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HomeMy WebLinkAbout7394RESOLUTION NO. 7394 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DENYING THE APPEAL OF THE BUSINESS PERMIT AND LICENSE REVIEW BOARD DECISION AND UPHOLDING THE REVOCATION OF THE BUSINESS LICENSE FOR SAYBROOK MEDIA GROUP INC. AT 529 LAS TUNAS DRIVE WHEREAS; on January 7, 2020, the City issued a business license to Saybrook Media Group Inc. (herein referred to as "Saybrook") at 529 Las Tunas Drive, for general office use only. The subject business address is zoned C-O Professional Office; and WHEREAS, on April 20, 2021, a Notice of Violation ("NOV") was issued to Saybrook since they had an online advertisement for a "live-in" position and residential use of the subject property is not allowed per the City's zoning regulations for C-O, Professional Office. The NOV cited that Saybrook had at least partially expanded to another busines 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; and WHEREAS, on June 2, 2021, a second NOV was issued to Saybrook, since the business owner of Saybrook confirmed that the building was being used for overnight stay and acknowledged the online advertisement for a job for a "live-in" position at their business location, which is not allowed. The second NOV cited that Saybrook must 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. Subsequently, on June 15, 2021, in response to the NOV the business owner informed the City that Saybrook is not in violation of any City Codes; and WHEREAS, on July 22, 2021, in order to confirm whether Saybrook abated the Arcadia Municipal Code ("AMC") violation of residential use, which is not allowed in the 1 zone for the subject property, the City served Saybrook an Inspection Warrant. An inspection of the business was conducted that day, and it was confirmed (1) that the business had partially converted the approved floor plan and use from required storage and office use to residential use, which is in violation of Saybrook's business license conditions of approval, and (2) the overnight stay/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; and WHEREAS, 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: 1) The business has been expanded, or partially or wholly converted to another business, without the required City approvals and permits; or 2) The business has violated any conditions of said license, or has violated or permitted to be violated any federal, State, or local law applicable to the premises or business; or 3) The business has, in the conduct of the same or any similar business, engaged in conduct detrimental to the public welfare. Conduct detrimental to the public welfare includes, but is not limited to. operations or activities that do not comport with the peace, health. safetv. and convenience of the public. 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; and WHEREAS, on July 28, 2021, the business license was revoked by the Business License Officer for two reasons: (1) Saybrook had partially converted their approved floor plan and use from required storage and office use to residential use which is in violation of Saybrook's business license conditions of approval, and (2) the overnight stay/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 pursuant to Section 6216.7 of the Arcadia Municipal Code; and WHEREAS, on August 9, 2021, the Appellant of Saybrook's business, Mr. Maximilian Lobkowicz, filed an appeal within the prescribed ten-day appeal period; and WHEREAS, on September 28, 2021, a public hearing was held before the Business Permit and License Review Board ("Board") on said appeal, at which time all interested persons were given full opportunity to be heard and to present evidence. At said meeting the Board made the decision in a 4 -0 vote with one (1) Board Member absent, to deny Saybrook's appeal and uphold the City's Business License Officer's decision to revoke Saybrook's business license, subject to the condition that Saybrook's employees, agents, partners, directors, officers, controlling stockholders and 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; and WHEREAS, on October 7, 2021, Attorney Mr. Ron Betty, on behalf of Saybrook, filed an appeal to the City Council of the Board's decision to deny Saybrook's appeal and uphold the City's Business License Officer's decision to revoke Saybrook's business license within the prescribed ten-day appeal period; and K WHEREAS, Saybrook requested and received a continuance from the originally scheduled hearing date of December 7, 2021, and, on December 21, 2021, at the City Council meeting, a second continuance was requested by Saybrook, which was granted to the date of January 18, 2022; and WHEREAS, on January 18, 2022, at its regularly scheduled meeting, the City Council heard said appeal, at which time the appellant and the City were given an opportunity to be fully heard. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS: SECTION 1. The facts set forth above are true and correct and are incorporated herein by reference. SECTION 2. Based on the Board's findings presented to this City Council at the above -referenced meeting on January 18, 2022, including factual data submitted by the Business License Division in the staff report with attachments dated September 28, 2021, the City Council considered the findings and recommendations of the Board and hereby adopts them in total in accordance with Arcadia Municipal Code Section 6216.90 — Appeal to City the City Council, hereby denying the appeal and upholding the Board's decision in the revocation of the business license for Saybrook subject to the condition that Saybrook's employees, agents, partners, directors, officers, controlling stockholders and 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 the revocation. In so deciding, the Council finds and determines all of the following pursuant to Arcadia Municipal Code Section 6216.7-. 2 1. Saybrook has been expanded, or partially or wholly converted to another business, without the required City approvals and permits, thereby violating conditions of approval of their business license and partially converting required storage and office space to residential use. Facts to Support the Findinra: Saybrook's business license was conditionally approved as an office use only. One of the conditions of approval was that certain rooms were to be maintained as office space and storage for the office use, as outlined on the business license application, and as listed on the business license certificate. As evidenced by the photographs within the record, many of the rooms required to be used for office or storage use were instead being used as bedrooms for overnight stay; therefore, this violation of conditions of approval of said license is grounds for revocation according to AMC Section 6216.7(3). 2. Saybrook violated, or permitted to be violated, local law applicable to the premises or business, by using the property for residential uses prohibited in the AMC in the C-O Professional Office zone. Facts to Support the Finding; 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, 9102.03.020.). 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 Director makes a finding that they are sufficiently similar to an expressly �I 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. There is ample evidence of residential use of the property, including information from the sex offender registrant that he resided at the property, the online advertisement for a live in position, and evidence taken during the inspection on July 22, 2021, that confirmed the residential use. The 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). 3. Saybrook engaged in conduct detrimental to the public welfare, which includes allowing activities that are a public nuisance, by violating conditions of approval of their business license and the AMC by partially converting required storage and office space to residential use. Facts to Support the Finding: The previous facts are incorporated herein. Despite clear restrictions placed on their business license certificate, Saybrook allowed activities on site that violated the conditions of approval of their business license. AMC Section 6216.7. — Suspension or Revocation states, "The License Officer may suspend or revoke any business license upon receipt of information from any source that:... (3) The holder of license has violated any of the conditions of said license, or has violated or permitted to be violated any law or laws of the United States or the State, or any ordinance applicable to the premises where the N. business covered by said license is conducted, or in connection with said business." 4- Based on the foregoing, the City of Arcadia City Council finds that AMC Section 6216.7 was violated by Saybrook, justifying its business license revocation. SECTION 3. The Secretary shall certify to the adoption of this Resolution. Passed, approved and adopted by the City Council this 18th day of January, 2022. ATTEST: i lerk APPROVED AS TO FORM: d Leis a Best Best & Krieger LLP Office of the City Attorney U Mayor of that7ity of Arcadia STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS: CITY OF ARCADIA ) I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 7394 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 18th day of January, 2022 and that said Resolution was adopted by the following vote, to wit: AYES: Beck, Verlato, Cheng, and Tay NOES: None ABSENT: None E:7 Clerk of t ity of Arcadia