P2
POLICY REPORT
BUILDING & DEVELOPMENT
Date: April 9, 1996
Dept. File No. VAI
TO: Vancouver City Council
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 the Director of Land Use and Development make application
to amend the Zoning and Development By-law and relevant
Official Development Plans, generally in accordance with
Appendix A, to:
1. Define "pawnshop" and "second hand store";
2. Permit pawnshops and second hand stores in zoning
districts which permit retail uses; and
3. Permit pawnshops and second hand stores for a period of
time limited to one-year.
FURTHER THAT the Director of Legal Services prepare the
necessary by-laws.
AND FURTHER THAT the applications and draft by-laws be
referred to Public Hearing.
B. THAT if approved at Public Hearing, the by-laws be accompanied
at the time of enactment by the "Pawnshop and Second Hand
Store Guidelines" to be adopted by resolution of Council,
which would prescribe a minimum distance of 300 m between a
pawnshop or second hand store and any existing pawnshop or
second hand store, and a minimum distance of 300 m from
Skytrain stations outside the Downtown peninsula.
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 the location of these uses.
- On March 14, 1996, Council approved amendments to the Second Hand
Dealers By-law to make it more difficult to sell stolen property in
pawnshops and second hand stores.
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 development permits for these uses are issued.
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
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 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,
luggage, 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.
During the previous three years, there has been a significant increase
in the number of pawnshops and second hand stores. These stores have
concentrated in certain areas (see map - Appendix C), 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.
Since January of this year, the City has received 10 applications for
business licenses for new pawnshops and/or second hand stores. Three of
these are in the Downtown Eastside.
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 response to these concerns, on March 14 1996, Council approved
amendments to the Second Hand Dealers By-law to make it more difficult
to sell stolen property in second hand stores and pawnshops. It also
received, for information, proposed regulations to limit the location of
pawnshops and second hand stores. Staff were instructed to report back
after reviewing the proposed amendments with interested members of the
public. Staff have completed public consultation, and have made some
adjustments to the proposed regulations contained in the Policy Report
dated March 5, 1996.
DISCUSSION
The proposed zoning amendments are intended to augment the amendments to
the Second Hand Dealers By-law contained in the 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 clustered.
2. Prevent these uses from clustering in other locations.
3. Reduce concentrations over time by the gradual attrition of
non-conforming businesses.
4. Limit development permits to a 1-year period.
Definitions
Pawnshops and second hand stores are currently permitted as a general
retail use in all retail districts. To regulate their location, staff
propose defining them as separate uses as shown in Appendix A.
The proposed definition of "second hand store" is narrower than the
definition in the Second Hand Dealers By-law. The zoning definition is
limited to businesses selling the types of used merchandise which are
typically targeted for theft and resale. Despite the potential for
confusion, a narrower zoning definition would minimize hardship on
legitimate businesses which sell used merchandise. Thus, the proposed
zoning would not regulate the location of second hand stores primarily
selling second hand books, clothing or furniture. Other kinds of retail
stores (new or used) would be allowed to take out a business license to
use up to 2.5 m2 (approximately 25 sq.ft.) of display area to sell used
electronic equipment, jewellery, etc., without falling within the
"second hand store" zoning definition.
Appendix A contains draft zoning amendments to add pawnshops and second
hand stores as conditional uses in all district schedules and official
development plans where retail is currently permitted, except HA-2; and
to limit new development permits for these uses to a one year period of
time. Development permits would have to be renewed every year, to help
ensure that new stores which create negative impacts do not remain
indefinitely. This will cost applicants a fee of approximately $620 to
$1,240 per year for a typical 3,000 or 6,000 sq. ft. storefront.
Distancing
Draft guidelines are proposed for new pawnshops and second hand stores
(Appendix B) which would set a minimum radius of 300.0 m (about 1,000
ft.) from other pawnshops or second hand stores. This could result in a
maximum of about one store every other block. Staff had originally
proposed a lesser distance of 90.0 m (approximately 300 ft.) in the
downtown area. This would have allowed one or two stores per block;
however, community response from downtown businesses and residents
favoured the greater distance city-wide. In addition, pawnshops or
second hand stores would not be permitted within a 300.0 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 distance can be relaxed where, in the
opinion of the Director of Planning, the proposed use is unlikely to
generate negative impacts; for example, where a non-profit organization
wishes to open a thrift store for the sale of donated
goods. The distance may also be relaxed where a community requests that
a lesser distance be approved as part of a business development
strategy.
Existing Stores
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. In
addition, businesses which must relocate due to termination of lease or
other causes may be unable to relocate in the same neighbourhood, if
they are located within 300 m of other pawnshops or second hand
businesses. However, this may be relaxed where existing businesses
have not generated negative impacts, evidenced by community complaints,
police records, or other sources (Appendix B).
Gastown
On March 14, Council approved a recommendation that staff report back on
the conditions under which these uses should be permitted in the HA-2
district as part of the Gastown Land Use Plan. Until this is done, no
new second hand stores or pawnshops will be permitted and existing ones
will become non-conforming.
COMMUNITY COMMENT
On March 21 1996, a public meeting was held at the Carnegie Community
Centre, where residents in the Downtown Eastside 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. Residents also requested that
the minimum distance for the downtown peninsula be at least the same as
that proposed for the rest of the city (300.0 m.).
At a January 10th meeting of the Strathcona Residents Association it was
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. However, the B.C.
Pawnbrokers Association believes this would simply divert trade from
second hand stores to pawnshops or other locations such as pubs. Staff
feel that prescribing a lesser time period, for example one day, may
warrant further discussion; however, because of potential legal and
enforcement implications, staff are not recommending such a measure at
this time.
Staff distributed a letter to most community groups and business
organizations throughout the city, outlining the proposals in the March
5, 1996 Report, and indicating how groups could obtain further
information. Eight people attended a public meeting on March 26, 1996,
at the Mount Pleasant Community Centre. Representatives of the
Granville Downtown South Business Association and the Mount Pleasant
Commercial Improvement Society expressed concerns about negative impacts
that the growing concentration of problem stores have had on their
business improvement efforts. They expressed support for the proposed
regulations and agreed that the minimum distance between shops downtown
should be 300 m, as proposed for the rest of the city.
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 legitimate businesses.
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 move to Water Street, on which only one pawnshop is
presently located. Similar comments have been made by other members of
the public who are concerned that pawnshops and second hand stores may
now be forced to locate in neighbourhoods where previously there have
been none. GHAPC suggested alternative enforcement measures such as
limiting the hours of operation for offending businesses, and charging
higher licensing fees to fund annual audits. Committee members also
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.
INDUSTRY PERSPECTIVE
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 many of their customers use
public transit. Similarly, they feel that dispersing shops will only
make it inconvenient for their customers, and make enforcement
physically more difficult.
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 industry
representatives, neighbourhood business associations, community groups,
and residents in affected areas. There is generally strong support for
the City's effort to deal with pawnshops and second hand stores that
sell stolen goods. In response to public input, staff have increased
the proposed minimum distance between shops in the downtown to a radius
of 300 m (approximately 1,000 ft.) to match the distance proposed for
the rest of the city. Also, the circumstances under which the
distancing guidelines could be relaxed in specific instances have been
more fully spelled out. Staff will monitor the operation of the zoning
amendments and will report back with modifications if necessary.
* * *
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
m2 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, luggage,
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 m2, 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;"
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 m2 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, luggage, 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, HA-1, HA-1A, HA-3, HA-4 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 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.
(b) 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) above,
a 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.
(c) Where a new pawnshop or second hand store wishes to locate
at a distance from another pawnshop or second hand store
which is less than that specified in (a) above, a lesser
distance may be considered where:
(i) a community requests that a lesser distance be
permitted as part of a business improvement
strategy, and in the opinion of the Director of
Planning, the proposed use is unlikely to generate
negative impacts; or
(ii) an applicant requests that a lesser distance be
considered and, in the opinion of the Director of
Planning, the proposed use is unlikely to generate
negative impacts.