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Ordinance 2003-10 ORDINANCE NO. 2003-10 AN INTERIM URGENCY ORDINANCE OF THE CITY OF GILROY EXTENDING FOR A PERIOD OF TWENTY-TWO (22) MONTHS AND FIFTEEN (15) DAYS URGENCY INTERIM ORDINANCE NO. 2003-06 PROHffiITING THE ESTABLISHMENT OF CERTAIN USES DESCRIBED THEREIN, NAMELY, NEW BARS AND DANCE HALLS THAT DO NOT OFFER MEALS, "HEAD" SHOPS, TATTOO PARLORS, BODY PIERCING STUDIOS, PAWN SHOPS, SALES OF AUTOMOBILES AND AUTOMOBILE PARTS, AUTOMOBILE REPAIR ESTABLISHMENTS AND LIQUOR SALES FOR OFFSITE CONSUMPTION. WHEREAS, pursuant to the Gilroy 2002/2020 General Plan ("General Plan") adopted in 2002, the City of Gilroy ("City") has undertaken a study of the Downtown, as hereinafter defined, to implement the General Plan proposal for adoption of a Downtown Specific Plan ("Plan"); and WHEREAS, the City Council has appointed the Downtown Specific Plan Task Force ("Task Force") to create the Downtown Specific Plan, which Task Force meets on a continuing basis to recommend on the proposed Plan; and WHEREAS, the Task Force, after review of currently permitted uses in the Downtown, has recommended to the City Council that the City prohibit approval of certain new uses in the Downtown that may be in conflict with the contemplated Downtown Specific Plan until the City's study is completed and the Downtown Specific Plan is adopted, and WHEREAS, California Government Code section 65858 sets forth procedures for the adoption of an interim ordinance to prohibit the approval of applications for additional subdivisions, use permits, variances, building permits, and other applicable entitlements for uses that may be in conflict with a contemplated specific plan or zoning ordinance; and WHEREAS, on June 16,2003, in accordance with State law, the City Council held a duly noticed public hearing and took testimony regarding a certain urgency interim ordinance ("Urgency Interim Ordinance") to prohibit for 45 days the establishment of new bars and dance INVH1595133.2 01-071503-04706002 -1- Ordinance No. 2003-10 halls that do not offer meals, "head" shops, tattoo parlors, body piercing studios, pawn shops, sales of automobiles and automobile parts, automobile repair establishments, and liquor sales for off-site consumption, in the Downtown pending the completion of the Downtown study and adoption of a Downtown Specific Plan, and following the public hearing, adopted the Urgency Interim Ordinance, Ordinance No. 2003-06, which is attached hereto as Exhibit "A"; and WHEREAS, in accordance with California Government Code ("CGC") section 65858(d), the City Council, on July 21,2003, considered the written report attached hereto as Exhibit "B," describing the measures taken to date to address the conflicts which led to the adoption of Ordinance No. 2003-06; and WHEREAS, the City Council wishes to continue for a period not to exceed twenty-two (22) months and fifteen (15) days the prohibition on the establishment of new bars and dance halls that do not offer meals, "head" shops, tattoo parlors, body piercing studios, pawn shops, sales of automobiles and automobile parts, automobile repair establishments, and liquor sales for off-site consumption, in the Downtown, pending the completion of the Downtown study and adoption of a Downtown Specific Plan; and WHEREAS, CGC section 65858(b) provides that an interim ordinance that was adopted after a duly noticed public hearing for a period of forty-five (45) days may be extended for a period of up to twenty-two (22) months and fifteen (15) days following a duly noticed public hearing; and WHEREAS, on July 21,2003, in accordance with State law, the City Council again held a duly noticed public hearing and took testimony regarding the extension of the Urgency Interim Ordinance. \NVH\595133.2 01-071503-04706002 -2- Ordinance No. 2003-10 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I In accordance with State law, the City Council hereby finds that: (1) There remains a current and immediate threat to the public health, safety or welfare, and the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use, which is required in order to comply with the existing Zoning Ordinance and which may be in conflict with the contemplated Downtown Specific Plan, specifically, applications for new Automobile Repair Establishments, Bars and Public Dance Halls that do not offer Meals, Body Piercing Studios, "Head" Shops, Liquor Sales for Off-site Consumption, Pawn Shops, Tattoo Parlors, Sales of Automobiles or Parts, as these terms are hereinafter defined, will result in that threat to the public health, safety or welfare for the following reasons: On July 5,2002, a Feasibility Study was prepared concerning the formation of a Redevelopment Plan in the Downtown core. The Feasibility Study found that the Downtown met the requirements of California Health & Safety Code ~ 33031 (a) (1-4) and ~ 33031 (b) (1-5), which define both Physical and Economic Blight, of the California Redevelopment Law. Additionally, this study found that in the Downtown C2 and Cl zoning districts, "economic blighting characteristics are stronger than the physical blighting characteristics." The Feasibility Study found that the Downtown area is experiencing depreciated or stagnant property values, abnormally high business vacancies, abnormally low lease rates, high turnover and empty buildings, and lacks the commercial facilities that are normally found in neighborhoods. Between fiscal year 1993/94 and fiscal Year 2000/01, assessed value in the City as a whole grew by an average compound rate of 10.8 % per year while the assessed value in the Downtown area grew only by an average compound rate of 2.6 % per year. In real dollars, the value of real property in Downtown Gilroy has depreciated over this same period of time. This represents a significantly impaired investment and the City wishes to temporarily halt the proliferation of businesses that may contribute to the creation or exacerbation of these conditions. A temporary prohibition on the approval of certain uses in the Downtown is necessary to prevent the proliferation of uses that detract from the City's efforts to achieve the Vision and Guiding Principles set forth in the General Plan. The General Plan states: \NVH\595133.2 01-071503-04706002 -3- Ordinance No. 2003-10 The Vision and Guiding Principles of the General Plan place a high priority on Downtown, stating that "Downtown will be the pride of Gilroy's residents and the focal point of activity in the city...." It envisions an active, attractive, and economically vibrant Downtown of "restored historic buildings, attractive new buildings, a bustling transit center, new housing, pedestrian- oriented public spaces and amenities, and a new town plaza or pedestrian mall." *** There are a number of promising opportunities for continued revitalization of Downtown, including a major redevelopment site; an expanding transit center with regional rail service; and a growing public-private partnership dedicated to improving and enhancing the Downtown's physical environment. The General Plan hopes to focus attention on these opportunities and provide an overall framework for revitalizing Downtown within the larger context of the City's growth and development. [Gilroy General Plan at 3-24.] A search of the business records shows that there are 17 businesses that sell used cars in the Downtown Commercial district as designated in the General Plan. Business records also show an over-concentration of downtown establishments where alcohol is consumed on-site in a non-restaurant environment, and an over- concentration of downtown establishments where alcohol is sold for off-site consumption. These uses, together with automobile repair establishments, tattoo parlors, body piercing studios, "head" shops, and pawn shops, detract from the vibrancy of downtown business and decrease the value of business uses of surrounding properties. These uses are inconsistent with the City's efforts to attract uses that serve the City's businesses, residents and shoppers necessary to promote an "active, attractive, and economically vibrant Downtown" as envisioned in the General Plan. These uses are business operations that create a negative business synergy that if left unchecked, will continue the inferior performance and economic blight of the downtown area. The approval of applications for additional such business uses as bars and dance halls that do not offer meals, "head" shops, tattoo parlors, body piercing studios, pawn shops, sales and storage of used or new automobiles and parts thereof, automobile repair establishments and liquor sales for off-site consumption, as might be allowable under the City's existing Zoning Ordinance, would result in uses that fail to promote the Vision and Guiding Principles of the General Plan, will exacerbate economic underperformance and blight of the Downtown, and may be in conflict with the City's contemplated Downtown Specific Plan. (2) The public welfare requires the enactment of this Ordinance to prevent the frustration of the study of the Downtown and the implementation and efficacy of a new Downtown Specific Plan, and the absence of interim development controls would create a \NVH\595133.2 01-071503-04706002 -4- Ordinance No. 2003-10 serious threat to the orderly and effective implementation of any Downtown Specific Plan, and related Zoning Ordinance and Gilroy City Code amendments which may be adopted by the City as a result of the studies. Further development of these certain uses within the Downtown area may be in conflict with or frustrate the contemplated Downtown Specific Plan and revisions to the City's Zoning Ordinance and Municipal Code. SECTION II In accordance with CGC section 65858(d), the City Council accepts and issues the written report attached hereto as Exhibit "B," describing the measures taken to address the conflicts which led to the adoption of Ordinance No. 2003-06. SECTION III Ordinance No. 2003-06, entitled "An Urgency Interim Ordinance of the City of Gilroy Prohibiting the Establishment of Certain Uses Described Herein, Such as New Bars and Dance Halls That Do Not Offer Meals, 'Head' Shops, Tattoo Parlors, and Sales of Automobiles, for a Period Not to Exceed Forty-five (45) Days" is hereby extended for a period up to but not to exceed twenty-two (22) months and fifteen (15) days beyond the date it would otherwise have expired, such expiration date being July 31,2003. SECTION IV If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that \NVH\595133.2 01-071503-04706002 -5- Ordinance No. 2003-10 anyone or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional. SECTION V This Ordinance is adopted pursuant to CGCsection 65858. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law. This Ordinance shall take effect immediately pursuant to CGC section 65858, and shall terminate without further action upon either the expiration or termination of Ordinance No. 2003-06. PASSED AND ADOPTED by the City Council of the City of Gilroy this 21st day of July, 2003, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, DILLON, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: GARTMAN ABSENT: COUNCILMEMBERS: NONE APPROVED: ;r.-1 A' /'- \NVH\595133.2 01-071503-04706002 -6- Ordinance No. 2003-10 EXHIBIT A ORDINANCE NO. 2003-06 AN URGENCY INTERIM ORDINANCE OF THE CITY OF GILROY PROHIBITING THE ESTABLISHMENT OF CERTAIN USES DESCRIBED HEREIN, SUCH AS NEW BARS AND DANCE HALLS THAT DO NOT OFFER MEALS, "HEAD" SHOPS, TATTOO PARLORS, AND SALES OF AUTOMOBILES, FOR A PERIOD NOT TO EXCEED FORTY-FIVE (45) DAYS WHEREAS, pursuant to the Gilroy 2002/2020 General Plan ("General Plan") adopted in 2002, the City of Gilroy ("City") has undertaken a study of the Downtown, as hereinafter defined, to implement the General Plan proposal for adoption of a Downtown Specific Plan ("Plan"); and WHEREAS, the City Council has appointed the Downtown Specific Plan Task Force ("Task Force") to create the Downtown Specific Plan, which Task Force meets on a continuing basis to recommend on the proposed Plan; and WHEREAS, the Task Force, after review of currently permitted uses in the Downtown, has recommended to the City Council that the City prohibit approval of certain new uses in the Downtown that may be in conflict with the contemplated Downtown Specific Plan until the City's study is completed and the Downtown Specific Plan is adopted, and specifically, the Task Force has recommended that the City ban the establishment of new bars and dance halls that do not offer meals, "head" shops, tattoo parlors, sales of used automobiles, and sales or storage of used automobile parts; and WHEREAS, California Government Code section 65858 sets forth procedures for the adoption of an interim ordinance to prohibit the approval of applications for additional subdivisions, use permits, variances, building permits, and other applicable entitlements for uses that may be in conflict with a contemplated specific plan or zoning ordinance; and \NVH\590823.4 061703-04706002 -1- Ordinance No. 2003-06 WHEREAS, on June 16,2003, in accordance with State law, the City Council held a duly noticed public hearing and took testimony regarding this urgency interim ordinance ("Ordinance"); and WHEREAS, the City Council wishes to prohibit the establishment of new bars and dance halls that do not offer meals, "head" shops, tattoo parlors, body piercing studios, pawn shops, sales of automobiles and automobile parts, automobile repair establishments, and liquor sales for off-site consumption, in the Downtown pending the completion of the Downtown study and adoption of a Downtown Specific Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I In accordance with State law, the City Council hereby finds that: (1) There is a current and immediate threat to the public health, safety or welfare, and the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use, which is required in order to comply with the existing Zoning Ordinance and which may be in conflict with the contemplated Downtown Specific Plan, specifically, applications for new Automobile Repair Establishments, Bars and Public Dance Halls that do not offer Meals, Body Piercing Studios, "Head" Shops, Liquor Sales for Off-site Consumption, Pawn Shops, Tattoo Parlors, Sales of Automobiles or Parts, as these terms are hereinafter defined, will result in that threat to the public health, safety or welfare for the following reasons: On July 5, 2002, a Feasibility Study was prepared concerning the formation of a Redevelopment Plan in the Downtown core. The Feasibility Study found that the Downtown met the requirements of California Health & Safety Code S 33031 (a) (1-4) and S 33031 (b) (1-5), which define both Physical and Economic Blight, of the California Redevelopment Law. Additionally, this \NVH\590823.4 061703-04706002 -2- Ordinance No_ 2003-06 study found that in the Downtown C2 and C 1 zoning districts, "economic blighting characteristics are stronger than the physical blighting characteristics." The Feasibility Study found that the Downtown area is experiencing depreciated or stagnant property values, abnormally high business vacancies, abnormally low lease rates, high turnover and empty buildings, and lacks the commercial facilities that are normally found in neighborhoods. Between fiscal year 1993/94 and fiscal Year 2000/01, assessed value in the City as a whole grew by an average compound rate of 10.8 % per year while the assessed value in the Downtown area grew only by an average compound rate of 2.6 % per year. In real dollars, the value of real property in Downtown Gilroy has depreciated over this same period of time. This represents a significantly impaired investment and the City wishes to temporarily halt the proliferation of businesses that may contribute to the creation or exacerbation of these conditions. A temporary prohibition on the approval of certain uses in the Downtown is necessary to prevent the proliferation of uses that detract from the City's efforts to achieve the Vision and Guiding Principles set forth in the General Plan. The General Plan states: The Vision and Guiding Principles of the General Plan place a high priority on Downtown, stating that "Downtown will be the pride of Gilroy's residents and the focal point of activity in the city...." It envisions an active, attractive, and economically vibrant Downtown of "restored historic buildings, attractive new buildings, a bustling transit center, new housing, pedestrian- oriented public spaces and amenities, and a new town plaza or pedestrian mall." *** There are a number of promising opportunities for continued revitalization of Downtown, including a major redevelopment site; an expanding transit center with regional rail service; and a growing public-private partnership dedicated to improving and enhancing the Downtown's physical environment. The General Plan hopes to focus attention on these opportunities and provide an overall framework for revitalizing Downtown within the larger context of the City's growth and development. [Gilroy General Plan at 3-24.] A search of the business records shows that there are 17 businesses that sell used cars in the Downtown Commercial district as designated in the General Plan. Business records also show an over-concentration of downtown establishments where alcohol is consumed on-site in a non-restaurant environment, and an over- concentration of downtown establishments where alcohol is sold for off-site consumption exists. These uses, together with tattoo parlors, body piercing studios, "head" shops, and pawn shops, detract from the vibrancy of downtown business and decrease the value of business uses of surrounding properties. These uses are inconsistent with the City's efforts to attract uses that that serve the City's businesses, residents and shoppers as is necessary to promote an "active, attractive, and economically vibrant Downtown" as envisioned in the General Plan. These uses are business operations that create a negative business synergy that if left \NVH\590823.4 061703-04706002 -3- Ordinance No. 2003-06 unchecked, will continue the inferior performance and economic blight of the downtown area. The approval of applications for additional such business uses as bars and dance halls that do not offer meals, "head" shops, tattoo parlors, body piercing studios, pawn shops, sales and storage of used or new automobiles and parts thereof, automobile repair establishments and liquor sales for off-site consumption, as might be allowable under the City's existing Zoning Ordinance, would result in uses that fail to promote the Vision and Guiding Principles of the General Plan, will exacerbate economic underperformance and blight of the Downtown, and may be in conflict with the City's contemplated Downtown Specific Plan. (2) The public welfare requires the immediate enactment of this Ordinance to prevent the frustration of the study of the Downtown and the implementation and efficacy of a new Downtown Specific Plan, and the absence of interim development controls would create a serious threat to the orderly and effective implementation of any Downtown Specific Plan, and related Zoning Ordinance and Gilroy City Code amendments which may be adopted by the City as a result of the studies. Further development of these certain uses within the Downtown area may be in conflict with or frustrate the contemplated Downtown Specific Plan and revisions to the City's Zoning Ordinance and Municipal Code. SECTION II The City shall not approve any applications for additional subdivisions, use permits, variances, building permits, or other applicable entitlements for the following uses in the Downtown while this Ordinance, or any extension hereof, is in effect: Automobile Repair Establishments, Bars that do not offer Meals, Body Piercing Studios, "Head" Shops, Liquor Sales for Off-site Consumption, Public Dance Halls that do not offer Meals, Pawn Shops, Tattoo Parlors, and Sales of Automobiles or Parts. SECTION III For the purposes of this Ordinance, the following terms shall have the following meanings or, if none is specified, then the common meaning of the term: \NVH\590823.4 061703-04706002 -4- Ordinance No. 2003-06 A. "Automobile Repair Establishments" B. "Bar" shall mean a premises, licensed under any type of license issued by the Department of Alcoholic Beverage Control, which is maintained and operated in whole or in part for the selling or serving of alcoholic beverages to the public for consumption on the premises. C. "Body Piercing Studios" D. "Downtown" shall mean that area of the City designated in the Land Use Plan Map of the Gilroy 200212020 General Plan as "Downtown." E. "Head Shop" shall mean a shop featuring for sale articles (such as hashish pipes and roach clips) of interest to drug users. F "Liquor Sales for Off-site Consumption" shall mean a premises, licensed under any type of license issued by the Department of Alcoholic Beverage Control, which is maintained and operated for the purpose of selling of alcoholic beverages to the public for consumption off the premises. G. "Meals" shall mean the usual assortment of foods commonly ordered at various hours of the day, provided that the service of such food and victuals only as appetizers, sandwiches or salads shall not be deemed a compliance with this requirement. H. "Pawn Shops" I. "Public Dance Hall" shall have the same meaning as is set forth in Section 8.1 of the Gilroy City Code. J. "Tattoo Parlors" shall mean any business that includes among its services the tattooing of the human body. K. "Sales of Automobiles or Parts" shall mean the sale or storage by any person of new or previously-owned motor vehicles or parts thereof, except that it does not include the sale or storage by antique shops of decorative or collector's elements such as hood ornaments. SECTION IV If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that \NVH\590823.4 061703-04706002 -5- Ordinance No. 2003-06 anyone or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional. SECTION V This Ordinance is adopted pursuant to Government Code Section 65858. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law, and it shall become effective immediately upon its adoption and remain in effect for a period of forty-five (45) calendar days unless extended in accordance with Government Code Section 65858. PASSED AND ADOPTED by the City Council of the City of Gilroy this 16th day of June, 2003, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, DILLON, GARTMAN, MORALES, PINHEIRO and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: VELASCO APPROVED: ? \NVH\590823.4 061703-04706002 -6- Ordinance No. 2003-06 I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2003-06 is an original ordinance, or a true and correct copy of a city ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 16th day ofJune, 2003, at which meeting a quorum was present, and has been published or posted pursuant to law. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 23rd day of June, 2003. "A.. 9~,-. lerk of the City of Gilroy (Seal) EXHIBIT B MEMORANDUM Monday, July 14,2003 RE: ORDINANCE NO. 2003-06 An Urgency Interim Ordinance Prohibiting the Establishment of Certain Uses. To: City Council From: Gregg Polubinsky, Planner n On Iuly 16,2003, the City Council acted upon a request from the Downtown Specific Plan Task Force to temporarily prohibit the approval of certain new business uses in the downtown Cl and C2 zoning districts; the downtown as defined by the 2020 General Plan document. Ordinance 2003-06, as passed by City Council, temporarily halted the following new uses: ~ Automobile Repair Establishments, ~ Sales of Automobiles or Parts, ~ Bars that do not offer Meals, ~ Body Piercing Studios, ~ "Head" Shops, ~ Liquor Sales for Off-site Consumption, ~ Public Dance Halls that do not offer Meals, ~ Pawn Shops, and ~ Tattoo Parlors. The City has taken the following measures to alleviate the condition which led to the adoption of the ordinance. The Task Force continues to meet and is working on addressing the potential inconsistencies of these uses within the downtown core area. The City has hired an Urban Design Consultant (RRM Design Group) to work with the task force, which will begin this October. The City has applied for an Economic Development Grant from the Federal Government which. would also be awarded in October_ Upon the start of the consultant the Specific Plan process will continue for approximately an additional 12 months. The Task Force believes that it is important to maintain the temporary prohibition until the Downtown Specific Plan has completed its work and is adopted. The Task Force therefore urges the Council to continue this ordinance as allowed by California law. Respectfully ~. Gr~llbinS gpolubinsky@ci.gilroy.ca.us I, RHONDA PELLIN, City Clerk ofthe City of Gilroy, do hereby certify that the attached Ordinance No. 2003-10 is an original ordinance, or a true and correct copy of a city ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 21st day of July, 2003, at which meeting a quorum was present, and has been published or posted pursuant to law. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 22nd day of August, 2003. ;IU~, Clerk of the City of Gilroy (Seal)