TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing and adopt the hearing officer's recommendation to revoke Business License No. BU07029111 issued to Oceansider IV, LLC, located at 745 East 4th Street. (District 1)
DISCUSSION
Oceansider IV, LLC, holds a commercial/industrial business license issued to the property located at 743 East 4th Street, Long Beach, CA 90802 (Parcel/Tax ID #: 7281-006-035 and 3,750 square footage). The commercial business license was issued in accordance with Long Beach Municipal Code (LBMC) Section 3.80.236 - Tax on Rental of Nonresidential Property. This commercial business license governs multiple business addresses on the parcel, which are currently vacant, except for 745 East 4th Street. The 4th Street Collective, a medical marijuana dispensary and cultivation site, has been operating at 745 East 4th Street since at least June 2010. In accordance with LBMC Chapter 5.89, adopted on February 14, 2012, this type of activity is prohibited. In February 2012, the City initiated enforcement measures to seek compliance, including mailing and posting cease and desist letters to the property owner, issuing administrative citations, criminal citations and compiling liens. To date, the City has issued 47 administration citations, totaling over $22,800. Due to non-compliance, the citation amounts have become property liens.
Due to the on-going violations, the City began the business license revocation process to revoke business license number BU07029111, in accordance with LBMC Section 3.80.429.1.
The following is a chronology of the process to date:
· On May 16, 2012, a business license revocation hearing was conducted, in compliance with LBMC Section 3.80.429.1. On May 30, 2012, the hearing officer recommended to the Director of Financial Management to revoke business license number BU07029111 (Attachment A).
· On June 6, 2012, the Department of Financial Management revoked the business license issued to Oceansider IV, LLC, located at 745 East 4th Street (Attachment B), due to violations of the LBMC and state law.
· The licensee lodged its written request for appeal on June 13, 2012 (Attachment C). Pursuant to LBMC Section 3.80.429.5, a licensee can appeal the revocation of a business license to the City Council. Whenever it is provided that a hearing shall be heard by the City Council, the City Council may, in its discretion, conduct the hearing itself or refer it to a hearing officer, in accordance with LBMC 2.93.050(A).
· On July 10, 2012, the City Council referred the appeal of the business license revocation for Oceansider IV, LLC, to a second hearing officer.
· On October 17, 2012, the revocation appeal hearing was held. The hearing officer randomly assigned by the City Clerk's Office to hear the matter was Cynthia S. Floyd, Esq.
· On December 3, 2012, the hearing officer recommended that the business license issued to Oceansider IV, LLC, be revoked due to violations of LBMC Section 3.80.429.1 (Attachment D).
LBMC Section 2.93.050 requires that the City Council set a hearing to review and consider the hearing officer's report and recommendation. After review of the hearing officer's report, the City Council may adopt, reject or modify the recommended decision.
This matter was reviewed by Deputy City Attorney Kendra Carney on January 7, 2013.
TIMING CONSIDERATIONS
The hearing date of January 22, 2013, has been posted on the business location, and the property owner has been notified by mail.
FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER