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TO: Mayor Thomas J. Weisner
FROM: Planning Commission
DATE: August 5, 2015
SUBJECT:
An Ordinance Approving an amendment to Ordinance Number 3100, entitled the Aurora Zoning Ordinance to modify certain portions of Sec. 19.2 Adoption, Sec. 3 Specific Rules, Sec. 4.3 Special Uses & Structures, Sec. 5.13 Off-Street Parking & Loading, Sec. 8.8-3.1.C-ii Standards, Sec. 10.5-3 Standard for variations, Sec. 10.6-5 Standards, Sec. 10.8-13 Standards, Sec. 11 Amendments, and Table One: Use Categories (City of Aurora - L15-00209 / KDWK-15.067-TXT - BW) (PUBLIC HEARING)
PURPOSE:
The main purpose of this proposed amendment is to modify certain portions of the Aurora Zoning Ordinance to place business establishments, commonly referred to as Alternative Financial Institutions (including payday loan stores, check cashing facilities, currency exchanges, title loan businesses, as well as pawnshops and cash-for-gold stores) as Special Uses in certain zoning districts. Additionally, there are proposed changes to the provisions regarding driveways, oversized vehicles and findings of facts.
BACKGROUND:
The City of Aurora has experienced a high density of alternative financial services locating within some of Aurora’s retail corridors. These establishments are commonly referred to as check cashing facilities, payday loan agencies, currency exchanges, title loan businesses, and the like. The use of these alternative financial services reduces the use of the more typical bank and financial institutions, which have regulations in place to protect consumers. The alternative financial institutions we are looking to regulate here can charge borrowers triple digit interest rates and can be damaging to families that live on the financial edge. But also important is that these type of uses do not meet the economic development goals that come with commercial development, and do not produce sales tax revenue. It has been shown that these alternative financial services have been grouping together along some of the City’s retail corridors, precluding orderly development in these commercial districts, impairing property values and being unreasonably detrimental to the general welfare of the community, in part due to the lack of regulation of these fast growing institutions. Alternative Financial Institutions do not include state or national banks, trust companies, savings and loans, US postal service, postal telegraph companies, western union credit unions, and the like.
DISCUSSION:
In Aurora the most prevalent areas for such uses are along Lake Street and East New York Street, however, they are also found in many other parts of town on a limited basis. In fact, there are eleven such uses located within less than a mile of a stretch on Route 31 (Lake Street). The City is anticipating that more of these Alternative Financial Institutions will follow in the future, given that these are currently permitted uses in all of the business districts.
Staff has researched the various zoning regulations as well as techniques to restrict these particular uses, including those that can apply to Aurora due to the characteristics with locating these uses in certain areas that are similar in nature.
Therefore, a text amendment is being proposed to further define these uses; creating a classification for these type of institutions different from financial institutions and requiring a special use permit with spatial separation requirements. The City’s experience with enacting zoning regulations on other uses that have had the ability to saturate commercial districts (such as drive-through and auto-related businesses), has shown that orderly development can occur while still allowing for a variety of commercial uses in a given district.
Arguments to regulate these uses are numerous, and a sample of reports on the subject are attached for review. But there have been arguments in support of such uses, which could provide services to those unable or unwilling to use traditional banking services, and that such institutions fill an economic niche and that banning them altogether may be counterproductive both to the people who use them and to the larger community. Therefore they are not being recommended for elimination and/or amortization.
Those existing as of the date of adoption shall be deemed legal non-conforming. By way of Special Use review procedures, conditions could be further placed on any Special Use Permit for these institutions including but limited to:
Parking requirements above those permitted in the district,
Reduction in window sizes (must be open to public view),
Hours of operation,
Security,
Signage - whether permanent and/or temporary,
Minimum size of establishment
There are also proposed modifications to the provisions regarding driveways and trailers. The proposed changes to Section 5.13-2.2.E are due to a discrepancy in the AZO, deterioration of gravel driveways/surfaces has not been well defined. Another section also allows for normal and customary repair and maintenance of a legal nonconforming structure. The changes to Section 5.13-3.8.C.iv are based on the fact that the most variances that have previously been granted on residential property have been regarding double axel trailers. There currently is no size limit for trailers on residential property. The Code allows a single axle, but not a double axel no matter the size. The recommended twenty foot (20’) size limit will be consistent with the most common size previously allowed with a single axle. The changes to Section 5.13-3.8.1.E.i.e will prevent any new driveways on current vacant lots or parcels and will allow for gradual removal of deteriorated driveways on said lots. This results from a case of a dilapidated gravel lot on a vacant lot adjacent to 12 N. Highland which was allowed to remain and be paved.
There are modifications proposed to the Findings of Fact sections to create more consistent standards by combining all the required findings in one section - Section 11.5-6.
Public Input: Due public notice was given for the public hearing on this matter. As of the date of this memo, staff has not received public inquiries regarding this petition.
RECOMMENDATIONS:
The Planning Commission recommends that these establishments be allowed by Special Use Permit only, in the City’s B-2, B-3, Downtown Core (DC) and Downtown Fringe (DF) Districts, and with a minimum spatial separation of 2,640 feet. Typical spatial separation requirements studied have been from 1,000 feet to a mile.
ATTACHMENTS:
Exhibit A - Text Amendment REDLINE
Qualifying Statement
ASF Zoning Laws Summary Communities
AFS Sample Report Summaries
ASF Legal Challenges
ASF Lake Street
ASF 800-900 N Lake Street
ASF Lake and Indian Trail
Controlling the Growth of Payday Lending Through Local
Payday Lending Protecting or Harming Consumers
cc:
Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Approving an amendment to Ordinance Number 3100, entitled the Aurora Zoning Ordinance to modify certain portions of Sec. 19.2 Adoption, Sec. 3 Specific Rules, Sec. 4.3 Special Uses & Structures, Sec. 5.13 Off-Street Parking & Loading, Sec. 8.8-3.1.C-ii Standards, Sec. 10.5-3 Standard for variations, Sec. 10.6-5 Standards, Sec. 10.8-13 Standards, Sec. 11 Amendments, and Table One: Use Categories
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Council finds that Alternative Financial Institutions are proliferating in Aurora, that said institutions are potentially predatory, particularly in their application of very high interest rates, that these institutions do not benefit economic development in Aurora and do not provide sales tax revenue, thereby warranting a significant separation between such institutions in our City; and
WHEREAS, the City Council of the City of Aurora has determined that it is necessary and desirable to amend Ordinance Number 3100, being the Aurora Zoning Ordinance, in order to update and improve certain Sections of said Ordinance to better carry out the purpose and intent of said Ordinance; and
WHEREAS, on August 5, 2015 the Aurora Planning Commission, after publication of notice, held a public hearing on the amendments to said Ordinance and recommended approval of the amendment attached hereto and incorporated herein and hereinafter referred to as Exhibit "A".)
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That the amendments to Ordinance Number 3100, being the Aurora Zoning Ordinance, are hereby adopted as set forth in said Exhibit “A”.
Section Two: That this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.
Section Three: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
Section Four: That any Section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions which shall remain in full force and effect thereafter.
PASSED by the City Council of the City of Aurora, Illinois, on ____________________ .
AYES______ NAYS______ NOT VOTING_______
APPROVED AND SIGNED by the Mayor of the City of Aurora, Illinois, on ___________.
__________________________
Mayor
ATTEST:
__________________________
City Clerk