Posted by: Patricia Salkin | November 25, 2009

Enactment of Moratorium on Pawnbroker Licenses Upheld

On June 7, 2007, the company contracted to buy property for a pawnshop, a permitted use, and applied for a license.  The city code provided for issuance of two pawnbroker licenses and one license was available.  The assistant zoning administrator issued a zoning verification letter.  On July 13 the inspection supervisor left a message indicating that the license could not issue until the store was ready to open, but that “the license will be issued as soon as the store is ready for business.”  In September, residents started expressing opposition.

The city council announced that it would consider an interim ordinance placing a moratorium on issuance of pawnbroker licenses.  While the ordinance was pending, the company filed suit.  After completing its study, the city made pawnshops a conditional use in February 2008, and the company’s location would not qualify under the amended law.  The trial court ultimately upheld the interim ordinance.

The appeals court affirmed, holding that interim ordinances are authorized by MINN. STAT. § 462.355 and that the city’s actions were not arbitrary.  The city did not know of the company’s plans far in advance, but acted quickly when it received the application.  The court noted that the proposed use, unlike the existing pawnshop, would have included check-cashing and other “adult-oriented” businesses and that the ordinance was enacted to study and address public safety concerns.

Pawn Am. Minn., LLC v. City of St. Louis Park, 2009 WL 2447746 (MN. Ct. App. 8/11/2009).

The opinion can be accessed at: http://www.lawlibrary.state.mn.us/archive/ctapun/0908/opa081697-0811.pdf

This abstract appears in the October 2009 issue of Planning and Environmental Law published by the American Planning Association.


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