SUPPORTS ITEM NO. 3
P&E COMMITTEE AGENDA
MARCH 14, 1996
POLICY REPORT
Building and Development
Date: March 5, 1996
Dept. File No. VAI
TO: Standing Committee on Planning and Environment
FROM: Directors of Central Area Planning and Legal Services, in
consultation with the Chief Constable, and the Director of
Permits and Licenses
SUBJECT: Regulations to Limit the Location
of Pawnshops and Second Hand Stores
(excluding books, furniture and clothing stores)
RECOMMENDATION
A. THAT this report be received for information;
AND FURTHER THAT the Director of Central Area Planning, in
consultation with the Chief Constable and the Directors of
Legal Services and Permits and Licenses, review this report
with interested members of the public and report back.
B. THAT the Director of Central Area Planning report back on the
conditions under which second hand stores and pawnshops should
be permitted in the HA-2 district as part of the Gastown Land
Use Plan.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS the approval
of the foregoing.
COUNCIL POLICY
The City regulates the licensing of Second Hand Dealers, Pawnbrokers,
and Junk Dealers (By-law No. 2807). There is no Council policy with
respect to these uses.
PURPOSE
Pawnshops and second hand stores are currently permitted in all
commercial districts as retail uses. This report proposes amendments to
the Zoning and Development By-law and relevant Official Development
Plans to limit their concentration and to limit the time period for
which new development permits for these uses are issued. A companion
report proposes changes to the Second Hand Dealers By-law to make it
more difficult to sell stolen property in such stores.
BACKGROUND
A wide range of retail businesses are involved in the sale of used
merchandise. These include dealers of second hand goods and other
retailers who maintain a small inventory of used merchandise, for
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example camera stores which keep a few second hand items in trade or
consignment. Generally, retailers of second-hand goods play a valuable
role by providing a source of inexpensive goods, by reusing otherwise
discarded merchandise, and by creating specialty retail districts, such
as "Antique Row", which enhance the quality of life in the city.
The majority of these businesses operate in a legitimate and
professional manner. However, a growing number of pawnshops and less-
than-reputable second hand stores are believed to be actively involved
in the resale of stolen goods, the most common being electronic
equipment and accessories, such as computers, audio and video equipment,
and compact discs. Other targets for theft and resale include bicycles,
sports equipment, tools, cameras, musical instruments, and jewellery.
Between September and December of 1995, the Anti-Fencing Unit recovered
in excess of $350,000 worth of stolen property from pawnshops and second
hand stores.
Over a three-year period, pawnshops and second hand stores have tripled
in number and have concentrated in certain areas, most notably in the
Downtown Eastside where increases in property crime have been the most
pronounced. There are presently forty-four such shops in the Downtown
Eastside, compared with 180 shops city-wide. Thirty-two shops are
concentrated within a three block section of Hastings, Pender, and
connecting streets, between Abbott and Main. This represents an average
of four shops per square block.
Police information indicates that much of the property theft in or near
the Downtown Eastside is motivated by the relative ease by which cash to
procure drugs may be obtained for stolen goods. The local concentration
of pawn and second hand shops provides a convenient market for the
conversion of stolen goods to cash, thereby furthering the concentration
of drug activity and the incidence of property offenses. The recent
proliferation of shops
is due, in part, to a belief among some operators that profits may be
made with impunity from the illegal sale of stolen property. This is
illustrated by a recent police undercover program which found that in
almost 95 percent of cases, operators who were approached with
purportedly stolen goods showed wilful blindness to the fact the
property had been stolen. Enforcement has been hampered by rapid
turnover of goods, difficulties in obtaining evidence, and the
proliferation of outlets. In addition, the City presently has limited
authority to prevent the issuance of new business licenses, or to
prevent the continuation of a business under the name of an associate or
family member, after an existing license has been suspended.
DISCUSSION
The proposed zoning amendments are intended to augment the proposed
amendments to the Second Hand Dealers By-law contained in a companion
report dated February 27, 1996. The zoning amendments would do the
following:
1. Prevent further concentrations of pawnshops and second hand
stores where they are presently concentrated.
2. Prevent these uses from concentrating or proliferating in
other locations. Potential problem areas may emerge outside
the downtown peninsula, particularly if the City forecloses
opportunities for further concentration in central areas.
Some clustering of problem businesses has already occurred
along Main Street north of Broadway, and on Commercial Drive.
3. Reduce concentrations over time by the gradual attrition of
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non-conforming businesses.
4. Regulate new pawnshops and second hand stores by limiting
development permits to a maximum 1-year period.
As pawnshops and second hand stores are currently permitted in all
retail districts, staff propose creating the following new definitions,
which would be added:
"Pawnshop, means the use of premises for the retailing of goods and
chattels in pawn;" and
"Second hand Store, means the use of more than 2.5 m› of floor area
in premises for the retailing of a) used electronic equipment,
including, but not limited to, audio or video equipment or
accessories, computers, printers or fax machines, or b) two or more
of the following types of used merchandise: bicycles, sports
equipment, jewellery, cameras, musical equipment or tools."
As the above definition of "second hand store" differs from the
definition in the Second Hand Dealers By-law, there may be some
potential for confusion. However, staff propose a zoning definition
which is limited to businesses selling the types of used merchandise
which are typically targeted for theft and resale. The proposed zoning
would not regulate second hand book stores, clothing shops or
antique/second hand furniture stores. These premises would continue to
be permitted to devote their entire floor area to the sale of used
merchandise without falling within the "second hand store" use
definition. Other kinds of retail stores (new or used) would be allowed
to take out a business license to use up to 2.5 m› (approximately 25
sq.ft.) of display area to sell goods defined herein as "second hand",
without falling within the "second hand store" use definition. Appendix
A contains draft zoning amendments to define pawnshops and second hand
stores; to add these two uses as conditional approval uses in all
district schedules and official development plans where retail is
currently permitted; and to limit new development permits for these uses
to a one year time-limit. Development permits would have to be renewed
every year, to help ensure that new stores which create negative impacts
do not remain indefinitely.
Draft guidelines are proposed (Appendix B) which would set a minimum
radius of 90.0 m (about 300 ft.) from other pawnshops or second hand
stores in the downtown area. This could result in a maximum of about
one or two stores per block. Staff will report back on the conditions
under which these uses will be permitted in the HA-2 district as part of
the Gastown Land Use Plan. In all other areas of the city where retail
is permitted, the distancing requirement would be a 300.0 m (approx.
1,000 ft.) radius. This could result in a maximum of about one store
every other block. In addition, pawnshops or second hand stores would
not be permitted within a 300.0 m radius of SkyTrain stations outside
the downtown peninsula to help reduce the amount of property stolen in
one community and quickly transported and sold in another.
The proposed zoning amendments may have impacts on existing pawnshops
and second hand stores. In areas of high concentration, expansion or
significant renovation of existing stores may be precluded. Businesses
which must relocate due to termination of lease or other causes may be
unable to relocate in the same neighbourhood if other pawnshops or
second hand businesses are located within the distance specified in the
proposed Guidelines. However, the Guidelines would include specific
instructions to interpret distancing requirements flexibly where
existing businesses have not generated negative impacts or community
complaints.
INDUSTRY PERSPECTIVE
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Members of the B.C. Pawnbrokers Association are concerned about
potential hardship to existing legitimate pawnshops and second-hand
stores. In particular, where an existing lease is terminated, the
Association feels it may be difficult to relocate in the same area if
other pawnshops and second hand stores are located within the minimum
distance specified in the proposed guidelines. It has been suggested
that the recent proliferation of businesses has been mainly second hand
stores, and that therefore the proposed minimum distance should apply
between pawnshops, but not between a pawnshop and a second hand store.
The Association opposes defining a minimum radius around SkyTrain
stations, as their customers are primarily public transit users.
SOCIAL IMPLICATIONS AND IMPLICATIONS FOR CHILDREN
The proposals in this report will help reduce the negative impacts of
concentrations of pawnshops and second hand stores by limiting
opportunities to sell stolen property and thereby reducing localized
rates of theft and illegal drug transactions. Because it will be more
difficult to exchange stolen items for money, the proposed regulations
may also help dissuade some young people from participating in these
kinds of crimes.
DEVELOPMENT APPLICATION IMPLICATIONS
The proposed new definitions and introduction of additional conditional
approval uses with time-limited permits represents further incremental
complexity in our land-use regulations with additional
administrative/staffing workload in both initially processing new
conditional approval development applications and subsequent
applications for renewal of the time-limited approvals granted. As with
most previous amendments, the incremental complexity and workload are
marginal; however, the cumulative effects are significant and indicative
of the historical growth in land use and development regulations that
have created many of the problems the City is currently experiencing in
land use administration.
CONCLUSION
The proposals in this report have been discussed with the B.C.
Pawnbrokers Association and some groups in the downtown (see Appendix
'C'). Because of its city-wide implications and potential impacts on
other retail uses, this report should be discussed with interested
groups and individuals throughout the city prior to the proposed zoning
amendments being referred to public hearing.
* * * * * APPENDIX A
PAGE 1 OF 2
PROPOSED AMENDMENTS TO THE ZONING AND DEVELOPMENT,
OFFICIAL DEVELOPMENT PLAN AND PARKING BY-LAWS
TO REGULATE PAWNSHOPS AND SECOND HAND STORES
1. TO ADD DEFINITIONS FOR PAWNSHOP AND SECOND HAND STORE
(a) Amend Section 2 of the Zoning and Development By-Law by
inserting after the definition for "Neighbourhood Grocery
Store" the following new term and definition:
"Pawnshop, means the use of premises for the retailing of
goods and chattels in pawn.";
(b) Amend Section 2 by inserting after the definition for
"Retail Store" the following new term and definition:
"Second Hand Store, means the use of more than 2.5
m› of floor area in premises for the retailing of a) used
electronic equipment, including, but not limited to, audio
or video equipment or accessories, computers, printers or
fax machines, or b) two or more of the following types of
used merchandise: bicycles, sports equipment, jewellery,
cameras, musical equipment or tools.";
(c) Amend Section 2 (definition of Retail Store) as follows:
(Deleted text struck out. New text in italics.)
"Retail Store, which means the use of premises for the
retailing or renting of merchandise including that which
is manufactured on the premises, provided the total floor
area in manufacturing use does not exceed 300 m›, but does
not include any retail use otherwise listed in this
section 2 or included in a Manufacturing Use, a Wholesale
Use, or an Adult Retail Store; an Adult Retail Store, a
Pawnshop, or a Second Hand Store;" APPENDIX A
PAGE 2 OF 2
2. TO LIMIT THE SALE OF SECOND HAND MERCHANDISE IN RETAIL STORES.
Amend Section 10 of the Zoning and Development By-law by adding:
"10.22.2 Any retail store shall be permitted to use up to a
maximum of 2.5 m› of floor area of premises for the
retailing of a) used electronic equipment, including,
but not limited to, audio or video equipment or
accessories, computers, printers or fax machines, or b)
two or more of the following types of used merchandise:
bicycles, sports equipment, jewellery, cameras, musical
equipment or tools; provided that this floor area shall
be clearly demarcated and readily visible and
accessible to the public."
3. TO TIME-LIMIT DEVELOPMENT PERMITS FOR PAWNSHOPS AND SECOND HAND
STORES
Amend Section 10 of the Zoning and Development By-law by adding
the following new regulation:
"10.30 Pawnshop and Second Hand Store
10.30.1 Any development permit issued for a pawnshop or second
hand store shall be limited in time to one year."
4. TO ADD PAWNSHOP AND SECOND HAND STORE AS A CONDITIONAL USE IN ALL
C DISTRICTS, FM-1, FC-1, ALL HA DISTRICTS AND FCCDD, DD, CWD, AND
DEOD.
5. TO ADD PARKING STANDARDS FOR PAWNSHOPS AND SECOND HAND STORES.
APPENDIX B
DRAFT PAWNSHOP AND SECOND HAND STORE GUIDELINES
1. APPLICATION AND INTENT
These guidelines are to be used for development applications
involving pawnshops and second hand stores, including any
redevelopment of the premises.
2. LOCATIONAL CONSIDERATIONS
(a) A pawnshop or second hand store in DD, DEOD, HA-1, HA-1A,
HA-2, HA-3, FC-1, FCCDD, CWD and BCPED, should not be
located within a 90.0 m radius of an existing pawnshop or
second hand store.
(b) A pawnshop or second hand store in all other zones should
not be located within a 300.0 m radius of an existing
pawnshop or second hand store, or within a 300.0 m radius
of a SkyTrain station outside of the downtown peninsula.
(c) Where an existing pawnshop or second hand store wishes to
relocate at a distance from another pawnshop or second
hand store which is less than that specified in (a) or (b)
above, the lesser distance should not be considered where
negative impacts of the existing business is evidenced by
complaints from the public, police reports, or other
sources; where there have been no significant impacts, a
lesser distance may be considered where strict
interpretation of these guidelines would cause undue
hardship. APPENDIX C
PRELIMINARY COMMUNITY COMMENT
In preliminary discussions, residents in the Downtown Eastside have
expressed concern about the concentration of second hand stores and
pawnshops in their community. They would like to see no new stores and
stricter enforcement of existing stores. It has been suggested that new
licenses only be issued to non-profit societies. In addition, it has
been proposed that second hand stores be required to withhold payment to
sellers for a minimum 30-day period. The intent of this requirement
would be to reduce the supply of readily available cash which sustains
illegal drug purchases from the sale of stolen goods.
Members of the Gastown Historic Area Planning Committee (GHAPC) have
commented that pawnshops serve a valuable purpose for Downtown Eastside
residents and others, and that legitimate pawnshop operators should not
be impacted by the proposed zoning amendments. They feel that more,
rather than less, competition would eliminate the undesirable operators.
A particular concern has been expressed regarding the proposed one year
development permit for new pawnshops and second hand stores, which it is
feared would make bank financing unlikely for new businesses of this
nature, whether or not they are legitimate. GHAPC members have
expressed scepticism as to whether zoning is the appropriate mechanism
by which to reduce crime. They believe the problem is not the spacing
between the shops, but rather lack of effective enforcement mechanisms.
Members are also concerned that the proposed zoning and guideline
amendments could encourage problem establishments to locate on Water
Street, on which only one pawnshop is presently located. Suggestions
for enforcement include limiting the hours of operation for offending
businesses, and charging higher licensing fees to fund annual audits.
Committee members suggested that the City should find a way to terminate
an existing non-conforming land use upon revocation of the business
license for that address.