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Home My WebLink About2010-01-06 PACKET 04.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 1/6/2010 PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider approving the 2010 currency exchange license renewal application through the Minnesota Department of Commerce for Tina Luymes /DBA In Concert, located at 7280 East Point Douglas Road. STAFF RECOMMENDATION Approve the renewal application. SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Neil Belscamper dated 12/18/2009. ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Letter from Minnesota Department of Commerce dated 12/15/2009 Agreement between the City of Cottage Grove and Tina Luymes. ADMINISTRATORS COMMENTS City Administrator f Date r COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER G: \clerk \City Council \Council Action Forms \2009 \In Concert Currency Exchange.doc CITY OF MINNESOTA COTTAGE GROVE To: Honorable Mayor and City Council Members From: Neil Belscamper, Administrative Assistant Date: December 31, 2009 Subject: Currency Exchange License —Tina Luymes /DBA In Concert Introduction The City of Cottage Grove has received notification from the Minnesota Department of Commerce dated December 15, 2009 that Tina Luymes /DBA In Concert has made application to renew her currency exchange license for her business located at 7280 East Point Douglas Road. This is a calendar -year license renewal for 2010. Background The Minnesota Department of Commerce is the issuing authority for Currency Exchange Licenses in the State of Minnesota. Whenever they receive a currency exchange license renewal application they are required to submit it to the governing body of the municipality in which the currency exchange conducts business. The City Council has approved previous applications submitted with the Minnesota Department of Commerce for In Concert's currency exchange licenses from 2004 through the present. The City of Cottage Grove has entered into an agreement with Ms. Luymes /DBA In Concert allowing her to continue operating the currency exchange portion of her business through the end of 2010. This agreement is similar to two previous agreements entered into with Ms. Luymes in 2003 and 2004. The City of Cottage Grove is not aware of any violation of any conditions of this agreement, and the Public Safety Department has scheduled a premise inspection to verify that the appropriate security measures are still in place. Recommendation Approve the currency exchange license renewal application for 2010 through the Minnesota Department of Commerce. AGREEMENT RE: CURRENCY EXCHANGE THIS AGREEMENT by and between TINA LUYMES, a single person, individually and doing business as IN CONCERT, and CITY OF COTTAGE GROVE ( "City "), a Minnesota municipal corporation, was originally made on September 26, 2004. It was amended on December 15, 2004, and on November 7, 2007. Recitals A. Tina Luymes ( "Luymes ") operates her business In Concert at 7280 East Point Douglas Road, City of Cottage Grove, County of Washington, State of Minnesota. B. The primary business of In Concert is to sell tapes and CDs. During the last fifteen years, Luymes also has been operating a fee based check - cashing service at In Concert. Luymes does not advertise check - cashing services provided at In Concert. C. Check - cashing is a currency exchange activity regulated by Chapter 53A of Minnesota Statutes. Pursuant to Section 53A.02, anyone engaged in the business of currency exchange must first obtain a license from the Commissioner of Commerce. The Commissioner will approve the application only with the concurrency of the local governing body. D. The City learned about Luymes' currency exchange business for the first time in 2004 when it received a request from the State to approve Luymes' license application. E. Upon learning of Luymes' application, the City commenced a process to establish the standards for the approval of currency exchange licenses and to determine the appropriate zoning classification for currency exchange businesses. On May 5, 2004, the Cottage Grove City Council adopted Ordinance No. 762 amending Chapter 11 of the City Code, which established currency exchange businesses as a conditional use in the B -3, General Business Zoning District. The City established currency exchanges as conditional uses due to adverse secondary impacts associated with such businesses. F. The location of Ms. Luymes' business, the Grove Plaza Shopping Center, 7280 East Point Douglas Road South, is zoned B -2, Retail Business. As such, the currency exchange operated by Ms. Luymes is not an allowable use. G. In recognition of the investment Ms. Luymes has made in her business, the City agrees to allow continuance of the currency exchange operation at the current location. Agreement 1. The above - stated recitals are incorporated into and made a part of this Agreement. 2. The City agrees to approve Luymes' pending application for a currency exchange license, conditioned on her compliance with this Agreement. 3. In consideration of the City's agreement under paragraph 2 of this Agreement, Luymes specifically agrees that the currency exchange business will cease operations no later than December 31, 2010. Ms. Luymes waives any and all claims that she has established a pre- existing lawful non - conforming use to operate a currency exchange business in violation of the newly adopted ordinances. 4. Luymes specifically agrees to: (a) Abide by all of the provisions in Chapter 53A of the Minnesota Statutes with respect to currency exchange activities at In Concert. (b) Conform to all license requirements for currency exchanges of the City of Cottage Grove. (c) Limit her business to cashing checks for a fee only. Luymes will not expand the types of currency exchange services she is providing at In Concert. (d) Refrain from erecting any signage or placing paid advertisements relating to her currency exchange business at In Concert. (e) Refrain from transferring her currency exchange license or from assigning the currency exchange agreement to another person. (f) Refrain from transferring her currency exchange license to another location. (g) Implement and comply with security policies and procedures as directed by the Public Safety Director, including but not limited to hours of operation. 5. Luymes specifically agrees to surrender her currency exchange license to the state if she fails to comply with any provision of this Agreement. 6. Luymes agrees to reimburse City for its attorney's fees and costs if the City is required to commence litigation to enforce this agreement. IN WITNESS of the above, the undersigned have signed this agreement as of the date written above. IN CONCERT Tina Luymes, dba4ri Concert CITY OF COTTAGE GROVE By Mayor City Clerk -2- A INNESO°l`A 'ARTMENT OF _SMMERCE December 15, 2009 Ms. Caron Stransky, City Clerk City of Cottage Grove 7516 80 St. So. Cottage Grove, MN 55016 85 7th Place Last, Suite 500 St. Paul, Minnesota 55101 -3165 www.commerce.state.nun.us 651.296.4026 FAX 651.297.1959 An equal opportunity employer CERTIFIED MAIL RE: Tina Luymes dba In Concert — License #20416159 Currency Exchange License Renewal for 2010 Dear Ms. Stransky: The above -named currency exchange licensee has made application to renew its currency exchange license to operate at: 7280 E. Pt. Douglas Dr. So. Cottage Grove, MN 55016 Pursuant to Minnesota Statutes Chapter 53A.04, we are notifying your office that a complete currency exchange license renewal application has been filed with the Department of Commerce. The renewal application included the names of the officers and owners of the licensee, background checks on each of the owners and officers from the Minnesota Bureau of Criminal Apprehension, a fee schedule of all fees to be charged by the currency exchange office, a $10,000 surety bond valid through December 31, 2010, and the $500 renewal fee. If you wish to receive a copy of the complete currency exchange license renewal application form that was filed with this office, please contact Lynne at 651- 296 -2297 and it will be forwarded to you. Minnesota Statutes Chapter 53A.04 requires the Department of Commerce to submit any application for licensure as a currency exchange to the governing body of the municipality in which the currency exchange conducts business. The law further requires the governing body of the municipality to render a decision regarding the renewal of the license within 60 days. Your cooperation in forwarding this information to the proper unit within your organization is appreciated. Your reply must be received within 60 days of receipt of this letter. If you have any questions, please contact me at the telephone number listed below. Very truly yours, Robin H. Brown Financial Examinations Division 651- 282 -9855 651- 296 -8591 (Fax) cc: Tina Luymes