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Pawn Shop FAQ: <br />Q1: Why is Roseville putting a/another pawn shop in the city? <br />Attachment H <br />A1: The City is not proposing a pawn shop; rather, the City received an application for a Conditional <br />Use Permit to operate a pawn shop in the General Retail District. The Planning Commission along with <br />City staff has found that the proposed use satisfies the criteria for approval of the Conditional Use <br />Permit and has therefore recommended that the City Council approve the request. <br />Q2: What is a Conditional Use Permit? <br />A2: The Zoning Ordinance allows pawn shops, churches, veterinary clinics, and many other uses as <br />"conditional uses" in particular zoning districts — that is, they require a Conditional Use Permit (CUP) <br />The CUP recognizes that a conditional use is appropriate in the designated zoning district, much like <br />other "permitted" uses that don't require special approvals, except that the City Council can attach <br />conditions to CUPs in order to prevent potential negative impacts on the surrounding area. <br />Q3: Won't a pawn shop increase criminal activity in the area? <br />A3: People are not allowed to pawn or sell items to a pawn shop unless those items belong to them, and <br />every transaction is documented in detail, including identification and photographs of the seller as well <br />as the items being sold. Items with serial numbers may not be pawned or sold unless the serial number is <br />also recorded; items may not be pawned if the serial number is illegible or has been manipulated. <br />Jewelry which has many identifying characteristics but doesn't have serial numbers is described in detail <br />as part of the transaction documentation. <br />Every day, pawn shop transactions are cross-referenced with a statewide database of stolen items. Once <br />an item is taken in by the pawn shop, it may not be re-sold for a period of 60 days, allowing for ample <br />opportunity to detect stolen items. When a pawned item has been reported stolen, local law enforcement <br />officials are notified, and the item is confiscated from the pawnbroker and returned to its rightful owner. <br />Because the pawnbroker has already paid money for the item, s/he takes a loss on the transaction when <br />the item is coniiscated, so pawnbrokers want to be certain that they are not buying stolen items in the <br />first place. <br />There are other stores in Roseville that are not pawn shops and that buy and sell used sporting <br />equipment, music recordings, video games, clothing, and so on, with no verification that the items are <br />not stolen; these items may be re-sold that same day. While the heightened scrutiny of pawn shop <br />transactions might seem to indicate that pawn shops must be dealing in stolen merchandise, it might <br />suggest instead that stolen CDs, video games, and sporting goods would be easier to sell at the other <br />secondhand stores. Finally, Roseville Police staff has indicated that property crime in the surrounding <br />area is unlikely to increase around a new pawn shop precisely because of the likelihood that stolen items <br />will be discovered and that the people who pawned them will be prosecuted. <br />Q4: While the current applicant might run an upstanding pawn shop, what happens if he goes out <br />of business or sells to somebody else? <br />A5: If the Conditional Use Permit is approved, it only applies to the use (i.e., pawn shops) in general. <br />Any specific pawnbroker would still have to secure a license and operate within the licensing <br />requirements or risk suspension or revocation of the license. <br />Q5: Will the pawn shop sell firearms and/or pornographic materials, or offer check <br />cashing/payday loan services? <br />A5: The applicant has stated that his business will not sell firearms or pornography and will not offer <br />check cashing/payday loan services. Based on this statement, the Planning Commission has <br />recommended prohibiting these activities as a condition of an approved CUP. <br />Prepared by Roseville Community DP�elopment Department, April 21, 2008 <br />�..- �. <br />