L.A. COUNCIL DECIDES TO REIN IN PAWNSHOPS : NEIGHBORS' COMPLAINTS PROMPT ORDINANCE.

Byline: Patrick McGreevy Daily News Staff Writer

Alarmed by increasing numbers of pawnshops in Los Angeles, the City Council voted Wednesday to adopt new restrictions on the businesses to protect surrounding neighborhoods from possible harm.

City officials said the number of pawnshops has increased in Los Angeles from 50 in 1988 to 98 in 1994 to nearly 125 today.

``It's really skyrocketed,'' said LAPD Bunco-Forgery Detective Billy Heinlein, whose office is currently processing a dozen applications for new pawnshop licenses.

Council members said their constituents are complaining that the businesses contribute to crime by selling guns and buying stolen property.

``This is causing a lot of problems in our districts,'' said Councilman Nate Holden. ``My neighbor had his tools stolen. They (thieves) went around the corner, two blocks away and sold them to the pawnshop.''

Councilman Marvin Braude proposed the new rules, saying the proliferation was been particularly noticeable in Van Nuys.

But pawnbrokers said most stores are obeying the law and should not be punished by additional regulation.

``They took a shotgun to kill a fly,'' said Sam Gonen, who owns pawnshops in Canoga Park and Van Nuys and who attended the council meeting.

``We have bad apples in the industry, but instead of dealing with the bad apples they are hurting the good people. I consider myself a good businessman.''

Jim Marquez, a representative of the pawnshop industry, said the ordinance is a threat to legitimate business.

``There is no nexus between the causation of crime and pawnshop uses,'' Marquez told the council. ``The pawnshops are not the cause of an area's economic decline. They provide a wholesome benefit to the community as far as loans and buying goods on a retail basis at a low cost.''

Pawnbrokers allow people to obtain cash by pawning their property. The property later can be retrieved for a price or sold.

The ordinance approved by the council Wednesday requires any new pawnshop to obtain a conditional use permit before going into business.

Under the CUP process, the council would have the ability to set conditions on the hours of operation, parking, signage, materials that could be sold, security and other matters that affect surrounding properties.

The ordinance would not apply to existing pawnshops unless they are significantly remodeled or expanded.

``This is not necessarily to control the number of pawnshops,'' said Councilman Hal Bernson. ``It's to make sure that when a pawnshop goes into a neighborhood that it has the conditions which are going to make it a good neighbor for the rest of the neighborhood.''

The ordinance was approved on a 12-0 vote, but only after Councilman Richard Alatorre dropped his dissent to avoid forcing the council majority to vote again next week on the measure.

Local communities can deal with problem businesses without imposing citywide regulations, Alatorre said.

``If people didn't need pawnshops they wouldn't be around,'' he said.

City planner Steven Ciccarelli told the council that many pawnshops are starting to operate 24 hours a day.

Under questioning by Councilman Joel Wachs, Ciccarelli said the LAPD has not been able to provide hard evidence that pawnshops in general contribute to crime.

Wachs said he would be concerned if the conditional use permit is used to deny permission for new pawnshops, but said the city should be able to impose some controls to protect surrounding neighborhoods.

Marquez noted that LAPD has a unit to make sure pawnshops are complying with existing rules to guard against the pawning of stolen goods.

But Holden said the LAPD is not doing enough to police pawnshops to make sure they are not trafficking in stolen property.