HomeMy WebLinkAbout9-28-21 Business Permit and License Review Board Staff Report and Attachments
DATE: September 28, 2021
TO: Business Permit and License Review Board
FROM: Lisa Flores, Planning & Community Development Administrator
By: Amber Abeyta, Business License Officer
SUBJECT: RESOLUTION NO. 2081 – DENYING THE APPEAL AND UPHOLDING
THE REVOCATION OF THE BUSINESS LICENSE FOR SAYBROOK
MEDIA GROUP INC., LOCATED AT 529 LAS TUNAS DRIVE
Recommendation: Adopt
SUMMARY
The Appellant and business owner of Saybrook Media Group Inc., (herein referred to as
“Saybrook”) Mr. Maximilian Lobkowicz, is appealing the City’s decision to revoke the
business license on July 28, 2021. The City revoked Saybrook’s business license after it
was determined that the business is not in compliance with their approved use, which is
general office only, and the business was being utilized as a residence, which is not a
permitted use on this property. On August 9, 2021, the Appellant filed an appeal - refer to
Attachment No. 1. It is recommended that the Business Permit and License Review
Board adopt Resolution No. 2081, denying the appeal and uphold the business license
revocation for the business, Saybrook, that is located at 529 Las Tunas Drive and this
business owner may not be allowed to apply for another business license within this City
for 12 months.
BACKGROUND
On January 7, 2020, the City issued a business license to Saybrook to operate an office
use which consist of archiving and cataloging years’ worth of internally generated files,
print, media and memorabilia, storing the materials and professional office usage within
the one-story building that is located at 529 Las Tunas Drive. The subject commercial
building is approximately 7,055 square feet in size, and is zoned C-O, Professional Office.
The C-O zone is intended to provide sites for development as administrative, financial,
business, professional, medical and general offices. According to the Los Angeles County
Assessor’s database, the commercial building is owned by Hot Kid LLC in c/o Anne W.
Yeh. The property owner was copied on all the Notice of Violations and correspondence
from the City related to this business.
Business License Revocation
Saybrook Media Group, Inc. – 529 Las Tunas Drive
September 28, 2021
Page 2 of 5
On April 14, 2021, the Arcadia Police Department (“APD”) was contacted by an individual
(via telephone and in-person) attempting to register his residence as a sex offender who
informed APD that he lived at the business location of Saybrook’s since April 10, 2021.
According to the registrant, Saybrook also operates a phone sex business for the Dr.
Susan Block Institute (the Appellant’s wife), and that him and several others that works
for Saybrook also lived there as well. Since residential use of the subject property is not
allowed per the City’s zoning regulations for C-O, Professional Office, APD informed the
registrant that he could not register the subject property as his residence.
Subsequently, City staff found proof of an online advertisement – refer to Attachment No.
2 for a job at Saybrook for a “live-in” position. The job advertisement included
photographs of the subject property including the kitchen, shower, bedroom with a bed,
and a laundry facility.
Based on this information, it was determined that Saybrook was unlawfully using the
subject property for residential activity in violation of its zoning regulations. In addition, a
sex phone business is considered an “adult business” use that is prohibited in every zone
except the M-1 Zone and requires an Adult Business Regulatory Permit.
As a result, a Notice of Violation (“NOV”) was issued on April 20, 2021 – refer to
Attachment No. 3 citing that the business has expanded partially or wholly converted to
another business without the required City approval or permits. The NOV gave Saybrook
until May 3, 2021 to remove any business unrelated to the approved office use. The
Appellant informed the City that his wife is a therapist (the business owner of Dr. Susan
Block Institute) and was not operating her business out of this building. He admitted that
all Saybrook’s employees, including himself stay overnight at the subject site for several
days a week due to work deadlines. In addition, when the Appellant was informed of the
online advertisement for a job at Saybrook for a “live-in” position he did not deny the
online advertisement and explained that it was not intended for a permanent “live-in”
position, but a position to stay overnight for a few days out of the week. Furthermore, on
May 3, 2021, the Appellant informed the City that Saybrook is not in violation of any
Arcadia ordinances.
Since the Appellant confirmed that the building was being used for overnight stay and
acknowledged the online advertisement for a job for a “live-in” position at Saybrook,
which is not allowed, an NOV was issued by the City on June 2, 2021 to correct this
violation immediately and that they must cease and desist use of the property for any
overnight stays since the business license was approved strictly for office use only – refer
to Attachment No. 4. The NOV cited several code sections from the City’s Development
Code stating that overnight stay is not allowed on this subject site and within this office
building. On June 15, 2021, in response to the NOV the appellant informed the City that
Saybrook is not in violation of the any City’s Codes.
On July 22, 2021, in order to confirm whether Saybrook abated the AMC violation of
residential use, which isn’t allowed in the zone for the subject property, the City served
Business License Revocation
Saybrook Media Group, Inc. – 529 Las Tunas Drive
September 28, 2021
Page 3 of 5
the Appellant an Inspection Warrant, and an inspection was conducted that day – refer to
Attachment No. 5. Additionally, the Warrant authorized City staff to photograph or
videotape the inspection for the purpose of preserving evidence of violations of the
Arcadia Municipal Code. During the inspection, it was discovered that the business has
ten (10) rooms that were being used as bedrooms – refer to Attachment No. 6 and
contained other evidence of unlawful residential use of the property.
As a result, Saybrook was informed by certified mail on July 28, 2021 – refer to
Attachment No. 7, that their business license was revoked.
DISCUSSION
Pursuant to Section 6216.7 of the Arcadia Municipal Code, the Business License Officer
may suspend or revoke any business license upon receipt of any of the following
information:
• The business has been expanded, or partially or wholly converted to another
business, without the required City approvals and permits; or
• The business has violated, or permitted to be violated, any federal, State, or local
law applicable to the premises or business; or
• The business has, in the conduct of the same or any similar business, engaged in
conduct detrimental to the public welfare.
a. Conduct detrimental to the public welfare includes, but is not limited to,
operations or activities that do not comport with the peace, health, safety
and convenience of the public.
b. Examples of conduct detrimental to the public welfare include, but are not
limited to: (a) operating a business prohibited by local or State law, or
(b) “allowing” activities that are or become a public nuisance.
Though the burden of proof is not expressly stated in the City’s ordinance, the
preponderance of the evidence standard generally applies to all civil and administrative
matters unless another higher degree of proof is imposed by statute.
The preponderance-of-the-evidence standard requires that City staff must persuade the
Board that, by the evidence presented in this Staff Report and any evidence presented at
the hearing, that what City staff is required to prove is more likely to be true than not true.
Stated another way, the preponderance-of-the-evidence standard simply requires the
Board to believe that the existence of a fact is more probable than its nonexistence.
Business License Revocation
Saybrook Media Group, Inc. – 529 Las Tunas Drive
September 28, 2021
Page 4 of 5
Under AMC Section 6216.7, the Business License Officer has broad discretion to revoke
or suspend a business license. In this case, Saybrook’s business license has been
revoked for two independent reasons:
1. Saybrook’s business license was conditionally approved as office use only. One
of the conditions of approval was that the rooms were to be maintained as office
space and storage for the office use, as outlined on the business license
application, business license certificate and floor plan refer to - Attachment No. 8.
Many of the room were used as bedrooms for “overnight stay”; therefore, violation
of the conditions of approval of said license is grounds for revocation according to
AMC Section 6216.7(3), as stated above.
2. The subject business address is zoned C-O Professional Office. The C-O zone is
intended to provide sites for development as administrative, financial, business,
professional, medical and governmental offices (Development Code Section,
9102.03.010.). Residential uses are prohibited in the C-O zone (Development
Code Section 9102.03.020.). The City has a permissive zoning code, so only
expressly permitted uses are allowed. Residential uses are not listed as a
permitted use in the C-O zone (Development Code Section 9102.03.020, Table
2-8.) Therefore, they are prohibited unless the Development Services Department
Director makes a finding that they are sufficiently similar to an expressly
permitted use as to be allowed on the same basis in accordance with
Development Code Section 9102.03.020(B). No such finding has been made.
Therefore, your residential use of the subject property within the C-O zone is
prohibited under the AMC Development Code and is in violation of the City’s
Zoning Ordinance applicable to the premises where the business covered by said
license is conducted, which is grounds for revocation of Saybrook’s business
license in accordance with AMC Section 6216.7(3).
The City has met the preponderance-of-the-evidence standard with respect to each
ground above.
Saybrook has been allowed to continue to operate their business until action has been
taken on their Appeal.
RECOMMENDATION
It is recommended that the Business Permit and License Review Board adopt Resolution
No. 2081, denying the appeal and uphold the decision to revoke the City’s business
license for Saybrook Media Group, Inc. and that Saybrook’s employees, agents, partners,
directors, officers, controlling stockholders or managers not be allowed to apply for a new
business license in the City of Arcadia for a period of 12 months from the date of this
revocation.
Business License Revocation
Saybrook Media Group, Inc. – 529 Las Tunas Drive
September 28, 2021
Page 5 of 5
If any of the Business License and Review Board Members or other interested party has
any questions or comments regarding this matter prior to the September 28, 2021,
hearing, please contact Business License Officer, Amber Abeyta, at (626) 574-5437, or
by email at aabeyta@ArcadiaCA.gov .
Approved:
Lisa L. Flores
Planning & Community Development Administrator
Attachment No. 1 – Resolution No. 2081
Attachment No. 2 - Appeal Letter
Attachment No. 3 – Job Advertisement
Attachment No. 4 – Notice of Violation Issued April 20, 2021
Attachment No. 5 – Notice of Violation Issued June 2, 2021
Attachment No. 6 – Inspection Warrant
Attachment No. 7 – Pictures of Rooms and Business Premises
Attachment No. 8 – Business License Revocation Letter dated July 28, 2021
Attachment No. 9 – Saybrook’s Business License Application, Business License
Certificate and Floor Plan
Attachment No. 1
Attachment No. 1
Resolution No. 2081
Attachment No. 2
Attachment No. 2
Appeal Letter
Attachment No. 3
Attachment No. 3
Job Advertisement
Attachment No. 4
Attachment No. 4
Notice of Violation Issued April 20, 2021
Attachment No. 5
Attachment No. 5
Notice of Violation Issued June 2, 2021
Attachment No. 6
Attachment No. 6
Inspection Warrant
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55575.18155\33367803.1 –1 –
INSPECTION WARRANT
STEPHEN P. DEITSCH, Bar No. 089318
stephen.deitsch@bbklaw.com
BRANDON A. SANCHEZ, Bar No. 300718
brandon.sanchez@bbklaw.com
BEST BEST & KRIEGER LLP
2855 E. Guasti Road, Suite 400
Ontario, California 91761
Telephone: (909) 989-8584
Facsimile: (909) 944-1441
Attorneys for Applicant
CITY OF ARCADIA
EXEMPT FROM FILING FEES PURSUANT
TO GOVERNMENT CODE SECTION 6103.
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES—NORTH CENTRAL DISTRICT
GLENDALE COURTHOUSE
IN THE MATTER OF THE INSPECTION
OF:
529 LAS TUNAS DRIVE, ARCADIA,
CALIFORNIA 91007
APN: 5787-024-021
Warrant No.: ____________________
[PROPOSED]
INSPECTION WARRANT
[Code Civ. Proc., §§ 1822.50–1822.60.]
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INSPECTION WARRANT
INSPECTION WARRANT
Upon review of the City of Arcadia’s (“City”) Application for Inspection Warrant
(“Application”), the Memorandum of Points and Authorities attached thereto, the Declaration of
Business License Officer Amber Abeyta, and all other evidence available to the Court, and upon
proof being made before me this day that there is probable cause to believe that there are
building, fire, safety, plumbing, electrical, health, labor, or zoning code violations on the property
located at 529 Las Tunas Drive, Arcadia, California 91007 (“Subject Property”)—
THIS INSPECTION WARRANT IS HEREBY DIRECTED to any Code Services
Officer, Building and Safety Inspector, Fire Inspector, Environmental Inspector, Planning or
Zoning Inspector, Animal Control Officer, Arcadia City Attorney, County Health Inspector,
Arcadia Police Officer, and any other individual acting as an agent of the City of Arcadia
(“YOU”).
YOU ARE HEREBY AUTHORIZED IN THE NAME OF THE PEOPLE to enter and
inspect the Subject Property as authorized by Code of Civil Procedure sections 1822.50 through
1822.60, which shall include the interior and exterior of any open fields, yards, structures,
buildings, homes, houses, sheds, garages, and rooms located on or at the Subject Property
(“Inspection”). The purpose of this Inspection will be to verify the existence, scope, and extent of
any violations of the Arcadia Municipal Code (“AMC”) or other State laws, that exist on the
Subject Property.
YOU ARE FURTHER AUTHORIZED to photograph or videotape the Inspection for the
purpose of preserving evidence of violations of the Arcadia Municipal Code. Any peace officer
may accompany the execution of this Inspection Warrant in order to keep the peace and to
prevent any interference with the execution of this Inspection Warrant. Any animal control officer
may accompany the execution of this Inspection Warrant in order to control or take into custody
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INSPECTION WARRANT
any uncontrolled animal on the premises.
YOU ARE FURTHER AUTHORIZED to conduct the Abatement between the hours of
8:00 a.m. and 6:00 p.m.
YOU ARE FURTHER AUTHORIZED to conduct the Inspection without providing
advance notice of the Inspection.
YOU ARE FURTHER AUTHORIZED to conduct the Inspection in the absence of an
owner or occupant of the Subject Property because the absence of such persons is reasonably
necessary to effectuate this Inspection Warrant.
YOU ARE FURTHER AUTHORIZED to use reasonable force, if necessary, to enter the
Subject Property, or any structures thereon, to conduct the Inspection on the Subject Property,
with the assistance of the Arcadia Police Department or a locksmith.
Unless otherwise extended or renewed, this Inspection Warrant shall be effective for a
period of 14 days from the date of signature. This Inspection Warrant shall be returned to this
Court within 30 days following expiration of the Inspection Warrant.
Dated: ________________________ ___________________________________
JUDGE OF THE SUPERIOR COURT
July 13, 2021
Attachment No. 7
Attachment No. 7
Pictures of Rooms and Business Premises
Bedroom #1
Bedroom #2
Bedroom #3
Bedroom #4
Bedroom #5
Bedroom #6
Bedroom #7
Bedroom #8
Bedroom #9
Bedroom #10
Following Pictures are of Other Areas of the Business
Attachment No. 8
Attachment No. 8
Business License Revocation Letter dated
July 28, 2021
Attachment No. 9
Attachment No. 9
Saybrook’s Business License Application,
Business License Certificate and Floor Plan