City officials mull changes to policy on check cashing

Novato is considering modifying its rules prohibiting checkcashing businesses downtown.

The Planning Commission voted unanimously last week to recommend to the City Council that zoning regulations be updated to allow check-cashing services as an accessory use at travel agencies and grocery stores.

The resolution will be considered by the City Council at an upcoming meeting.

The effort began when a business known as both La Star Latina and Luna Travel relocated. The business, which opened in 2010 at 1212 Grant Ave., is a travel agency that also provides check-cashing services and money orders, largely to a Latino customer base.

In 2021, when the business moved to 904 Grant Ave., it triggered the legal challenge to the city's 2012 regulation that prohibits new check-cashing businesses in the downtown area.

An appeal filed by the business owner, who argued the check-cashing service was nothing more than an accessory use of the travel agency, was denied in 2022.

The City Council stayed the Planning Commission's decision in November 2022 and granted the business a temporary operating agreement to allow the check-cashing services as staff prepared the changes.

Steve Marshall, deputy director of community development, said the new rules, if approved, would be considered an accessory use for grocery stories and travel agencies.

“We believe this ends up speaking to the demand to travel agencies combined with check-cashing services,” he said.

Niran Somasundaram, an attorney representing La Star Latina, said the owners support the effort. He said they were glad to continue to offer the services to the Spanishspeaking community.

“I don't think anyone was attempting to minimize or discriminate against any group of residents.”

— Peter Tiernan,

Novato Planning Commission

“La Star Latina is an essential neighborhood business that allows the community to arrange for travel services for its customers and their family members while also transferring money to loved ones both inside and outside the country,” Somasundaram said.

“The solution put forward by staff is elegant, it's all encompassing,” Curtis Havel, a planning commissioner, said at the Feb. 26 meeting.

Commissioner Peter Tiernan said he hoped to counter public sentiment that the original decision was motivated by racial prejudice.

“I don't think anyone was attempting to minimize or discriminate against any group of residents,” he said.