HomeMy WebLinkAbout1998 - MINUTES - 4/8/1998 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
APRIL 8, 1998
An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was
called to order by Mayor Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on
Wednesday April 8, 1998, at 4:30 p.m.
' ROLL CALL: Present: Couucilmembers Barnes, Oden, Reller-Spurgin, and Mayor
Kleindienst
Absent: COuneilmember Hodges
The meeting was opened with the Salute to the Flag.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in
accordance with Council procedures on April 3, 1998.
PUBLIC HEARING:
1. C.U.P. 5.0768 - DAVE'S JEWELRY &LOAN
Recommendation: That the Council hear an appeal concerning Planning Commission denial
on February 11, 1998, of an application for a Conditional Use Penuit to allow a pawn strop
for the property located at 725 N. Palm Canyon Dr., C-1 Zone, Section 10.
City Manager reported that this matter was before die Council because of a conflict of
interest by Councihnember Hodges, which was unknown to her at the time of the last
hearing; and that the hearing will be held as if it had not happened. He stated that there are
a number of consignment shops in the area; that he has had some calls regarding the police
department and the consignment shops; that he spoke with Officer Judd, who has had (078
occasion to tell them about the rules regarding receipt of property for consignment sale, 070)
which are not as strict as those for pawnshops, and that there might be some interest on the
part of the city to reconsider the second hand stores; that it was not meant as a threat, only
as a suggestion to help perform his job; and that he has received excellent cooperation by
the pawn shops.
Director of Planning & Zoning stated that the appeal is from the Planning Commission
denial of the application, which was taken February 11 by a 4-1 vote; that the location is in
C-1, which allows the use under a conditional use permit; that the site is a multi-tenant
building, and her space would be 1,000 square feet, and that there is enough parking, and
the staff had recommended approval. He described options available to the Council, i.e., to
uphold the denial, overrule it and thereby approve the permit, or overrule the Conunission
and modify the permit; that if the denial is upheld, the effect would be that the use would be
allowed at the current location, under a non-conforming use during her tenancy; that the use
would be nullified six months after the site is vacated, otherwise the non-conforming time
period is ten years.
City Attorney stated that the use at the existing location is a legal non-conforming use,
established through an interim ordinance adopted by the Council; that regarding conflicts of
interest, Ire has received a number of telephone calls and rumors as to virtually all members
of the Council, and the only true conflict is the one which effected Councilmember Hodges,
and the remaining four members are able to participate in this matter; that if a member who
had a conflict and voted was important to the outcome, that vote taints the process,
including the hearing, which is why it is being repeated; that regarding tie voles, under tlhe
Council Rules of Procedures, tie votes are no action, provided that all members who could
participate were present to vote, and that the lower decision would therefor shmd.
Mayor declared the hearing opened.
Council Minutes
4-8-98, Page 2
Karen Delange, resident in the area, stated she attended the lash hearing, and felt that the
Commission's action was part of its work, and the decision has been made; that her survey
of the area, left her with the hupression that she would not stroll or strop the area if she
came upon a pawn shop; that die Council should not be swayed by the fact that "pawn
shop" is not included in the name of the business, rather it is on a banner inside of the
store. '
Jane Beeluman, resident and business owner in the area, stated that this area is both the first
and last impression people have of the city as they enter and exist the community; that the
area has outwardly improved a thousand times over; that pawn ,shops allude to a declining
area; and that the clientele they attract are not consistent to the type of shops in the area.
Liz Westerman, resident, told of her experience of being burglarized, and her items
recovered through the pawn shop with the assistance of the police. department.
Renee Siva Reeder, Las Palmas Pets, stated that the area looks (better than it ever had; that
many of her customers are Las Palmas residents; that the issue: is zoning; that the largest
single purchase people will make is their home; that none of the residents want the pawn
shop; and that it seems to have been a personal war of pets versus pawn shops.
Geraldine Henshaw, resident, read a prepared statement, a copy of which is on file with the
City Clerk, speaking in opposition to the permit, based on detraction to the area.
Charles Owen, resident, stated that the zoning regulations for pawn shops have changed
seven times in the past few years; that there are only three zones which permit, them, i.e.,
manufacturing; that he could not believe that the pawn shops referred to at the last (rearing
concerning those located in high-end areas in other cities, are by variance; that die City
should stop what it is doing to her, and allow Mrs. McMillan to move into her new
location, for which she has been paying rent, as well as to the City for its building; that she
has invested money in (lie new location, and has experienced loss of revenue because of
having much of her merchandise boxed for moving; that her health has been affected by the
stress; and that her store frontage has as good of an appearance as the furniture 'stores in the
area.
Dorissa Curry, resident, stated she has known Mrs. McMillan for twenty years, and her
business offers help to people who often only need to pay the storage fee for a short time
before recovering their property; that she felt much was being made of nothing; that this
has been a great cost to Mrs. McMillan as well as to the Council:, and that she supported the
permit.
Janette Temple, resident, stated that after the approval decision, the interior of the location
was painted and carpeted, when they received the telephone call to slop everyd iing; that she
found it hard to conceive that there could be a conflict because one of the six owners of the
building purchased something from Councilmennber Hodges employer; that if there is a
waiting period following a decision, applicants should be advised of that in advance; that
lire shop brings in many people; that she worked in the shop for seven years, during which
She saw people from all walks of life; that the clients are either some warning to buy
something, or someone needing extra money; and that the pawn shop or South Palm
Canyon is different, in that it sells guns and bail bonds.
Carole Hicks, resident and business owner in the area, stated her opposition, noting that she
has spent a lot of three and money to upgrade the area, and that they now have fail '
occupancy of their building for the first time in many years; that site lives in the area and is
concerned that the shop may sell guns, and issue bail bonds.
Sarah Thiele, resident, stated she supported the permit.
Joyce Smith, resident in the area, stated that the shop is a collateral business, and provides a
service to the oommflunity. She told a story of lrer own experience in another state, of using
a pawn shop to obtain funds to cover an emergency situation which she had.
Council Minutes
4-8-98, Page 3
Jun Hicks, resident and business owner in the area, stated he visited a number of pawn
shops hi the area and elsewhere in (lie valley, and does not believe that they belong on
North Palm Canyon Drive.
Marian Hargrave, resident in the area, questioned why the Planning Commission decision
could be over-turned, when it found that a use permit would not be consistent for this area;
and why she could not stay at her existing location, where there is parking and where her
business is known.
Marty Russell, resident in the area, stated lie felt pawn shops on North Palm Canyon would
be a poor location for them; that Angel View moved its boutique to North Palm Canyon,
and has tried to make it very elegant, and lie compared its windows to those of Saks Fifth
Avenue.
Dino Barbis, resident in the area, staled that Mrs. McMillan has all of the rights for a
business in this area; that his residence is humediately behind her proposed shop; that he is
very concerned about it; that there are other problems in the area for which nothing has
been done so far; that he was burglarized a few weeks ago, as have others been in the past
month; that die negative perception of pawn shops and the current problems in the area will
combine to add problems; and that his neighbors are talking about moving down valley.
Gladys McMillan, applicant, stated that she has seasonal tourists who frequent her shop and
who come from Germany, New York and Chicago; that the area is referred to as the
"Heritage District," and she questioned what better place there could be than for a 37-year
old business to be located there; that people from all walks of life come to her shop; that
four years ago, she was asked to move, and was assured by the City that the new zoning
would not affect her store; that she was told that the City would pay moving costs, and
compensate her for rent above what she was paying for two years; that instead she was
forced into a City property with rats, and only two parking spaces; that she has been
damaged, and in the last six months, her business has declined 18%; that she has nothing
on her shelves; that in one week she was told she could move, and she started fixing it up,
that she felt there was no worry and that her shop would look good, and people would be
happy; that she spent money for plastering and painting; that she wanted the City to honor
its promise to her, that she wanted the permit and help in moving; that her business has
never hurt anyone; that her health is suffering and the City should rectify the wrongs that
have been put on her over the past 4 1/2 years.
Arelene Spring, resident, stated she represents collateral landlords in Beverly Hills, Los
Angeles, Canoga Park and Malibu, and that in the 1950s they were referred to as "hock
shops" but they are a form of banking - collateral in exchange for a monetary
consideration; and that pawn shops help people when they are too embarrassed to ask a
friend, and need money quickly.
Madeline Brecltlin, resident, questioned if Mrs. McMillan would be blamed for the
problems that already exist in the area, and relayed her own experience when she had an
office in the area, in terms of late night disturbances; and that Mrs. McMillan has said that
she will not have guns, and she doubted bail bonds, either.
Mike Helm, resident, stated he did not see approving the sale of guns or bail bonds at the
gateway to the City; that the pawn shop will draw a bad element to it; that it is not directed
at Mrs. McMillan, rather the clientele which pawn shops attract; that it is a zoning issue;
that zoning is inclusionary and exclusionary processes, which establishes regulations,
limitations and standards; that there is a conflict which cannot be mitigated - the
neighborhood does not want it, and the merchants are opposed - which is what exclusionary
is all about; that those who are in Favor probably do not live in the area; and that the
Council is chosen to vole the conscience of the people, and not their own personal views,
and the people in that area have spoken.
David Weaver, resident, stated that the area is run down by thieves; that the Catholic
Church nearby gives free sandwiches out, and he questioned if they would also be stopped.
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Council Minutes
4-8-98, Page 4
Rodelle Henshaw, resident, stated that the Angel View shop is a second hand store, and the
jewelry and loan fits in with all of the other "used" items being ,sold in this area; that she
did not think a lot of people even care about it; that if it comes to a legal issue, [here are
people who will take the next step in that direction; that it has been said five or more tunes
that the shop does not sell gurus, and does not issue bail bonds, and that it will not do so.
She read poem, "Walk Alone." '
Paula Surmmers, resident, owner of Safari Furniture, stated that she and her sister were
harassed by Mrs. McMillan, and she felt that there are many people who are afraid to
speak; and that she opposed the permit.
Al Casey, resident, stated he built the Crossely Tract and that Mrs. McMillan has a small
business which has not barmen anyone and which helps people who are destitute; that the
Council approved an Alano Club behind his house, and gave it money for a parking lot and
wall; and he felt the Council has lost its cormnon sense.
Brandon Cook stated he considered the Council's action wrong, and commented on a
purchase he made at the shop.
Dennis Davidian, resident, spoke in opposition and stated that the casino and pawn shops
attract desperate people; and that he was opposed to the use, and not to the applicant.
Mary.lane Smith, stated she worked in the shop in 1986 for eight years; that maybe the new
location is not safe and perhaps her mother should not move the shop, but there has been
some injustice to her, and it is important to address that; that she has spent a lot of time,
money, and health, and this is causing her more stress; and that there have been many
celebrities as well as needy people who have visited the shop.
Walter Boyd, resident of the area, cormnented on why lie purchased a home in the area, ,
which has homes regularly selling for $1 million, and in which he would not expect to find
a pawn shop located less than one block away; that lie considered the City's treatment of
Mrs. McMillan outrageous, and felt something should be worked out to allow het to remain
where she was located, and where she has established clientele and a good business
Joanna Greenberg, resident in the area, expressed opposition to the use, and that there are
other businesses in the area which are being looked at for corrections; and that she did not
consider it difficult to figure out what type of people frequent a pawn shop.
Gary Botroff stated that the shop does not handle guns, does not sell bail bonds, and did not
want to move; that the City's rent was too high; that they cannot afford to give up 18% of
the business; that the only solution was the North Palm Canyon location which was a
cheaper rent, because of a lot of vacancies; and that another business in the area call only
benefit the area.
Stacey Botroff, resident in the area, pawn shop employee, stated that a flyer was printed
and circulated hn the area, which contained lies, in which she felt there was a personal
attack, and against which they could not defend themselves; and that they were happy at the
prior location.
Don Frank, resident in the area, expressed opinion that the problem in not the pawn shop
per se, rather addiction to drugs and gambling; that the pawn shots would have stayed where
it was if the Council did not allow the Indians to get the land.
Darrell Meeks, Morongo Valley, and local business owner, stated he did not think a pawn
shop should be located on North Paltn Canyon Drive; that they are not located on "tire
strip" in Las Vegas; that this is a zoning issue, and not that anyone does not like Mrs.
McMillan; and he questioned why there was no OMB (Office of Management & Budget)
recommendation on this matter.
Council Minutes
4-8-98, Page 5
Fred Ebeling, resident, stated that it is not fair for the owner to not know her situation
upfront; that be considered this evidence of bureaucracy and the "Peter Principle;" that the
Council's responsibility is to do the right thing, and treat people decently; and that she
should be compensated for her pain and suffering.
Jenmic McLean, resident, stated she has purchased items from the shop, and thinks Mrs.
McMillan is an asset to the community; that empty stores are not good; that she did not
think the pawn shop would render the Las Palmas area unsafe; and that her procedures for
operating are sale.
Dick Sroda, resident, stated that he did not find anything that required the Council to hold
another hearing; that if the vote was nullified, the result would have been a tie, and
therefore the Planning Commission action would have been upheld; that he intended to ask
the FPPC to address the issue; that he did not find any State Code or FPPC rule that says a
hearing must be re-clone; that lie was disappointed in Council comments about people who
were opposed, and then voted to hold another hearing; that there should not be any
judgment of people who speak, but decisions made based on facts; that this a zoning issue;
that Mrs. MCMilhin had a chance to stay at the prior location, and did not want to pay the
rent; that it was her choice; that this has cost both the applicant and the City money; that the
City waived the appeal fee, and gave her free rent, and if she is going to remain at the same
location, he questioned what kind of rent will be charged; that there are zoning rules and
that is all there is to decide; that not one business owner was in favor of the shop in their
area; that people who live in the area have spoke in opposition; and that he urged upholding
the Planning Commission action, so the legality of the hearing does not have to be
challenged.
Mayor declared a brief recess.
In answer to question by Council, City Attorney stated that the Planning Commission's
decision is final under the zoning ordinance, unless appealed, and that am appeal was made
to the Council.
In wiswer to question by Council, Director of Planning & Building responded that the sale
of guns and bonds are excluded; that a separate permit is required for bail bonds, and if that
option were desired, an amendment to the use permit would have to be obtained; that her
original site was located in a C-2 zone, and as die City was going through tine development
process with the Tribal Council, a series of land uses were identified as potential conflicts
between gaming and the downtown; that the agreement with the Tribal Council. required
Redevelopment Agency assistance; that at that point, it was possible the City or the Tribal
Council might buy the original pawn shop leased site, and that there might be some
relocation help by the Agency to the tenant; that the tenant was contacted and there was that
discussion; that subsequently, the agreement with the Tribal Council was amended, and the
site was excluded in terms of any involvement by the City or the Agency; 'that the Tribal
Council then negotiated on its own to acquire the property and eventually gave eviction
notice to Mrs. McMillan; that the City offered to see if it could help, because of the long-
standing of the business; that the zoning was examined, and it was found that the pawn shop
could not relocate downtown; that all urgency ordinance was adopted, to allow the pawn
shop in the CBD while the lease was being negotiated for the Agency-owned site; that the
interim ordinance was in effect for 45 days, and later extended, which enabled her to lease
the building and to have a legal non-conforming use, with die ability to remain for ten years
as such; that during the interim ordinance, the City re-evaluated pawn shop locations, and
allowing such use under a conditional use permit in certain zones - CM, M-1, M-2, M-1-P;
that prior to (lie interim ordinance, Rocky's Pawn Shop located in a C-2 zone on South
Palm Canyon, and there were subsequently a number of inquiries for others; the mast re-
evaluation of line pawn shops by the Planning Commission, resulted in allowing them under
a conditional use permit in C-1, with limitations as to how close together they could be
located. He stated that it was clear it the Agency lease discussions, that the lease was for
two years, while the tenant found another location.
$.At. riac�
Council Minutes
4-8-98, Page 6
Councilmember Barnes apologized for any offense his comments may have caused at the
last meeting, but lie was oily trying to convey a sadness in the division of the Community;
that his views have not changed, and he has had time to give it further reflection; that lie
has seen the shop and feels it would be fine on North Palm Canyon; that the owner has a
good track record of serving a segment of the cormnunity; that it is not a typical pawn shop;
and that he felt cormnon sense should allow it to relocate.
Councilmember Oden stated that lie had not given the re-hearing miuch thought until the clay
before the hearing, and this date; that he, also, did not mean Ito offend anyone by his
comments, and when lie referred to "those people" it was not to ethnicity, but to anyone
who has experienced such a referral as "those people;" that he lived in the Las Palmas area
during most of his residency in Palm Springs, and he worked with the Uptown Association
and others to improve the area; that he, did not consciously want to make a decision against
all of the work that has gone into this area; that the shops in the area have proven
themselves, and many have been recognized in national magazines, and are no longer
referred to as "junk" businesses; that the same resistance occurred to the pet store and to
the Anget View shop, yet today, they are both accepted as assists to [lie area, and have
adjusted and accommnodated the community; that concerns have been expressed by the
neighborhood about safety, and those concerns need to be addressed, and will be addressed,
which includes lack of properly maintenance, drugs, and homelessness; that it is important
for the Council to listen to all sides of an issue, and to snake a decision in the best interest
of the entire City; that this affects the entire community; and that he felt his last decision
SO fits.
Councilmember Reller-Spurgin stated that she tries to make decisions she feels are in the
best interest of the community; that not all decisions will make everyone happy all of the
time; that she is empathetic to Mrs. McMillan and what she, is going through, and
recognizes that this is a zoning issue; that she would not want to move into a neighborhood
which so blatantly was opposed to the business; that she has to deal with emotional issues
on a daily basis; that, in retrospect, she felt the decision a number of years ago was in
error, and Mrs. McMillan should have been allowed to remain where she was; that uo one
was concerned, and she feels that way, today; that this is a zoning issue, which is why there
are rules, regulations, and the Planning Commission. She moved to uphold the Planning
Commission decision, thereby denying the conditional use permit, and that the matter come
back to the Redevelopment Agency on its next agenda for restructuring of the lease and to
allow her to remain at that location, as well as dealing with any compensation to make it
viable.
City Attorney suggested that the action on the use permit be separated from any action that
might come to the Agency.
Motion by Reller-Spu gin to uphold the Planning Commission dermal was seconded by
Kleindienst.
Councihnember Barnes stated that conditional use permits are allowed under the Zoning
Ordinance, and they have built in variances and tides to have the latitude so as to prevent
being strapped by the zoning; and that nothing is written in stone in the ordinance.
Councilmember Oden expressed concern as to how others will be dealt with if this one is
denied.
City Attorney stated that if the motion were adopted, the Council would be making the
finding that the conditions are not adequate to resolve the conflict between the use and the
other uses in the area in this location, but the use per se would still be allowed under a
conditional use permit in the same zone, and not as a right-of-zone:.
Mayor stated that the applicant went through the CUP process, and the result was a denial
by the Planning Commission; that the type of CUP is not one which requires Council
approval; and that the appeal was on the process, and that is what came to the Council.
Council Minutes
4-8-98, Page 7
Motion by Reller-Spurgin, seconded by Kleindienst, failed to carry by the following vote:
AYES: Reller-Spurgin and I cindienst
NOES: Barnes and Odell
ABSENT: Hodges
Upon suggestion by City Attorney, motion was made by Barnes and seconded by Oden to
overrule the Planning Commission and to uphold the appeal; said motion failed to carry by
the following vote:
AYES: Barnes and Odell
NOES: Reller-Spurgin and ICleindienst
ABSENT: Hodges
City Attorney stated that no motion stands; that there is no decision at the Council level,
thus the Planning Commission decision stands. Ile stated that the Redevelopment Agency
has a lease, which has not been terminated, and which is currently on a month-to-month
basis; that from a zoning standpoint, it is a non-conforming use goes on until the use is
abandoned; that the Agency has the ability to negotiate or modify the terms of that lease.
Councilmember Reller-Spurgin asked that the City Attorney work with Mrs. McMillan to
work out the terms of an agreement; and that this matter be scheduled for the Agency's next
meeting.
Councilmember Barnes requested that die staff also investigate the expenses she has
incurred thus far.
PUBLIC COMMENTS:
a) Comments on Item 1:
Mrs. McMillan stated she has been ridiculed all of her life, and that her success has
been based on hard work; that she did not think this is the kind of America or City (078-
that she thought them to be. She expressed disappointment in members of the 070)
Council, and that she felt she could prove them wrong and could show her business
to be a decent and desirable one for the area.
Rodelle Renshaw, resident, thanked Councihnembers Barnes and Oden, and stated
that the applicant will take (lie next legal step. She also commented on efforts to
try to get the Greyhound Bus Station into a better building with an improved image.
b) Comments on matters not related to an agenda item:
Darrell Meeks, Morongo Valley, commented that Palm Desert required the Lucky
Stores to pay a $300,000 deposit or replace its vacated store; that it replaced the
store with another business, and the deposit was refunded. He suggested the City
do something similar when the store comes forward with a proposal to build
another new store in Palm Springs. He staled that Stater Brothers is also looking
for a new store location on the West end of the Valley, and suggested that City
staff pursue it.
Dick Sroda, resident, commnented regarding Channel 17, and suggested that there
be announcements of city meetings, other than just the City Council. He also
conunented regarding the quality of broadcasting, and the cost of it compared to
that of Cathedral City.
Don Frank, resident, couvnented that drugs and gambling are problems, and
suggested a Vocation and Rehabilitation Training Center at the former
Lumbermau's store, which he felt could be done for $2 million and which he would
match the first $500,000 to get it started.
Council Minutes
4-8-98, Page 8
Fred Ebeling, resident, expressed disappointment in the City's WEB page; and
opuiion that the City will probably end op in court over the pawn shop.
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: None
2. ADDITIONAL LEGISLATIVE ITEMS: None '
ADDED STARTERS: None
ADJOURNMENT
City Attorney announced items to be discussed in closed session, see Page 2 of agenda of this date;
after which, members convened in Closed Session. The Council reconvened to meet as the Council
Cabinet, during which City Attorney amxiunced items discussed, and that actions were taken.
There being no further business at 6:50 p.m., the Mayor declared the meel ing adjourned.
Ate"
.JUDITH SUMICH
City Clerk