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HomeMy WebLinkAboutP.H. 3 CUP 92-004 04-06-92PUBLIC HEARING N0. 3 4-6-92 __ ♦ M1 -.r..._.-.-._...r.�-.+.e.�r.r�.-.-...w.w+e..+.�.-.�.•-....+w...�...-....-.�:..-__-........+.-.e..w••...w.e..w.••+T+wt d a � � o r -Com t = APRIL 6, 1992 V V �~ WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT �•I`=CTAPPEAL OF CONDITIONAL USE PERMIT 92-004 RECOMMENDATION It is recommended that the City Council uphold the Planning Commission approval of Conditional Use Permit 92-004 by adoption of Resolution No. 92-47, as submitted or revised. BACKGROUND On March 9, 1992, the Planning Commission adopted Resolution.No. 3010 approving Conditional Use Permit 92-004 which authorized the establishment of a martial arts studio use to be located at 2923 and 2924 El Camino Real within the North Village of the Tustin Market Place (Attachment A). On March 16, 1992, the Community Development Department received an appeal of the Planning Commission's action from a concerned Tustin citizen (Attachment B) . The proposed site is located within the North Village of the Tustin Market Place,* also known as the Entertainment Village. The proposed martial arts studio will occupy two suites situated on the north side of the Entertainment Village. The Entertainment Village contains the Edwards Movie Theater, a number of restaurants, Bookstar Book Shop, Tower Records and various retail stores. Immediately adjacent to the site to the east is a Happy Nails, nail salon; to the south, facing the south parking area is America's Cup Yogurt shop and Busy Bee Chinese cuisine restaurant; to the west is a vacant tenant suite; and to the north is the north parking area and East Drive. A public hearing notice identifying the time, date and location of the public hearing on this project was published in the Tustin News. Property owners within 300 feet of the site were notified of the hearing by mail and notices were posted on the site and at the Police Department. The applicant was informed of the availability of the agenda and staff report for this item. City Council Report Appeal of Conditional Use Permit 92-004 April 6, 1992 Page 2 DISCUSSION The submitted development plan proposes the establishment of the martial arts studio use within two existing tenant suites. The combined tenant spaces will constitute approximately 2,370 square feet of floor area. The proposed floor plan for the martial arts studio includes a reception area, open exercise area, two offices, two locker rooms and restrooms. The business hours for the facility will be as follows: Monday - Friday 10:00 a.m. to 9:00 p.m. Saturday and Sunday 10:00 a.m. to 5:00 p.m. The martial arts studio is proposing to have 2 teachers instructing at the facility with an average class size of approximately twelve (12) people. The martial arts studio is proposing to offer five (5) classes per day. Pursuant to the approved Use Determination, parking is provided on the site at a rate of one (1) parking space for every 150 -square feet of lease space. These sixteen (16) parking spaces will be located within the shared parking lot area of the Tustin Market Place. The appellant is not concerned with the establishment of a martial arts studio use, but rather is concerned that proposed operator for the martial arts studio is allegedly involved in practices [that] might be detrimental to the morals and general welfare of the City of Tustin and its citizens." This concern was not raised by the appellant at the March 9, 1992 Planning Commission meeting but rather was presented in letter form on March 16, 1992 to the Community Development Department. This letter and associated information has been included as Attachment B. In the March 91 1992 public hearing, the Planning Commission reviewed only the use - a martial arts studio use. It is not in the Planning Commission's authority to review the proposed operator of a use. In determining whether to approve the Conditional Use Permit request, the Planning Commission was required to determine whether or not the establishment of a martial arts studio use will be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of the use; or whether the use will be injurious or detrimental to property and improvements in the neighborhood or the general welfare of the City. City Council Report Appeal of Conditional Use Permit 92-004 April 6, 1992 Page 3 Please refer to the Planning Commission staff report dated March 9, 1992 for additional information related to the project (Attachment C) . CONCLUSION Based on the analysis provided in this report and review of the conditions of the site and surrounding vicinity, it is recommended that the City Council uphold the Planning Commission's approval of Conditional Use Permit 92-004 by adoption of Resolution No. 92-47, as submitted or revised. K S'. Joann M.S. Perry r Associate Planner CAS:JP:nm/cup92004 Christine A. Shingle56n Assistant City Manager Community Development Attachments: Resolution 92-47 A - Planning Commission Resolution B - Letter from concerned citizen C - Planning Commission Report CUP No. 3010 92-004 1 2 3 4 5 6'. T 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 92-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA UPHOLDING THE DECISION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, TO APPROVE CONDITIONAL USE PERMIT 92- 004, AUTHORIZING THE ESTABLISHMENT OF A MARTIAL ARTS STUDIO USE IN THE PLANNED COMMUNITY (PC), MIXED USE LAND USE CATEGORY LOCATED WITHIN THE TUSTIN MARKET PLACE AT 2923 AND 2925 EL CAMINO REAL, TUSTIN. The City Council of the City of Tustin does hereby resolve as follows: I. The City Council finds•and determines as follows: A. A proper application, Conditional Use Permit 92-004 has been filed by Donahue Schriber on behalf of Karate Masters USA, Inc. requesting authorization for the establishment of a martial arts studio use in the Planned Community (PC) Mixed Use land use category located within the Tustin Market Place at 2923 and 2925 E1 Camino Real, Tustin. B. A public hearing was duly called, noticed and held by the Planning Commission of the City of Tustin for said application on March 9, 1992, at which time Resolution No. 3010 was adopted, approving the project. C. A proper appeal has been filed by Mr. Chang Jin Kang appealing the adoption of Planning Commission Resolution No. 3010 approving Conditional Use Permit 92-004. D. A public hearing was duly called, noticed and held for said appeal on April 6, 1992. E. The subject premise is located in the Mixed Use land use category. The martial art. studio use applied for is a conditionally permitted use within the Mixed Use land use category pursuant to the East Tustin Specific Plan and the January 91 1992 Use Determination regarding this location. F: That the establishment, maintenance, and operation of the use applied for will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood of 1 2 3 4 5' 6' 71'' 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 92-47 Page 2 such proposed use nor be a detriment to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin as evidenced by the following findings: 1. The proposed martial arts studio use is to be located in a existing shopping center and would be compatible with the other existing commercial retail and restaurant uses within the center. The use poses not significant impact, in that there is a lack of sensitive land uses adjacent to the site, such as residential uses. 2. Adequate lighting is proposed for the project for pedestrian and parking areas, creating a safe environment for customers and employees, which has been provided as part of the center development. 3. Adequate parking is available on site to provide parking for the current use within the center and the proposed use, which has been provided as part of the center development. 4. The subject property will be required to be maintained in a safe, clean and sanitary manner, thus eliminating any potential for unhealthful or injurious site conditions. 5. The business hours for the proposed martial arts studio use will be as follows: Monday - Friday 10:00 am to 9:00 pm Saturday - Sunday 10:00 am to 5:00 pm These hours would be compatible with the existing commercial uses. 6. As conditioned, the applicant will post a "No Loitering" sign to insure the well- being of the customers of the martial arts studio and customers of existing surrounding uses within the center. 1 2 3 4 5 6 7 8i 9 10 11 12 13 14 15 16 11 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 92-47 Page 3 G. That the establishment, maintenance and operation of the use applied for will not be injurious or detrimental to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin, as evidenced by the findings (F 3-6) stated above. H. This project is Categorically Exempt from the _ requirements of the California Environmental Quality Act, pursuant to section 15301 (Class 1) . II. The City Council of the City of Tustin hereby upholds the Planning Commission's decision to approve Conditional Use Permit 92-004 authorizing the establishment of a martial arts studio use in the Planned Community (PC) Mixed Use land use category located within the Tustin Market Place at 2923 and 2925 E1 Camino Real, Tustin, subject to the conditions contained within Exhibit A attached hereto and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 6th day of April, 1992. Charles E. Puckett, Mayor Mary E. Wynn, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) EXHIBIT A CONDITIONAL USE PERMIT 92-004 CONDITIONS OF APPROVAL RESOLUTION NO. 92-47 GENERAL (1) 1.1 The proposed project shall substantially conform with the submitted plans for the project date stamped April 6, 1992 on file with the Community Development Department, as herein modified, or as modified by the Director of Community Development Department in accordance with this Exhibit. The Director of Community Development may also approve subsequent minor modifications to plans during plan check if such modifications are to be consistent with provisions of the Tustin City Code and the approved plans. (1) 1.2 Unless otherwise specified, the conditions contained in this Exhibit shall be complied with prior to the issuance of any building permits for the project, subject to review and approval- by the Community Development Department. (1) 1.3 Approval of Conditional Use Permit 92-004 is contingent upon the applicant signing and returning an "Agreement to Conditions Imposed" form as established by the Director of Community Development. (1) 1.4 This Conditional Use Permit approval shall become null and void unless building permits are issued within twelve (12) months of the date of this Exhibit. Time extensions may be granted by the Planning Commission if a written request is received by the Community Development Department within thirty (30) days prior to expiration. USE RESTRICTIONS (5) 2.1 No more than 50 persons may occupy the premises at one time, based on UBC occupancy requirements. (3) 2.2 The Tustin City Noise Ordinance, allowing a maximum exterior noise level of 70 dBa, shall be observed on the premises at all times. SOURCE CODES (1) STANDARD CONDITION (5) RESPONSIBLE AGENCY REQUIREMENT (2) CEQA MITIGATION (6) LANDSCAPING GUIDELINES (3) UNIFORM BUILDING CODE/S (7) PC/CC POLICY (4) DESIGN REVIEW *** EXCEPTION Exhibit A - Conditions of Approval Conditional Use Permit 92-004 Resolution No. 92-47 Page 2 (4) 2.3 Business hours shall be between the hours of 10:00 am to 9:00 pm Monday through Friday and 10:00 am to 5:00 pm on Saturday and Sunday. Extension of these hours shall require an amendment to the Conditional Use Permit. (4) 2.4 "No loitering' signs shall be posted at the entrance of the business or other specified location(s). (4) 2.5 All lighting and building locking devices added to the premises shall meet those requirements as set forth in the Building Security Code. (1) 2.6 The subject property shall be maintained in a safe, (4) clean and sanitary condition at all times. PLAN SUBMITTAL 3.1 At building plan check the following shall be submitted: (3) A. Three (3) sets of construction plans and two (2) sets of structural calculations, and Title 24 energy calculations. Requirements of the Uniform Building Codes, State Handicap and Energy Requirements shall be complied with as approved by the Building Official. (2) B. Preliminary technical detail and plans for all (3) utility installations including cable TV, telephone, gas, water and electricity. Additionally, a note on plans shall be included stating that no field changes shall be made without corrections submitted to and approved by the Building Official. SITS AND BUILDING CONDITIONS 4.1 All signs for the project shall comply with the Tustin Market Place sign program and shall be submitted for review and approval by the Community Development Department. 4.2 All utilities exclusively serving the site shall be undergrounded in accordance with City Code Section 8402(a) and installed in accordance with applicable Uniform Building and Electrical Code requirements. Exhibit A - Conditions of Approval Conditional Use Permit 92-04r Resolution No. 92-47 Page 3 FEES (1) 5.1 Prior to issuance of any building permits (3) shall be made of all re � payment required fees including: A. All applicable building fees to the Community Development k and permit Department. B. Orange County Fire Department fees to the Community Development Department. JP:nm 1 21 3 4 5 G 7 8 9 10 1l; i 12' 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 3010 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, APPROVING CONDITIONAL USE PERMIT 92-004, AUTHORIZING THE ESTABLISHMENT OF A MARTIAL ARTS STUDIO USE IN THE PLANNED COMMUNITY (PC), MIXED USE LAND USE CATEGORY LOCATED WITHIN THE TUSTIN MARKET PLACE AT 2923 AND 2925 EL CAMINO REAL, TUSTIN. The Planning Commission of the City of Tustin does hereby resolve as follows: I. The Planning Commission finds and determines as follows: A. A proper application, Conditigip l Use Permit 92-004 has been filed by Donahue Schriber on behalf of Karate Masters USA, Inc. requesting authorization for the establishment of a martial arts studio use in the .Planned Community (PC) Mixed Use land use -category located within the Tustin Market Place at 2923 and 2925 E1 Camino Real, Tustin. B. A public hearing was duly called, noticed and held for said application on March 9, 1992. C. The subject premise is located in the Mixed Use land use category. The martial art studio use applied for is a conditionally permitted �t use within the Mixed Use land use category pursuant to the East Tustin Specific Plan and the January 91 1992 Use Determination regarding this location. D. That the establishment,. maintenance, and operation of the uses applied for will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood of such proposed use nor be a detriment to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin as evidenced by the following findings: 1. The proposed martial arts studio use is to be located in a existing shopping center and would be compatible with the other existing commercial retail and restaurant uses within the center. The use poses not significant impact, in that fiff 710wow&?*� 9 �le 4 c 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 3010 Page 2 there is a lack of sensitive land uses adjacent to the site, such as residential uses. 2. Adequate lighting is proposed for the project for pedestrian and parking areas, creating a safe environment for customers and employees, which has been provided as part of the center development. 3. Adequate parking is available on site to provide parking for thy,current use within the center and the proposed use, which has been provided as part of the center development. 4.. The subject property will be required to be maintained in a safe, clean and sanitary manner; thus eliminating any Potential for unhealthful or injurious site conditions. 5. The business hours fQz the proposed martial arts studio will be as follows: Monday - Friday 10:00*am to 9:00 pm tt Saturday - Sunday 10:00 am to 5:00 pm These hours would be compatible with the existing commercial uses. 6. As conditioned, the applicant will post a "No Loitering" sign to insure the well- being of the customers of the martial arts studio and customers of existing surrounding uses within the center. E. That the establishment, maintenance and operation of the use applied for will not be injurious or detrimental to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin, as evidenced by the findings (D 3-6) stated above. F. This project is Categorically Exempt from the requirements of the California Environmental Quality Act, pursuant to section 15301 (Class 1) . I 1 2 3 4 5 6 71 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 3010 Page 3 II. The Planning Commission hereby approves Conditional Use Permit 92-004 authorizing the establishment of a martial arts studio use in the Planned Community (PC) Mixed Use land use category located within the Tustin Market Place at 2923 and 2925 El Camino Real, Tustin, subject to the conditions contained within Exhibit A attached hereto and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting of the Tustin Planning Commission, held on the 9th day of March, 1992. 'ALDEN L. • i Chairman . KATHLEEN CLANCY Secretary .. STATE OF CALIFORNIA ) COUNTY OF ORANGE CITY OF TUSTIN I, KATHLEEN CLANCY, the undersigned, hereby certify that I am the Recording Secretary of the Planning Commission of the City of Tustin, California; that Resolution No. 3010 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 9th day of March, 1992. KATHLEEN C NCY Recording Secret ry EXHIBIT A CONDITIONAL USE PERMIT 92-004 CONDITIONS OF APPROVAL RESOLUTION NO. 3010 GENERAL (1) 1.1 The proposed project shall substantially conform with the submitted plans for the project date stamped March 9, 1992 on file with the Community Development Department, as herein modified, or as modified by the Director of Community Development Department'in accordance with this Exhibit. The Director of Community Development may also approve subsequent minor modifications to plans during plan check if such modifications are to be consistent with provisions of the Tustin City Code qRd the approved plans. (1) 1.2 Unless otherwise specified, the conditions contained in this Exhibit shall be complied with prior to the issuance of any building permits for the project, subject to review and approval by the Community Development Department. (1) 1.3 Approval of Conditional Use Permit 92-004 is contingent upon the applicant signing and returning an "Agreement to Conditions Imposed" form as established by the. Director of Community. Development. (1) 1.4 This Conditional Use Permit approval shall become null and void *unless building permits are issued within twelve (12) months of the date of this Exhibit. Time extensions may be granted by the Planning Commission if a written request is received by the Community Development Department within thirty (30) days prior to expiration. USE RESTRICTIONS (5) 2.1 No more than 50 persons may occupy the premises at one time, based on UBC occupancy requirements. (3) 2.2 The Tustin City Noise Ordinance, allowing a maximum exterior noise level of 70 dBa, shall be observed on the premises at all times. (4) 2.3 Business hours shall be between the hours of 10:00 am to 9:00 pm Monday through Friday and 10:00 am to 5:00 pm on Saturday and Sunday. Extension of these hours shall require an amendment to the Conditional Use Permit. SOURCE CODES (1) STANDARD CONDITION (5) RESPONSIBLE AGENCY REQUIREMENT (2) CEQA MITIGATION (6) LANDSCAPING GUIDELINES (3) UNIFORM BUILDING CODE/S (7) PC/CC POLICY (4 ) DESIGN REVIEW *** EXCEPTION Exhibit A - Conditions of Approval Conditional Use Permit 92-004 Resolution No. 3010 Page 2 (4) 2.4 "No loitering' signs shall be posted at the entrance of the business or other specified location(s). (4) 2..5 All lighting and building locking devices added to the premises shall meet those -requirements as set forth in the Building Security Code. (1) 2.6 The subject property shall be maintained in a safe, (4) clean and sanitary condition at all times. PLAN SUBMITTAL 3.1 At building plan check the following shall be submitted: (3) A. Three (3) sets of construction plans and two(2 sets of structural calculations, and Title 24 energy calculations. Requirements of the Uniform Building Codes, State Handicap and Energy Requirements shall be complied with as approved by the Building Official. (2) B. Preliminary technical detail and plans for all (3) utility installations including cable TV, telephone, gas, water and electricity. Additionally, a note or# #plans shall be included stating that no field changes shall be made without corrections submitted to and approved by the Building Official. SITE AND BUILDING CONDITIONS 4.1 All signs for the project shall comply with the Tustin Market Place sign program and shall be submitted for review and approval by the Community Development Department. 4.2 All utilities exclusively serving the site shall be undergrounded in accordance with City Code Section 8402(a) and installed in accordance with applicable Uniform Building and Electrical Code requirements. FEES (1) 5.1 Prior to issuance of any building permits, payment (3) shall be made of all required fees including: A. All applicable building plan check and permit fees to the Community Development Department. Exhibit A - Conditions of Approval Conditional Use Permit 92-004 Resolution No. 3010 Page 3 JP:rYn B. orange County Fire Department fees to the Community Development Department. tt �C:# N �� March 16, 1992 IL -DO [7—Ta—e]Kwon-DO� Association 3"9 W McFaddm Santa Ca. 92704 ?c! (714 775-5434 -- RECEIVED — COMMUNITY UEVLEOPIWFNT City of Tustin RE: Appeal Conditional 15222 Del Amo Ave. Tustin, CA 92680 Use permit #92-004 Karate Masters, USA Attention: Planning Commission and City Councel, My name is Chang Jin Kang, concerned citizen of Tustin, and owner of the IL -DO Taekwondo School located at 14220 Culver Dr. in Irvine, CA 92714. I have been involved with martial arts for almost 40 years and successfully operate 3 locations in Orange County for the past 11 years. In regards to Item #4 of the Public Hearing held last Monday, March, 9th, 1992, I would like to appeal the decision made to allow Karate Masters, Inc. to open a martial art studio in the Tustin Market Place because it would be "detrimental to the morals, and general welfare of the persons residing and working in the neighborhood and detrimental to the general welfare of the City of Tustin (I -D of resolution # 3010). I would like to submit the following enclosed information for your review, that was sent to me from Montgomery County, Maryland, in regards to Bobby Jae Kim dba Kim's Karate: 1). Avidavit of Barbara B. Gregg (Executive Director of the Montgomery County Office of Consumer Affairs) 2). Avidavit of Eric S. Friedman (Investigator in the Montgomery County Office of Consumer Affairs). 3). Complaint for Enforcement of Administrative Subpoena (Civil Action #85117) 4) Three letters written by Eric S. Friedman to Allen D. Greif, Administrator for Bobby Jae Kim. 5). One complaint letter from Pablo Alfonso written to Joe G i l o l ey of the Office of Consumer Affairs and h i s response. 6)-. One complaint letter written by Mrs. David D. Hall to J. Kims Institute of Taekwondo. /q?7-A0A1Av1L="7— T5 (Z7 srrn) IL -Do TTae-Kwon-DO Association • 3649 W. McFadden Santa sanCa..92704 ?e - (714) 775--5434 In summary of the information above, within the past 2 years in the County of Montgomery: 10 complaints were filed against Bobby Jae Kim dba Kims Karate, ranging from alleged fraud, inducing consumers into signing contracts, collecting monies from consumers in excess of the amount owed, unfair and deseptive trade practices, and failure to comply with a issued subpoena. I am obviously concerned that the above practices might be detrimental to the morals and general welfare of the City of Tustin and its citizens. Futhermore, I am concerned that if this type of alleged practices are allowed to continue here and across the country, the good reputation of all Martial Art Schools are at stake. Please read all the enclosed documents, and contact the Montgomery County Consumer Affairs Dept. at (301) 217-7673 and judge for yourself. Can the City of Tustin afford to take the risk of this happening to its citizens? Sincerely,: Chan J i n an 17711 Anglin Ln. Tustin, CA 92704 TEL f`'laf- 1 , y f 1 z).:� riu . vvo r . , 1 �N THE CIRCUIT COURT FOR MON'T'GOMERY COUNTY, MARYLAND. .y«3unman MONTGOMERY COUNTY, MARYLAND Executive Office Building ; 101 Monroe Street, Third Floor Rockvi l.le, Maryland 20850 COMMUNITY G�V�EOPi�ENT Plaintiff Civil Action No. v. J. KIM INSTITUTE OF TAE KWON DO, INC. t/a Kim's Carate - Serve: nobby Jae Kim, Resident Agent 9690 peereco Rd., f#805 baltimare, MD 21093 Defendant GREGG OF AFFIDAVITOF BARBARA,BB COMFLAIITF4RAOMIIsA SU POENA i I, Barbara B. Greg4• after having been duly sworn, do state and depose as follows! i. I am.now and, at all times referred to in the Affidavit, -an adult, above the age of twenty-one ( 21. ) years, a citizen of the United States and of the State of Maryland. I am competent to make the following Affidavit and to testify from personal knowledge to the matters contained herein. 2. At all timeo relevant hdrein, I have continuously nerved as the duly appointed Executive Director of the Montgomery County Office of Consumer Affairs (OCA) and am charged by Section 11--2 of the Montgomery County Code, 1984, as amended (the "Code"), with the responsibility Of investigating EL No . t,ia -• LJ JZ 1 D - J Z NL1 . UUP:: a►l.leged deceptive and unfair trade practices of merchants conducting business in Montgomery County affecting consumers. 3. From 1989 to present, OCA has received complaints from several consumers alleging that the J. Kim Institute of Ta( Kwon Do, Inc. t/a Ki mt s Karate ("Defendant") has made misrepresentations and omissions of material facts with respect to consumer contracts; that Defendant has failed to give consumers a copy of their contracts at the date of signature; that Defendant has deceptively induced consumers into signing contracts; and that Defendant is attempting to collect monies from consumers in excess of the amount rightfully owed by virtue Of consumers` cancellation of contracts. OCA i$ investigating the allegations of consumers who have fled complaints as well as the alleged unfair and deceptive tra' a practices of Defendant which have affected or may affect all similarly :situated consumers. 4. on July 11, 1991, 1 issued an administrative subpoena requesting copies of all contracts between Defendant and consumers who signed such contracts at Defendant's facility in Rockville. Maryland between August 1, 1989 and January 31, 1991. The subpoena requested that the name And address of each . consumer written on each such contract must remain and appear on the documentation submitted pursuant to the subpoena. S. The production of documents requested by the subpoena is relevant and Material to the investigation of OCA now in progress. - 2 - I L L Vial 1. ,) f .JL 1J • v'L 1YV . ll 1." 1-" 1 . L. l s off i i b, pefendant Failed to appear at the OCA► cats on fore Se tembex 13, 1991, as directed by the subpoena issued or be P on July 11, 1991 and served on Bobby Jae Kim on August 1, 1991. Barbara B. Gregg Executive Director Office of Consumer Affairs STATE OF MARYLAND SSi COUNTY OF MONTGOMERY I HEREBY CERTIFY that on this %. '= day of::�..�:•-;•x.-L y . 1991, before me, personally appeared Barbara Gregg, known to me or sufficiently identified to be the said Barbara ers Gregg, in made oath in due form of ��� that tcolrzect to the best of her foregoing Affidavit are t knowledge, information and belief. .A •- ....Notary Public My Commission Expires: 0118.KAM:91.06295 KAM : S t ,'3 w t.�'.. •',�u� .__tom•'-ry-0.A�i..�l•�•�r�`�hV'j:a:` .✓ IN THE CIRCUIT COURT rOR MONTGOMERY COUNTY, MARYLAND MONTGOMERY COUNTY, MARYLAND Executive Office Building '" RECEIVED r- 101 Monroe Street, Third Floor Rockville, Maryland 20850 MAR 2 6 992 Plaintiff C01MMUNITY D£VLE0PjWEjyT V. Civil Action No. J. KIM INSTITUTE OF TAE KWON DO, INC. t/a Kim's Karate Serve: Bobby Jae Kim, Resident Agent Agent 9690 Deereco Rd., #805 Baltimore, MD 21093 Defendant AFFIDAVIT OF ERIC $._FRIEDMAN IN SUPPORT OF COMPLAINT FOR ADMINISTRAT�.VE SUBPOENA I, Eric S. Friedman, after havi g been duly sworn, do state and depose as follows: 1. I am now and, at all times referred to"in the Affidavit, an adult, above the age of twenty-one (21) years, a citizen of the United States and of the State of Maryland. I am competent to make the following Affidavit and to teati.ty from personal knowledge to the matters contained herein. 2. At all times relevant herein, I have been continuously employed as an Investigator in the Montgomery County Office of Consumer Affairs (OCA). In this position, I am responsible for investigating alleged deceptive and unfair trade practices of merchants conducting business in Montgomery County affecting consumers. These investigations are authorized by I LL PJ� riasIRE, • , y _ _ _ _ _ _ _ _ 7 Y'• section 11-2 of the Montgomery County Codd, 1984, an amended (the "Code"). 3. From 1989 to present, OCA has received complaints from several consumers alleging that the Defendant in this I action, J. Kim Institute of Tae Kwon Do, Inc. t/a Kim's Karate, I has made misrepresentations and omissions of material facts with j respect to consumer contracts; that Defendant has failed to give consumers a copy of their contracts at the date of signature- - i that Defendant has deceptively induced consumers into signing contracts; and that Defendant is attempting to collect monies from consumers in excess of the amount rightfully owed by virtue of consumers' cancellation of contracts. OCA is investigating the allegations of consumers who have sled complaints as well. - as the alleged unfair and deceptive tr de practices of Defendant which Have affected or may affect all similarly situated consumers. Ar 4. As pert of its investigation of the alleged unfair and deceptive trade practices of Defendant, OCA issued an administrative subpoena to Defendant on July 12, 1990. The subpoena requested copies of all contracts between Defendant and consumer Who signed such contracts at Defendant's Rockville, Maryland facility between August 1, 1989 and January 31, 1990. Defendant did not comply with that subpoena. In February 1991, Plaintiff filed a Complaint in Circuit Court seeking enforcement of that subpoena. That action was Montgomery C� unt.yV. Kim Institute of Tae_. K on Do Inc._, Civil Action 69659 in the Circuit Count. for Montgomery County, Maryland. Plaintiff _ 2 _ V) f 1 D - D.4'. 1 `V U V V o f 1 i voluntarily dismissed that complaint in response to Defendant's contention that the subpoena was not properly served. S. Laura Shifflett, Johnny Johnston and Eileen Campbell are consumers as defined in Section 11-1 of the Code. Shifflett in November 1989 alleged that Defendant attempted to collect monies from her in excess of the amount rightfully owed by virtue of her cancellation of a contract with Defendant. Johnson in April. 1991 alleged that Defendant failed- to provide him with a copy of the contract at the time his signature was obtained and deceptively induced him into signing a contract. Campbell in April 1991 alleged that Defendant committed several misrepresentations and .omission$ of material facts with respect to her contract. 6. A partial resolution of the;; complaints made against Defendant by Johnson and Campbell has been made. At the consumers' and OCA's request, Defendant has cancelled the Johnson and Campbell contracts, but only after each consumer made substantial payments to Defendant. Defendant has refused to cancel Shifflett' s contract, despite the consumer's and OCA' s request to do so. OCA continues to investigate the Defendant's alleged unfair and deceptive trade practices which caused these consumers to file complaints with OCA, as well as to determine whether Defendant's alleged unfair and deceptive trade practices have affected or may affect similarly situated consumers. 7. OCA has received a complaint against Defendant from Dr. J. Sajjadi, who resides at 9437 Copenhaver Drive, Potomac, Maryland 20854. According to the complaint, in Ootober, 1991, 3 - TEL o r 1 I Dr, SOJadi brought his two eons (aged 4 and 11 years old) to , Defendant's facility in Rockville. Dr. Sajjadi asked i Defendant's agent what the enrollment fees would be, but Defendant's agent would not reveal that information until after the boys participated in "testing" sessions on two separate evenings. During the "testing" sessions, Defendant's agents encouraged and enticed Dr. Sajjadi's 11 -year-old son to enroll in Defendant's karate classes, and encouraged the Four-year-old son to watch the classes until he became ready to enroll himself. After encouraging Dr. Sajjadi's sons' enrollment_ and participation, Defendant's agents agreed to disclose the fees and costs of the programs. Dir. Sajjadi's 11 -year-old son expressed a preference for a 48 -month program, which was offered by Defendant at a cost of $1,680, or $35.00 per month. After Dr, Sajjadi initially agreed to enroll his 11-ye•ar-old son in the program, Defendant's agent stated that the entire $1,680 enrollment fee had to be paid in advance. Dr. Sajjadi objected to payment of the entire enrollment fee in advance, and declined to enroll his sons in Defendant's karate classes. S. OCA believes that Defendant's failure to initially disclose the fees and costs of their programs until after Dr. Sajjadi's two children were encouraged to enroll or participate in the program constitutes the failure to state a material fact in violation of Code Chapter 11. OCA is investigatilig Dr. Sajjadi's complaint, and seeks to determine whether the Defendant's alleged unfair and deceptive trade practices have affected or may affect similarly situated oonsumers . - 4 - I LL IVU i'lal 1 ti' a 1 •_ in _ v _ 9. OCA has received a complaint againat Defandant from Hermina Cumberland, who resides at 1714 January Drive, #203, silver Spring, Maryland 20904. According to the complaint, on August 31, 1991, Cumberland signed a contract with Defendant to provide karate classes for her two daughters. The total contract amount was $2,250, or $77.76 a month for 36 months. The membership length was 36 months or upon attainment of the black beat level, whichever came first. on September 3, 1991, Cumberland notified Defendant that she was Cancelling the contract, due to financial difficulties. Defendant has refused to cancel the contract and has initialed collection efforts for the total contract amount of $2,250 even though Cumberland's daughters have never attended any class a. 10. OCA believes that Defendan�Vs contract with Cumberland and other similarly situated consumers contain invalid penalty clauses requiring payment of the entire balance due regardless of -actual damages. The inclusion of invalid penalty clauses and other deceptive languages in consumer contracts are in violation of Code Chapter 11. OCA Is investigating Me. Cumberland's complaint, and seeks to determine w}jether the Defendant's alleged unfair and deceptive trade practices have affected or may affect similarly situated consumers. 11. On August 1, 1991, a :subpoena issued on July 11, 19.91 by OCA was served on the Resident Agent of Defendant, bobby. Jae Kim. The subpoena was directed to Kim and requested that he produce copies of all contracts with Consumers who signed such 5 - I GL 1Vu . III dl 1L' e _��I'Au i contracts at the Defendant's facility in Rockville, Maryland between August 1, 1989 and January 31, 1991. The subpoena stated that the name and address of each consumer written on each such contract must remain and appear on the documentation produced pursuant to the subpoana. The subpoena requested production of the documentation at OCA no later than September 13, 1991. A copy of the subpoena is attached as Exhibit A to Plaintiff's Motion for Summary Judgment. 12. The production of documents requested by OCA in the July, 1991 subpoena is relevant and material to the Flailitiff in the conduct of the investigation of -complaints of Montgomery County consumers against Defendant filed with OCA and OCA's related investigation which seeks to d1termine whether the Defendant's alleged unfair and deceptive trader practices have i affected or may affect similarly situated consumers. 13. The July, 1991 subpoena adequately identifies for Ar Defendant the documents which are to be produced, and the time and place for production. The subpoena gave the Defendant an adequate and reasonable period of time to produce the documents or otherwise to respond to the subpoena. Y 14, The Defendant has failed to produce the documents as requested in the subpoena by September 13, 19p9-,; Eric S. Friedman r Investigator Office of Consumer Affairs 3 STATO OF MARYLAND ) i se: COUNTY OF MONTGOMERY ) I HEREBY CERTIFY that on this day of-+F•-���, 1991, before me, personally appeared Eric S. Friedman, known to me or sufficiently identified to be the said Eric S. Friedman, and made oath in due form of law that the matters contained in the foregoing Affidavit are true and correct to the beat of his knowledge, information and belief. otary Public " My Commission Expires:f� 0121.KAM:91.06295 KM: St I t L X10 . 111 r , , �� 1 .).z IN .UU6 r.0 t M } i IN THE CIRCUIT COURT FOR MONTGOMERY COUNTY, MARYLAND MONTOOMERY COUNTY, MARYLAND Executive -office Building 101 Monroe Street, Third Floor s Rockville, Maryland 20850 Plaintiff V. J. KIM INSTITUTE OF TAE KWON DO, INC. t/a Kim's Karate Serve: Bobby Jae Kim, Resident Agent 9690 Deereco Rd., #805 Baltimore, MD 21093 Defendant COMPLAI RECEIVED rAR1oi92- COMMUNITY DEVLEOp MEjyj Civil Action No. Q 511 O OF ADMINISTRATIVE Plaintiff Montgomery County, Mayland, by and through its undersigned counsel, files this Complaint for Enforcement of an Administrative Subpoena and states as follows: 1. The jurisdiction of this Court is based on'Chapter 11, Section 11-2, 11.-7A and 11-9, Montgomery County Code, 1984, as amended (the "Code"). Chapter 11 of the Code is the consumer protection law of Montgomery County, Maryland. 2. Plaintiff Montgomery County, Maryland, is a public body, corporate and politic; which is required by the Constitution and laws of the State of Maryland to uphold and enforce the laws and ordinances of Montgomery County. 3. The Montgomery County Office of Consumer Affairs "OCA") is an administrative agency of Plaintiff, Montgomery County, Maryland, created under the provisions of*section 11-2 TEL '.11) . 11ar `-11,92 15:32 No . uu8 . C)- .' •.',,�"-':: .a ' the' Code, with the power, jotpr &Ila, to receive and investigate Consumer complai.nte and initiate its own investigation of deceptive and unfair trade practices, and to issue summonses to compel the attendance of witnesses and compel the production of documents, papers, books, records and other evidence in any matter over which the aforesaid law applies. 4. Defendant J- Kim Institute of Tae Kwan Do, Inc. t/a Kim'a Karate ("Defendant") is a merchant, as defined in Section 11--1 of the Code, and has engaged in the business of providing karate lessons to consumers in Montgomery County, Maryland. S. OCA has received complaints from consumers against Defendant regarding Defendant's business practices. OCA is investigating the allegations of consumers who have ;filed complaints. Based on those complaints,_ OCA has also initiated its own related investigation to determine whether the alleged unfair and deceptive trade practices of Defendant have affected or may affect similarly situated consumers. Specifically, OCA is investigating allegations that Defendant has made misrepresentations and omissions of material facts with respect to consumer contracts; that Defendant failed to give consumers a COPY of their contracts at the time of signature; that Defendant It has deceptively induced consumers into signing contracts; and that Defendant is attempting to collect monies from consumers in excess of the amount rightfully owed by virtue of consumers' cancellation of contracts, w 6. As part of its investigation of the alleged unfair and deceptive trade practices of Defendant, OCA issued an - 2 C_L_ "oU . alar "J.:) , �)Z i D Z)2 V40 . UUd F . U4 a dministrative subpoena to Defendant on July 12, 1990. They :l subpoena requested copies of all contracts between Defendant and consumers who signed such contracts at Defendant's Rockville, 1 Maryland facility between August 1, 1989 and January 31, 1990. Defendant did not comply with that subpoena. in February 1991, Plaintiff filed a complaint in Circuit Court seeking enforcement of that subpoena. That action was Montgomery County v. J. KIm Insti.tute_o„ f Tae Kwon Do_,_ Inc„ , Civil Action 69659 in the r Circuit Court for Montgomery County, Maryland. Plaintiff voluntarily dismissed that complaint in response to Defendant's y contention that the subpoena was not properly served. 1 7. On the basis of OCA's continuing investigation of the Defendant's alleged unfair and dec+ti.ve trade practices involving Montgomery County consumers, �CA on July 11, 1991 issued another administrative subpoena to the Resident Agent of Defendant, Bobby Jae Kim. The subpoena requested that Defendant produce copies of*al.l contracts with consumers who signed such contracts at the Defendant's facility in Rockville, Maryland between August 1, 1989 and January 31, 1991. The subpoena stated that the name and address of each consumer written on each such contract must remain and appear on the documentation produced pursuant to the subpoena. The subpoena requested production of the documentation at OCA no latex than September 13, 1991. After numerous attempts by a private process server, the eubpoena was finally personally served upon Kim on August 1, 1991. 3 w I LL JXU 989 to the present date, OCA has received 8. From 1 complaints against Defendant from five consumers as defined in .section 11-1 of the Code. Three of the consumer complaints were received prior to issuance of the July, 1991 subpoena to Defendant. Laura Shifflett in November, 1989 alleged that Defendant attempted to collect monies from her in excess of the amount rightful.lY owed by virtue of her cancellation of a contract with Defendant. Johnny Johnson in April, 1991 alleged that Defendant failed to provide him with a copy of the contract at the time his signature was obtained and deceptively induced him into signing a contract. Eileen Campbell in April, 1991 alleged that Defendant, committed several misrepresentations and omissions of material facts with respect to her contract. .� - 9. A partial resolution of thol complaints made against Defendant by Johnson and Campbell has been made.= At the _ consumers' and OCA' s request, Defendant has cancel�.ed the Johnsen and Campbell contracts, but only after each consumer made substantialpayments a ents to Defendant. Defendant has refused to cancel Shiffl.ett's contract, despite the consumer's and OCA's request to do so. OCA continues to investigate the Defendant's alleged unfair and deceptive trade practices which caused thence consumers to file complaints with OCA, as well as to determine whether Defendant's alleged unfair and deceptive trade practices affected similarly situated consumers. 10. rol.lowing OCR's issuance of the July, 1991 subpoena, OCA received complaints from two additional. consumers - 4 - I LL J10 V I a f and against' Defendant regarding Defendant's alleged unfair deceptiva business practices. 11. The complainant, Dr. J. sajJadi, is a consumer as defined in Section 11-1 of the Code. In October, 1991, Dr. Sajjadi brought his two sons (aged 4 and 11 years old) to Defendant's facility in Rockville. Dr. Sajjadi asked Defendant's agent what the enrollment fees would be, but Defendant's agent would not reveal that information until after the boys participated in "testing" sessions on two separate evenings. During the ,testing" sessions, Defendar;�Os agents encouraged and enticed Dr. Sajjadi's 11 -year-old son to enroll in Defendant's karate classes, and encouraged the four-year-old son to Watch the classes until he became ready to enroll himself. After encouraging Dr. SaJJadQs sons' enrollment and participation, Defendant's agent agreed to disclose the fees and costs of the programs. Dr. SaJJadi's 1 1- year- old ,son, expressed aprefe . rence for •a 48 -month program, which was offered by Defendant at a cost Of $1,680, or $35-00 per month. After Dr. SaJJadi initially agreed to enroll his 11 -year-old son in the P rogram, Defendant's agent stated that the entire $1,680 enrollment fee had to be paid in advance. Dr. Sajjadi objected to payment of the entire enrollment 1. fee in advance, and declined to enroll his sons in Defendant's karate classes. 12. OCA avera'that Defendant's failure to initially dieclOSe the fees and costs Of their programs until after Dr. Sajjadi'o two children were encouraged and enticed to enroll or P articipate in the program constitutes the failure to StAte a I t L --- i material fact in violation of Code Chapter 11. OCA le investigating Dr. $a j j adi.' s complaint, and seeks to determine j whether the Defendant's alleged unfair and deceptive trade ' practices have affected or may affect similarly situated i consumers. i 13. The complainant, Hermina. Cumberland, is a•consumer i as defined in Section 11-1 of the Coda. On August 31, 1991, Cumberland signed a contract with Defendant to provide karate classes for her two daughters. The total contract amount was $2,250, or $77.76 a month for 36 months. The membership leizgth was 36 months or upon attainment of the black belt level., whichever came first. On September 3, 1991, Cumberland notified Defendant that she was cancelling the +ntract, due to financial difficulties. Defendant has refused tol cancel the contract and has -initiated collection efforts for the total contract amount of $2,250 even though Cumberland's daughters have never attended any classes. 14. OCA avers that Defendant's contract with Cumberland and other similarly situated consumers contain invalid penalty clauses requiring payment of the entire balance due regardless of actual damages. The inclusion of,invalid penalty clauses and other deceptive language in consumer contracts are in violation of Codes Chapter 11. OCA is investigating trig. Cumberland's lint and seeks to determine whether the Defendant's ! compl , alleged unfair and deceptive trade practices have affected or I may affect similarly situated consumers. I W 6 I E L 4 U Q Q 15. The production of documents requested by OCA In the July 11, 1991 subpoena served upon Defendant is relevant and material to Plaintiff's investigation of complainto of Montgomery County consumers against Defendant filed with OCA and OCA's related investigation which seeks to determine whether the alleged deceptive and unfair trade practices of Defendant have affected or may affect similarly situated consumers. 16. The subpoena adequately identified for- Defendant the documents which are to be produced, and the time and place forproduction. The subpoena gave the Defendant an adequate and reasonable period of time to produce the documents or otherwise to respond to the subpoena. 17. The Defendant has failed to produce the documents -. requested in the subpoena by September :13 , 1991, and has failed to make any alternative arrangements with OCA to -comply with the july 11, 1991 subpoena. 18. Plaintiff believes and therefore avers that Defendant with full knowledge failed to comply With a lawful summons issued pursuant to Section 11-2(b) of the Code. WHEREFORE, the Plaintiff, Montgomery County, Maryland, respectfully requests that; 1. Defendant be required, commanded and ordered to produce Copies ofall contracts between Defendant and consumers who signed such contracts at Defendant's place of business in Rockville, Maryland., between August 1, 1989, and January 31, 1991. The name and address of each consumer written on each such contract must remain and appear on the produced 7 documentation. This documentation in to be provided to the Office of Consumer Affairs for Montgomery County, Maryland, at a dato and time established by this Court; and 2. For such other relief as the nature of this case may reguire and as this Court may find just and proper. Respectfully submitted, JOYCE R. STERN - COUNTY ATTORNEY Patricia P. Hines Associate County Attorney K r n --Ann Melehy Assist 'nt county Attor Cy 1 Attornee,ys for Plaintiff Montgomfery County, Maryland ExecutiVG office =8ui Wing 101 Monroe Street, Third Floor Rockville, MD 20850 (301) 217-2600 0116.KAM:91.06295 KAM s at loo Maryl tnd "Avenue . Third Floc, aockville, Maryland 20850 • 301-217-7373 S -8 E- 0 £ �•- •.% INVatIGATIOW, INTO MONTGOMERY COUNTY, MAhifflD, OFFICE OF CONSUMER AFFAIRS COMPLAINT NOs. 55984NMM, Laura S Terrace, Rockville, Maryland 20850, 67247NC6, Johnny Johnson, 3901 Chesterwood Drive* Silver Spring* Maryland 209069 6676ONC6, Eileen Campbell, 730 Clopper Road, Gaithersburg, MD 20878 and all other similarly situated consumers. TO: Bobby Jae Kim Resident Agent For: J. Kim Institute of Tae Kwon Do., Inc. t/a Kim's Karate 1615 York Road Lutherville, Maryland 21093 PURSUANT to Section 11-2 of ti�sM�st9nvestiCatiny�thee1984, as compla.ints amended, the awelleasfallnother similarly situatedconsumersregarding identified as we unfair and deceptive trade practices. Ms. SKimfsKarate ealleging that J. Kim Institute of Tae Kwon the amount rightfully owedbting yto collect monies from her in excess o virtue of her cancellation of a contract with J. Kim Institute of Tae Kwon 00. IAC. Mr. Johnson is alleging that �J. Kim him Institute co Tae Kwon Do, Inc. t/a Kim's Khistes failed to si nwaspovide�btained and deceptively of the contract at the timesignature induced the consumer into signing a contract. Eileen Campbell is alleging that J. Kim Institute of Tae Kwon Do. Inc. tta Kim's Karate, committed several misrepresentations and omissions of material facts with respect to her contract. . Atcordingly,' you -are hereby directed to produce the following documents: Copies of all contracts between J. Kim Institute of Tae Kwon Do. Inc. t/a Kim's Karate, and consumers who signed such contracts at the J. Kim Institute of Tae Kwon Do. Inc. facility in Rockville, Maryland between August 1, 1989 and January 31, 1991• The name and address of on each consumer written on each contract thismust rsubpoena:,This appear the documentation submitted pursuant documentation is to be provided to the Office of nConsumer Affairs, 100 Maryland Avenue, Room 330, Rockville, MO 850olater September 131, 1991. This subpoena is issued this 11th day July. l9Countuao the authority granted by Section 11-2(b) 0fthe Montgomery y Code 1984, 4s amended. f -.-� Barbara S. Gregg, Director •' Office of Consumer Affairs for Montgomery County, Maryland Issued: July 11. Served by: Date: 1991 TEl- No . (`'1at- 1J �j lD DU fVu . uU., r . u:) /no11 Coun GDvemmenL{ c ECEm March 5, lyyi'� b !242 COt/RA 1N1TY OLVLEOpMEp r Allen D. Greif, H'.squire 22 W. Allegheny Avenue, 4th Floor Towson, Maryland 21204 Re: Cage No. 85005NCB Erika 3chwing 13400 Staffordshire Place Germantown, MD 208'76 va .� Kim'* Karate Dear Mr. Greif: This is to advise that a new complaint has been filed against your client by the above -referenced consumer. The consumer states she paid $662.00 for a one (1) year membership after the sales representative tested/evaluated her three: (3) year old don and advised that he was old enough to be a student. Subsequently, the instructor advised that her lesson was too young and that the instructors advised they were only "babysitting hii'. Consumer requests that the contract be cancelled and a full refund be issued. . ( Please review and contact this Office in writing within 10 days to advise what action will be taken to resolve this matter. ESF: ek co; Kim's Karate 8185Y Sincerely, Eric S. Friedman Investigator Office of Cowumer Affairs 100 Maryland Avenge, Rockville, Maryland 24850, 301/217.7;1i ------------------------------------------------ ---------------------------------------- - - Mar , y 1� ' �u NO . uu� r . u ..- ---. TEL jllm�o� C MR t 0DIMV January S, 1992 Allen D- Greif, Esquire 22 West Allegheny Avenue,. 3rd Floor Toison, MD 21204 Re: Case No. 65915NCB Katalya Sakman 11353 Columbia Pikes 0-2 Silver Spring. MD - Dear Mr. Greif: Taint has been filed by the above -referenced This is to advise a COOP �, s Karate. individual against your client, alloses J. Kim Institute of.Tae Kwon Do • , lncWhichathe Ms. Katalya Bekman period during rate is attempting to Collect fees for a t� or states the merchant Kill's Ka the cons was closed. lu addition, advantage karate facility the duration of theiontract by taking misled the consumer regarding language is Russian and the contract of the fact that the Consumer' a pr constitute rthex the consumer states the merchant failed Con ids is in Mnglish. Ju tstaSuch activity would the financing disclosures required Proction, of the Montgomery County Code . a violation of Chapter ,11, Consumer t® 'ase provide $ of the comple�int is enclosed for your review. Please to the A copy from V10. date of this detailed response, within 10 day oonsumer'g concerns. Sinoerely, Eri o 3: Friedman. Investigator ESF:ek &olosure cot Joe Giloley, Administrator ` Bobby Jae Kim d -w 7789K L. Ofiice of Consuwt Affairs._ .. Y r{ '.:<;! rla-•mac c -= loo MiLryhnd Avtnuta RwkviUc, M.rylind 20650,501/217 -7373 :0. t1_ NO . I'1Cl1 1•J f J.. LJ . _JV IVii . QL'J f • I (✓' f i � fY I. )n "oti1r-fv C011111y, C7Vc,�����x--��1. January 6t 199?. Allen D. Greif, ;squire 22 West Allegheny Avenue, 3rd Floor Towson, ND 21204 Be: Case No. 76234ICB Dianne Sullivan 1519 Heather -Hollow Circle, ##13 Silver Spring, MD 20904 Dear Mr. Greif: This is to advise a complaint has been filed by the abpve-rererdncdd consumer against your client, Kim's Karate. Specifically, the consumer .states she Was induced into signing a membership agreement at the represented "Grand Openin price of $34.58 per month o p >' a September tember 2 1991. The consumer states one 1} month later the manager, Mr. Jordi, called her in to sign a new contract as the first one was "refected for processing". The manager mislead the consumer into believing the terns of the "new" contract were identical to those of the initial contract. In fact, the monthly fee was raised to $52.76. In -addition, both contracts fail to disclose the financing information required by law. Further, the consumer states no services were received during November, 1991 as the facility was closed. Consumer requests that both contracts be held null and void and a full refund be provided. A copy of the complaint is enclosed. Please review and contact this Office in writing within ten (10) days from the date of this letter to advise what action will be taken to resolve this matter. ESk:ek cc: Joe Giloley, Administrator Bobby Jae Kim 7811K Sincerely, Eric S. Friedman Investigator Office of Cocicunavr Affairs IM Marylacid Avenue, Muu illi•, Kirybred 209io. {til / � 17 7 TS I I L L__J. u . f`Idt 1 �_ 1 :) • :iv 1A . Q J r Aon Q)un�,Gwerliffient. December 10, 1991 Allen D. Greif, Esquire 22 W. Allegheny Avenue 4th Floor Towson, Maryland 21204 Re : OCA Complaint No. 754993W3 Pablo Alfonso Kim's Kurate Dear Mr. Greif; As a result of a further review of tho above referenced complaint, I would like to bring to your attention the potential that your client, Kim's Karate, has engaged in a deceptive trade practice by conducting a sale in Spanish in tho absence of having a contract in the same language as the language in which the sale was conducted. For your ease of reference, this Office would like to refer you t-) the following Federal Trade Commission Consent Orders regarding this matter: Cavanaugh Communities, 95 PTO 559 (1979); Hiken Furniture No., 91 FTC 1115 (1978); Insilco Corp. , 91 FTC 706 (19.78); Hallcraft Jewelers, inc, , 89 FTC 415 (1977); Almacenes Hernandez Corp., 87 F111C 4UJ (1976); Buoh's Jewelry Co., 87 tTc 394 (1976); Carl Stepp, 88 iTC 409 (1976); Lafayette United Corp., 88 FTC 683 (1916); Daby's Furniture Corp., 87 FTC 389 (1976); J&J Furniture Corp., 87 FTC 383 (1976); J. Kurtz & Sons, Inc., 87 FTC 1300 (1976); Mutual Home Equip. Co., 87 FTC 606 (1976); Weilt Co., 87 FTC 406 (1976); Atlantic Industries, 85 NTC 903 (1975); and Library Marketing Service Inc., 65 FTC 957 (1975) . The above described information is being provided to you so that it may be factored into your client's further consideration of the above referenced consumer complaint against Kim's Karate. In addition, please advise how many consumers who are non-English speaking have contracted with your client over the past year. If you have any questions concerning the contents of this letter, give Mr. Eric S. Friedman, Investigator, a call for further discussion. Sincerely, c� Joe Giloley Administrator JG:ek / cc: Eric S. Friedman, Investigator V 7648K Office of Consumer Affairs 100 Marylind Avenue. Rockville. Maryland 20850.301/217-7373 --------- TEL -..Na . M November 5, 1991 Pablo Alfonso 746 Quince Orchard 51vd. #102 Gaithersburg, MD 20878 PH: 990-0474 Dear Representatives of The Office of Consumer Affairs, this letter is to request your help with my case. On May 22 I took my son .Eric L. Al fonzo to enroll to Kim's Karate, located at Winter Green Plaza on Rockville Pike. Mr. Steve, a teacher of the school explained to me in Spanish the contract and I signed it. The contract it was written in English (I do not write or read Engl i sh. ) At the time of enrollment, Mr. Steve offered me a credit card (MED CASH), I did not accept that credit card at that time, he kept calling me for about one month in order to accept such credit card, he said that it will reduce the monthly payments for my son's Karate classes if I accept that credit card. So I accepted such card, thinking that this card would be used only for payments of the school. Each monthly payment was $40.00. All of a sudden, the credit card was charged $1,300 without my authorization, when I called them regarding this matter, they told me that the contract that I signed was for d years, which I was not aware of it. I took my son the Kim's Karate just temporary to that school because, he has a private karate teacher for 3 days a week, that is why I took my son to Kim's Karate so he could spend his free time at Kim's Karate. When I went the first time to the school I paid $100.00 cash, then I sent Kim's Karate a three monthly payments by check the amount of $120.00. When I learned about the money that MedCash charged me, I went to the school and told Mike R Steve that I wanted my son out of the school . They advised me to send a letter to Kim's Karate, and another letter to MedCash to cancel the registration of my son. I sent these letters (copies attached) . Later Mr. Rick said that they can't cancel the contract because I signed it for three years. Its true that I signed a contract, this was read in Spanish, but they failed to tell me that the contract was for three years. I would like to cancel the contract and restitution of full amount of my money from CashMed credit card. I appreciate your help in this matter. Pablo Al fonzo ILL 1'jU. 12813 Maple Street 1. Silver Spring, MD �091A' August, 28, 1991 11 -a 1 L,./ 7 J� t '- v 4 t v .- .. _ ._ J. Kim institute of Tae Kwan Do, Inc. LT. Cappous, Manager White Oak Shopping Center Silver Spring, MD 20904 Dear Mr. Cappous: I am canceling the contract you gave me today for several reasons, First of all, you added information to the contract AFTER I signed it yesterday. 1 should have received a copy of the contract upon signing it. You did not disclose the fact that I was expected to FINANCE a three-year financial obligation at some unknown interest rate. I was led to believe we would be charged an initiation fee, followed by a monthly charge, which could be stopped at any time. According to the contract, this is far from true. According to your contract, even if we became unhappy with your program for ANY reason, we would still have to pay the entire amount of the contract. ' You also stated additional persons in the family could be added for a $50 initiation fee and $18 per month, and half of that for each additional person. You said this could be done at any time, but none of this is in the contract. . Finally, you stated uniforms would be furnished at no additional charge. This is not mentioned in the contract. Your contract also fails to disclose fees for belt testing, fees for tournaments, and how often these tournaments occurs, and cost for the protective equip&nt you require. I am truly sorry to cancel this contract as I was impressed with the program you offer, and my family looked forward to participating, but the financial obligation is far different than I was led to believe, and is therefore, totally unacceptable. I will expect my $150 initiation fee to be returned immediately. Sincerely, Mrs. David D. Hall Fr WR 5 NZ COMPAUNITY DEVLEOPMENT J. Kim institute of Tae Kwan Do, Inc. LT. Cappous, Manager White Oak Shopping Center Silver Spring, MD 20904 Dear Mr. Cappous: I am canceling the contract you gave me today for several reasons, First of all, you added information to the contract AFTER I signed it yesterday. 1 should have received a copy of the contract upon signing it. You did not disclose the fact that I was expected to FINANCE a three-year financial obligation at some unknown interest rate. I was led to believe we would be charged an initiation fee, followed by a monthly charge, which could be stopped at any time. According to the contract, this is far from true. According to your contract, even if we became unhappy with your program for ANY reason, we would still have to pay the entire amount of the contract. ' You also stated additional persons in the family could be added for a $50 initiation fee and $18 per month, and half of that for each additional person. You said this could be done at any time, but none of this is in the contract. . Finally, you stated uniforms would be furnished at no additional charge. This is not mentioned in the contract. Your contract also fails to disclose fees for belt testing, fees for tournaments, and how often these tournaments occurs, and cost for the protective equip&nt you require. I am truly sorry to cancel this contract as I was impressed with the program you offer, and my family looked forward to participating, but the financial obligation is far different than I was led to believe, and is therefore, totally unacceptable. I will expect my $150 initiation fee to be returned immediately. Sincerely, Mrs. David D. Hall ITEM #4 i . �ep ort to the ml r Planning Commission DATE: MARCH 9, 1992 SUBJECT: CONDITIONAL USE PERMIT 92-004 APPLICANT: DONAHUE SCHRIBER on behalf of KARATE MASTERS USA, INC. 3501 JAMBOREE ROAD, SUITE 300 NEWPORT BEACH, CA 92660 OWNER: IRVINE RETAIL PROPERTIES COMPANY 2 PARR PLAZA, SUITE 300 IRVINE, CA 92714 LOCATION: ZONING: ENVIRONMENTAL STATUS: REQUEST: RECOMMENDATION 2923 AND 2925 EL CAMINO REAL PLANNED COMMUNITY (PC), MIXED USE LAND USE CATEGORY, EAST TUSTIN SPECIFIC PLAN THIS PROJECT IS CATEGORICALLY EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, PURSUANT TO SECTION 15301 (CLASS 1) TO AUTHORIZE THE ESTABLISHMENT OF A MARTIAL ARTS STUDIO USE It is recommended that the Planning Commission Approle Conditional Use Permit 92-004 by adoption of Resolution No. 3010, as submitted or revised. BACKGROUND The applicant is proposing to establish a martial arts studio use located at 2923 and 2925 E1 Camino Real within the North Village of the Tustin Market Place. On January 9, 1992, pursuant to the East Tustin Specific Plan (ETSP), the Director of the Community Development Department determined that a martial arts studio use is similar to and compatible with uses requiring conditional use permits specifically listed in the ETSP. The Director further determined that the use is only authorized for the ETSP area, subject to the approval of a Conditional Use Permit (CUP). Arrwcs�'*eew�G (Z,& sirs) Planning Commission Report Conditional Use Permit 92-004 March 9, 1992 Page 2 The proposed site is located within the North Village of the Tustin Market Place, also known as the Entertainment Village. The proposed martial arts studio will be occupy two suites situated on the north side of the Entertainment Village. The Entertainment Village contains the Edwards Movie Theater, a number of restaurants, Bookstar Book Shop, Tower Records and various retail stores. Immediately adjacent to the site to the east is a Happy Nails, nail salon; to the south, facing the south parking area is America's Cup Yogurt shop and Busy Bee Chinese cuisine restaurant; to the west is a vacant tenant suite; and to the north is the north parking area and East Drive. A public hearing notice identifying the time, date and location of the public hearing on this project was published in the Tustin News. Property owners within 300 feet of the site were notified of the hearing by mail and notices were posted on the site and at the Police Department. The applicant was informed of the availability of the agenda and staff report for this item. DISCUSSION The submitted development plan proposes the establishment of the martial arts studio within two existing tenant suites. The combined tenant spaces will constitute approximately 2,370 square feet of floor area. (Attachment A) The proposed floor plan for the martial arts studio includes a reception area, open exercise area, two offices, two locker rooms and restrooms. The business hours for the facility will be as follows: Monday - Friday 10:00 a.m. to 9:00 p.m. Saturday'G.tH pa� Q'111"da*— + 10:00 a.m. 0 SE to 5:00 p.m. The applicant is proposing to have 2 teachers instructing at the facility with an average class size of approximately twelve (12 ) people. The applicant is proposing to offer five (5) classes per day. The applicant has provided a brief summary on the history and operations proposed which has been included as Attachment B. Pursuant to the approved Use Determination, parking is provided on the site at a rate of one (1) parking space for every 150 -square feet of lease space. These sixteen (16) parking spaces will be located within the shared parking lot area of the Tustin Market Place. (Attachment C) Planning Commission Report Conditional Use Permit 92-004 March 9, 1992 Page 3 In determining whether to approve this Conditional Use Permit request, the Planning Commission must determine whether or not the establishment of a martial arts studio use will be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of the use; or whether the use will be injurious or detrimental to property and improvements in the neighborhood or the general welfare of the City. The following evidence would support granting of the requested CUP: 1. The proposed martial arts studio use is to be located in a existing shopping center and would be compatible with the other existing commercial retail and restaurant uses within the center. The use poses no significant impact, in that there is a lack of sensitive land uses, such as residential uses, adjacent to the site. -- 2. Adequate lighting is proposed for the project for pedestrian and parking areas, creating a safe environment for customers and employees, which has been provided as part of the center development. 3. Adequate parking is available on site to provide parking for the current use within the center and the proposed use, which has been provided as part of the center development. 4. The subject property will be required to be maintained in a safe, clean and sanitary manner; thus eliminating any potential for unhealthful or injurious site conditions. 5. The business hours for the proposed martial arts studio will be as follows: Monday - Friday 10:00 am to 9:00 pm Saturday • tU.0 O A0) 10:00 am to 5:00 pm These hours would be compatible with the existing commercial uses. 6. As conditioned, the applicant will post a "No Loitering" sign to insure the well-being of the customers of the martial arts studio and customers of existing surrounding uses within the center. Planning Commission Report Conditional Use Permit 92-004 March 9, 1992 Page 4 CONCLUSION Based on the analysis provided in this report and review of the conditions of the site and surrounding vicinity, it is recommended that the Planning Commission Approve Conditional Use Permit 92-004 by adoption of Resolution No. 3010 subject to the conditions incorporated as Exhibit A, as submitted or revised. Joann M.S. Perry Associate Planner CAS:JP:nm/cup92004 Attachments: Attachment A - Attachment B - Attachment C - Resolution No. Christine A. Shing eton Assistant City Manager Community Development Site Plan Applicant's Summary Tustin Market Place 3010 of Operations Parking Summary 1 2 3 .4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 3010 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, APPROVING CONDITIONAL USE PERMIT 92-004, AUTHORIZING THE ESTABLISHMENT OF A MARTIAL ARTS STUDIO USE IN THE PLANNED COMMUNITY (PC), MIXED USE LAND USE CATEGORY LOCATED WITHIN THE TUSTIN MARKET PLACE AT 2923 AND 2925 EL CAMINO REAL, TUSTIN. The Planning Commission of the City of Tustin does hereby resolve as follows: I. The Planning Commission finds and determines as follows: A. A proper application, Conditional Use Permit 92-004 has been filed by Donahue Schriber on behalf of Karate Masters USA, Inc. requesting authorization for the establishment of a, martial arts studio use in the Planned Community (PC) Mixed Use land use category located within the Tustin Market Place at 2923 and 2925 E1 Camino Real, Tustin. B. A public hearing was duly called, noticed and held for said application on March 9, 1992. C. The subject premise is located in the Mixed Use land use category. The martial art studio use applied for is a conditionally permitted use within the Mixed Use land use category pursuant to the East Tustin Specific Plan and the January 91 1992 Use Determination regarding this location. D. That the establishment, maintenance, and operation of the uses applied for will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons. residing or working in the neighborhood of such proposed use nor be a detriment to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin as evidenced by the following findings: 1. The proposed martial arts studio use is to be located in a existing shopping center and would be compatible with the other existing commercial retail and restaurant uses within the center. The use poses not significant impact, in that 2 3 4 5 6 7 8 9 10 11 12 13 14' 151 16� 17i 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 3010 Page 2 there is a lack of sensitive land uses adjacent to the site, such as residential uses. 2. Adequate lighting is proposed for the project for pedestrian and parking areas, creating a safe environment for customers and employees, which has been provided as part of the center development. 3. Adequate parking is available on site to provide parking for the current use within the center and the proposed use, which has been provided as part of the center development. 4. The subject property will be required to be maintained in a safe, clean and sanitary manner; thus eliminating any potential for unhealthful or injurious site conditions. 5. The business hours for the proposed martial arts studio will be as follows: Monday - Friday 10:00 am to 9:00 pm Saturday 10:00 am to 5:00 pm Sunday CLOSED These hours would be compatible with the existing commercial uses. 6. As conditioned, the applicant will post a "No Loitering" sign to insure the well- being of the customers of the martial arts studio and customers of existing surrounding uses within the center. E. That the establishment, maintenance and operation of the use applied for will not be injurious or detrimental to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin, as evidenced by the findings (D 3-6) stated above. F. This project is Categorically Exempt from the requirements of the California Environmental Quality Act, pursuant to section 15301 (Class 1) . 1 2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 3010 Page 3 II. The Planning Commission hereby approves Conditional Use Permit 92-004 authorizing the establishment of a martial arts studio use in the Planned Community (PC) Mixed Use land use category located within the Tustin Market Place at 2923 and 2925 E1 Camino Real, Tustin, subject to the conditions contained within Exhibit A attached hereto and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting of the Tustin Planning Commission, held on the 9th day of March, 1992. ALDEN L. BAKER Chairman KATHLEEN CLANCY Secretary STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, KATHLEEN CLANCY, the undersigned, hereby certify that I am the Recording Secretary of the Planning Commission of the City of Tustin, California; that Resolution No. 3010 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 9th day of March, 1992. KATHLEEN CLANCY Recording Secretary EXHIBIT A CONDITIONAL USE PERMIT 92-004 CONDITIONS OF APPROVAL RESOLUTION NO. 3010 GENERAL (1) 1.1 The proposed project shall substantially conform with the submitted plans for the project date stamped March 9, 1992 on file with the Community Development Department, as herein modified, or as modified by the Director of Community Development Department in accordance with this Exhibit. The Director of Community Development may also approve subsequent minor modifications to plans during plan check if such modifications are to be consistent with provisions of the Tustin City Code and the approved plans. (1) 1.2 Unless otherwise specified, the conditions contained in this Exhibit shall be complied with prior to the issuance of any building permits for the project, subject to review and approval by the Community Development Department. (1) 1.3 Approval of Conditional Use Permit 92-004 is contingent upon the applicant signing and returning an "Agreement to Conditions Imposed" form as established by the Director of Community Development. (1) 1.4 This Conditional Use Permit approval shall become null and void unless building permits are issued within twelve (12 ) months of the date of this Exhibit. Time extensions may be granted by the Planning Commission if a written request is received by the Community Development Department within thirty (30) days prior to expiration. USE RESTRICTIONS (5) 2.1 No more than 50 persons may occupy the premises at one time, based on UBC occupancy requirements. (3) 2.2 The Tustin City Noise Ordinance, allowing a maximum exterior noise level of 70 dBa, shall be observed on the premises at all times. (4) 2.3 Business hours shall be between the hours of 10:00 am to 9:00 pm Mo da J irough Friday and 10:00 am to 5:00 pm on Saturday xteAsion of these hours shall require an amendment to the Conditional Use Permit. SOURCE CODES (1) STANDARD CONDITION (5) RESPONSIBLE AGENCY REQUIREMENT (2) CEQA MITIGATION (6) LANDSCAPING GUIDELINES (3) UNIFORM BUILDING CODE/S (7) PC/CC POLICY (4) DESIGN REVIEW *** EXCEPTION Exhibit A - Conditions of Approval Conditional Use Permit 92-004 Resolution No. 3010 Page 2 (4) 2.4 "No loitering' signs shall be posted at the entrance of the business or other specified location(s). (4) 2.5 All lighting and building locking devices added to the premises shall meet those requirements as set forth in the Building Security Code. (1) 2.6 The subject property shall be maintained in a safe, (4) clean and sanitary condition at all times. PLAN SUBMITTAL 3.1 At building plan check the following shall be submitted: (3) A. Three (3) sets of construction plans and two (2) sets of structural calculations, and Title 24 energy calculations. Requirements of the Uniform • Building Codes, State Handicap and. Energy Requirements shall be complied with as approved by the Building Official. (2) B. Preliminary technical detail and plans for all (3) utility installations including cable TV, telephone, gas, water and electricity. Additionally, a note on plans shall be included stating that no field changes shall be made without corrections submitted to and approved by the Building Official. SITE AND BUILDINGCONDITIONS 4.1 All signs for the project shall comply with the Tustin Market Place sign program and shall be submitted for review and approval by the Community Development Department. 4.2 All utilities exclusively serving the site shall be undergrounded in accordance with City Code Section 8402(a) and installed in accordance with applicable Uniform Building and Electrical Code requirements. FEES (1) 5.1 Prior to issuance of any building permits, payment (3) shall be made of all required fees including: A. All applicable building plan check and permit fees to the Community Development Department. Exhibit A - Conditions of Approval Conditional Use Permit 92-004 Resolution No. 3010 Page 3 B. Orange County Fire Department fees to the Community Development Department. JP:rm ------------------------------------------------------ ----- -•---- -- - AvcOtf- - -----------------------------33uoanvc- — --- --• - �up 92 -Dom Comol 1551,01Y IYI rr�low 07 wl T7�Ic�i��►'T'l� - �l li ti !1 �i 1 ;QG7 I) 4 2 '! Mirrors Mounted on Wall from ! +8" to +72" A.F.F. ,----==- - ,i 11 10 Floor Plan Scale: I/8" = P - 0". Pc�eavNiivE, �'v�rh�ss�a� Ii%�. .�._ r ,cam•-..�— r1 �•�G" V Wall Legend 49 Existing Construction to be Removed Existing Construction Tom' New Floor to Ceiling Partition -� New Partial Height Partition Plan Legend 1 Reception Area with 12 x 12 Ceramic Tile as Required and Red Carpeting 2 Open Area with Commercial Grade Blue Carpeting with Shelving and Floor to Ceiling Mirrors at South Wall 3 Office with Glass to Reception Area ` 4 Storage Room with Plastic Laminate Shelves at 2', 4' and 6' A.F.F. S Office with Glass to Open Area 6 Locker Room with Lockers to be Specified by Tenant 7 Water Cooler Area 8 Existing Toilet 9 Warm Up Room 10 Locker Room with Lockers to be Specified by Tenant 11 Storage A rea Oak*/' %�l�AN/�liN7 Co�1►'M/SSicc►� 3.9'•92 Sf/��r Sar- 3 DONAHUE SCHRIBER December 19, 1991 Ms. Paula Rankin ASSOCIATE PLANNER City of Tustin 15222 Del Amo Avenue Tustin, California 92680 RE: KARATE MASTERS TUSTIN MARKET PLACE Dear Paula: RECEIVED --- DEC z 9 1991 COMMUNITY DEVLEOPMENT As you requested, I have enclosed some additional information pertaining to Kim's Karate, dba; Karate Masters, for Tustin Market Place. As you will see, there is a strong demand for this use in the Southern California market place. We at Donahue Schriber feel that they are the best operator based on their experience and success over the past twenty years. I hope this information will be helpful in your Use Determination process. If you should have any further question`s please do not hesitate to call me. Sincerely, DONAHUE SCHRIBER, a California corporation 13Pisenrn� 4 M. Borowsl y DMB/irl/Enclosure cc: Paulette Alexander rd-> 92- oo's/ 3.9'•92 I i::m )oree �ilito 7-00. �'--Ut`1 7-o"%el' -1 `4-2iO Karate Masters, USA, Inc. P.O. Box 5186 Timonium, MD 21093-5186 (301) 560-9007 - Fax (301) 561-3900 December 13, 1991 To The City of Tustin RE: KARATE MASTERS TUSTIN MARKET PLACE TUSTIN, CALIFORNIA To Whom It May Concern: The nature of the business at Karate Masters is to teach self defense and sell sporting goods. The average class size is twelve people. Gasses meet twice a week. There will be five classes per day Monday thru Saturday. The hours of operation will be Monday thru Friday 10:00 AM till 9:00 PM and Saturdays 10:00 AM until 5:00 PM. Than You P hi/I/ Cam. e l l i Vice President Kim's Karate U.S.A., Inc. (Kim's) opened its first school in Baltimore in 1970. Since 1980, the Company has expanded and added new locations in Baltimore, Philadelphia, Orlando, New Jersey, Virginia and Washington, D.C. Kim's Karate now has 28 schools in operation and has instructed thousands of men, women and children from ages 5 to 65 in the Tae Kwon Do (Korean Karate) style of martial arts. The literal translation of Tae Kwon Do is "Hand and Foot Method". Martial -Arts -History in North America Martial Arts were originally brought to North America by immigrants from Japan and China near the end of the 19th Century. Each ethnic group taught its own style of martial arts to others in its group, but rarely to Americans. A few Americans who were - able to learn martial arts from the Orientals opened schools in the late 1940's and early 19501x. These schools were operated on a part-time basis with an environment that said: "Well, you want to learn Martial Arts; we'll see if we want to let you learn." Most of these schools were not run as businesses, but as a hobby. During the Korean War, many GI's were taught Tae Kwon Do by the Koreans. The Tae Kwon Do style of martial arts was easier to learn than other styles, and emphasized more kicking as a means of self-defense, which proved to be more effective than punching. -1- Why punch someone from a distance of 3 feet, when you can kick him from 6 feet away with 3 times the force? The returning GI's brought Tae Kwon Do to the West Coast and from there it travelled to the East Coast, with its popularity increasing. Korean immigration in the late 1960's and 1970's brought Tae Kwon Do experts to this country. At first, traditional business opportunities were closed to these immigrants, so many started karate schools. Tae Kwon Do became popular because of the ease with which the style could be learned and the superior effectiveness of its self defense skills. Accordingly, a vast majority of tournament and professional champions came from the Tae Kwon Do style. The Kung Fu movie craze created a lot of interest in martial arts but its popularity waned when the movie craze wore off. However, renewed interest was generated by movies in the late 1970's that portrayed martial arts not as a gimmick, but as a sport. Kim's Karate Market Men, women and children of all ages obtain training from Kim's Karate for a variety of reasons: 1. Sport, 2. Self Discipline, 3. Self Confidence, 4. Recreation, -2- 5. Physical Conditioning, and 6. Weight Control. Children are the primary market for Kim's, because parents want their children to be strong and healthy and to do well in life. The martial arts program aids in building children's confidence and character -qualities that help develop leaders. They learn physical fitness and mental alertness, which gives them pride in themselves, and extends to their participation and contributions in the classroom. -This new source of energy and physical agility helps them perform better at sports and other activities, and they make friends more easily and learn to respect authority and themselves. Women at any age are concerned with how they look and how they feel. one follows the other -when you feel better you look better. Martial arts movements are graceful and more interesting than repetitive exercise formats. The program offers the opportunity to shed extra pounds and inches and feel invigorated. It can also make a woman feel capable of standing up to a situation - whether it is normal activity or one in which she must defend herself. Young men will gain confidence in coping with daily problems and situations in today's competitive society. The Kim's Karate program helps relieve stress caused by constant pressures and -3- responsibilities. Stamina increases and enthusiasm develops to deal with everyday routines. The students notice the difference and so do their family, friends and employers. Kim's Karate business will grow as the overall fitness trend in this country continues to'grow. Our society has become more goal oriented, and martial arts provides the self discipline needed to achieve many goals in life. promotion Kim's success in rising above the competition has been achieved by effectively promoting and providing superior martial arts instruction. The following types of promotions are used to identify people interested in Kim's: 1. Television, 2. Newspapers, 3. TV Guide Magazine, 4. Lead Boxes, 5. Yellow Page Advertising, 6. Referrals from Other Students, and 7. Demonstrations in Shopping Malls and other Social Gatherings. Fifteen years ago, martial arts schools would do very little promotion other than placing ads in the yellow pages and waiting -4- for people to walk in the door. Accordingly, success was left to chance. In contrast, Kim's Karate believes in aggressively reaching out to attract potential students. V01 1WTN1"1U[T N E W KICKING A BIT OF GR Don't let Jae Kim's gentle, softspoken manner and compact size . fool you. Tie a black belt around his waist and another man emerges: His muscles tighten and his face hardens into an expression that clearly says "don't mess with me." Kim is an eighth -degree (out of 10) black belt master and former Korean National Tae Kwon Do champion. As ferocious in busi- ness as he is in martial arts, Kim has built his own karate kingdom over the past 20 years. His Timonium -based . company, Jae Kim Institute of Tac Kwon Do Inc., already op- erates 32 Kim's Karate schools on the East Coast and is about to launch a national fran- chise program that will spread Kim's curric- ulum to the West Coast. At the same time, Kim will add a half- dozen more company -operated schools this year, and he is investing heavily in upgrad- ing existing schools. He just closed a deal to move into Golden Ring Mall, the first of what will be many mall -based Kim's Karate outlets. Golden Ring will be the first exam- ple of the company's updated design—all bright colors and aeon, with 500 square feet of retail space to sell -karate paraphernalia. "Malls are now interested in us because we have been legitimized," says Barry Garber, Kim's corporate vice president who was brought on last fall to orchestrate the expansion. The "legitimization" is due in part to karate's admission as a test evert in the 1988 and 1992 Olympics. But the acceptance by mall managers probably has more to do with the rising pop- ularity of karate among the grade -school set—a trend that began with the film, "Ka - 8-WARFIELD'S, APRIL 1 7, 1991 Kim: Eighth -degree black belt In business. Kim's Karate is spreading its brand of martial arts across the country rate Kid," and solidified with the Teenage Mutant Ninja Turtle craze. "We are very in- volved with the Turtle movement," Garber allows. Kim's Karate handed out free tick- ets and posters and put on dozens of karate demonstrations at theaters when the second Turtle film premiered last month. (In fact, the actor underneath Raphael's turtle armor is a former student of Kim's. ) Seventy percent of Kim's 10,000 stu- dents are between 6,e ages of 5 and 13, so clearly this is its target market. But Garber sees tremendous potential in teen-agers and adults. Already, the school has seen a num- ber of father -son partners plunk down $488 apiece for a year's worth of twice -weekly classes. A black belt requires three years of training. About 80 percent of Kim's stu- dents stick with it at least a year, and Kim bestows about 500 black belts a year. Among some of Kim's more notable stu- P D A T E S dents: Joe Montana, Suear Ray Leo- nard, and the Orioles pitching staff. Martial arts today are where health clubs were 20 years ago, says Garber, a for- mer executive with Holiday Spas and Sport- ing Clubs of America. "There is no key na- tional player, and the fragmented market is serviced mostly by local mom and pop oper- ations," he says. The question Kim's Karate faced last year was whether to maintain the company as a regional chain or whether to take a big step forward and go national. "Kim's a gam- bler and he rolled the dice," says Garber. His first move was to find a partner with capital and contacts. He found that person in Frank Bond, head of U.S. Health (parent of Holiday Spas) until he sold out to Bally Manufacturing in 1989. Bond bought a 10 percent interest in Kim's and provided an influx of capital. The company will not reveal how much it has invested in expan- sion, but has doubled its operating budget. Among those expenses are the com- pany's plush new offices on the top floor of the Atrium, Riparius' upscale office project on Deereco Road. The former Kim's Karate offices in a nondescript building on York Road did not convey the proper image for a company on the move, notes Garber. Kim has come a long way since he opened his first school in 1970 on Harford Road in Hamilton. His rent was $300 a month, his total investment 51,500. He was in this country on a student visa to study engineer- ing at the University of Maryland when a friend offered him a job as a karate instruc- tor. "In helping him, I realized this can be a major business in this country," Kim says, still speaking the broken English of a Korean -born U.S. citizen. "It was more opportunity for my future than engineering. Also I see the U.S. could use it. This was in the early '70s; all these people with long hair—they needed disci- pline, confidence. In America, people for lunch sit down, talk, drink Coca Cola, eat potato chips. They need to exercise." Kim opened his second school in High- landtown in 1973. By 1974 he had four loca- tions, "but it was Premature to be expand- ing," recalls Kim. After the death of actor and karate hero Bruce Lee, interest in the sport waned, and Kim had closed all but one of his schools by 1976. Three years later he made a second try at expansion with a location in Perry Hall. In 1980 he opened up in Severna Park, Catons- ville, and Dundalk. Expanding into these suburbs meant changing marketing focus to reach families. The company switched its emphasis from learning self-defense to establishing self-esteem, self-confidence, and respect for self and others. Kim institut- ed a policy for his young black -belt students of maintaining a B average in school. In the '80s, Kim broadened his horizons. He moved into Philadelphia, where he now has nine schools, with six more in the master plan. He has eight in the Washing- ton, D.C., area with the ninth set to open soon in Tysons Corners; six more are planned in that region. Orlando has five Kim's Karate outlets. Next on the list are Atlanta and Boston, where schools are ex- pected to open within the next few months. But the area with the most growth poten- tial is clearly the West Coast. Kim's three- F O R T N 1 Q H 7 year plan calls for 25 franchise locations in Sin Francisco and 60 in southern Califor- nia. Already, Kim has established six affil- iates in the state, called Karate h1asters, which eventually will become franchisees. Kim sees franchising as a perfect solu- tion."There are lots of qualified black -belt instructors out there with good teaching skills but without strong business acumen," notes Garber. "Kim's Karate offers that business expertise." Kim's franchise fees will be kept within reach of these small operators—in the $15,000 range, says Garber. Royalty fees will be 4 percent of gross sales. Kim's Karate has already demonstrated this is a profitable business, says Garber. Annual sales are $40,000 per school per month—about $15 million a year for the company. "In three years we expect to double that with 10 percent profits," pre - diets Garber. There are also plans to go pub- lic in three to five years, "depending on the success of our expansion plan, our ability to pick successful franchisees, and continued growth and popularity of the martial arts." Master Kim is counting on it, and nobody is willing to doubt him. Susan&Uy ■ r ....--...,�. .....- Sfs HEN MARYLAND THINKS ORIENTAL RUGS, IT THINKS ALEX COOPER'S ALEX COOPER'S has been Baltimore's main #. source for fine Oriental rugs since 1924. 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(301) 8284838 lo- WAR FIELD'S, APRIL 1 7, 1 991 STILL NO ROOM TO NEGOTIATE In a remarkable display of faith In his own assessment of the local real es- tate market, the owner of the outland- Ishly luxurious Ruxton home NQsti fle/d's profiled In October 1880 is sticking to his original asking price: $3.5 million. The richly appointed house has been on the market for nearly a year now. it's not been a good year for residential real estate any- way, but unloading this kind of Bever- ly Hills -style home In Baltimore Is a special challenge. Last year the list- ing agents at O'Conor Piper & Flynn's Greenspring office had a distinct vi- sion of the Ideal prospective buyer. an upper -echelon executive re- locating to Baltimore who would fail In love with the flamboyant house and not flinch at Its hefty price tag. While there's been a bumper crop of top ex- ecutives moving Into the area, none of them seems to have fallen for the house as yet. But the price remains firm. That kind of confidence gives sellers everywhere something to be- lieve In. ElaiwF. Weiss ■ F7 E.L.-��.- t•�EL - - 26 FEB 92 PARKING.XLS TUSTIN MARKET PLACE STORE NAME DRESS S.F. PARKING REO'D PARKING TOTALS PHASE 1 1 /20G S_TOR _ _ __2982 _ 141314 707 rNfERioR SURRduWdiNG 29_52 9406 -_ 47 THE LEATHER FACTORY _ 2922 4688 23 �-4757 FLOORMASTER CARPET 2912 24 -- VkAN_T (1_06A) _ -. _ _ 2_902 - _ _5780 _29 TOYS R US 2882 47298 237 GREENSFURNITURE 2872 5486 28 __-- _ - -- --. ------ WATERBED GALLERY _ 2866 8377 _ 42 f•� --- ... BANNER MATRESS 2862 2052 10 KRALISES SOFA FACTORY _ _ 2856 15832 - 80 BANK OFANTIOUE REPRO. 2842 6249 31 n�ARcrs BABY WORLD 2832 6261 SN_ E_ L_VES ANCA CABINETS 2822 17,962 90:.._- & E_OAK FURNITURE2812 4308 22 VACANT ,ADD. NOT USED 2802 _ 4019 20,kF- - - – S WINDOWS- 2792 2745 14 HOME DEPOT 2782 96714 4ea - -.-- . -- NOME DEPOT MEZZ. 937 5 1924 SUBTOTAL 384131 1924 - ,�.4 p q2-ooh •9'•�j Z �nc%rrMCM� Pane 1 FD' - C, Z PARKING.XLS PHASE ADDRESS S.F. PARKING REQUIHL:MbN ki rAKAIIVU IV I ALO 11222 _THE _GOOD GUYS2741 15544 70 1 7, -- 9161 GOOD GUYS TRAINING 2743 2961 VACANT - - ----- 2745 2809 VACANT 2755 3742 VACANT 2765 2405 12, 13 —..17.. 15 CHICKS SPORTING• 2771 49619 VACANT 2775 2807 223 13 LEASING OFFICE 2777 1196 _1_196_ ?' 2 3 RADIO SHACK 779 2293 VANS SHOES 5 SUPERCUTS 2785 1349 5- _5 10 PARTIES UNLIMITED 2795 54Z CLOTHESTIME 2801 5359 HARRIS RED MG 2811 10667 ROSS DRESS FOR LESS 2851 _ 25000 FASHIONLAND - 32291 5 4 48 8 3 113 15 _._2891 KIDSMART 2895 2351 11 't2 C & R CLOTHIERS 2899 _T�73 VACANT 29011 2354 LADY'S ACCENT 2905 1889 _jj _29 �13 FIVE DOLLAR CLOTHING 2909 T.J. MAXX 2951 25800 116 PAYLESS SHOE 2975 3229 15 S UNN`Y 8 ---A U TY S UPP L Y 2977 1574 LEATHER HIDEO Ur 2979 2508 CLEANERS 2981 2164 .7 -TO CHIC WIDE SHOES 2983 1615 VACANT 29851 1614---- ____7 7 KIDS R US 301 t_ 22230 SUB TOTAL 213492 100 .9611 1 �uP q2 -OD'`% PL�B'�'�N/N6, Comm/SvaN 3.9.92 e? SH��T 2oizr *I/ F E. ):: - - • - -:,- t -A E" LS _. _ t PARKING.XLS >E 3 TH 1 11150 1 1113 - � 4K BUILDING 'A': SAPORI --+� -_-- 2991 3005 _ _ _ _ •_-- 2911 3071 14 +48 _ -5 _ __.._ BOOKSTAR_-- BUILDING'S' .._ .___�_____ _ : GNC - --. 10550 _ 7_185 1185 _ 630 1185 �.� 85 - POSTAL ANNEX_ �� VACANT 2913 2917 5 3 - 5 _. _-. 5 _ CORDELLA FINE GIFTS NAPPY NAILS ----. _ 2919 •-- 2923 2925 _ KARATE MASTERS KARATE MASTERS-_ ._ VACANT_ 1185 _1185 2927 1185 __ TWINKLE GIFTS &PHOTO _ VACANT -__ - NORTHWOOD P&Z VACANT - --- -_-- YOGURT AMERICA'S CUP _ - _2929L-4 85 5 _ 7 19 _ 6 5 5 - -- 5 _---__ 5 11 _ _ _ -- _-_- 29_3199 _ 29358T 2937 1393 293_9 1193 1193 1193 - 119_3 ---_ NO SUBSTITUTE - VACANT BUSYBEE-----�-__-- 2941 2943 -_- 2945 2955 RUSKYS FISH TACO _ 2397 RENAISSANCE COFFEE 2957 993 25761 ~ 3754 38_77 75847 _ 4 -116 ~~�_ EDWARDS THEATRE2967 ED WARDS f�E2ZANINE­ VACANT -~- --- _ _ - _. _-._.. 17 ..._. 77 --y-- 28_65 2871 _--- CHRISTOPHER PERRY TOWE,RRECORDS 1 2881 "839308 45 364 16 c�% pp �'z-cryCY . 9% y F- _ E-1 -3 23 23 403 �acNn�e�r—�L/ SHE�TJ dF "7 P' _ Cl PARKING.XLS 5NC- LF T yC4=