BLYTHE CITY COUNCIL
SPECIAL MEETING AGENDA
May 15, 2025
3:15 P.M.
Joseph DeConinck, Mayor
Johnny Z. Rodriguez, Vice Mayor
Joseph Halby, III, Council Member
Sam Burton, Council Member
Summer Spraggins, Council Member
Mallory Crecelius, Interim City Manager/City Clerk
Brittany Roberto, City Attorney
MEETINGS ARE HELD IN THE CITY COUNCIL CHAMBER, 235 NORTH BROADWAY, BLYTHE, CA Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s Office at City Hall, 235 N. Broadway, Blythe, California during normal business hours.
In addition, such writings and documents will be posted on the City’s website: www.cityofblythe.ca.gov.
BLYTHE CITY COUNCIL
SPECIAL MEETING
Special Meeting Notice and Agenda
Thursday, May 15, 2025
3:15pm
Council Chambers at City Hall
235 N. Broadway
Blythe, CA 92225
Joseph DeConinck, Mayor
Johnny Z. Rodriguez, Vice Mayor Joseph Halby, III, Council Member Summer Spraggins, Council Member Samuel Burton, Council Member Mallory Crecelius, Interim City Manager/City Clerk Brittany Roberto, City Attorney Christa Elms, City Treasurer/Finance Director Jason Brown, Chief Building Official Garth Dale, Police Chief
Ronnie Hasler, Fire Chief
Mirasol Elegores, Public Works Director
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
SPECIAL MEETING ITEMS:
1. Posting of the Agenda.
The summary of agenda items were posted on the bulletin boards on the outside of the public entrance to the Council Chamber and near the inside entrance of the Council Chamber and on the City’s website on Wednesday, May 14, 2025.
2. Revocation of Business License Issued to Fortune Five Properties LLC dba Econo Lodge-Blythe
Recommendation: Provide direction regarding the revocation of the business license issued to Fortune Five Properties LLC dba Econo Lodge-Blythe. If the City Council desires to revoke the business license, it is recommended that the Council adopt the following resolution:
RESOLUTION NO. 2025-008 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BLYTHE, CALIFORNIA, REVOKING THE BUSINESS LICENSE (BL-10876) ISSUED TO FORTUNE FIVE PROPERTIES LLC DBA ECONO LODGEBLYTHE, LOCATED AT 903 W. HOBSONWAY, BLYTHE, CA 92225 Public comments will be allowed on the Special Meeting items during consideration of the item(s) described. Comments shall be limited to 3 minutes in duration.
ADJOURNMENT The next meeting will be held on June 10, 2025 at 6:00 p.m. in the Council Chamber, 235 N. Broadway, Blythe, California.
NOTE TO THE PUBLIC: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact 504/ADA Coordinator Mallory Crecelius at (760) 922-6161 EXT. 1237 or by email at [email protected]. Notification 72 business hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.104 ADA Title II).
CITY OF BLYTHE
CITY COUNCIL MEETING
STAFF REPORT
MEETING DATE: May 15, 2025
SUBJECT: Revocation of Business License Issued to Fortune Five Properties LLC dba Econo Lodge-Blythe
PRESENTED BY: Mallory Crecelius, Interim City Manager
PREPARED BY: Brittany E. Roberto, City Attorney
RECOMMENDATION: It is recommended that the City Council provide direction regarding the revocation of the business license issued to Fortune Five Properties LLC dba Econo Lodge-Blythe.
If the City Council desires to revoke the business license, it is recommended that the Council adopt the following resolution:
RESOLUTION NO. 2025-008 – A RESOLUTION OF THE CITY COUNCIL OF BLYTHE, CALIFORNIA, REVOKING THE BUSINESS LICENSE (BL-10876) ISSUED TO FORTUNE FIVE PROPERTIES LLC DBA ECONO LODGE-BLYTHE, LOCATED AT 903 W. HOBSONWAY, BLYTHE, CA 92225 FISCAL IMPACT: Tax revenue in an amount of ten percent (10%) on gross rents for occupancy of rooms.
BACKGROUND: At the May 13, 2025 City Council meeting, the City Council conducted a public hearing regarding the potential revocation of the business license (BL-10876) issued to Fortune Five Properties LLC dba Econo Lodge-Blythe (“Econo Lodge”), located at 903 W.
Hobsonway, Blythe, CA 92225. At the hearing, all interested parties, including City staff and the motel operator, Noble Zubaid, were given an opportunity to be heard and present evidence. At the conclusion of the hearing, the City Council voted to take the matter under submission.
STAFF REPORT: Section 5.02.330 of the Blythe Municipal Code provides the authority for the City Council to revoke an existing business license, as follows:
The city council may suspend, revoke, withdraw or discontinue any license granted under the provisions of this chapter whenever it has reason to believe that the business conducted thereunder by the licensee, his, their or its servants or employees, is a nuisance, a menace to public health, or detrimental to the peace and morals of the city, or that violations of the laws of the state or the city have been committed or are being permitted to be committed upon the premises where such business is being conducted. Such suspension, revocation, withdrawal or discontinuance shall be by resolution of the city council.
Staff recommends that the City Council deliberate and then provide direction regarding the revocation of the business license issued to Econo Lodge. If the City Council desires to revoke the business license, it is recommended that the Council adopt Resolution No. 2025-008.
ATTACHMENTS:
1. Resolution No. 2025-008
Resolution No. 2025-008
RESOLUTION NO. 2025-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BLYTHE, CALIFORNIA, REVOKING THE BUSINESS
LICENSE (BL-10876) ISSUED TO FORTUNE FIVE
PROPERTIES LLC DBA ECONO LODGE-BLYTHE,
LOCATED AT 903 W. HOBSONWAY, BLYTHE, CA 92225
The City Council of the City of Blythe hereby finds and declares as follows:
WHEREAS, on November 18, 2019, the City issued a business license (BL-10876) to Fortune Five Properties LLC dba Econo Lodge-Blythe (“Econo Lodge”), located at 903 W. Hobsonway, Blythe, CA, 92225, for the operation of a hotel/motel; and WHEREAS, on January 1, 2025, Econo Lodge paid its annual license fees for calendar year 2025; and
WHEREAS, as a hotel/motel operator in the City, Econo Lodge is subject to the requirements set forth in Chapter 3.20 of the Blythe Municipal Code (BMC) relating to the Transient Occupancy Tax (TOT); and
WHEREAS, Section 3.20.070 of the BMC provides:
Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient.
The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded, except in the manner provided in Section
3.20.120; and
WHEREAS, Section 3.20.070 of the BMC provides:
A. Each operator who has obtained a transient occupancy registration certificate as of the date that the ordinance codified in this section becomes effective, shall, on or before the last day of the month following the close of each calendar quarter, or any shorter reporting period which may be established by the tax administrator, as defined in Section 3.20.020, file a return with the tax administrator, on forms provided by him, reporting the total rents charged and received and the amount of tax collected for transient occupancy. At the time the return is filed, the full amount of the tax collected shall be paid to the tax administrator. The tax administrator may establish other reporting periods for any certificate holder or may require a deposit or bond for Resolution No. 2025-008
any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information in the return. Returns and payments are due immediately upon cessations for any reason. All taxes collected by the operator shall be held in trust for the account of the city until payment thereof is made to the tax administrator.
B. Each operator who has obtained a transient occupancy registration certificate after the effective date of the ordinance codified in this section shall file a return, on or before the last day of the month following the close of each calendar month or at the close of any shorter reporting period which may be established by the tax administrator, as defined in Section 3.20.020, to the tax administrator, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupancy. At the time the return is filed, the full amount of the tax collected shall be remitted to the tax administrator. The tax administrator may establish other reporting periods for any certificate holder or may require a cash deposit bond for any certificate holder if he deems it necessary in order to insure collection of tax, and he may require further information in the return. The return and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this section shall be held in trust for the account of the city until payment thereof is made to the tax administrator.
C. Returns and tax collection remittances shall be either:
1. Postmarked by the United States Postal Service on or before the twenty-fifth day of the month it is due; or
2. Deposited in the city finance office by five p.m. on or before the last business day of the month it is due; and
WHEREAS, Section 3.20.080 of the BMC outlines penalties and interest for late payment of the TOT; and
WHEREAS, since 2020, the City has encountered issues with Econo Lodge regarding consistent and timely payment of its TOT; and WHEREAS, in August 2024, the City issued a notice of intent to revoke Econo Lodge’s business license in connection with Econo Lodge’s failure to report and pay TOT in July 2023, August 2023, September 2023, November 2023, December 2023, and for all of 2024; and
WHEREAS, in September 2024, the City, Econo Lodge and its owner, Noble Zubaid, entered into a Settlement Agreement, pursuant to which Econo Lodge and Mr.
Resolution No. 2025-008
Zubaid agreed to make a lump sum payment of the total arrearage, including interest and penalties, no later than October 31, 2024, and biweekly reporting period for a minimum of 12 months, through at least September 30, 2025, until such time as the City’s tax administrator advises Econo Lodge and Mr. Zubaid that the biweekly reporting period is no longer required; and
WHEREAS, Econo Lodge and Mr. Zubaid made the lump sum payment of the total arrearage, interest and penalties in accordance with the terms of the Settlement Agreement on October 25, 2024; and
WHEREAS, Econo Lodge and Mr. Zubaid initially complied with the biweekly reporting requirements; and
WHEREAS, since February 15, 2025, Econo Lodge and Mr. Zubaid have been in breach of the terms of the Settlement Agreement; and
WHEREAS, Econo Lodge has not submitted TOT returns for January 16-January 31, 2025, February 16-February 28, 2025, March 1-March 31, 2025, or April 1-April 15, 2025; and
WHEREAS, the City has not received a valid payment of TOT from Econo Lodge for January 2025, February 2025, or March 2025; and
WHEREAS, Section 5.02.330 of the BMC provides:
The city council may suspend, revoke, withdraw or discontinue any license granted under the provisions of this chapter whenever it has reason to believe that the business conducted thereunder by the licensee, his, their or its servants or employees, is a nuisance, a menace to public health, or detrimental to the peace and morals of the city, or that violations of the laws of the state or the city have been committed or are being permitted to be committed upon the premises where such business is being conducted.
Such suspension, revocation, withdrawal or discontinuance shall be by resolution of the city council; and
WHEREAS, on April 10, 2025, the City issued a written Notice of Intent to Revoke Econo Lodge’s business license, which Notice was delivered to Econo Lodge by certified mail on April 14, 2025; and
WHEREAS, on May 13, 2025, the City Council conducted a duly noticed public hearing regarding the potential revocation of the business license issued to Econo Lodge, at which time all interested persons were given an opportunity to be heard and present evidence.
Resolution No. 2025-008
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLYTHE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Based upon the evidence presented at the hearing, the City Council finds that violations of the laws of the City have been committed or are being permitted to be committed upon the premises where Econo Lodge’s business is being conducted, including:
A. Violation of Econo Lodge’s duties set forth in Section 3.20.050 of the Blythe Municipal Code.
B. Violation of reporting and remitting requirements set forth in Section
3.20.050.
SECTION 2. The City Council hereby revokes the business license (BL-10876) issued to Fortune Five Properties LLC dba Econo-Lodge Blythe, effective immediately.
Fortune Five Properties LLC dba Econo-Lodge Blythe shall immediately cease operation of its business at 903 W. Hobsonway, Blythe, CA 92225.
SECTION 3. Each and every one of the findings and determinations in this resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the action taken by the City Council. All summaries of information in the findings which precede this section are based on the entire record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 4. This decision constitutes the last formal administrative decision of the City in this matter. There is no further right of appeal at the City level. If you wish to further challenge this decision, you may do so by filing a petition for administrative writ of mandamus pursuant to Code of Civil Procedure Section 1094.5. This petition must be filed with the appropriate Superior Court no later than 90 days following the date on which you were served with this decision. Failure to timely file this petition for administrative mandamus in the appropriate Superior Court will render this decision forever final and not subject to further challenge.
SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the file of original resolutions.
Resolution No. 2025-008
PASSED, APPROVED AND ADOPTED by the City Council of the City of Blythe at a regular meeting thereof held on the 15th day of May, 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Joseph DeConinck, Mayor
ATTEST:
_______________________
Mallory Crecelius, City Clerk
(SEAL)