TITLE
Recommendation to authorize City Manager or his designee to execute a negotiated resolution regarding the commercial/industrial business license revocation for license number BU07048000 issued to John W. Mitchell, located at 1742 East Broadway. (District 2)
DISCUSSION
John W. Mitchell holds a commercial/industrial business license issued to the property located at 1742 East Broadway, Long Beach, CA 90802 (Parcel/Tax ID #: 7265-019-052 and 2,454 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 the rental of two business addresses on the parcel, 1742 and 1746 East Broadway, Long Beach, CA 90802. The Giving Tree, a medical marijuana dispensary and cultivation site, has been operating at 1742 East Broadway since August 2009. In accordance with LBMC Chapter 5.89, adopted on February 14, 2012, this type of activity is prohibited.
Following multiple attempts by the City to collaborate with the landlord to abate the violation, the Department of Financial Management, in conjunction with the City Attorney's Office, initiated a business license revocation process on July 26, 2012. Following the initial hearing, the hearing officer recommended the Department revoke the business license. On October 23, 2012, the City Council referred the appeal of the commercial/industrial business license revocation for John W. Mitchell, to a hearing officer; the revocation appeal hearing was held on January 9, 2013. At the appeal hearing, both parties agreed to resolve the matter without holding the appeal hearing;, thus, ending the revocation process. The property owner surrendered his existing business license, and withdrew his request to appeal. The hearing officer assigned by the City Clerk's Office facilitated and drafted the agreement which was then approved by all applicable parties.
At the January 9, 2013 appeal hearing, the Department of Financial Management and the City Attorney's Office, in collaboration with the appellant and; under the supervision/ direction of the hearing officer, negotiated a resolution. The proposed resolution reflects the following conditions: a) the current commercial/industrial business license will be surrendered; b) the City will reissue a commercial/industrial business license for the square footage associated to the legal and conformning business currently occupying the other business address. If approved, the space vacated by the medical marijuana dispensary, pursuant to LBMC 3.80.429, will remain unlicensed for one year.
In addition, below is a chronological order of events leading up to the business license revocation settlement agreement:
· On July 26, 2012 and August 16, 2012, a business license revocation hearing was conducted in compliance with LBMC Section 3.80.429.1.
· On September 20, 2012, the hearing officer recommended to the Director of Financial Management to revoke business license number BU07048000. (Attachment A)
· On September 21, 2012, the Department of Financial Management revoked the business license issued to John W. Mitchell, located at 1742 E Broadway, Long Beach, CA 90802, due to violations of the LBMC and state law. (Attachment B)
· Pursuant to LBMC Section 3.80.429.5, a licensee can appeal the revocation of a business license to the City Council. The licensee lodged its written request for appeal on September 27, 2012. (Attachment C)
· The revocation appeal hearing was noticed for January 9, 2013. The hearing officer assigned by the City Clerk's Office to hear the matter was Amy Yerkey, Esq. Prior to beginning the hearing, the business license holder agreed to surrender his business license and withdreaw his request to appeal.
This matter was reviewed by Deputy City Attorney Kendra Carney on January 24, 2013.
TIMING CONSIDERATIONS
The hearing date of February 5, 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