SP Star Enterprises, Inc. v. City of Los Angeles

173 Cal. App. 4th 459, 93 Cal. Rptr. 3d 152, 2009 Cal. App. LEXIS 635
CourtCalifornia Court of Appeal
DecidedApril 28, 2009
DocketB204045
StatusPublished
Cited by31 cases

This text of 173 Cal. App. 4th 459 (SP Star Enterprises, Inc. v. City of Los Angeles) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SP Star Enterprises, Inc. v. City of Los Angeles, 173 Cal. App. 4th 459, 93 Cal. Rptr. 3d 152, 2009 Cal. App. LEXIS 635 (Cal. Ct. App. 2009).

Opinion

Opinion

KLEIN, P. J.

Appellant SP Star Enterprises, Inc. (Star), holds a certificate of occupancy from the City of Los Angeles (the City) permitting Star to operate an adult club featuring nude entertainment in a two-story, 7,000-square-foot converted warehouse/manufacturing facility zoned M3-1 on Ducommun Street north of Little Tokyo. Star also holds a franchise to operate a Penthouse-branded adult cabaret. This case involves Star’s application for a conditional use permit for the sale and onsite consumption of alcohol at the club.

The City’s zoning administrator granted Star’s application for one year. The Los Angeles Hompa Hongwanji Buddhist Temple (the Temple) and the Fukui Mortuary appealed the approval to the City’s central area planning commission (APC). The appeal was supported by the Los Angeles Police Department, two city council members, the Central City East Association and numerous private citizens who argued the proposed use is not compatible with the religious and community uses in the area or the redevelopment of the area north of Little Tokyo.

Star responded its upscale business would improve tourism in the area as Penthouse cabarets had in other cities and would have no adverse impact on the neighborhood. Further, Star already was licensed to offer fully nude dancing, and issuance of the conditional use permit would trigger Department of Alcoholic Beverage Control (ABC) regulations which limit adult entertainment to topless dancing on stages at least six feet from the nearest patron.

The APC conducted a public hearing at which it upheld the appeal, resulting in the denial of the conditional use permit. Star then sought a writ of mandate. The trial court denied Star’s writ petition, indicating it would uphold the APC’s ruling whether it applied a substantial evidence or a de novo standard of review. This appeal followed.

*462 The thrust of Star’s attack on the APC’s ruling and the trial court’s denial of its writ petition is that Star is entitled to preferential treatment because it engages in a disfavored form of protected expression. Thus,- the standards under which the APC operated must be strictly scrutinized to avoid giving the APC unbridled discretion to regulate speech. Star also contends the APC’s findings were a pretext for discriminating against disfavored speech and were not supported by substantial evidence.

We conclude the case does not involve free speech but the right to sell alcohol, which is not a protected activity and does not involve a fundamental vested right. (Yu v. Alcoholic Bev. etc. Appeals Bd. (1992) 3 Cal.App.4th 286, 297 [4 Cal.Rptr.2d 280].) Thus, the standards under which the APC upheld the appeal need not reflect the “ ‘ “precision of regulation” ’ ” required when a municipality regulates protected activity. (Burton v. Municipal Court (1968) 68 Cal.2d 684, 691 [68 Cal.Rptr. 721, 441 P.2d 281].) Rather, because the standards applied by the APC are not vague or arbitrary and the APC’s decision finds substantial support in the record, we affirm the trial court’s order denying Star’s writ petition.

FACTS AND PROCEDURAL BACKGROUND

1. Star is granted a conditional use permit; the Temple and Fukui Mortuary appeal.

Star initially obtained a building certificate from the City to convert a two-story warehouse/manufacturing facility into a gentleman’s club with seating for 177 patrons, 133 parking spaces, and hours of operation from 11:00 a.m. to 2:00 a.m. daily. The City thereafter granted Star a certificate of occupancy permitting it to offer nude entertainment.

Star then sought a conditional use permit for the sale and consumption of a full line of alcoholic beverages with live entertainment consisting of clothed and topless dancing. The application disclosed the club would have no kitchen and would have happy hour from 4:00 to 7:00 p.m. daily.

The zoning administrator conducted a public hearing and thereafter granted Star’s application for a conditional use permit for one year. The approval letter stated the site is a comer parcel with 150 feet of frontage on the north side of Ducommun Street and approximately 138 feet along Vignes Street. The property is improved with a warehouse building with rooftop and interior parking accessed via Commercial Street. Surrounding properties are charac *463 terized by commercial/industrial buildings occupied by perishable food cold storage, food processing operations, and a City maintenance yard.

The Temple and the Fukui Mortuary appealed the approval to the APC, which conducted a public hearing on the matter.

2. The public hearing before the APC.

a. The zoning administrator’s explanation of the approval.

Zoning administrator Albert Landini approved Star’s application because ABC guidelines for this census tract permit one onsite license for the sale of alcohol and one offsite license and, at the current time, there are no licenses. The area had a low crime rate and, although it had been claimed there were two artists’ lofts nearby, no residential properties had been identified and residential use in the area clearly was in the minority. Landini noted Star voluntarily had agreed to conditions on the signage of the building, the site has a large amount of parking and construction of the club has been completed. Landini noted the permit had a life of one year and Star had accepted this condition based on its substantial belief in the nature of its business.

b. Position of the proponents of the appeal.

Gerald Fukui, the fifth generation operator of the Fukui Mortuary on East Temple Street, testified the mortuary has been serving the Japanese-American community since 1918. They have a chapel which accommodates 150 people and is used for funerals and memorial services involving all faiths and religions. The mortuary conducts more than 500 services per year, and many services continue into the night as is the Japanese-American custom. The mortuary is approximately three blocks from the site of the proposed permit. The sale of alcoholic beverages in such proximity to the mortuary would be disruptive, dangerous and contrary to the environment of grieving family and friends. Fukui indicated there already was a problem with Little Pedro’s, a bar directly across the street from the Temple at First and Vignes Streets. Loud, boisterous patrons of Little Pedro’s park and urinate in the mortuary’s parking lot and act disrespectfully when passing the entrance to the chapel. Fukui noted the mortuary will be between the new cabaret and Little Pedro’s.

On behalf of the Temple, Eric Kurimura testified the permit will create an unsafe environment for families congregating at the Temple. Kurimura feared disruption of numerous religious services and youth programs. Also, the *464 increased sale of alcohol in the area would be adverse to the changing nature of the community. The Temple operates a daycare center from 8:00 a.m. to 6:00 p.m. five days a week. The Temple also has funeral services, memorial services and weddings, most of which take place in the evening.

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Bluebook (online)
173 Cal. App. 4th 459, 93 Cal. Rptr. 3d 152, 2009 Cal. App. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sp-star-enterprises-inc-v-city-of-los-angeles-calctapp-2009.