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HomeMy WebLinkAboutNB 1 REFUND OF FEES 11-06-89E: NOVEMBER 6, 1989 DIE.. i~l NO. 1 11-6-89 Inter- Corn TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT REFUND OF FEES - L. P. REPERTORY COMPANY RECOMMENDATION . Pleasure of the Council. BACKGROUND On October 4, 1989, the L. P. Repertory Company requested a refund of fees paid in July of 1988 that included a variance, a conditional use permit, an environmental review, a sign permit and an electrical permit. These fees total to $970.00 and were collected for a dinner theatre project located at 15732 Tustin Village Way, Suite D. The applicant's justification is based upon their present organization being ~on-profit. Following is discussion of the issues related to their non-profit status, prior policy concerning non-profit organizations and the source for funding their refund request. DISCUSSION Non-Profit Status - Staff has reviewed the project files and has found that there are inconsistencies related to the applicant's non-profit status. Current business license files do show that L. P. Repertory Company is a non-profit organization; however, there is no reference to the dinner theatre as a subsidiary or as an unrelated business operation. Therefore, the dinner theatre should have a separate business license. Staff was unable to locate a current or a prior license application. Staff also found in the project files that there is reference to two different names used, somewhat interchangeably, for the dinner theatre: one being L. P. R. Dinner Theatre and the ' other being Brobdingnag. Most of the applications for the project have the L. P. Repertory Company referenced as the applicant while at the same time the dinner theatre is referenced as Brobdingnag. If this is the case', then it is possible that there are two separate entities involved, one non-profit and the other possibly for profit. .. J City Council Report L. P. Repertory Company November 6, 1989 Page two Further review of the project files revealed that an application for an Alcoholic Beverage License is on file with Brobdingnag as the business name. If the L. P. Repertory Company and Brobdingnag are one and the same entity, or affiliated in any way, they are required to amend their Articles of Incorporation on record with the State to reflect operation of a non-profit organization under a different or several business names. However, there is still some question as to whether the dinner theatre is operating as a non-profit entity. Staff has received information that the dinner theatre is being rented out for occasions not related to theatre entertainment. These occasions include weddings and memorial services. If this condition exists, the applicant is acting in violation of their use permit. Prior Policy - At this time, staff can only waive business license fees for business license applicants Who provide the required non-profit status paperwork. Other types of requests for a waiver of fees would have to be decided upon by the City Council. While it is not typical for an applicant to ask for a waiver of fees, there have been only two fee waiver requests by the City Council over the last three years. These requests are generally made before applications are processed, not after completion. In this incidence, L. P. Repertory Company has had over a year lapse between application completion and fee waiver request, necessitating a refund of fees. Most previous fee waiver approvals have been limited to small, perhaps one time fund raising operations, such as those carried out by local school booSter clubs. These fees are usually related to temporary use permits. Other more established non-profit organizations, such as churches, have not made the request that their application fees for use permits or variances be waived. However, these same organizations have, from time to time, requested that their fees for a temporary use permit be waived. The planning department fees are set based upon costs that would generally be incurred in processing applications for use permits or variances. The dinner theatre project required additional staff time that was not typical to processing the applications. Numerous code violations and staff inspections were necessitated due to the applicant's operation of the dinner theatre without final approvals for occupancy being obtained. A notice and order was issued on March 6, 1989, to the applicant informing them of these building and fire violations as well as the requirement for a business license. Community Development Department City Council Report L. P. Repertory Company November 6, 1989 Page three Funding Source - Staff would report that the original application and receipt of fees is in a closed accounting period that ended June 30, 1989. For this reason, the refund would not be a direct reduction from revenues received in a prior accounting period. The refund would have to be distributed from unappropriated funds available in this current accounting period ending June 30, 1990. CONCLUSION While staff has identified several issues related to the refund request, staff recognizes that a waiver of fees resulting in a refund is within the Councils' purview. Staff's recommendation, however, would be denial of the waiver request. In the event the Council wishes to approve the request, $970 would have to also be appropriated from general fund reserVes. Ann~. Bonnef-- Planning Technician Christine A. ~hi~gl.e~ Director of Communit~ Development AEB:CAS:kbc '- Community Development Department