HomeMy WebLinkAbout1998-12-16 PACKET 04.Q.REQUEST OF CI7Y COUfVCIL ACTION COUNCIL AGENDA
MEETING ITEM #
�ATE 12/16/98 � � .
PREPARED BY: City Clerk Caron Stransky
ORfGINATING DEPARTMENT STAFF AUTHOR
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COUNCIL ACTION REQUEST:
Eliminate 300 Foot Distance Requirements from Church/Schools for Secondhand Goods
Dealer Business
STAFF RECOMMENDATION
Pass Ordinance Amending Chapter 18-22, Subd. B of City Code Relating to Pawnbrokers and
Secondhand Goods Dealers
SUPPORTING DOCUMENTS:
� MEMO/LETTER: Memo from Caron Stransky, Dated 12/11/98
❑ RESOLUTION:
� ORDINANCE: Proposed Ordinance and Ordinance 592
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS:
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COUNClL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
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TO: Ryan Schroeder, City Administrator
FROM: Caron Stra�sky, City Clerk
DATE: December 11, 1998
RE: SECONDHAND GOODS DEALER
Attached hereto is a copy of Ordinance No. 592 adopted by the City Councii in
February 1994. The Ordinance regulates the licensing and premises of
pawnbrokers and secondhand good dealers.
Currentiy, no person, partnership or corporation shal� engage in or carry on the
business of a pawnbroker and/or secondhand goods dealer without a license
issued by the City. in addition, a license wiil not be issued for any place or for any
business if the premise is located within 300 feet of a school or church.
Ms. Sandy Caseltine is interested in opening an Antique Mall adjacent to G-Wiil
Liquors. Ms. Caseltine would like to lease space to as many as 120 separate
dealers, who will maintain separate sales spaces. All sales transactions will take
place at one central point or register operated by Ms. Caseitine.
There is one major obstacle. The premise proposed is located within 300 feet of a
church.
To enabie Ms. Caseltine to proceed ta make application for a Multiple
Secondhand Goods Dealer License at the proposed premise, she has
requested that the City ordinance be amended to eliminate the distance
requirement for secondhand good dealers. The requirement however wouid be
retained for pawnbrokers.
Ms. Caseltine and Biil Munsen of Heartland Realty Investors, Inc. will be in
attendance at the December 16 meeting. Ms. Caseltine does not agree that she
should have to obtain a license for a secondhand goods deaier; nor should she
have to comply with the same regulations as a pawnbroker. She would like the
City to consider exempting antiques from licensure.
Staff agrees that there shouid be separate regulations for each type of
business a�d will begin updating the ordinance for Council
consideration. A draft ordinance should be completed within the next 30
days.
In the meantime, Staff recommends that the Council pass the attached
Ordinance amending Chapter 18-22, subdivision (b).
Please place this on the December 16 Councii agenda for onsideratio�.
Attachment
ORDINANCE NO. XXX
AN ORDINANCE FOR THE CITY OF COTTAGE GROVE,
MINNESOTA, AMENDING CHAPTER 18 OF
CITY CODE RELATING TO PAWNBROKERS AND SECONDHAND
GOODS DEALERS
The City Council of the City of Cottage Grove, Minnesota,
Washington County, Minnesota, does ordain as follows:
SECTION 1. AMENDMENT. "The Code of the City of Cottage
Grove, County of Washington, State of Minnesota" shall be amended
by amending Section 18-22 to read as follows:
Sec. 18-22. Ineliqible locations
A Iicense will not be issued or renewed under this section for any place
or for any business:
(a) If taxes, assessments or other financial claims ofi the City or the
State of Minnesota on the licensee's business premises are
delinquent and unpaid;
(b) If the premises for a pawnbroker is located within three hundred
(300) feet of a scnool or church; or
(c) Where operation of a licensed premises would violate zoning
ordinances.
SECTION 2. EFFECTIVE DATE. This Ordinance shall be i� full force
and effect from and after its passage and publication acc�rding to law.
Passed this 16` day of December 1998.
ORDINANCE NO. 592
AN ORDINANCE FOR THE CTTY OF COTTAGE GROVE,
1��IINN�SOTA, AMENDING CHAPTER 18 OF 7'HE CITY
CODE CONCERNING PEDDLERS, SOLICITORS,
VENDORS, ETC.
The City Council of the City of Cottage Grove, Washington
County, Minnesota, does hereby ordain as follows:
SECTION 1. AMENDMENT. "The Code of the City of Cottage
Grove, County of Washington, State of Minnesota" shall be amended
by amending Section 18-4 to read as follows:
Sec 18-4 Permit fee• issuance.
Upon proper application and payment of
city council resolution, the city, within te
therefor, may issue permits to vend products
in the areas designated in section 18-2, or
door solicitation of sales within such areas,
the best interest of the inhabitants and
investigation regarding the contents of the
a fee established by
n days of application
upon the public roads
to engage in door to
as is deemed to be in
after a review and
application.
The applicant shall be notified within the ten day period of
the decision to issue or deny such a permit. The applicant, if the
permit is denied, may request, within fourteen days after denial,
a hearing before the city council to reconsider the application at
its next regularly scheduled meeting.
Reliqious, charitable, patriotic or philanthropic
organizations shall be exempt from payment of the fee. Providing
a copy of a current tax exempt status for the applying organization
shall be a prima facie evidence of the exemption from the paymen�
of the fee.
SECTION 2. AMENDMENT. "The Code of the City of Cottage
Grove, County of Washington, State of Minnesota shall be amended
by adding Article II to Chapter 18 to read as follows:
ART2CLE II. PAWNBRORERS AND SECONDAAND GpODS DEALERS
Sec. 18-11. Definitions
For the purpose of this article, the following words and
phrases shall have the meanings respectively ascribed to them
by this section:
ORDINANCE NO. 592
Pawnbroker. Any person who loans money on deposit or pledge
for personal property or other valuable things, or who deals in the
purchasing of personal property or other valuable things on
condition of selling the same back again at a stipulated price, or
who loans money secured by chattel mortgages on personal property,
taking possession of the property or any part thereof so mortgaged.
Secondhand aoods dealer. Any person whose regular business
includes selling or receiving tangible personal property which has
been previously used, rented, owned or leased, specifically
including video games, compact discs, sports memorabilia,
collectible magazines, coin collections, but excluding motor
vehicles, furniture, clothing, and sporting equipment.
Sec. 18-12. License Reguired.
(a) No person, partnership, or corporation shall enqage in or
carry on the business of pawnbroker/secondhand dealer, without
a license issued by the city for each and every separate
office or place of business operated by such licensee in the
City of Cottage Grove. The annual fee for such license shall
be established by city council resolution.
(b) A license issued under this section shall expire on December
31 of the year of issuance. The annual license fee shall be
paid in full before the application for a license is accepted.
The fee for a pawnbroker/secondhand dealer license granted
after the commencement of the license year shall be prorated
on a monthly basis, or any part thereof exceeding fifteen (15)
days. For the purposes of establishing the prorated license
fee, the month of the application is excluded.
(c) The actual license fee shall be based upon the date of council
approval of the license and in the event that the licensee
paid a fee in excess of the required fee at the time of
application, any excess payment shall be refunded.
Upon rejection of a license or upon withdrawal of the
application for a license before approval of the issuance by
the council, the license fee shall be refunded.
(d) A license under this section shall authorize the licensee to
carry on its business only at the permanent place of business
designated in the license. No license may be transferred to
a different location or to a different licensee. Any and all
property or buildings used for storage of items related to the
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ORDINANCE NO. 592
pawn shop or secondhand goods dealership must be identified in
the application for either license.
(e) A pawnbroker may not operate or engage in the business of
secondhand goods dealer without having obtained a secondhand
goods dealer license in addition to a pawnbroker�s license.
A secondhand goods dealer may not conduct, operate or engage
in the business of pawnbroker without having first obtained a
pawnbroker license in addition to a secondhand goods dealer
license.
(f) The a£orementioned license requirements do not apply to or
include the following:
(i) The sale of second hand goods where all of the following
conditions are present:
a. The sale is held on property occupied as a dwelling
by the seller, or owned, rented or leased by a
charitable or political organization;
b. The items offered for sale are owned by the
occupant;
c. The sale does not exceed a period of seventy-two
(72) consecutive hours;
d. Not more than two (2) sales are held either by the
same person or on the same property in any twelve-
month period; and
e. None of the items offered for sale have been
purchased for resale or received on consignment for
purpose oP resale.
(2) Sales by a person licensed as a motor vehicle dealer.
(3) The sale of goods at an auction held by a licensed
auctioneer.
(4) The business of buying or selling only those secondhand
goods taken as part or full payment for new goods, and
where such business is incidental to and not the primary
business of a person.
(5) A bulk sale of property from a merchant, manufacturer, or
wholesaler having an established place of business or of
goods sold at open sale from bankrupt stock.
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ORDINANCE NO. 592
(6) Goods sold at a public market.
(7) Goods sold at an exhibition.
(8) The sale of furniture, clothing and related accessories.
(g) The owner of a business at which two (2j or more secondhand
goods dealers are engaged in business by maintaining separate
sales space and identifying themselves to the public as
individual dealers may obtain a multiple secondhand goods
dealer license for that location. A multiple license may not
be issued unless the following requirements are met:
(i) The businesses must have a single name and address.
(2) The businesses must operate in a compact and contiguous
space.
(3) The businesses must be under the unified control and
supervision of the one person who holds the license.
(4) Sales must be consummated at a central point or register
operated by the owner of the business, and the owner must
maintain a comprehensive account of all sales.
(h) The holder of a secondhand goods dealer license under this
section for a business with more than one (i) dealer at the
same location must comply with all of the requirements of this
section, including the responsibility for police reporting and
record keeping in the same manner as any other dealer licensed
under this section. A dealer licensed under this subsection
is responsible to its customers for stolen or misrepresented
qoods sold at its place of husiness in the same manner as any
ather dealer licensed under this section.
Sec. 18-13. Application Procedure.
(a) Every applicant for a license or the renewal of a license to
maintain, operate, or conduct a pawnbroker business or a
secondhand goods dealer business shall file a completed
application under oath with the city upon a form provided by
the office of the city clerk and pay a non-refundable
application fee as established by the city council through a
resolution. The application, once accepted, shall be referred
to the Cottage Grove Police Department for investigation.
Copies of this application shall be forwarded to such other
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ORDINANCE NO. 592
city departments as shall be necessary for verification and
investigation of the facts set forth in the application.
(b) The chief of police and such other departmeaat heads shall make
a written recommendation as to the issuance or non-issuance of
the license within thirty (30) days. The completed
application form shall contain all information indicated,
including:
(1) Full name, place, date of birth, and street residence of
the applicant.
(2) The business address and the name and address of the
owner of the premises.
(3) A statement as to whether, within the preceding five (5)
years, the applicant has been convicted of any law
relating to theft, damage or trespass to property, sale
of a controlled substance, or the operation of business;
the nature of such offense and the penalty assessed.
(4) Whether the applicant is a natural person, corporation,
or partnership; and:
a. If the applicant is a corporation, the state of the
incorporation and the names and addresses of all
officers and directors.
b. If the applicant is a partnership, the names and
addresses of all partners.
(5) The name of the manager or proprietor of the business.
(6) Each application shall be accompanied by a bond in �h�
amount of $5,000 executed by a corporation authorized to
do business in this State and conditioned that in
conducting such business the licensee will observe all
laws in relation to pawnbrokers and will �onduct business
in conformity thereto, and that the licensee will account
for and deliver to any person legally entitled any goods
which have come into the licensee's possession through
the licensee's business as a pawnbroker, or in lieu
thereof, will pay the reasonable value in money to the
person.
Such bond shall be maintained so long as the pawnbroker
does business, and shall be for the benefit of the city
or any person who shall suffer any damage throuqh the act
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ORDINANCE NO. 592
of such pawnbroker and shall not be terminable without
the bond company giving written notice thirty (30) days
in advance of termination to the city clerk.
(c) If the applicant is a natural person, the application shall be
signed and sworn to by the person; if a corporation, by an
agent authorized to sign; if a partnership, by a general
partner.
(d) No person shall make any material false statement in the
application. In addition to other penalties, the licensee's
license may be revoked by the city council for giving false
information on the application.
(e) All licenses shall expire on December 31st next after its
issuance unless earlier renewed. A new application fee shall
be required whenever there is any change in the facts
presented by the application other than date, applicant(s)'
home address or building owner(s)' address.
(f) Al1 applicants requesting a license pursuant to this chapter
may be required to submit to a background investigation,
including, but not limited to, a criminal history check.
Sec. 18-14. Records Required.
(a) Every pawnbroker or secondhand goods dealer purchasing or
receiving on deposit for a loan any article of personal
property shall give to the person selling or depositing such
article a plain written or printed ticket or receipt for the
article sold or deposited, showing the terms of such sale or
loan.
(b) Each licensee shall keep a record of each transaction made in
the course of business. Such records shall be in the form
prescribed by the chief of police and shall, in all instances,
be legibly made in ink and be in the Engli.sh language. The
records so kept shall include the following information about
each transaction:
(1)
(2)
(3)
The full name, address, and the date of birth of the
Aerson nledaina OT 5211171q $hE item.
The time and date of the transaction.
A complete description of the item pledged or sold,
including all identifying numbers and identifying marks.
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ORDINANCE NO. 592
(4) A physical description of the person pawning or selling
the item, including:
a. sex,
b. height,
c. weight,
d. race,
e. color of eyes,
f. color of hair.
(5) The amount of money paid or loaned for the item.
(6) The signature of the person pledging or selling the item.
(7) The identification number from any of the following forms
of identification of the seller:
a. valid driver's license containing a picture,
b. picture identification.
(8) In the event that tha property is stored at a place other
than the permanent place of business designated in the
license, the location of the property or buildings used
for the storage of the item must be identified in the
application for the pawnbroker or secondhand goods dealer
license as set forth in section 18.13.
(9) Any other information the police chief shall require.
Every pawnbroker or secondhand goods dealer shall make
available to the chief of police every day, before the
hour of 12:00 noon, a complete, legible and correct copy
of the records required by this section for all
transactions vrhich occurred on the previous day. The
records required herein shali He xe�t at the licensee's
place of business for three (3) years, and shall be
available for police inspection at any reasonable time.
(c) For the following items, regardless of resale price, a
secondhand goods dealer or pawnbroker must make out, on forms
approved by the appropriate law enforcement agency, and send
daily by mail to the appropriate law enforcement agency, a
legible description of the goods received during the preceding
day, together with the time received and a description of the
person from whom the goods were received:
(1) Items with a serial number identification, or "operation
identification" symbol;
ORDINANCE NO. 592
(2) Cameras;
(3) Electronic audio or video equipment;
(4) Precious jewelry or gems, and precious metals;
(5) Artist-signed or artist-attributed works of art;
(6) Coin collections;
(7) Sports memorabilia;
(8) Guns and firearms; and
(9) Items not includes in the above, except furniture and
kitchen or laundry appliances, which the secondhand goods
dealer intends to sell for more than two hundred dollars
($200.00).
Sec. 18-15. Insoection of Premises.
Any person, firm or corporation licensed under the provisions
of Chapter 18, Article II, shall, at all times during the terms of
said license, allow the officers of the police force of the city to
enter the premises where the licensee is carrying on such business
or at any property or buildings used for storage of items related
to the business, for the purpose of inspecting such premises and
inspectinq the goods, wares and merchandise therein for the purpose
of locating goods suspected or alleged to have been stolen or
otherwise improperly disposed of.
Sec. 18-16. Required Holding Period.
(a) When the chief of police, or any member of the police force
designated by the chief of police, notifies any pawnbroker or
secondhand gon@s dealer not to sell any property received on
deposit or purchased by him or her, or not to permit the same
to be redeemed, the pawnbroker shall not sell nor permit such
property to be redeemed until such property is released in
writing by the chief of police, or his or her designate.
(b) No personal property deposited with or purchased by any
licensee under Chapter 18, Article II, shall be sold from the
place of business of licensee until thirty (30) days after the
copy of the records required by section 18-14 have been made
ORDINANCE NO. 592
available to the chief of police, except upon written
permission of the chief of police.
(c) No personal property deposited with or purchased by any
licensee under Chapter 18, Article II, shall be permitted to
be redeemed from the place of business of licensee until three
(3) working days after the copy of the records required by
section 18-14 have been made available to the chief of police,
except upon written permission of the chief of police.
Sec. 18-17. Report of stolen or lost qoods.
If any goods, articles or things shall be advertised in any
public newspaper of the aity as having been lost or stolen, and
such goods, articles or things shall then be, or shall thereafter
come into the possession of any licensee under the terms hereof
said licensee shall, upon actual notice hereof, immediately
thereafter, as a supplement to said licensee's daily report for
that day to the chief of police, give information in writing that
certain goods, articles or things advertised are in said licensee's
possession, and shall not thereafter dispose of the same except
upon written authority so to do from the chief of police of the
city.
Sec. 18-18. Redemotion period.
Any person who pawns an item shall have at least thirty (30)
days to redeem the item before it may be sold.
Sec. 18-19. Prohibited transactions.
No pawnbroker or secondhand goods dealer shall purchase or
receive on deposit or pledge anythinq of value as security for a
loan of money from any person, under age 18, nor knowingly from an
intoxicated person or one of unsound mind.
A pawnbroker or secondhand goods dealer may not receive goods
unless the seller presents identification in the form of a driver's
license or other picture identification.
Sec. 18-20. Storaqe of firearms.
A pawnbroker or secondhand goods dealer holding for sale a
firearm or other dangerous weapon shall store the firearm or
ORDiNANCE NO. 592
dangerous weapon in a locked and opaque compartment except when
being viewed by a customer following a request to view the firearm
or dangerous weapon.
Sec 18-21 Persons ineligible for license.
A pawnbroker or secondhand goods dealer license will not be
issued to:
(a) A person not a citizen of the United States or a resident
alien;
(b) A person under 18 years of age;
(c) Subject to the provisions of law, a person who within five (5)
years of the license application date has been convicted of
receiving stolen property, sale of stolen property or
controlled substance, burglary, robbery, damage or trespass to
property, felony theft, larceny, fraud, or any law or
ordinance regulatinq the business of a pawnbroker or
secondhand goods dealer;
(d) A person who within five (5) years of the license application
date had a pawnbroker or secondhand goods dealer license
revoked;
(e) A person whom the city council determines not to be of
sufficient good moral character and repute; or
(f) When the city council determines, after investigation and
public hearing, that issuance or renewal of the license would
adversely afPect the gublic health, safety, or welfare.
Sec 18-22 Ineligible locations.
A license will not be issued or renewed under this section for
any place or for any business:
(a) If taxes, assessments or other financial claims of the city or
the State of Minnesota on the licensee's business premises are
delinquent and unpaid;
(b) If the premises is located within three hundred (300) feet of
a school or church; or
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ORDINANCE NO. 592
(c) Where operation of a licensed premises would violate zoning
ordinances.
Sec. 18-23. Method of Pavment.
When a pawnbroker or secondhand goods dealer accepts an item
for purchase or as security for a loan, payment shall be made by
check only, made payable to the actual intended seller or borrower.
Sec. 18-24. Denial, suspension or revocation of license.
Any license under Chapter 18, Article II, may be denied,
suspended, or revoked for any of the £ollowing reasons:
(a) Any conflict with the Cottage Grove Zoning Code;
(b) Any conflict with any health, building, building maintenance
or provisions of this code of ordinance or state law;
(c) Failure by the applicant to comply with one or more provisions
of Chapter 18, Article II;
(d) Fraud, misrepresentation, or bribery in securing a license;
(e) Fraud, misrepresentation, or false statements in the course of
the applicant's business;
(f) The applicant was convicted of violating any law relating to
theft, damage or trespass to property, sale of a controlled
substance, or unlawful operation of business within the
preceding five (5) years.
Sec. 18-25. Applicabilitv.
The licenses required by section 18-12 shall�be applied for
within thirty (30) days of the effective date of this article.
Said licenses shall be obtained within sixty (60) days of the
effective date of this article. If said licenses are not obtained
within the sixty-day period, the designated business shall cease
operating within the city, unless the city council extends the time
for issuance of the license. All other provisions of this article
shall be effective and complied with within sixty (60) days after
the effective date of this section.
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ORDINANCE NO. 592
Sec. 18-26. Separabilitv.
Should any section, subdivision, clause or other provision of
this ordinance be declared by a court of competent jurisdiction to
be invalid such decision shall not affect the validity of the
ordinance as a whole or any part other than the part so declared to
be invalid.
Sec. 18-27. Penaltv.
Any person violating any provision of this ordinance shall be
guilty of a misdemeanor, and upon conviction thereoE, shall be
punished by a fine of not more than seven hundred dollars ($700.00)
or by imprisonment of not more than ninety (90) days, or both.
SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full
force and effect from and after its passage and publication
according to law.
PASSED UNANIMOUSLY this 2nd day of Fe ary 1994.
ATTEST:
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'f� L � /i !� %`�� , %i/
Clerk
By: ° �.
Mayor ` t�
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Published in the Washington County Bulletin on Thursday, March 3,
1994.
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