PC Res 4258RESOLUTION NO. 4258
BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CAMPBELL RECOMMENDING THAT THE CITY COUNCIL
ADOPT AN ORDINANCE APPROVING A TEXT AMENDMENT TO
AMEND THE FOLLOWING TO THE CAMPBELL ZONING CODE:
CHAPTER 21.10 (COMMERCIAL AND INDUSTRIAL DISTRICTS);
CHAPTER 21.12 (SPECIAL PURPOSE DISTRICTS); SECTION
21.72.020 (DEFINITIONS); AND CHAPTER 21.36 PROVISIONS
APPLYING TO SPECIAL USES) TO CREATE REGULATIONS FOR
PAYDAY LENDERS AND CHECK CASHING ESTABLISHMENTS.
FILE NO.: PLN2015-294
After notification and public hearing, as specified by law and after presentation by the
Community Development Director, proponents and opponents, the hearing was closed.
The Planning Commission finds as follows with regard to file number PLN2015-294:
Environmental Findings
1. The proposed Text Amendment project is exempt from the California Environmental
Quality Act under Section 15061.b.3 because it has no potential for resulting in a
physical change to the environment.
2. The project consists of a Text Amendment amending the following to the Campbell
Zoning Code: Chapter 21.10 (Commercial and Industrial Districts); Chapter 21.12
(Special Purpose Districts); and Section 21.72.020 (Definitions), and Chapter 21.36
(Provisions Applying to Special Uses) of the Zoning Ordinance to create regulations for
payday lenders and check cashing establishments.
3. No substantial evidence has been presented from which a reasonable argument could
be made that shows that the project will have a significant adverse impact on the
environment.
Evidentiary Finding
1. The legislature of the State of California has, in Government Code Sections 65302,
65560 and 65800, conferred upon local government units the authority to adopt
regulations designed to promote the public health, safety and general welfare of its
citizenry.
2. Review and adoption of this Text Amendment is done in compliance with California
Government Code Sections 65853 through 65857, which require a duly noticed public
hearing of the Planning Commission whereby the Planning Commission shall provide its
written recommendation to the City Council for its consideration.
3. The City of Campbell recognizes the importance of promoting the public health, safety
and general welfare, and providing adequate locations for the establishment of various
uses that serve the community.
EXHIBIT A
Ordinance No.
BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AMENDING CERTAIN SECTIONS OF TITLE 21 (Zoning) OF THE CAMPBELL
MUNICIPAL CODE RELATING TO PAYDAY LENDING ESTABLISHMENTS
The City Council of the City of Campbell does ordain as follows:
SECTION 1. Findings: There is significant evidence that payday lending and check
cashing businesses significantly undermine the financial stability of low-income
communities. Payday lenders generally offer small, fourteen-day loans for which they
charge effective interest rates upwards of 460% annual percentage rate (APR). Check
cashing outlets cash checks for a large fee or significant percentage of the amount of
the check. These businesses operate almost exclusively in low-income neighborhoods
and prey upon the City's most financially vulnerable residents.
SECTION 2. Prohibition of Payday Lending in P-O District: Subsection D of Campbell
Municipal Code section 21.10.030 is amended to read as follows, with underlining
indicating new text and strikeouts (see~+t) indicating deleted text:
Prohibited uses in P-O (Professional Office) zoning district. The following uses
are prohibited:
1. Storage of commercial and industrial vehicles, except for the purpose of
loading and unloading.-;
2. The storage or warehousing of merchandise or products in the building or on
the premises, unless otherwise approved.-;
3. The outdoor storage of merchandise or products.-;
4. The assembly, compounding, manufacturing, or processing of merchandise or
products, except such as are customarily incidental or essential to permitted
retail commercial and service uses.-;
5. Any use which is obnoxious or offensive or creates a nuisance to the
occupants or commercial visitors of adjacent buildings or premises by reason of
the emissions of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam,
vibrations, or similar disturbances-;
6. Check cashing;
7. Payday lender;
8. Any use inconsistent with state or federal law.
Page 1 of 13
SECTION 3. Prohibition of Pavday Lending in C-1 District: Subsection D of Campbell
Municipal Code section 21.10.040 is amended to read as follows, with underlining
indicating new text and strikeouts (eet+t) indicating deleted text:
Prohibited uses in C-1 (Neighborhood Commercial) zoning district. The following
uses are prohibited:
1. Storage of industrial vehicles, except for the purpose of loading and
unloading.-;
2. The storage or warehousing of merchandise or products in the building or on
the premises for sale other than at retail on the premises.-;
3. The outdoor storage of merchandise or products, unless otherwise approved-;
4. The assembly, compounding, manufacturing, or processing of merchandise or
products, except such as are customarily incidental or essential to permitted
retail commercial and service uses.-;
5. Any use which is obnoxious or offensive or creates a nuisance to the
occupants or commercial visitors of adjacent buildings or premises by reason of
the emissions of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam,
vibrations, or similar disturbances-;
6. Any business that includes smoking tobacco on site (e.g., smoking lounges,
hookah lounges, etc.)-;
7. Check cashing;
8. Pavday lender;
9. Any use inconsistent with state or federal law.
SECTION 4. Requirement for Use Permit for Pavday Lending in C-2 District: Subsection
C of Campbell Municipal Code section 21.10.050 is amended to read as follows, with
underlining indicating new text and strikeouts (fit) indicating deleted text:
Uses allowed with conditional use permit in C-2 (General Commercial) zoning
district. The following uses are permitted with a conditional use permit in
compliance with Chapter 21.46 (Conditional Use Permits):
1. Adult day care facilities;
2. Alternative fuels and recharging facilities;
3. Arcades;
4. Banquet facilities;
5. Bed and breakfast inns (only in historic structures);
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6. Broadcast and recording studios;
7. Caretaker/employee housing (not to exceed six hundred forty square feet and
one bedroom);
8. Cat and dog day care facilities;
9. Cat and dog grooming facilities;
10. Cat Boarding facilities;
11. Check cashing, subject to the requirements of section 21.36.260;
12. Commercial day care centers;
13. Commercial schools;
14. Community/cultural/recreational centers;
15. Convalescent/rest homes;
16. Convenience markets/stores;
17. Conversion, commercial converted from residence;
18. Dancing and live entertainment;
19. Department stores;
20. Drive-in theaters;
21. Emergency shelters;
22. Equipment rental establishments;
23. Gasoline stations;
24. Golf courses and golf driving ranges;
25. Government offices and facilities (local, state or federal);
26. Grocery stores (greater than ten thousand square feet);
27. Hardware stores (greater than ten thousand square feet);
28. Health/fitness centers;
29. Hospitals;
30. Indoor amusement/entertainment/recreation centers;
31. Late night activities;
32. Liquor establishments (on-site consumption only);
33. Liquor stores (off-site consumption only);
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34. Medical services, clinics;
35. Medical services, extended care;
36. Miniature golf courses;
37. Motor vehicle -cleaning, washing, and detailing;
38. Motor vehicle -oil change facilities;
39. Motor vehicle -parts and supplies (very limited maintenance/installation);
40. Motor vehicle -renting and leasing;
41. Motor vehicle -sales (new and/or used);
42. Museums, public;
43. Music (recordings) stores;
44. Nightclubs with or without food service;
45. Outdoor active activities (e.g., drive-up windows);
46. Outdoor amusement/entertainment/recreation centers;
47. Outdoor retail sales and activities;
48. Outdoor seating, when more than twelve total seats;
49. Payday lender, subject to the requirements of section 21.36.260;
50. Personal services, limited;
51. Pet stores;
52. Pharmacies/drug stores, with drive-up service;
53. Philanthropic collection trailers;
54. Public assembly uses;
55. Public utility structures and service facilities;
56. Public works maintenance facilities and storage yards;
57. Radio or television transmitters;
58. Radio stations;
59. Recycling facilities -reverse vending machines;
60. Recycling facilities -small collection facility;
61. Restaurants with late night activities or banquet facilities;
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62. Restaurants, fast food (with or without drive-in service);
63. Schools - K-12, private;
64. Second hand/thrift stores;
65. Shopping centers (greater than ten thousand square feet);
66. Sign shops;
67. Spa services;
68. Studios, large;
69. Studios, small;
70. Tanning studios;
71. Theaters, movie or performing arts;
72. Transitional housing;
73. Tutoring center, large;
74. Tutoring center, small;
75. Universities/colleges, private;
76. Veterinary clinics and animal hospitals;
77. Video rental stores;
78. Warehouse retail stores;
79. Wireless telecommunications facilities -non-stealth.
SECTION 5. Prohibition of Payday Lending in C-3 District: Subsection D of Campbell
Municipal Code section 21.10.060 is amended to read as follows, with underlining
indicating new text and strikeouts (strikeout) indicating deleted text:
Prohibited uses in C-3 (Central Business District) zoning district. The following
uses are prohibited in the C-3 district:
1. Storage of industrial vehicles, except for the purpose of loading and unloading;
2. The storage or warehousing of merchandise or products in the building or on
the premises for sale other than at retail on the premises;
3. The outdoor storage of merchandise or products, unless otherwise approved,
in compliance with subsection H of this section;
4. The assembly, compounding, manufacturing or processing of merchandise or
products, except such as are customarily incidental or essential to permitted
retail commercial and service uses;
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5. Any use which is obnoxious or offensive or creates a nuisance to the
occupants or commercial visitors of adjacent buildings or premises by reason of
the emission of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam,
vibrations, or similar disturbance;
6. Auto repair;
7. Any business that includes smoking tobacco on site (e.g., smoking lounges,
hookah lounges, etc.);
8. Check cashing;
9. Payday lender;
10. Any use inconsistent with state or federal law.
SECTION 6. Prohibition of Payday Lending in C-M District: Subsection D of Campbell
Municipal Code section 21.10.070 is amended to read as follows, with underlining
indicating new text and strikeouts (s~+l~ee~t) indicating deleted text:
Prohibited uses in C-M (Controlled Manufacturing) zoning district. The following
uses are prohibited:
1. Any use which is obnoxious or offensive or creates a nuisance to the area by
reason of the emission of dust, fumes, glare, heat, liquids, noise, odor, smoke,
steam, vibrations, or similar disturbances;
2. The use of any building that was constructed as a residential structure. Such
building is considered nonconforming and subject to the provisions of Chapter
21.58 (Nonconforming Uses and Structures);
3. The storage of raw, in process, or finished material and supplies, and of waste
materials outside of an enclosed building;
4. All incineration;
5. Any business that includes smoking tobacco on site (e.g., smoking lounges,
hookah lounges, etc.);
6. Check cashing;
7. Pa~rday lender;
8. Any use inconsistent with state or federal law.
Page 6 of 13
SECTION 7. Prohibition of Payday Lending in M-1 District: Subsection D of Campbell
Municipal Code section 21.10.080 is amended to read as follows, with underlining
indicating new text and strikeouts (effikee~+t) indicating deleted text:
Prohibited uses in M-1 (Light Industrial) zoning district. The following uses are
prohibited:
1. Any use which is obnoxious or offensive or creates a nuisance to the area by
reason of the emission of dust, fumes, glare, heat, liquids, noise, odor, smoke,
steam, vibrations, or similar disturbances;
2. The use of any building that was constructed as a residential structure. Such
building is considered nonconforming and subject to the provisions of Chapter
21.58 (Nonconforming Uses and Structures);
3. Any business that includes smoking tobacco on site (e.g., smoking lounges,
hookah lounges, etc.);
4. Check cashing;
5. Payday lender;
6. Any use inconsistent with state or federal law.
SECTION 8. Prohibition of Payday Lending in C-PD District: Subsection D of Campbell
Municipal Code section 21.12.020 is amended to read as follows, with underlining
indicating new text and strikeouts (st~ilEee~t) indicating deleted text:
Restrictions. The C-PD zoning district is the only zoning district in which the
construction of new condominiums, or the conversion of existing residential,
commercial, or industrial structures to condominiums, is allowed. The following
uses are expressly prohibited:
1. Any use inconsistent with state or federal law-;
2. Check cashing;
3. Payday lender.
SECTION 9. Prohibition of Payday Lending in P-D District: Subsection F of Campbell
Municipal Code section 21.12.030 is amended to read as follows, with underlining
indicating new text and strikeouts (effikee~t) indicating deleted text:
Prohibited uses in the P-D (Planned Development) zoning district. The following
uses are prohibited:
1. Any business that includes smoking tobacco on site (e.g., smoking lounges,
hookah lounges, etc.).-;
2. Check Cashina:
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3. Payday lender;
4. Any use inconsistent with state or federal law.
SECTION 10. Prohibition of Payday Lending in P-F District: Subsection E of Campbell
Municipal Code section 21.12.040 is amended to read as follows, with underlining
indicating new text and strikeouts (fit) indicating deleted text:
Uses prohibited. The following uses are prohibited in the P-F zoning district:
1. Storage of commercial or industrial vehicles, except for the purpose of loading
or unloading;
2. Storage of equipment, materials, or supplies for commercial or industrial
purposes;
3. Check cashing;
4. Payday lender;
5. Any use inconsistent with state or federal law.
SECTION 11. Prohibition of Payday Lending in P-F/OS District: Subsection D of
Campbell Municipal Code section 21.12.050 is amended to read as follows, with
underlining indicating new text and strikeouts (~*r~e~) indicating deleted text:
Development standards. New land uses and structures, and alterations to
existing uses or structures shall be designed, constructed, and/or established in
compliance with the requirements in Table 2-16 (General Development
Standards - P-F/O-S Zoning District), in addition to the general development
standards (e.g., landscaping, parking and loading, etc.) in Article 3 (Development
and Operational Standards). The following uses are explicitly prohibited:
1. Check cashing;
2. Pavdav lender:
3. Any use inconsistent with state or federal law.
SECTION 12. Liquor stores: Section 21.36.110 of Campbell Municipal Code is
amended to read as follows with underlining indicating new text:
This section provides locational and operational standards for the establishment
of off-site alcoholic beverage sales, in compliance with Article 2 (Zoning
Districts), which shall be subject to the following criteria and standards:
A. Conditional use permit required. Off-site alcoholic sales establishments shall
be allowed by conditional use permit, in compliance with Chapter 21.46,
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(Conditional Use Permits), and subject to all of the restrictions of the applicable
zoning district.
B. Plans. Plot plans, landscaping and irrigation plans, and floor plans shall be
subject to the approval of the planning commission.
C. Proximity to sensitive receptors. All off-site alcoholic sales establishments,
except grocery stores, shall be separated from a park, playground, or school a
minimum distance of 300 feet measured between the nearest property lines.
D. Proximity to other establishments. All off-site alcoholic establishments,
except grocery stores, shall be a minimum of 500 feet from another such use,
either within or outside the city.
E. Additional conditions. The planning commission may add additional
conditions required to protect the public health, safety, and general welfare of
the community.
F. Proximity to payday lenders and check cashing establishments. All off-site
alcoholic establishments, except grocery stores shall be a minimum of 500
feet from any payday lender or check cashing establishment either within or
outside the city.
SECTION 13. Restrictions on Check Cashing and Payday Lending Establishments:
Section 21.36.260 is hereby added to Chapter 21.36 of the Campbell Municipal Code to
read as follows with underlining indicating new text:
Check Cashing and Pavdav Lending Establishments.
A. Conditional use permit required. Check cashing and payday lending
establishments shall be allowed by conditional use permit in compliance with
Chapter 21.46 (Conditional Use Permits) and subiect to all of the restrictions of
the C-2 (General Commercial) zoning district.
B. Locational Requirements. Payday lenders and/or check cashing
establishments shall meet all of the following conditions:
1. No Pavdav lenders or check cashing establishments shall be located in
any zone in the city other than the C-2 (General Commercial) zoning
district-
2. No payday lenders or check cashing establishments shall be located
within a low income census tract, as defined by the area inside San
Tomas Expressway and South Winchester Boulevard from the
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intersection of San Tomas Expresswav and South Winchester Boulevard.
north to the city limits.
3. No payday lenders or check cashing establishments shall be located
within 500 feet from any off-site alcoholic establishment, except grocery
stores, either within or outside the city.
4. In no event shall there be more than three payday lender and/or check
cashing establishments within the city.
5. Payday lenders and/or check cashing establishments may be permitted
in the following commercial quadrants as indicated in Figure 3-15, upon
filing an application for a Conditional Use Permit and satisfying the
required findings to support such use. In no event shall there be more than
one payday lender and/or check cashing establishment in each
commercial auadrant.
a. West Hamilton Avenue, west of San Tomas Expresswav;
b. East Hamilton Avenue, east of South Winchester Boulevard and
west of Highway 17;
c. South Bascom Avenue, north of Dry Creek Road;
d. Camden Avenue and South Bascom Avenue, south of Camden
Avenue;
e. South Winchester Boulevard, south of Sunnyoaks Avenue
Figure 3-15
Commercial Quadrants
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Page 10 of 13
C. Hours of Operation. Hours of operation must be between the hours of 7 a.m.
to 7 p.m. daily.
D. No security bars shall be placed on doors or windows.
E. Notwithstanding any other provision of the Municipal Code, window signs shall
not exceed 10 percent of the window area per facade.
F. Amortization of nonconforming payday lenders and check cashing
establishments. Any use of real property lawfully existing on the effective date of
this section, which does not conform to the provisions of this section, but which
was constructed, operated, and maintained in compliance with all previous
regulations, shall be regarded as a nonconforming use which may continue for
no more two years from the effective date of the ordinance enacting this section
unless the payday lender or check cashing establishment comes into compliance
with the provisions of this section.
G. Extension of time for termination of nonconforming use. The owner or
operator of a nonconforming use as described in subsection F of this section
may apply under the provisions of this subsection to the Planning Commission
for an extension of time to operate the nonconforming use.
1. Time and manner of application. An application for an extension of
time to operate a use made nonconforming by the provisions of
subsection F of this section may be filed by the owner of the real
~roperty upon which such use is operated, or by the operator of the use.
Such an application must be filed with the community development
department at least ninety days but no more than one hundred eighty
days prior to the expiration of the two year period set forth in subsection
F.
2. Content of application and required fees. The application shall state
the grounds for requesting an extension of time. The filing fee for such
application shall be the same as that for a variance as is set forth in the
schedule of fees established by resolution from time to time by the City
Council.
3. Hearing procedure. A hearing shall set on the matter before the
Planning Commission within forty-five days of receipt of the application
All parties involved shall have the right to offer testimonial documentary
and tangible evidence bearing on the issues. Anv relevant evidence
may be admitted that is the sort of evidence upon which reasonable
persons are accustomed to rely in the conduct of serious affairs. Anv
hearing under this section may be continued for a reasonable time for
the convenience of a party or a witness.
Page 11 of 13
4. Approval of extension and reauired findings. An extension under the
provisions of this section shall be for a reasonable period of time
commensurate with the investment involved, and shall be approved only
if_the planning commission makes all of the following findings:
a. The applicant has made a substantial investment (including
but not limited to lease obligations) in the property or structure on
or in which the nonconforming use is conducted; such property or
structure cannot be readily converted to another use; and such
investment was made prior to the effective date of this section;
b. The applicant will be unable to recoup said investment as of
the date established for termination of the use; and
c. The applicant has made good faith efforts to recoup the
investment and to relocate the use to a location in conformance
with subsection B of this section.
SECTION 14. Definition of Banks and Financial Services: The definition of "Banks and
financial services" in subsection B of Section 21.72.020 of the Campbell Municipal Code
is amended to read as follows, with underlining indicating new text and strikeouts
(st~ilEeeet) indicating deleted text:
"Banks and financial services" means financial institutions including:
1. Banks and trust companies;
2. Credit agencies;
3. Holding (but not primarily operating) companies;
4. Lending and thrift institutions;
5. Other investment companies;
6. Securities/commodity contract brokers and dealers;
7. Security and commodity exchanges;
8. Vehicle finance (equity) leasing agencies.
See-alsr~ 'Ar~ated-telter~esf~e.!' But "Banks and financial services" does not
include "Check cashing or Payday lending."
SECTION 15. Definition of Check Cashing: The definition of "Check cashing" in
subsection C of Section 21.72.020 of the Campbell Municipal Code is amended to read
as follows, with underlining indicating new text and strikeouts (seeet) indicating
deleted text:
Page 12 of 13
"Check cashing" means
a retail business owned or operated by a
"check casher" as that term is defined in California Civil Code section 1789.31 as
amended from time to time.
SECTION 16. Definition of Payday lender: Subsection P of Section 21.72.020 of the
Campbell Municipal Code is amended to insert the following definition of "Payday
lender" between the definitions of "Parks, public" and "Personal services, limited," to
read as follows, with underlining indicating new text:
"Payday lender" means a retail business owned or operated by a "licensee" as
that term is defined in California Financial Code section 23001(d), as amended
from time to time.
SECTION 17. This Ordinance shall become effective (30) days following its passage
and adoption and shall be published once within fifteen (15) days upon passage and
adoption in the Campbell Express, a newspaper of general circulation in the City of
Campbell, County of Santa Clara.
PASSED AND ADOPTED this
call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
day of , 2015 by the following roll
APPROVED:
Jeffrey R. Cristina, Mayor
ATTEST:
Wendy Wood, City Clerk
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