A Hennepin County District judge last week refused to order St. Louis Park to grant Pawn America a license for a shop in that city, but the business is not giving up.

At an Oct. 8 hearing that preceded a City Council meeting to finalize a nine-month moratorium on pawnshops in St. Louis Park, Judge Denise Reilly refused Pawn America's request.

She did not issue a written ruling and provided little commentary regarding her decision, City Attorney Tom Scott said.

"She just felt there wasn't a basis for ordering us to approve the license," Scott said.

Reilly had issued an order Oct. 4 stating that the city needed to issue the license or explain its reasoning during the Oct. 8 hearing.

Two days after the initial hearing in which Reilly sided with the city, Pawn America filed an amended 26-page lawsuit that seeks, among other things, a temporary restraining order preventing the city from enforcing its moratorium.

Reilly scheduled a hearing Oct. 15 to hear arguments. The results of that hearing were not available when this edition went to press.

The St. Louis Park City Council unanimously approved the first of two votes on the moratorium Oct. 1 after hearing from numerous neighbors who had concerns about a pawn shop in their area. Pawn America has sought to purchase the Trestman Music Center at 5600 Excelsior Blvd.

Specifically, neighbors claimed that a pawnshop would detract from their neighborhood's appearance, would bring additional traffic to their Elmwood neighborhood and could potentially lower property values.

A few St. Louis Park residents, two of whom work for Pawn America, spoke in favor of the business at the council meeting, saying that Pawn America stores provide a valuable service, are clean and have steps in place to prevent the pawning of stolen merchandise.

"They're basing it on the perception of a seedy old pawnshop whereas Pawn America is kind of a different animal," said Michael Deering, a spokesman for Pawn America. "[Chief Manager Brad Rixmann] has worked very hard to make that a respectable entity and mainstream type of store."

Pawn America even made a comic book featuring Rixmann as a character stating that the store does not purchase stolen goods and those trying to sell stolen goods at the store will be caught, Deering said. Every transaction that goes through a Pawn America is recorded, including a description of the seller, and made available to police.

This is the first time Pawn America has sued a city following resistance to the business, Deering said. Pawn America has 14 stores in Minnesota and one in Sioux Falls, S.D.

Pawn America's lawsuit states that the city does not have a valid excuse to refuse to issue a pawnbroker license and land-use registration. The property being purchased is located within a commercially zoned area in which pawn stores are permitted.

The lawsuit claims that Ann Boettcher, the administrative supervisor in the city's department of inspections, stated in a July voicemail, "If there was a fear that you wouldn't get the license, you shouldn't have that fear. You are all set to go."

Furthermore, the lawsuit states that she said in an e-mail that "the paperwork is in order and the license will be issued as soon as the store is ready for business."

The lawsuit also took issue with a City Council resolution Oct. 1 that directed city staff to prevent processing applications for a pawn broker license - of which Pawn America's was the sole application - even though the moratorium had not yet been finalized and will not go into effect until near the end of the month.

The lawsuit sites a 1973 case in which the city of Bloomington was ordered to issue a permit because the applicant had met all standards in an ordinance, thus giving the council no discretion in denying the permit.

The lawsuit claims that the moratorium "was developed in direct response to, and is specifically targeted at, Pawn America's plan to operate at the property."

For example, the only business that could be affected by the moratorium is Pawn America, it states, because the business is the only one seeking the only available pawnbroker license in the city. The staff report relating to the moratorium also specifically reference Pawn America but no other businesses, the suit notes.

"A moratorium that is enacted to prevent a single project is, as a matter of law, arbitrary and capricious," the lawsuit asserts. "As a matter of law, neighborhood opposition is an improper basis for any government action that denies or prevents approval to which an applicant would otherwise be entitled."

The document requests a ruling that would prohibit the city from enforcing the moratorium both temporarily and permanently. The lawsuit seeks an award or all Pawn America expenses in bringing the action and any further relief as the court deems proper.

The staff report, though, states that the city needs to study the issue of pawnshops because land use in the city has changed substantially since the last comprehensive zoning ordinance adopted in the early 1990s. Likewise, it states, pawnshops themselves and other businesses being conducted in conjunction with pawnshops have changed.

The staff report stated that the city staff has not yet determined whether the site at 5600 Excelsior Blvd. met all the requirement of the zoning ordinance for a pawnshop use. While the city confirmed to Pawn America that pawnshops are an allowed use in a commercial area, the city also informed Pawn America that a "Registration of Land Use" application would be necessary. The city did not receive this application until Sept. 28 and the Oct. 8 report states, "All the necessary information for review has not yet been submitted by the applicant."

Scott said he plans to file a response to the lawsuit on behalf of the city but did not have it available by press time.

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This is the first time Pawn America has sued a city following resistance to the business, Deering said. Pawn America has 14 stores in Minnesota and one in Sioux Falls, S.D.

Pawn America's lawsuit states that the city does not have a valid excuse to refuse to issue a pawnbroker license and land-use registration. The property being purchased is located within a commercially zoned area in which pawn stores are permitted.

The lawsuit claims that Ann Boettcher, the administrative supervisor in the city's department of inspections, stated in a July voicemail, "If there was a fear that you wouldn't get the license, you shouldn't have that fear. You are all set to go."

Furthermore, the lawsuit states that she said in an e-mail that "the paperwork is in order and the license will be issued as soon as the store is ready for business."

The lawsuit also took issue with a City Council resolution Oct. 1 that directed city staff to prevent processing applications for a pawn broker license - of which Pawn America's was the sole application - even though the moratorium had not yet been finalized and will not go into effect until near the end of the month.

The lawsuit sites a 1973 case in which the city of Bloomington was ordered to issue a permit because the applicant had met all standards in an ordinance, thus giving the council no discretion in denying the permit.

The lawsuit claims that the moratorium "was developed in direct response to, and is specifically targeted at, Pawn America's plan to operate at the property."

For example, the only business that could be affected by the moratorium is Pawn America, it states, because the business is the only one seeking the only available pawnbroker license in the city. The staff report relating to the moratorium also specifically reference Pawn America but no other businesses, the suit notes.

"A moratorium that is enacted to prevent a single project is, as a matter of law, arbitrary and capricious," the lawsuit asserts. "As a matter of law, neighborhood opposition is an improper basis for any government action that denies or prevents approval to which an applicant would otherwise be entitled."

The document requests a ruling that would prohibit the city from enforcing the moratorium both temporarily and permanently. The lawsuit seeks an award or all Pawn America expenses in bringing the action and any further relief as the court deems proper.

The staff report, though, states that the city needs to study the issue of pawnshops because land use in the city has changed substantially since the last comprehensive zoning ordinance adopted in the early 1990s. Likewise, it states, pawnshops themselves and other businesses being conducted in conjunction with pawnshops have changed.

The staff report stated that the city staff has not yet determined whether the site at 5600 Excelsior Blvd. met all the requirement of the zoning ordinance for a pawnshop use. While the city confirmed to Pawn America that pawnshops are an allowed use in a commercial area, the city also informed Pawn America that a "Registration of Land Use" application would be necessary. The city did not receive this application until Sept. 28 and the Oct. 8 report states, "All the necessary information for review has not yet been submitted by the applicant."

Scott said he plans to file a response to the lawsuit on behalf of the city but did not have it available by press time.

Comment on this story at our website, www.mnsun.com.