence of crime and robberies are not included in the definition of check cashing establishments. Mr. Walker stated that independent check cashing establishments are more of a target for burglaries and other criminal activity than secondary uses. Additionally, if a 7-11 store wishes to add a check cashing component to their store, it would be harder to regulate vs. a check cashing establishments that goes through the Conditional Use Process. 6:26:54 PM Cmr. Tripp inquired if staff had any statistics from the Police Department supporting the statement that these establishments have a potential adverse effect on public health, safety and welfare of the community. Mr. Hare pointed to the draft Resolution, citing some effects ranging from land use and design, to public behavior, i.e. displacement of financial institutions and other commercial uses; over-saturation of these businesses near schools, churches and displacement of needed goods and service providers from commercial districts. Planning Commission Minutes -3- March 8, 2006 Mr. Walker added that although it was not included as an attachment in the Planning Commission packet, the Police Department did submit a "Calls for Service" listing with the name of the business and the number calls received. 6:34:33 PM Cmr. Bensoussan expressed her concern with the lack of supporting data not included in the report; is concerned that we may be hindering a self-regulating business, while giving an advantage to the secondary use businesses that are often the worst offenders. Cmr. Bensoussan asked for further clarification on what is meant by "... attrition for existing check cashing uses would occur based upon nonconforming use regulations... ". She also asked if a nonconforming business is sold, would the new owner be required to bring it into conformance or would it cease to exist. Mr. Hare responded that there are use nonconformities and structural nonconformities. When the land use designation of a properties change, they can continue to exist with its original designation, as a nonconforming use. Mr. Mullen added that the nonconforming use runs with the land, so that even if there's a change in ownership it wouldn't automatically trigger a CUP, but an expansion or alteration to the business could conceivably trigger the need for a CUP. Cmr. Bensoussan stated she struggles with what she believes is faulty reasoning in some of staff's analysis; for instance, that these establishments compete with other financial institutions. In her site visits to some of these stores she found that they work hand-in-hand with banks because some of the services they provide, banks would not provide to non- account holders. She further stated that this industry appears to be self-regulating and the worst offenders are secondary establishments, which are precisely the ones that this ordinance is not going to regulate. Cmr. Bensoussan questioned the rationale behind the proposed restriction that Sundays be non-operational. With respect to signage non-compliance, since this ordinance is not going to cover the secondary use businesses, which are the worst offenders, is there any way that these signage problems can be addressed outside of this ordinance. Mr. Walker stated that signage noncompliance can be addressed through our Code Enforcement program. There is a provision in the code, which states that no more than 20% of the area of windows or doors may be covered with sign age. 6:48:09 PM Cmr. Nordstrom concurs with previous comments regarding the need to have the necessary documentation and statistics in order to be able to make an informed decision. 6:52:13 PM Cmr. Tripp stated he did a drive-by and counted: 12 liquor stores on Broadway; 5 on Third Avenue; 8 check cashing on Broadway and 6 on Third Ave. 6:53:01 PM emr. Felber stated that the City needs to ensure that they foster fair competition within the business community, and since the ordinance is tailored to check cashing establishments, with proposed restrictions on signage, hours of operation, and security, he expressed a concern in giving an unfair advantage to those businesses that have check cashing as a secondary use. Planning Commission Minutes -4- March 8, 2006 Cmr. Felber asked if staff had used or considered any part of the draft ordinance submitted to staff by the industry reps. Mr. Walker stated that the model ordinance that staff used was the Oakland Ordinance. 7:01 :22 PM Cmr. Bensoussan inquired if there was any reason why this ordinance couldn't include future businesses that would like to add check cashing as secondary use to their store. Mr. Mullen responded that he's not aware of any legal reason why they couldn't be included, but would need to research it further. 7:06:34 PM Public Hearing Opened: 7:07:03 PM Carl Higgins, 1517 Roma Dr., Vista, CA, industry representative, emphasized that the industry respects the vision of the community and it was their understanding that they were working with City staff, hand-in-hand, with the same goals in mind, however, after review of the draft ordinance, in their opinion, the ordinance is flawed with inaccuracies and lacking in balance, therefore, they are in opposition to it. The draft ordinance excludes regulating the secondary use check cashers and liquor stores and when it comes to criminal activity stats they are the biggest offenders, however, the ordinance does not address nor regulate them. The industry independently surveyed their stores to find out if they were being burglarized or having any type of criminal activity and the findings were that there were none. The crime stats will reveal that the criminal activity is taking place in the secondary use stores and liquor stores. Check cashing establishments are a hard target; the stores are equipped with panic buttons, bullet-proof glass counters, close circuit TV, interior and exterior lighting. Some primary use stores don't even have cash on the premises. In closing, Mr. Higgin stated that they are very disappointed that staff did not avail themselves to meet with industry reps to dialogue and receive their input. The industry believes that the draft ordinance is potentially bad policy and not good law. Even now, the industry is extending themselves to meet with staff in whatever way is most convenient to them. 7:10:31 PM Dan Gwaltney, Pay Day Loan Corporation, 860 Third Avenue. Mr. Gwaltney stated he had the privilege of inviting a number of commissioners to visit his store so that they could get a first-hand opportunity to see what a typical check cashing store looks like. He too is not in support of the draft ordinance and believes it will put him out of business. As previously mentioned, he has no loitering or security problems. As far as displacing financial institutions; part of the reason why he would not be able to comply with the CUP requirement is because his store shares a parking lot with a Wells Fargo Bank. He is not in competition with them, but shares customers because those they cannot serve as non- account-holders, they will refer to the check cashing store and vice versa. The industry provides a service to the people of this community that re-invests money at the next door Von's store or any other business, with money they've just received from cashing a paycheck. 7:13:33 PM Cynthia Morgan, 750 B Street, Ste. 2100, attorney representing the industry stated that it was very disappointing that they were not able to meet with staff and nor have their Planning Commission Minutes -5- March 8, 2006 comments and the draft ordinance they submitted taken into consideration. She echoed that the City's draft ordinance has a disconnect between reality and what's in the ordinance. Ms. Morgan stated that the City has a right to use the police power to protect the general welfare and safety of the community and it is evident that the City believes that the industry has particular issues associated with, which they are trying to regulate, however, you have to have a nexus to show that the regulations that you are enacting will curb the issues that are affecting that industry. With regard to the competitive issue; a zoning regulation cannot be put into effect that unreasonably restricts competition. This ordinance could potentially do that by creating a difference between primary and secondary uses also by restricting certain industries from existing near other industries such as banks, financial institutions, schools and other commercial activities. Addressing signage violations; the City currently has a sign ordinance and yet this draft ordinance tries to regulate that to a greater extent, thereby placing additional burden to this industry. In conclusion I thank you for your time and encourage you to please send this back to staff. 7:20:14 PM Natasha Fooman, 2269 Chestnut #883, San Francisco, CA, representing Advance America; Community Financial Services Assoc. of America; the National Trade Association of Payday Lenders; and the California Community Service Providers. Echoed what's been previously stated, that they are very disappointed in this draft Ordinance. Ms. Fooman stated that they did meet with a group consisting of staff, a Councilmember and Planning Commissioners and the industry was directed at that meeting to work with staff and provide them with a draft ordinance. Ms. Fooman stated that some of the whereas clauses have no factual basis and is extremely disheartening for the industry read that they displace banks. Also, its been stated that this draft ordinance was based on the Oakland Ordinance; the City of Oakland is extremely different from the City of Chula Vista and its an older ordinance and one that the industry is working to correct some inaccuracies that were written in their whereas clauses; a lot of this information was lifted from that ordinance. In closing, Ms. Fooman stated the company she represents are very proud to be in Chula Vista and they will continue to police themselves with their best-practice policy. 7:24:04 PM Jim Bleisner, 4106 Manzanita Drive, San Diego, CA, Director of the Joint City/County Reinvestment Task Force, congratulated staff in the hard work they've done in drafting this ordinance because it anticipates what has occurred in problem neighborhoods. Some of the effects are: there is a consistent and statistical verification that where check cashers exists, banks don't; the fees they charge for their services are excessive; that the potential for roll- over loans, the interest rates are a direct cause of disinvestments in low income neighborhoods; and that the proliferation of these industries depress the economic potential in redevelopment areas and low-income areas. 7:55:14 PM Public Hearing Closed. Planning Commission Minutes -6- March 8, 2006 7:56:11 PM Jim Hare summarized the following list of questions and concerns raised by the Planning Commission that staff would like the opportunity to research and bring back in a more complete report: . Statistical backing for the notion of the impacts to the neighborhoods with regard to crime and community impacts · Support of the notion of Sunday closing · The need for additional security . Need to include all liquor stores that provide secondary use check cashing on the site location map . Determine the City's capacity to define and potentially regulate the secondary uses . Would like the opportunity to speak with the industry and review and make comments on their draft ordinance . Department of Justice criteria with regard to check cashing uses; could help with definition and as a means of understanding what goes into regulating a secondary provider . Would like the opportunity to further meet with Mr. Sleisner to discuss his point of view. Staff would, therefore, recommendation that the public hearing be continued to March 22, 2006. Cmr. Bensoussan would like to stress: . That staff revisit the differences between the primary and secondary use businesses . That a nexus be identified between the two and their association with code enforcement violations (i.e. signage) and crime Cmr. Felber inquired if it would be possible to include in the ordinance that they offer financial guidance or counseling, or point people to where they could obtain such assistance. Cmr. Nordstrom stated that, in his opinion, the City is trying to regulate a social issue through a zoning ordinance. This industry exists because it is providing a service that is in demand and whether a business charges high interest rates or not, is between the service provider and the client who can accept or reject it. Cmr. Tripp stated he would like to see secondary businesses included in the ordinance. MSC (MadridfTripp) to re-open the public hearing and continue to March 22, 2006. Motion carried. 8:14:02 PM Director's Report. Mr. Hare reminded the Commission that on March 20th Professor Mazria will be lecturing on global warming, architecture and sustainable communities. 8:15:13 PM Meeting adjourned to the next regular Planning Commission meeting of March 22,2006. Submitted by, Diana Vargas, Secretary to the Planning Commission