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HomeMy WebLinkAbout31B - CHECK CASHING BUSINESS - 1647 EAST FIRST STREETREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 2, 2009 TITLE: VARIANCE NOS. 2009-03, 2009-05, 2009-06, 2009-07 AND 2009-09 AND CONDITIONAL USE PERMIT NO. 2009-15 TO ALLOW A CHECK CASHING BUSINESS AT 1647 EAST FIRST STREET, SUITE A - JC INTERNATIONAL „SERVICES, APPLICANT `~ L CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the staff report denying Variance Nos. 2009-03, 2009-05, 2009-06, 2009-07, 2009-09 and Conditional Use Permit No. 2009-15. PLANNING COMMISSION ACTION On October 12, 2009, the Planning Commission adopted a resolution denying Variance Nos. 2009-03, 2009-05, 2009-06, 2009-07, 2009-09 and Conditional Use Permit No. 2009-15 by a vote of 5:0 (Yrarrazaval absent) to not allow a check cashing facility in the General Commercial (C2) zoning district at 1647 East First Street, Suite A. The Planning Commission made no changes to the attached staff report (Exhibit A). FISCAL IMPACT There is no fiscal impact associated with this action. /~~ Ja Trevino Executive Director Planning & Building Agency MF:rb mf\reports\cup09-15va09-3,5,6,7&9 1647 E First Check Cashing.cc 31 B-1 31 B-2 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: OCTOBER 12, 2009 TITLE: PUBLIC HEARING - FILED BY JC INTERNATIONAL SERVICES FOR VARIANCE NOS. 2009-03, 2009-05, 2009-06, 2009-07 AND 2009-09 AND CONDITIONAL USE PERMIT NO. 2009-15 TO ALLOW A CHECK CASHING BUSINESS AT 1647 EAST FIRST STREET, SUITE A Prepared by Matt Foulkes ~~i~ Executive D' ctor RECOMMENDED ACTION Planning Commission Direction. DISCUSSION Request of Applicant PLANNING COMMISSION SECRETARY APPROVED ^ As Recommended ^ As Amended ^ Set Public Hearing For DENIED ^ Applicant's Request ^ Staff Recommendation CONTINUED TO ~~ Planning anager Ms. Maria Guererro, on behalf of JC International Services, is requesting approval of variances from the check cashing separation requirements, minimum lot size, building setbacks, landscaping and parking as well as a conditional use permit in order to operate a check cashing facility at 1647 East First Street, Suite A. Property Description The subject site is a 0.12 acre parcel of land located on the north side of First Street between Lyon and Mabury Streets. The site is currently developed with a 3,245 square foot multi-tenant commercial building. JC International Services occupies a 1,100 square foot tenant space within the building and provides a variety of financial services, including insurance, tax preparation and money wiring. The remainder of the building is currently vacant. The General Plan land use designation for this site is General Commercial (GC), and it is located within the General Commercial (C-2) zoning district. Surrounding land uses include residential to the north and a mixture of commercial and hotel uses to the east, south and west (Exhibits 1 and 2). EXHIBIT A 31 B-3 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 2 Project Description The applicant wishes to add check cashing as a service offered within the tenant space they occupy as JC International Services. The check cashing facility would occupy approximately 100 square feet of JC International's existing tenant space (Exhibit 3). There is an existing Conditional Use Permit for a check cashing facility within 1,000 feet of the applicant's proposed check cashing location, which does not comply with the separation requirement for check cashing facilities contained in the Santa Ana Municipal Code(SAMC). The applicant seeks relief from this requirement. In addition, the property has a number of non-conformancies for which the applicant is seeking several variances from the SAMC's development standards for C-2 properties. These variances include minimum lot size, building setbacks, landscaping and parking. Finally, the applicant is seeking a conditional use permit in order to allow a check cashing facility at the subject property. The applicant proposes to make minor interior modifications to accommodate the check cashing use and will also make a number of repairs to the site to address the existing non-conformancies and bring the site into closer compliance with the code. These repairs include: addition of a trash enclosure, re-striping the parking lot, removing security bars from the windows, installing landscaping by adding stone planter boxes and veneer along the base of the building, raising the parapet on the front portion of the building and installing a decorative cornice in order to screen existing roof mounted equipment, removal of a non-conforming projecting sign, relocation of the primary entrance and installation of new storefront glass (Exhibit 4). The proposed hours of operation for the check cashing business will be from 9:00 a.m. to 7:00 p.m., Monday through Friday and 9:00 a.m. to 5:00 p.m. on Saturday. Analysis of the Issues Background The applicant previously operated her business, JC International Services, including check cashing pursuant to an approved CUP at a leased tenant space located at 1620 East First Street, Suite E. In 2009, the applicant purchased the building located at 1647 East First Street and relocated JC International Services to the new location. Conditional Use Permits are said to "run with the land" and, as such, cannot be transferred to a new 31 B-4 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 3 property address. Therefore, when the applicant vacated the 1620 East First Street location, which had an approved CUP for check cashing, she was unable to reestablish this use at the new location of 1647 East First Street without the issuance of a new CUP for check cashing. The applicant then applied for a conditional use permit and variances in order to operate a check cashing facility at 1647 East First Street, Suite A. During the review of this application it was determined that the proposed check cashing facility would be within 1,000 feet of an existing approved check cashing facility and, as such, would be in violation of Section 41-374.5 of the Santa Ana Municipal Code which requires the 1,000 foot separation between check cashing businesses. The applicant was notified of this situation, but chose to pursue a variance application to seek relief from the separation requirement. Variance No. 2009-03, an application to vary from the separation requirement for check cashing establishments, was heard at the Planning Commission meeting of August 24, 2009. After a presentation outlining the staff recommendation of denial, testimony from the public and a discussion of the issues surrounding this project, the Commission voted to continue the item for 30-days to allow staff time to work with the applicant on the design and improvements to the building, analyze and bring forward for review the additional discretionary actions required for the project, develop appropriate conditions should the Commission move to approve the items and to gather further information regarding check cashing operations and the use of the Matricula Consular identification card. Due to the number and complexity of the each of the required discretionary actions surrounding this project, they have been identified and analyzed separately in the subsections that follow. Background on 1,000 Foot Separation Requirement and Check Cashing CUP Requirement The applicant is requesting relief from the separation requirement for check cashing facilities in the General Commercial (C-2) zone, as well as a CUP to allow for a new check cashing facility. In December 1999, Ordinance No. NS-2412 was adopted to require a conditional use permit for check cashing establishments. At that time the City was concerned with the recent proliferation of check cashing businesses in various retail centers citywide and the potential for criminal activity that can 31 B-5 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 4 be associated with this type of use. The primary goals of the ordinance were to require a separation between check cashing establishments to limit their numbers and to require a conditional use permit to review each request on an individual basis and apply appropriate conditions. Section 41-374.5 of the Santa Ana Municipal Code (SAMC) requires a minimum separation of 1,000 feet between check cashing facilities, as measured from property line to property line. This distance requirement was adopted by the City Council in 1999, as part of the ordinance that established the CUP requirement. Separation requirements are not unique to check cashing establishments and are used in several instances within the Municipal Code for uses that have been determined to have a negative impact to surrounding uses and/or that generate crime when they are located in dense quantities within a given area of the City. Off-site alcohol licenses for markets less than 20,000 square feet are an example of a use with a separation requirement. Similar to the rationale employed for check cashing establishments, it was determined that, based on studies performed by other jurisdictions and analyses of Santa Ana's crime statistics, an over concentration of small markets and liquor stores selling alcohol may create both visual blight and can lead to an increase in criminal activity. Another example is massage establishments which also have a 1,000 foot separation requirement from both other primary massage establishments, as well as adult entertainment uses. Again, similar to check cashing businesses, it was determined that, while the use itself does not necessarily result in negative impacts to the surrounding area, the over proliferation of the use may cumulatively have a negative impact. Existing Status of Check Cashing Facilities within 1,000 Feet of JC International Services Business license and Certificate of Occupancy records applicant was approved to operate an office use at 1620 Suite E in 2000. In 2002, the applicant applied Conditional Use Permit No. 2002-23 to operate a check this location. JC International Services' proposal t East First Street places them 110 feet from their 1620 East First Street. JC Check and Cash, which wa the applicant, was located within the commercial c side of First Street. Although JC Check and Cash move to its new location at the subject site, the con indicate that the East First Street, for and received cashing facility at o relocate to 1647 former location at s also operated by enter on the south closed in order to ditional use permit 31 B-6 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 5 that was approved at 1620 East First Street, Suite E remains valid at the current property and allows another check cashing business to occupy the space within a one year time period. On September 28, 2009, Cash Multi-Service submitted a Certificate of Occupancy and business license application to open a new check cashing facility in Suite E. Cash Multi-Service is able to utilize the existing conditional use permit and begin operating under the original conditions of approval without any further discretionary actions or public hearing. Although Cash Multi- service currently operates as a money transfer business, following the approval of a check casher's license by the state, they will begin the check cashing component of the business without any additional City review. This new check cashing facility eliminates the possibility that the applicants' previous site will remain vacant or utilized for a business other than a check cashing facility, further intensifying the number of check cashing facilities in the area. Background on Check Cashing Facility Services and Commercial Bankin Services The check cashing industry is regulated by the State of California and permits are issued from the Check Casper Permit Program through the Attorney General's Department of Justice. A permit is required for each check cashing establishment and is valid for one year. Although it may be renewed annually, a permit can also be revoked if the applicant violates the provisions or regulations of the check casher permit. Additionally, Section 1789.35 of the California Civil Code regulates the fee amounts that can be charged for the cashing of a check. Up to a three percent fee can be charged to cash a payroll or government check if identification is provided by the customer, or three and a half percent without identification. For personal checks, the check cashing business may charge up to 12 percent. If a customer feels that they have been charged fees in excess of those allowed by law, they may contact the California Department of Justice. Check cashing facilities provide a variety of financial services similar to commercial banking institutions with one important difference being a requirement for identification. Commercial banking establishments typically require two forms of identification to open new accounts. Until recently, this identification requirement meant that foreign nationals who hold valid identification other than a California Driver's License, Social Security Number or a United States Visa or Passport had to seek out alternative banking options. Several commercial banks, 31 B-7 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 6 including Bank of America, Bank of the West, JP Morgan Chase, Union Bank and Wells Fargo, now accept Consular Identification cards issued by foreign governments such as the Matricula Consular issued by the Government of Mexico as one form of valid identification. This practice was authorized by the United States Treasury Department as part of the mandate that banking establishments require valid identification from those wishing to open new accounts pursuant to the provisions of the U.S. Patriot Act. Once an account is established, the bank customer is eligible for all check cashing services provided by that bank. In December, 2008 Governor Schwarzenegger launched the "Bank on California" program to increase the number of Californians with bank accounts. According to the Office of Planning and Research, one in five Californians do not have a checking account, and will spend up to five percent of their annual income cashing checks each year. Currently, of Santa Ana's 60 banks and credit unions, 30 have already signed on to accept Consular Identification cards (Exhibit 5). Additionally, on August 26, 2009, Mayor Pulido sent a letter to various banks within Santa Ana to encourage them to join the "Bank on Santa Ana" program and begin to accept Consular Identification cards as a valid form of identification. This recent push for additional banks and credit unions to begin accepting the Consular card as a valid form of identification will likely result in an increase in that number. The opening of an account with a commercial bank or credit union is often the first step towards establishing a credit history and provides a free or low-cost way to begin saving money for the future, in addition to allowing wage earners to keep more of their paychecks. Availability of Check Cashing and Banking Services in the Area In addition to Cash Multi-Service, there are six other check cashing businesses located within a one mile radius of the project site that provide the same or similar financial services as the proposed facility. Excluding Cash Multi-Service, the next nearest check cashing facility is located approximately 1,631 feet from the subject property at 1325 East First Street, with another facility located 2,165 feet from the subject property at 218 North Grand Avenue (Exhibit 6). There are also five commercial banks within the one-mile radius of the proposed check cashing facility and two additional banks just outside of the one-mile radius ring. The following table lists these banks and their current ability to use Consular identification. They are arranged in order of proximity to the subject address. 31 B-8 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 7 Bank Name Address Accepts Consular ID Citizens Bank 2000 East Fourth St., Suite 100 No Mutual Diversified FCU 2030 East Fourth St., Suite 100 No Community Commerce Bank 17332 Irvine Blvd., #125, Tustin No Wells Fargo Bank 1801 East Seventeenth St. Yes Bank of America 2000 East Seventeenth St. Yes Union Bank 1935 East Seventeenth St. Yes Bank of America 2127 East Seventeenth St. Yes General Plan Land Use Policy 2.2 was established to promote commercial land uses in adequate amounts to accommodate the City' s needs for goods and services. Staff's analysis of the availability of check cashing and commercial banking facilities within the study area indicates that the community has adequate access to such facilities. Process to Vary From Separation Requirements In seeking to reestablish the proposed check cashing facility, the applicant is seeking relief from the 1,000 foot separation requirement. The tool proposed to accomplish this request is the variance. Variances, by definition, are designed to allow relief from development standards due to a physical constraint that exists on the property. Such physical constraints relate to the size, shape, topography, location or surroundings of the property. Further, the separation requirement is not a development standard. As stated in SAMC Section 41-374.5, locating a check cashing facility within 1,000 feet of another such facility is strictly prohibited. As such, the findings that are required in order to substantiate the need for a variance cannot be made in cases with a separation requirement. In order to allow this application to deviate from the separation requirement, an amendment to the Santa Ana Municipal Code would be required. This amendment would alter the separation requirements for check cashing facilities to either no longer require a 1,000 foot separation, or to create an exemption process, with objective, quantifiable criteria, for cases when the separation requirement would not apply. This zoning ordinance amendment would require the approval of both the Planning Commission and City Council before going into 31 B-9 VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 8 effect and would also require the continuance of the subject applications until the new regulations go into effect. This same process could also potentially apply to other uses, such as alcohol sales, that have separation requirements. Site Variances Part of the analysis for all conditional use permits is to determine if the project is in compliance with all applicable sections of the Municipal Code. Both the lot size and the existing buildings location result in the site's nonconformance with several development standards within the General Commercial (C-2) zoning district. These nonconformities include: lot size, building setback, landscaping and parking. As no modifications to the building footprint are proposed, variances will be required from each of these development standards in order to comply with the Municipal Code. Although the site's existing conditions prevent the applicant from complying with the development standards in the General Commercial (C-2) zone, the applicant is proposing several improvements to bring the site into closer compliance, including the restriping of the parking lot to meet City standards and the installation of landscape planter boxes adjacent to the building. The addition of check cashing at this site will be incorporated into the existing building footprint and will not increase the amount of required off-street parking, however; the addition of a check cashing use within this space will likely result in an increased number of patrons, which will further exacerbate an already under parked site. Conditional Use Permit Staff has analyzed each of the required discretionary actions and is unable to make the necessary findings to recommend approval of this project. Based upon the analysis of the project and the project's incompatibility with the City's General Plan, applicable development standards, and proximity to other check cashing and banking institutions, staff recommends that the Planning Commission deny Variance No. 2009-03, Variance No. 2009-05, Variance No. 2009-06, Variance No. 2009-07, Variance No. 2009-09 and Conditional Use Permit No. 2009-15 (Exhibits 7 through 12) . 31 B-10 VA Nos. 2009-03, CUP No. 2009-15 October 12, 2009 Page 9 CEQA Compliance 05, 06, 07 & 09 In accordance with the California Environmental Quality Act, the proposed project is exempt from CEQA review per Section 21080(5). This subsection applies to projects in which the public agency disapproves of the request. Should the project ultimately be approved, further environmental review may be required. Environmental Review No. 2007-102 will be filed for this project. ~~~ Matt Foulkes, LEED AP Assistant Planner I MF: jm mf\reports\cup09-15va09-3,5,6,7&9 1647 E First Check Cashing.pc /~_ Vince Fregoso, CP Principal Planner 31 B-11 Al GENERALAGRICULTURAL -B PARKING MODIFICATION C1 COMMUNITY COMMERCIAL C1-MD COMMUNITY COMMERCIAL-MUSEUM DISTRICT C2 GENERAL COMMERCIAL C3 CENTRAL BUSINESS C3-A CENTRAL BUSINESS-ARTISTS' VILLAGE C4 PLANNED SHOPPING CENTER C5 ARTERIAL COMMERCIAL CR COMMERCIAL RESIDENTIAL C-SM SOUTH MAIN STREET COMMERCIAL DISTRICT -F FLOOR AREA RATIO GC GOVERNMENT CENTER M1 LIGHT INDUSTRIAL M2 HEAVY INDUSTRIAL MO MILITARY OPERATIONS 0 OPEN SPACE -OZ OVERLAY ZONE P PROFESSIONAL PCD PLANNED COMMUNITY DEVELOPMENT PD PLANNED DEVELOPMENT PRD PLANNED RESIDENTIAL DEVELOPMENT R1 SINGLE-FAMILY RESIDENCE R2 TWO-FAMILY RESIDENCE R3 MULTIPLE-FAMILY RESIDENCE R4 SUBURBAN APARTMENT RE RESIDENTIAL ESTATE SD SPECIFIC DEVELOPMENT SP SPECIFIC PLAN VAR 09-3 JC INTERNATIONAL SERVICES - CHECK CASHING ~' 1647 EAST FIRST STREET, SUITE A - - =500 FEET 1" = 1000 FEET P L A N N I N G A N D B U I L D I N G A G E N C Y VICINITY MAP 1~! 1 I N D U S T R I A L ' MARK STREET O j ~ PROJECT N W SITE ~' VACANT C M ERCIAL H O T E L N H O T E L ~ , ~'~'~ m , ~ a .1 r~ ~ C5 G FIRST STREET PARK Z J Z C O M M E R C I A L ~ J J H O T E L W OFFICES OFFICES VAR 09-3 T~ JC INTERNATIONAL SERVICES ....~~... CHECK CASHING ~' 1647 EAST FIRST STREET, SUITE A P L A N N I N G A N D B U I L D I N G A G E N C Y W J F F I C E S W J Z W J H O T E L J LAND USE MAP 3 ~'~~B'~T~ u° (E) CMU wall. ELEC. PANEL ~a D Existing ofice rentai( UNIT "B,. (E) CMU wall. -~ ~¢ Existing office rentail STORAGE ~,,,~-~~ AREA NEW PLANTER NEW 1RASF3 ENCLOSURES r~~~ r 3 F.~~. Trxisting office rentail UNIT "A" ~ \ E%l9[ ~. Ing ~Om ~ O ~~ I .-PARKING LOT STRIPED ~ PER CITY STANDARDS ~ g A 3 5 "' / ~`~ ~ ~ \ v ~~ O 2 J ~ EXISTING S PAR KI NG CASHER ROOM i~~ O ^ / \ ~ J~ V C (E) (~ CL -~` 2'-9" ~ 2'-9" ~2'-9~ 2'-9" ~ 3' NEW PLANTER 12'x" (E) CONC. ~ SIDEWALK. NOTE EXIT DR SHALL BE OPENABLE FROM THE INSIDE W/O THE USE OF KEY OR ANY SPECIAL KNOWLEDGE OR EFFORT. EXHIBIT 3 31 B-14 (E) CONC. SIDEWALK. u I EAST 1st. ST 11- ~i U U O cis a~ E.u a~ L ,~,... L li 'I ;, ~. ;~ ~~ ~~~ E, `~... O ~~ ~= ~~ , ~. > a~ ~r ' ~. 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'~ a Q a a ~ U t z ~ ~ ¢ ' 3`_'} a a U U O Page 2 of 2 31 B-17 N H v 3 ~o C O .~ U Y C (p m v L a-~ v n U _~ C O U cv 7 v ~L to fl. a~ U U f0 ;-+ C N L L U s Y C f0 .Q H v a-+ O C dl 3 m z n ~° 3r n ~ M ~ l~~' ~ a U _~~~ A i-- ~ ~~~~ ~ ~~~~ _ _ ~ ~ ~_ _ ~ Atl NI1S~1 _.i ~ ~- i ~~ _i i i `' 210 HaVd OIIRl9tl~ n ~ Q' ~~~ a Q~ ?P t~n yP?,`Q' ~ ~. AV ONVMJ ONVM'J M h F=- > ~ ~ Q Q Z ~ ~ 2 ~ ~ LL _ ~ Q j O ~ < ~~ + ~ ~ U C,np Z w~ > ^ < Y ~ o ~ ~ C ~ O ~< y L L U c ~L+ ~ ~ W ~ ~aonN ~ yo~c n ~ ~ ~ vi ~ C 0 0 ~O O~`"LLI~'J ~.N..m 7 W W=W f1) C ~ ~ O ~ C +.~ ~ Os ~; O N O ~~ ~C9 eo A Z .- O m OO L 1~ W 'O ~ mH <o~n W t7 O O a U i u>" a0 O .. U1 ~ ~ d C U o ~ ~ lL O U Y ~ m ~7.f ` Z ~ ,V ~ W~ t1 i< « A ~ ~vV Lea OyLL m~ < `WN ~~ C l0M N N G N ~'' N J - V _ N C O .~.. L R 0 o y < f E ~ -~ U m < (j ~ fn Z ~ O ++ 'C L L O O ai N ~ °° ° E '~ E ~ m C ai ~ _ _ C W ~ o Q C1 =' U y C U ~Y- YzY y y~ ~~ V L u cp N w m w ~ C ~ ' Z a ° ° ~~ E- a Y Q Y U W i ~ ~ ~ O tULLU~VUU cV~ O~"~3m7'm ~O V ~-_~ - " ~ N "' a "' " ~ "~'" °~'~ ~ - -a ° EX HIBIT 6 r 1 Variance No. 2009-03 October 12, 2009 Page 1 of 2 Findings of Fact - 1,000 foot separation requirement (deny) A. That because of special circumstance property, including size, shape, surroundings, the strict application of to deprive the subject property of variance with the intent and purpose chapter. s applicable to the subject topography, location or the zoning ordinance is found privileges not otherwise at of the provisions of this The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. No special circumstances applicable to the subject project exist to justify the granting of this variance. B. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. C. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. EXHIBIT 7 31 B-19 Variance No. 2009-03 October 12, 2009 Page 2 of 2 D. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance and subsequent conditional use permit will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-20 Variance No. 2009-05 October 12, 2009 Page 1 of 2 Findings of Fact - Building Setback (deny) A. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. B. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. C. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. EXHIBIT 8 31B-21 Variance No. 2009-05 October 12, 2009 Page 2 of 2 D. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-22 Variance No. 2009-06 October 12, 2009 Page 1 of 2 Findings of Fact - Lot size requirement (deny) A. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. B. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. C. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. EXHIBIT 9 31 B-23 Variance No. 2009-06 October 12, 2009 Page 2 of 2 D. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-24 Variance No. 2009-07 October 12, 2009 Page 1 of 2 Findings of Fact - Landscaping (deny) A. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. B. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. C. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The approval of this welfare by intensify into compliance with lack of landscaping the property which property values. variance will be detrimental to the public ing the use of the site without bringing it the minimum landscape standards. The sites contributes to the general degradation of has the potential to affect surrounding EXHIBIT 10 31 B-25 Variance No. 2009-07 October 12, 2009 Page 2 of 2 D. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-26 Variance No. 2009-09 October 12, 2009 Page 1 of 2 Findings of Fact - Parking (deny) A. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. B. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. C. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. Further, allowing an additional use on this site will further intensify the lack of off-street parking. EXHIBIT 11 31 B-27 Variance No. 2009-09 October 12, 2009 Page 2 of 2 D. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-28 Conditional Use Permit No. 2009-15 October 12, 2009 Page 1 of 2 Findings of Fact (Conditional Use Permit - Deny) A. Will the proposed use provide a service or facility which will contribute to the general well being of the neighborhood or community? The addition of another check cashing business in this area will not contribute to the general well being of the neighborhood or community. An Office of Planning and Research study regarding check cashing concluded that the average check cashing business patron will spend up to five percent of their annual income paying fees to cash checks when most commercial banks will offer this service for free or reduced rate. Additionally, there is another check cashing facility proposing to operate in the adjacent center and there are six other check cashing faculties within a one-mile radius of the proposed facility that offer similar or the same financial services. The existing check cashing facilities sufficiently meet Policy 2.2 of the Land Use Element which encourages commercial land uses in adequate amounts to accommodate the City's needs for goods and services. B. Will the proposed use under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity? The proposed conditional use permit for the check cashing business will be detrimental to persons residing or working in the area as check cashing establishments have been associated with a variety of illicit activities. C. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The check cashing business will negatively affect the economic stability of the surrounding area by adding a use that has been known to attract illicit activity. When the City Council modified the Santa Ana Municipal Code to allow check cashing facilities with a conditional use permit, one of the development standards was to require a 1,000 foot separation between facilities. This separation requirement was implemented as a result of concerns regarding the over proliferation of check cashing businesses and the potential for illicit activity that is associated with this use. ai~"R§" Conditional Use Permit No. 2009-15 October 12, 2009 Page 2 of 2 D. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? The proposed check cashing business does not meet several of the development standards specified in Chapter 41 of the Santa Ana Municipal Code including: lot size, parking, building setbacks, landscaping and separation requirements for check cashing facilities in the commercial zone. Variances from each of these standards will be required in order for the project to comply with Chapter 41 of the Municipal Code. E. Will the proposed use adversely affect the General Plan or any specific plan of the City? The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance and subsequent conditional use permit will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. 31 B-30 bk:10/26/09 RESOLUTION NO. 2009-11 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA DENYING CONDITIONAL USE PERMIT NO. 2009-15 AND VARIANCE NOS. 2009-03, 2009-05, 2009-06, 2009-07 AND 2009-09 SEEKING TO ESTABLISH A NEW CHECK CASHING FACILITY FOR THE PROPERTY LOCATED AT 1647 EAST FIRST STREET, SUITE A BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Applicant is requesting approval of a variance to city standards needed to establish a new check cashing facility at 1647 East First Street, Suite A. B. Variance No. 2009-03, came before the Planning Commission of the City of Santa Ana for a duly noticed public hearing on August 24, 2009. Following public testimony, the matter was continued by the Planning Commission to October 12, 2009, and staff was directed to return at that time with all needed discretionary actions. C. Conditional Use Permit No. 2009-15 and Variance Nos. 2009-03, 2009-05, 2009-06, 2009-07 and 2009-09 have been filed with the City of Santa Ana seeking a variance to city standards, specifically the standard that check cashing facilities must be located at least 1,000 feet apart, needed to establish a new check cashing facility at 1647 East First Street, Suite A. Section 41-374.5 of the Santa Ana Municipal Code requires a minimum separation of 1,000 feet between check cashing facilities, as measured from property line to property line. The proposed site is 110 feet from a site with an approved conditional use permit to operate as a check cashing facility. In addition, the property has a number of non-conformities for which the applicant is seeking several variances from the Municipal Code's development standards for C-2 properties. These variances include minimum lot size, building setbacks, landscaping and parking. Finally, the applicant is seeking a conditional use permit in order to allow a check cashing facility at the subject property. D. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a variance to the 1,000 foot separation requirement between check cashing facilities upon making certain findings. Resolution No. 2009-11 Page 1 of 9 31B-31 That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of provisions of this Chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over-proliferation within the City's commercial areas. No special circumstances applicable to the subject project exist to justify the granting of this variance. 2. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. 3. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. 4. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Resolution No. 2009-11 Page 2 of 9 31 B-32 Additionally, the approval of this variance and subsequent conditional use permit will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. E. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a variance to the building setback requirement for check cashing facilities upon making certain findings. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over- proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. 2. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. 3. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second Resolution No. 2009-11 Page 3 of 9 31 B-33 check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. 4. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. F. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a variance to the landscape standards for check cashing facilities upon making certain findings. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over- proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. 2. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. Resolution No. 2009-11 Page 4 of 9 31 B-34 3. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The approval of this variance will be detrimental to the public welfare by intensifying the use of the site without bringing it into compliance with the minimum landscape standards. The sites lack of landscaping contributes to the general degradation of the property which has the potential to affect surrounding property values. 4. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. G. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a variance to the parking standards for check cashing facilities upon making certain findings. That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this chapter. The subject site is located within 110 feet of an existing entitled check cashing facility which directly violates the purpose and intent of Ordinance No. NS-2412 which was to require a 1,000 foot separation between check cashing facilities in order to prevent their over- proliferation within the City's commercial areas. The existing building may be utilized for a number of office and service uses without any additional discretionary actions. No special circumstances applicable to the subject project exist to justify the granting of this variance. 2. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of this variance would allow the property owner the ability to operate a check cashing business at this location; however, Resolution No. 2009-11 Page 5 of 9 31 B-35 the property's location within the General Commercial (C-2) zoning district allows a variety of office and retail uses which are unconditionally permitted in this zone and similar in nature to the proposed use. 3. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The Santa Ana Municipal Code was amended in 1999 to require a 1,000 foot separation between check cashing facilities as a way to prevent the over proliferation of this type of use and the potential for illicit activity associated with check cashing uses. The approval of this variance and subsequent conditional use permit has the potential to be detrimental to the public welfare in that by allowing a second check cashing facility within 1,000 feet of another facility will only increase the potential for illicit activity. Further, allowing an additional use on this site will further intensify the lack of off-street parking. 4. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. H Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a conditional use permit upon making certain findings. Will the proposed use provide a service or facility which will contribute to the general well being of the neighborhood or community? The addition of another check cashing business in this area will not contribute to the general well being of the neighborhood or community. An Office of Planning and Research study regarding check cashing concluded that the average check cashing business patron will spend up to five percent of their annual income paying fees to cash checks when most commercial banks will offer this service for free or reduced rate. Additionally, there is another check cashing facility proposing to operate in the adjacent center Resolution No. 2009-11 Page 6 of 9 31 B-36 and there are six other check cashing faculties within aone-mile radius of the proposed facility that offer similar or the same financial services. The existing check cashing facilities sufficiently meet Policy 2.2 of the Land Use Element which encourages commercial land uses in adequate amounts to accommodate the City's needs for goods and services. 2. Will the proposed use under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity? The proposed conditional use permit for the check cashing business will be detrimental to persons residing or working in the area as check cashing establishments have been associated with a variety of illicit activities. 3. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The check cashing business will negatively affect the economic stability of the surrounding area by adding a use that has been known to attract illicit activity. When the City Council modified the Santa Ana Municipal Code to allow check cashing facilities with a conditional use permit, one of the development standards was to require a 1,000 foot separation between facilities. This separation requirement was implemented as a result of concerns regarding the over proliferation of check cashing businesses and the potential for illicit activity that is associated with this use. 4. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? The proposed check cashing business does not meet several of the development standards specified in Chapter 41 of the Santa Ana Municipal Code including: lot size, parking, building setbacks, landscaping and separation requirements for check cashing facilities in the commercial zone. Variances from each of these standards will be required in order for the project to comply with Chapter 41 of the Municipal Code. 5. Will the proposed use adversely affect the General Plan or any specific plan of the City? Resolution No. 2009-11 Page 7 of 9 31 B-37 The granting of the variance will adversely affect the City's General Plan by opposing several of the General Plan Land Use policies, including Policy 2.2 by allowing an additional conditionally permitted use in an area which is already accommodated by an adequate amount of banking services. Additionally, the approval of this variance and subsequent conditional use permit will oppose Land Use Policy 2.9 which supports developments that create a business environment that is safe and attractive, while check cashing facilities have been known historically to be locations of illicit activity. In accordance with the California Environmental Quality Act, the proposed project is exempt from CEQA review per Section 21080(5). This subsection applies to projects in which the public agency disapproves of the request. Should the project ultimately be approved, further environmental review may be required. Environmental Review No. 2009-102 will be filed for this project. Section 2. The Planning Commission, after conducting the public hearing and being fully advised, hereby denies Conditional Use Permit No. 2009-15 and Variance Nos. 2009-03, 2009-05, 2009-06, 2009-07 and 2009-09 for the property located at 1647 East First Street, Suite A. This decision is based upon the evidence submitted at the above said hearing, which includes but is not limited to: the Requests for Planning Commission Action dated August 24, 2009 and October 12, 2009 and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. ADOPTED this 12th day of October, 2009 by the following vote: AYES: Commissioners: Alderete, Betancourt, Gartner, Leo, Turner (5) NOES: Commissioners: None (0) ABSENT: Commissioners: Yrarrazaval (1) ABSTENTIONS: Commissioners: None (0) Christopher Leo Chairman Resolution No. 2009-11 Page 8 of 9 31 B-38 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Martha Ramirez, Planning Commission Secretary, do hereby attest to and certify the attached Resolution No. 2009-11 to be the original resolution adopted by the Planning Commission of the City of Santa Ana on October 12, 2009. Date: Planning Commission Secretary City of Santa Ana Resolution No. 2009-11 Page 9 of 9 31 B-39 31 B-40