ITEM 3.5 Ordinance 13-13CITY 0F 0
Ot§e
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
6A'I' INATING DEO i Tf 1E 1T.
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RE UE TOR:
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MEETING DATE:
Planning
City Planner Licht
18 May 2013
PRE E 1TEREVIEWED
BY:
ITEM #-.
pity Planner Licht
City Admin istrator .Johnson
3.5 —Second Hand Goods
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of an ordinance amending the City Code to provide a licensing
exemption for second hand goods dealers doing business in clothing and household goods.
ARE YOU SEEKING APPROVAL of A CONTRACT? I «A PUBLIC HEARING REQUIRED
BA ROU DIJU TIFI Tloll:
The City has been contacted regarding a bridal shop considering locating within ars existing commercial
building. The business sells new bridal clothing and accessories but will also buy and sell used items or
offer consignment items as part of their operation. Chapter 7, Section '13 of the City Code regulatessecond (nand goods dealers. Although the primary focus of this section is operational requirements for
pawn shops and precious metals dealers, second hand goods stores such as this bridal shop would be
within the definition of second hand goods dealers subject to the regulations and requiring issuance of
n annual license.
Section 7-13-5 of the City Code provides exceptions to the licensing requirements for various uses such
s private party sales, garage sales, auctions, used car sales, trade-ins for new merchandise (arid not the
primary business), recycling and goods valued at less than $15.00. These exceptions aro close in
character to that which would occur at this business or businesses .such as thrift stores. City staff is
proposing ars amendmentto Section 7-13-5 of the City Code to expand and clarify tht uses such as
these be exempt from the licensing requirements. with or without the licensing requirements, any
second hard goods dealer remains subject to the requirements of the Zoning ordinance, which address
the zoning district these uses are allowed in as well as related activities like signs or outdoor sale and
display. The draft amendment makes businesses involved in buying, selling or consigning second hand
goods such as clothing, shoes, housewares, household goods, decor and/or furniture, but excluding
electronic devices or precious metals unless exempt by Section 7-13-5.A of this Section, either as
incidental to or as the primary business activity.
SUPPORTING TII DOCUMENTS: ci ATTACHED a ONE
A. Draft ordinance
B. Ordinance 2013-13
C. Summary of Ordinance 2013-13
POSSIBLE MOTION
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Please vi rd motion as you would lila It to appear in the minutes,
Motion to approve ordinance 2013-13 amending the City Code regarding second hand goods dealer
license exceptions and approval of publication in summary fora.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
A NO
ACTION TAKE
a
APPROVED AS REQUESTED ❑ DEFIED ❑ TABLED n OTHER (Last changes)
COMMENTS: :
ORDINANCE NO.: 2013-13
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
N ORDINANCE AMENDING THE CITY CODE RELATED TO SECOND HAND
GOODS REGULATIONS.
THE CITE' COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
:
Section 1, Section 7--13- f the City Cede is hereby amended to read as
follows:
7-13-5: EXCEPTIONS TO LICENSE REQUIREMENT:
A. The following transactions involving precious metal shall net require a
at i donlomlicense under this Section:
Transactions at occasional "garage" or "yard" sales, or estate sales or
auctions held at the decedent's residence, except that precious metal
dealers must comply with the requirements of Minnesota to Statutes
325F.73 to 325F.744 for these transactions.
2. Transactions regulated by Minnesota Statutes § 80A.
3, Transactions regulated by the Federal Commodity Futures Commission
Act,
. Transactions involving the purchase of precious metal grindings, filings,
slag, sweeps, serails or dust from an industrial manufacturer, dental lab,
dentist or agent thereof.
5. Transactions involving the purchase of photographic film such as
lithographic and x-ray film or silver residue or flake covered in lithographic
and x-ray filen processing,
6. Transactions involving coins or bullion In ingots.
. Transactions in which the second hand item containing precious metal is
exchanged for a new item containing precious metal and the value of the
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new Remexceeds the value of second hand item.
t Transactions between precious metal dealers if both dealers are licensed
under Minnesota Statutes § 325F,733, or if the seller's business is located
outside of the state and the item is shipped from outside the state to a
dealer licensed under Minnesota Statutes § 325F.733.
9. Resale transactions by an antique dealer of second hand items containing
precious metal if the items aro resold at retail in an unaltered condition
except for repair, and the antique dealer paid less than to thousand fire
hundred dollars ($2,5 00.00)for all second hand items containing precious
metals purchased by said antique dealer within any twelve 2
consecutive month period,
B. The following transactions involving second land goods shall not require a
econd n a lar' license under this section:
, The sale of second hand goods where all of the following are present:
a. The sale is held on property occupied as a residential dwelling by
the seller or owned, rented or leased by a charitable or political
organization.
b. The items offered for sale are owned by the occupant.
C. That no sale exceeds a period of seventy-two 2) consecutive
hours.
d. That no more than two sales are held in any twelve (1 2)
consecutive month period at any residential dwelling.
. That none of the items offered for sale have been purchased for
resale or received on consignment for purpose of resale.
2. The sale of goods at an auction held by a licensed auctioneer.
3. The sale of recyclable material including, but not limited to, motor oil,
aluminum, iron, glass, plastic and paper,
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. Private occasional sales of second hand goods.
5. The sale of used motor vehicles.
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6. The sale of any item for less than fifteen dollars ($15.00) In cash,
merchandise or services for merchandise received provided:
a; The total amount paid any single Jerson for resold merchandise
does not exceed forty-five dollars ($45,00) within any sixty (60) day
period; or
b. Merchandise has not been received for resale from any single
person more than three tines within any sixty o day period
regardless of the total value of said transactions.
7. The business of burring or selling only those second hand goods taken as
pert of full payment for new goods of greater value and where such
business is incidental to and not the primary business of a person.
8. Goods sold at an exhibition.
g. The business of buying,selling or const nl second hand Dods such as
clothing,shoes housewares household goods,decor and/or furniture but
excluding electronic devices and precious metals either as incidental to or
as the primary business activity=
Section 2. This ordinance shall become effective immediately upon its passage
and publication.
MOTION :
SECOND Y;
ALL IN Flo
THOSE OPPOSED:
2013
ADOPTED by the City Council of the City of Otsego this 28th day of May,
CITY of OTSEGO
Jessica L. stoamp, Mayor
ATTEST,
T m i Luff, City Clerk
ORDINANCE NO.: 2013-13
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
H ORDINANCE AMENDING THE CITY CODE RELATED To SECOND HAND
GOODS REGULATIONS.
THE CITY COUNCIL of THE CITY OF OTSEGO DOES HEREBYORDAIN:
sec i n 1, Section --13-5 of the City Code is hereby amended to read as
follows:
-13-5 EXCEPTIONS To LICENSE REQUIREMENT:
A. The following transactions involving precious metal shall not require a license
under this Sections.
Transactions at occasional "garage" or "yard" sales, or estate sales or
auctions held at the decedent's residence, except that precious metal
dealers must comply with the requirements of Minnesota Statutes
32F.3 to 32F.744 for these transactions.
2. Transactions regulated by Minnesota Statutes § 80A.
3. Transactions regulated by the Federal Commodity Futures Commission
Act.
. Transactions involving the purchase of precious metal grindings, filings,
slag, sweeps, scraps or dust from an industrial manufacturer, dental lab,
dentist or agent thereof.
5. Transactions involving the purchase of photographic fila such as
lithographic and x-ray film or silver residue or flare covered in lithographic
and x-ray fila processing.
6. Transactions involving coins or bullion In ingots.
. Transactions in which the second hand item containing precious metal is
exchanged for a neer item containing precious metal and the value of the
new item exceeds the value of the second hand iter.
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8. Transactions between precious metal dealers if both dealers are licensed
under Minnesota Statutes § 3251=.733, or if the seller's business is located
outside of the state and the item is shipped from outside the state to a
dealer licensed under Minnesota statutes § 325.733.
. Resale transactions by an antique dealer of second hand items containing
precious metal if the items are resold at retail in an unaltered condition
except for repair, and the antique dealer paid less than two thousand fire
hundred dollars ($2,500.00) for all second hand items containing precious
metals purchased by said antique dealer within any twelve 2
consecutive month period.
B. The following transactions involving second hand goods shall not require a
license under this section:
1, The sale of second hand goods where all of the following are present
a. The sale is held on property occupied as a residential dwelling by
the seller or owned, rented or leased by a charitable or political
organization.
b. The items offered for sale are owned by the occupant.
C. That no sale exceeds a period of seventy-two 2) consecutive
hours.
d. That no more than two sales are held in any twelve 12
consecutive month period at any residential dwelling.
e. That none of the items offered for sale have been purchased for
resale or received on consignment for purpose of resale.
2. The sale of goods at an auction held by a licensed auctioneer.
3. The sale of recyclable material including, but not limited to, rotor oil,
aluminum, Iron, glass, plastic and paper.
4. Private occasional sales of second hand goods.
. The sale of used motor vehicles.
6. The sale of any item for less than fifteen dollars $15.00) in cash,
merchandise or services for merchandise received provided*
a. The total amount paid any single person for resold merchandise
does not exceed forty-five dollars ($45,00) within any sixty 6 day
period; or
b. Merchandise has not been received for resale from any single
person more than three times within any sixty day period
regardless of the total value of said transactions.
7. The business of buying or selling only those second hand goods taken as
part of full payment for new goods of greater value and where such
lousiness is incidental to and not the primary business of a person.
8. Goods sold at an exhibition.
9. The business of burring, selling or consigning second hand goods such as
clothing, shoes, housewares, household goods, decor and/or furniture, but
excluding electronic devices or precious metals unless exempt by Section
7-13-5.A of this Section, either as incidental to or as the primary business
activity.
Section 2. This Ordinance shall become effective immediately upon its passage
and publication.
MOTION Y
SECOND Y,
ALL IN FAVOR:
THOSE OPPOSED:
2013.
ADOPTED y the City Council of the City of Otsego this 28th day of May,
3
CITY of OTSEGO
Jessica L. Sfoam, Mayor
ATTEST:
Tauri Loff$ City Clergy
SUMMARY ORDINANCE NO.: 2013-13
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE RELATED To SECOND D HAND
GOODS REGDLATIo sM
THE CITY COUNCIL F THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 7-13-5 of the City Code is hereby amended to add provision
exempting the business of buying, selling or consigning second hand goods such as
clothing, shoes, housewares, household goods, decor and/or furniture, but excluding
electronic devices or precious metals unless exempt by Section 7-13-5.A of this
Section, either as incidental to or as the primary business activity.
Section 2. This Ordinance shall become effective immediately upon its passage
and publication.
MOTION BY;
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 28th day of May,
2013.
CITY of OTSEGO
BY: Jessica L. sto l amp, Mayor
yor
ATTEST; Tani Lof, , City Clerk
Pursuant to Minnesota Statutes 412.191, subd. 4 and 331A.01, Subd. 0, this
Ordinance is published in summary form. Complete copies of the ordinance are
available for inspection by contacting the Zoning Administrator/City Clerk, Otsego City
[-fall, 8899 Nashua Avenue, Otsego, Minnesota 55330 during regular office hours.
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