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ADMINISTRATIVE USE PERMIT TO ESTABLISH A 1,987 SQUARE FOOT PAWN SHOP IN AN EXISTING BUILDING AT 2002 PACIFIC AVENUE (APN 127-020-24) (P26-0005)
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution:
1. Finding that the project is categorically exempt from CEQA, pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities); and
2. Approving an Administrative Use Permit to establish a 1,987 square-foot Pawn Shop in an existing building located at 2002 Pacific Avenue, in accordance with the findings and subject to the conditions included in the proposed resolution.
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Summary
On January 6, 2026, the applicant, Jose Acosta Perez of Don Pepes Loan and Jewelry (herein Applicant), submitted an application for an Administrative Use Permit to convert Suite A of an existing structure located at 2002 Pacific Avenue from a “Banks and Financial Services” land use specializing in payday loans and check-cashing services into a “Pawn Shop” land use (Attachment A - Vicinity Map). The application was reviewed by Staff for completeness and contains the following required documents (Attachment B - Project Application):
• Site plan and floor plan indicating the location and scope of the conversion
• A written description of the proposed use
An Administrative Use Permit is subject to review and approval by the Community Development Director. After an internal review of the application by the usual City departments, including the Police Department, no notable concerns were raised in approving the proposed project. On March 4, 2026, a 10-day public notice of a pending Director’s action was mailed to property owners within 300 feet of the property on which the proposed use is located. Multiple responses were received requesting a public hearing, including eight (8) letters from individuals or groups, seven (7) responses to an online form set up by the Miracle Mile Community Improvement District, and a petition that included twelve (12) signatories. Also received were two (2) letters of support for the project (Attachment C - Responses to notice of pending decision). The hearing requests cited three main concerns: “incompatibility with district identity,” “concerns related to loitering, safety, and the overall atmosphere of the area,” and that introducing this use could “undermine the district’s progress and create precedent for additional similar uses that could alter the corridor’s character over time.” All hearing requests included a request to reject the Use Permit application. As discussed later in this report, insufficient evidence has been provided to contradict the positive findings that have been made in relation to neighborhood compatibility, public safety, or diminishment of the character of the local area.
Subsequent to the City receiving a response from MMCID, a subcommittee of the MMCID board met with the applicant and together have requested conditions be added to the project to alleviate MMCID’s concerns. These added conditions are conditions 7-10 in the proposed resolution.
In accordance with SMC Section 16.168.040(D)(2)(a), the subject Use Permit application has been elevated to a public hearing, and the Planning Commission is now the Review Authority for the project. Staff recommends the Planning Commission approve the Administrative Use Permit based on the required findings and subject to conditions.
Discussion
Background
The proposed project is located at 2002 Pacific Avenue. Prior to the application in question, the site was previously the location of a payday loan and check-cashing establishment, categorized as a “Banks and Financial Services” land use. The General Plan Land Use Designation of the site is Commercial, and the zoning is Commercial, General (CG). 2002 Pacific Avenue is located in the Miracle Mile District, as defined in Stockton Municipal Code Section 16.20.020. The Miracle Mile is a recognized commercial district in Stockton with a unique character, and is subject to specific design requirements as outlined in the City Design Guidelines. Pawn Shops are an allowed use in the CG zoning district with the approval of an Administrative Use Permit.
Present Situation
The proposed project is a change in use from the previous “Banks and Financial Services” land use to a “Pawn Shop” land use located within a 1,987 square-foot suite (Suite A) of the existing structure located at 2002 Pacific Avenue. Per Table 2-2 in Stockton Municipal Code Section 16.20.020, an Administrative Use Permit is required to establish a Pawn Shop within the CG zoning district. Since the Pawn Shop land use does not have specific land use standards in the development code, it is necessary for it to comply with the standards and requirements set for other land uses in the Retail Sales subcategory pursuant to Table 2-2 of Stockton Municipal Code Section 16.20.020. This subcategory includes Building Materials Stores, Convenience Stores, Garden Centers, General Retail, and Outdoor Retail Sales land uses.
The Miracle Mile, as defined in Stockton Municipal Code Section 16.240.020, is predominantly designated for commercial land uses per Figure 2-8 of the “Envision Stockton 2040 General Plan” which mostly consists of CN (Commercial, Neighborhood) and CG (Commercial, General) zoning districts. Other businesses that qualify as Retail Sales establishments that can be found along the Miracle Mile include “Sweet Life Boutique” (General Retail), “NC Bridal” (General Retail), “Green’s Nutrition” (General Retail), and “Avenue Coin Inc.” (Pawn Shop) amongst other retail establishments.
The Project site is currently vacant. Policy LU-6.2 of the “Envision Stockton 2040 General Plan” emphasizes the prioritization of “development and redevelopment of vacant, underutilized, and blighted infill areas.” This Project would also take place within the Miracle Mile Design District; however, a Design Review was not required for this Project since it does not propose to develop any new building(s) or make any exterior alterations to any existing building(s). All interior alterations made to Suite A of 2002 Pacific Avenue are confined to the subject space and have been designed so as to not physically preclude other uses and businesses contained within the subject building.
As previously mentioned, a 10-day public notice of pending Director’s action was mailed to the property owners within 300 feet of the property on which the proposed use is located. In response, eight (8) letters from individuals or groups, seven (7) responses to an online form set up by the Miracle Mile Community Improvement District, and a petition that included twelve (12) signatories were received. Also received were two (2) letters of support for the project (Attachment B - Responses to notice of pending decision). The predominant arguments against the establishment of a pawn shop can be exemplified best through the comments provided by two separate members of the community.
A member of the public stated that the Miracle Mile has “a strong identity centered on dining, neighborhood retail, and destination-oriented businesses” and questioned the compatibility of a pawn shop with other uses along the Miracle Mile. They warned that introducing a pawn shop could “undermine the district’s progress and create precedent for additional similar uses that could alter the corridor’s character over time.”
A separate individual mentioned how an “existing pawn shop that has brought ongoing concerns related to loitering, safety, and the overall atmosphere of the area.” The individual cites this as evidence that introducing another pawn shop could exacerbate these issues and negatively impact the local neighborhood.
Pawn Shops are not identified as a “Problem Use” per the definition found in Stockton Municipal Code Section 16.240.020 and therefore are not limited by concentration or require additional findings to be made other than the general findings for a Use Permit under Stockton Municipal Code Section 16.168.050(A)(1-7). A request was sent to the Police Department to obtain the Calls for Service information spanning one year from March 1, 2025 through February 28, 2026 for the existing pawn shops “Stockton Loan & Jewelry” at 4227 Pacific Avenue and “Avenue Coin, Inc.” at 2220 Pacific Avenue. The site at 4227 Pacific Avenue has reported 13 calls for service with the majority being of a non-criminal nature, while 2220 Pacific Avenue has had 2 calls for service both being of a non-criminal nature. Calls for service information was also obtained for the Project site, 2002 Pacific Avenue, demonstrating that 5 calls were made within the same timeframe, all of which were of a non-criminal nature. The Police Department has also responded that they have no conditions or comments for this Project.
In response to the public’s concerns, the applicant met with a subcommittee of MMCID board. Together, MMCID and the applicant agreed on additional conditions of approval to alleviate the concerns MMCID had with the project. These conditions include:
• Limiting operations to the purchase, sale, and provision of loans for jewelry, watches, and coins only.
• Limiting hours of operation to 10:00 a.m. and 6:00 p.m., Monday through Saturday.
• Ensuring to maintain a clear view from all storefront windows, and prohibiting features including but not limited to window signage, metal bars, or metal shutters.
• Installing security cameras throughout the premises.
As indicated by the applicant, adding these conditions to the proposed approval resolution would alleviate concerns expressed by the subcommittee of the MMCID board for this project.
Staff Analysis
Following the review of the application, the Director determined that granting the Administrative Use Permit is consistent with Stockton Municipal Code (SMC) Section 16.130.030(C)(1)(a-d). Pursuant to SMC Section 16.130.030(C)(2), a notice of intent to issue the Administrative Use Permit was sent to all nearby property owners within 300 feet. Multiple requests for public hearing were received by the Department within the 10-day noticing period, therefore a public hearing before the Planning Commission is required. The Planning Commission is now the review authority for the application.
The decision shall be based on the following findings of fact that are proposed by City Staff for the Planning Commission’s consideration and shall be approved, with or without conditions, only if all affirmative findings can be made:
1. The proposed use is allowed within the subject zoning district with the approval of a use permit and complies with all other applicable provisions of this Development Code and the Municipal Code;
The proposed Project is an allowable land use within the CG (Commercial, General) zoning district with the issuance of an Administrative Use Permit per Table 2-2 in Stockton Municipal Code Section 16.20.020. The Project meets all city development standards and special use regulations.
2. The proposed use would maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located;
The Project establishes a “Pawn Shop” commercial land use by making use of a vacant suite in an existing commercial structure and does not propose to make changes to the exterior of the structure or site. Nearby compatible uses that, like Pawn Shops, are categorized as a subcategory of Retail Sales in Table 2-2 of Stockton Municipal Code Section 16.20.020 include “Sweet Life Boutique” (General Retail), “NC Bridal” (General Retail), “Green’s Nutrition” (General Retail), and “Avenue Coin Inc.” (Pawn Shop).
3. The proposed use would be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan;
The subject property has a General Plan land use designation of Commercial as demonstrated in Figure 2-8 of the “Envision Stockton 2040 General Plan” that, per the definition of a Commercial land use designation provided on page 14 in Chapter 2 (Planning Framework) of the General Plan, allows for a wide variety of retail uses. The utilization of 2002 Pacific Avenue’s Suite A also maintains compliance with General Plan Policy LU-6.2 which prioritizes the “development and redevelopment of vacant, underutilized, and blighted infill areas.”
4. The subject site would be physically suitable for the type and density/intensity of use being proposed including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.);
The Project occupies a portion of an already developed Commercial structure and is suitable for the proposed use. The site has adequate public utility services to support the Project. Additionally, the Municipal Utilities Department confirmed they have no comments or conditions for the proposed Project.
5. The establishment, maintenance, or operation of the proposed use at the location proposed and for the time period(s) identified, if applicable, would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, peace, or general welfare of persons residing or working in the neighborhood of the proposed use;
The Project is subject to applicable Federal, State and City regulations. The Project is developed in conformance with the applicable standards of the Stockton Municipal Code. The City of Stockton Police Department reviewed the application and had no comments or conditions. Additional review of the calls for service data obtained from March 1, 2025 through February 28, 2026 for the existing site (2002 Pacific Avenue) did not yield any calls of a criminal nature, and calls for service information obtained for similar pawn shop establishments at 4227 and 2220 Pacific Avenue yielded similar results. Therefore, no evidence exists to determine that the proposal would endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood.
6. The design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property;
This Project utilizes existing space previously occupied by a “Banks and Financial Services” land use to establish a new “Pawn Shop” land use that does not change the exterior of the existing structure. The land use to be established under this Project is subject to the same standards as other land uses under the Retail Sales subcategory found in Table 2-2 of Stockton Municipal Code Section 16.20.020. Nearby establishments within the same subcategory include “Sweet Life Boutique” (General Retail), “NC Bridal” (General Retail), and “Green’s Nutrition” (General Retail) and “Avenue Coin Inc.” (Pawn Shop). This usage, being subject to the same conditions as other retail uses along the Miracle Mile, as well as all requirements of the Stockton Municipal Code will continue to maintain compatibility with current and future land uses along this commercial corridor.
7. The proposed action would be in compliance with the provisions of the California Environmental Quality Act (CEQA) and CEQA Guidelines.
Per CEQA Guidelines Section 15301(a) (Existing Facilities), a project that “involves negligible or no expansion of use” including interior alterations such as “partitions, plumbing and electrical conveyance” would be categorically exempt from the provisions of CEQA. Since the project only involves interior alterations of an existing 1,987 square foot suite to facilitate a change in use, the provisions of CEQA do not apply.
It is staff’s determination that the concerns raised by the nearby property owners do not change the facts related to the decision to approve the Pawn Shop. Insufficient evidence has been provided to contradict the positive findings that have been made in relation to neighborhood compatibility, public safety, or diminishment of the character of the local area. As previously mentioned, the Stockton Police Department has reviewed the subject application and has no concerns regarding a pawn shop operating at this site. Furthermore, the two nearest pawn shops to the subject location have had minimal calls for service over the past year, the majority of which were not related to active criminal activity. To further alleviate concerns, the applicant and the MMCID have agreed upon conditions of approval that have been added to the proposed resolution as conditions 7-10.
Floodplain Management Finding
Chapter 16.90 of the Stockton Municipal Code requires a finding to be made to approve a discretionary entitlement within a flood hazard zone. Per SMC Section 16.90.020(A)(1), the following finding of fact can be made:
1. The facilities of the State Plan of Flood Control or other flood management facilities protect the property to the urban level of flood protection in urban and urbanizing areas.
The subject parcel is shown in City maps to be in flood zone X with a 0.2 percent chance of flooding due to levee protection. A 1-in-200 chance of flooding is acceptable pursuant to SMC Section 16.90.020(A)(5).
Environmental Clearance
The proposed use is categorically exempt from CEQA analysis under CEQA Guidelines Section 15301(a) (Existing Facilities), since the project only involves interior alterations of an existing 1,987 square foot suite to facilitate the change in use.
Public Comments
Notice for the Planning Commission public hearing for this Project was published in the Record on May 4, 2026, and mailed notice was sent to all property owners within a 300-foot radius at least ten (10) days prior. As of the writing of this report, no additional comments have been submitted.
ATTACHMENTS
Attachment A - Vicinity Map
Attachment B - Project Application
Attachment C - Responses to notice of pending decision
This staff report was prepared by Jackson Patten, Assistant Planner, (209) 937-7564; Jackson.patten@stocktonca.gov.