CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #A1
DATE: October 22, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Elise McCaleb, Community Development Director
BY: Elise McCaleb, Community Development Director
Tonya Pace, Senior Planner
SUBJECT: CONSIDERATION BY CITY COUNCIL PURSUANT TO HAWAIIAN GARDENS MUNICIPAL CODE, SECTION 18.100.170(D) OF THE PLANNING COMMISSION’S DECISION TO APPROVE A MINOR USE PERMIT (MUP) FOR A PROPOSED BOAT SALES BUSINESS LOCATED AT 12347 E.
CARSON STREET
SUMMARY
On February 20, 2024, Surf City Boats, Inc. (“Applicant”) filed an application for Minor Use Permit (“MUP”) No. PLNG2024-0011 to authorize a boat sales business to be located at 12347 E. Carson Street (“the Property”). On December 12, 2024, the Community Development Director (“Director”) issued a decision to deny MUP No. PLNG2024-0011 (Exhibit A). The property owner of the subject Property (“Property Owner”) timely filed an appeal of the Director’s decision to the City of Hawaiian Gardens Planning Commission.
On January 29, 2025, the Planning Commission held a public hearing to consider the appeal filed by Surf City Boats, Inc. The Planning Commission determined that the proposed use of the property is a Boat Sales business and directed staff to prepare appropriate resolutions and conditions of approval to authorize the boat sales use on the Property 3 (AYES) to 2 (NOES).
On March 5, 2025, the Planning Commission determined that the project is categorically exempt from the California Environmental Quality Action (CEQA) and approved Resolution No. 2025-001 (3 AYES; 2 ABSENT), subject to meeting certain Conditions of Approval.
On March 10, 2025, Councilmember Farfan requested that the Planning Commission’s decision approving MUP No. PLNG2024-0011 be reviewed by the entire City Council pursuant to the authority granted in Hawaiian Gardens Municipal Code (“HGMC”) Section 18.100.170(D). This section of the HGMC authorizes any member of the City Council to call up for review any decision made by the Director or Planning Commission. The City Council’s decision on the matter will be final.
12347 E. Carson Street
October 22, 2025
The purpose of this hearing is to give the City Council an opportunity to review the decision of the Planning Commission and affirm (with the same or different conditions of approval) or overturn the Planning Commission’s decision and adopt appropriate findings to deny the MUP.
Proposed Use
The Applicant proposes a boat sales business to be located at the Property, which consists of an approximately 25,182 square foot unimproved lot located on the southwest corner of Claretta Avenue and Tilbury Street. The proposed project includes use of an existing mobile home trailer as a proposed office, and use of the existing parking lot for boat sales and equipment storage.
The proposed site plan maximizes the site layout for use of the site as a boat sales use. In addition to using the existing mobile home for an office, the proposed Site Plan (Exhibit B) includes ingress and egress via the existing driveway, 13 Boat, Truck, and Trailer parking spaces and 10 additional vehicle parking spaces for customer parking. The proposed site plan also shows required perimeter landscaping, fencing, and lighting. The northwest corner of the property is proposed for equipment storage.
In addition, the business description provided by the Applicant (Exhibit B) states that a separate business unrelated to the boat sales, Chavez Unlimited Construction, Inc., would be renting/sharing a portion (not to exceed 49%) of the trailer office space. That request has been denied by the Director and is the subject of a separate appeal currently being processed.
RECOMMENDATIONS
Staff recommends that the members of the City Council diligently review the materials presented by Staff, the Applicant/Property Owner, and consider evidence and testimony and adopt one of the following:
1. RESOLUTION NO. 029-2025, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AFFIRMING THE PLANNING COMMISSION’S
DECISION TO APPROVE A MINOR USE PERMIT (PLNG2024-0011 MUP),
SUBJECT TO ATTACHMENT A - CONDITIONS OF APPROVAL FOR A
PROPOSED BOAT SALES BUSINESS LOCATED AT 12347 E. CARSON STREET (“PROPERTY”) IN THE CITY OF HAWAIIAN GARDENS (APN:
7066-017-127) AND DETERMINING THAT THE PROJECT IS
CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA)1; OR
1 It should be noted that although the Planning Commission imposed certain conditions of approval on their adoption of the Resolution approving MUP No. PLNG2024-0011, the Applicant has requested certain amendments to those conditions. In addition, Staff has become aware that certain unpermitted businesses may occupy a portion of the Property and certain unpermitted work (not meeting code) appears to have been undertaken. For these reasons, should the City Council wish to approve the Applicant’s request, it may be necessary to continue that decision to allow staff time to confer with the Applicant concerning these issues.
12347 E. Carson Street
October 22, 2025
2. RESOLUTION NO. 029-2025, A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, OVERTURNING THE PLANNING COMMISSION’S DECISION AND DENYING A MINOR USE PERMIT (PLNG2024-0011 MUP) FOR A PROPOSED BOAT SALES BUSINESS LOCATED AT 12347 E. CARSON STREET (“PROPERTY”) IN THE CITY OF HAWAIIAN GARDENS (APN: 7066- 017-127) AND DETERMINING THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
BACKGROUND
Location and Zoning Map
The subject site is zoned C-4 General Commercial and abuts properties that are zoned C-4 General Commercial to the south (Enterprise Rent-A-Car), southwest, and east on Carson Street.
Properties to the west are zoned R-4 High Density Residential and located in the City of Hawaiian Gardens. Properties across the street from the subject site on Tilbury Street are zoned R-1 SingleFamily Residential and located in the City of Lakewood. Properties to the northwest on Farlow Street are zoned R-1 Single Family Residential and located in the City of Hawaiian Gardens.
Source: Google Earth, June 28, 2025
Existing Site Conditions
There is a mobile home trailer on the site that dates back to 1971 and was used by the former tenant “The Wood Doctor” who sold and repaired mobile homes. The site is unimproved and is not paved or striped as shown in photos (Exhibit C). There is chain link fencing with slats on three sides of the Property, and a block wall faces Tilbury Street. The chain link fencing was replaced with new chain link and slats by the Property Owner in 2025 without permits. That matter is the subject of a separate code enforcement action.
12347 E. Carson Street
October 22, 2025
The Property Owner has a business license to use the mobile home trailer for office use pertaining to his Boat Sales business. The City approved the business license for office use prior to any formal planning approvals to help the Property Owner obtain financing for the purchase of the property in 2024, but is not deemed to be formal zoning approval.
Proposed Use
The proposed use as depicted on the site plan provided by the Applicant is for a Boat Sales use.
The Property Owner owns a business called Freedom Boats. Freedom Boats is a franchise and membership-based charter company of power boats. As a member, you may reserve time to use boats from the fleet. According to the Applicant, after two to three years of boat use by members, the boats would be taken out of the fleet and moved to Hawaiian Gardens for sale.
The business description dated July 10, 2024 provided by the Applicant states that in addition to boat sales, “…office space not to exceed 49% of the structure on site, will be rented to Chavez Unlimited Construction…”. The Planning Commission only considered the Boat Sales use because it was the only use identified on the site plan. Additional uses proposed for the site would need to be shown on a revised site plan and reviewed by the Planning Department to ensure code compliance.
Timeline
The following is a timeline of the application review process:
• 2/20/24 - Application and application payment for MUP submitted (Exhibit B). • 3/12/24 - Application deemed incomplete.
• 4/30/24 - Meeting to discuss proposed project with Applicant. • 5/1/24 - City Planning staff requested business information from Applicant requesting what type of State License Applicant would obtain for Boat Sales. • 7/3/24 - City Planning staff again requested the same information and that the information be submitted by 7/17/24. No State License for Boat Sales was provided in response to the request.
• 8/28/24 - An incomplete letter was issued, indicating that the State License information was not received, and the proposed project application was deemed incomplete. • 10/18/24 – Applicant sent email to City outlining reasons why it believes the City should issue the MUP, and Applicant provided a California Department of Tax and Fee Administration Seller’s Permit.
• 12/12/24 -Director formally denied MUP application in writing to Applicant (Exhibit A). 12347 E. Carson Street
October 22, 2025
• 12/20/24 – Applicant timely filed its appeal (Exhibit D). • 01/29/25 – Planning Commission Public Hearing to discuss proposed MUP for Boat Sales (Exhibit E). Staff recommended denial of the MUP application, however the Planning Commission voted to overturn the decision of the Director, 3 (AYES) to 2 (NOES). The Planning Commission directed staff to return with a resolution approving the MUP for the Boat Sales use subject to Conditions of Approval.
• 03/05/25- Letter from Applicant’s attorney regarding questions about proposed Conditions of Approval and requesting clarification and changes to Conditions of Approval (Exhibit F). • 03/05/25 – Planning Commission meeting. Planning Commission adopted Resolution No. 2025-001 approving the MUP, subject to certain Conditions of Approval for the Boat Sales use (Exhibit G).
ANALYSIS/DISCUSSION
Minor Use Permit (MUP) Application
The table of permitted uses found in Section 18.60.050 (Uses Permitted in Non-Residential Zones) of the Hawaiian Gardens Municipal Code (HGMC) allows auto sales (new or used) as a use that is permitted in the Commercial General (C-4) zone, subject to the issuance of a Minor Use Permit (MUP). HGMC Section 18.20.030 defines “automobile sales area” to include “an open area or building used for the display or sales of new or used automobiles, trucks, trailers, or boats.” (emphasis added). The Property is located in the C-4 zone. Thus, an MUP is required for the proposed project at the Property.
Proposed Site Layout and Design
The proposed site plan shows use of the existing mobile home trailer as an office, ingress and egress via the existing driveway, 13 Boat, Truck, and Trailer parking spaces, and 10 additional vehicle parking spaces. The proposed site plan also shows required perimeter landscaping, fencing and lighting.
Minor Use Permit (MUP) Application Director Denial
In planning staff’s review of the totality of the application, including Applicant’s description of how the Property will be used and the proposed site layout, staff determined that the proposed operations are more akin to boat storage (and not sales)– which is not a permitted use in the C4 Zone. Staff further determined that the proposed use may be detrimental to the property or improvements in the surrounding area as a stagnant storage area, not manned by any employees or frequented regularly by customers looking to purchase boats, is a potential target for crime, vandalism, and/or loitering. Further, the business does not have regular days and hours of operation, which is commonplace for businesses in the C-4, General Commercial Zone. As a result, Staff determined the use was not consistent with the General Plan and Zoning Code and could not make the required findings for approval of the MUP. 12347 E. Carson Street
October 22, 2025
More specifically, the determination to deny the MUP was based on the Applicant’s description of how the site would be used. In meetings and written correspondence, the Applicant indicated that they will keep their waterfront office elsewhere (outside of the City of Hawaiian Gardens), that no staff will regularly be onsite, and that the Applicant would only occasionally bring a customer to the site to pick up a boat and trailer it to the water for “test drives.” This is akin to a situation where an auto dealership maintains a storage lot for storage of excess vehicles. While those vehicles are available for sale and can be driven to the retail dealership, they are not part of the inventory stored on the dealership. In such cases, it is clear that sales are not conducted from the storage lot.
On way to determine whether actual sales are conducted from the site is to review similar sales tax point-of-sale information. In this case, it was unclear to staff that if a sale is made, where the point of sale will be and where the appropriate sales tax will be paid. In an email to staff in 2024, the Applicant provided an address in Westminster where he conducts boat sales. From an aerial view, the site looks like an unimproved contractor’s storage yard consisting of boats, trucks, and trailers.
The Applicant was notified of the Director’s denial via email on December 12, 2024.
Property Owner’s Appeal of Director’s Decision and Planning Commission Hearing Pursuant to HGMC Section 18.100.050 (D), any decision by the Director is final unless an appeal is filed by the Applicant pursuant to section 18.100.170 of the HGMC. As noted above, the Applicant timely filed an appeal on December 20, 2024. The reasons for the appeal are set forth in full as Exhibit D.3
On January 29, 2025, the Planning Commission independently reviewed the Applicant’s application and all other written and oral evidence presented to the Planning Commission at the public hearing and exercised its own independent judgment as to whether the proposed project at the Property is consistent with the HGMC and meets the HGMC required findings for an MUP.
The Planning Commission voted to overturn the Director’s decision and directed staff to prepare a Resolution approving the MUP with the appropriate findings and conditions. On March 5, 2025, the Planning Commission adopted Resolution 2025-001 and approved the MUP subject to the Conditions of Approval for Boat Sales at the Property.
City Council Request to Review and Consideration of Planning Commission’s Decision On March 10, 2025, and in accordance with HGMC Section 18.100.020(J) and Section
18.100.170(D), Administrative Procedures, a councilmember requested that the Planning Commission decision be reviewed and considered by the City Council. The Planning Commission’s decision was stayed pending the City Council hearing. The Public Hearing must be held within 45-days pursuant to HGMC 18.100.170(B).
3 In order to avoid paraphrasing or misrepresenting the Applicant’s position, staff is referring the City Council to the entirety of the Applicant’s appeal to the Planning Commission. However, the City Council’s role is to review the Planning Commission’s decision pursuant to the provisions of the HGMC related to the MUP. Other legal/constitutional arguments posited by the Applicant are disputed by City staff and are not the purview of the City Council for this hearing.
12347 E. Carson Street
October 22, 2025
The following timeline outlines what occurred following the councilmember’s request. • 3/26/25 – In person meeting with Applicant to City to review questions and concerns about Conditions of Approval.
• 3/27/25 – Received notice from Property Owner’s attorney requesting to postpone City Council Public Hearing date on 4/9/25 to further work through items with City team. • 04/22/25 – Business License Application received for Chavez Unlimited Construction. • 5/19/24 – Community Development sent letter to Property Owner to set City Council Public Hearing for June 25, 2025.
• 6/4/25 – Community Development received email from Property Owner’s attorney requesting continuance of Public Hearing in order to allow time to hear back from Planning Department regarding the approval or denial of the business license for Chavez Unlimited Construction, Inc.
• 6/25/25 – Letter from City to Property Owner denying business license application for Chavez Unlimited Construction, Inc.
• 7/25/25 – Business license application received for A Precision Roofing dba A Precision Construction.
• 8/29/2025 – Letter from City to Property Owner denying business license application for A Precision Roofing dba A Precision Construction.
• 9/15/2025 – Email from City to Property Owner to set dates for MUP Public Hearing for October 22, 2025 and Business License Hearing for November 12, 2025. • 9/29/25 – Email from Property Owner to City confirming date of MUP Public Hearing for October 22, 2025.
MUP Findings and Project Requirements
After conducting the public hearing, the City Council may decide to affirm the Planning Commission’s decision and approve the MUP. Such an approval may be based on the same findings made by the Planning Commission. A draft resolution containing these findings is attached (Exhibit H).
Alternatively, if the City Council decides to overturn the Planning Commission’s decision and deny the MUP. The City Council will need to support this decision with alternative findings for denial.
These are contained in a separate draft resolution (Exhibit I) and may be based on the following:
1. The proposed business operation for boat sales is not compatible with the stated purposes Hawaiian Gardens General Plan.
The Hawaiian Gardens General Plan-Land Use Element describes the policies and goals applicable to the City’s commercial designations. Applicable Goals and Policies provide:
12347 E. Carson Street
October 22, 2025
Goal LU-4: Provide commercial retail opportunities that serve residents and visitors.
Policies:
LU-4.4 Encourage the development of high-quality commercial projects.
LU-4.5 Ensure that applicable land use regulations allow for commercial uses that serve a broad market area, including visitor-serving uses.
LU-4.7 Provide neighborhood commercial uses throughout the community to make goods and services available within walking distance of residents. • Typically, office/professional and retail businesses have regular hours of operation as well as employees onsite. The proposed business does not have a regular schedule and is by appointment only and there are no employees onsite. • The proposed use does not support the residential area by providing shops for goods and services. No goods or services will be provided for the nearby residential area. • The use is different from auto sales in that boats are stored and trailered to the water, thereby making the use more similar to “storage” than a showroom which is typical for auto sales.
2. That the proposed use is contrary to the objectives of this Zoning Code or to the objectives of the applicable regulations.
HGMC Section 18.60.020(A) states in part, that:
“The purpose of the general commercial (C-4) zone is to designate areas for office/professional and retail businesses in the City that support residential area and provide jobs for area residents.
These areas are intended to accommodate a variety of shops for goods and services to serve the needs of the surrounding community. The C-4 zone is consistent with the general commercial designation of the General Plan.”
The proposed use will not serve the needs of the surrounding community. The proposed boat sale use appears to serve the needs of waterfront communities as the intended purpose of the site is to bring customers from there to this site, for the purpose of viewing boat inventory. Further, use of the sales trailer with another office use and shared storage area with unrelated contractor equipment is inconsistent with the use of the site as a boat sales facility.
3. That the proposed use will be located, operated, and maintained in a manner not consistent with the policies of the General Plan and the provisions of this Zoning Code.
The proposed improvements to the site are inconsistent with the use of the site as a commercial boat sales facility. Portions of the site are unimproved and at least one other non-boat sales related business will exist on the site and share the office space and parking/storage area.
4. That the proposed use will be detrimental to the property or improvements in the surrounding area or the public health, safety, or general welfare.
As noted, the purpose of the C-4 Zone designation is to designate areas for office/professional and retail businesses in the City that support residential area and provide jobs for area residents.
The proposed use will not serve the surrounding residential area. Further, the existing 12347 E. Carson Street
October 22, 2025
improvements on the site are inconsistent with the use of the site as a boat sales facility given that a portion of the site will be occupied by at least one other use that proposes to use the site as an office with storage of construction equipment. Such use is incompatible with a boat sales display area and customer office location.
Council Decision Criteria
Pursuant to HGMC Section 18.100.170(D) and Section 18.100.020(J), consideration by the City Council of a Planning Commission decision will serve as the appeal process for the project.
HGMC Section 18.100.170 posits the purpose and process for the filing and consideration of an appeal and in pertinent, subsection F describes the decision criteria for the City Council consideration of the Planning Commission decision:
“F. Decision criteria.
1. The appeal body shall make the same findings and use the same criteria as the decisionmaking body whose action is appealed.
2. If new plans are submitted during the appeal process, this shall be considered as a new request and therefore, a new application shall be submitted.
3. Nothing herein shall prevent the appellate or review body from imposing conditions on a project and granting approval to a project modified by conditions imposed as part of the decision.
4. The decision of the City Council shall be final.”
The City Council’s role is to review the Planning Commission’s decision pursuant to the provisions of the HGMC related to the MUP findings. The City Council has the discretion to approve (with the same or modified conditions) or deny the MUP application.
California Environmental Quality Act (CEQA)
The proposed appeal of the Minor Use Permit (MUP) is deemed categorically exempt from review under the California Environmental Quality Act (CEQA). Specifically, denial of the MUP application is exempt from environmental review pursuant to Public Resources Code §21080(b)(5) and CEQA Regulation, §15270 (a), which posit that CEQA does not apply to projects which a public agency rejects or disapproves. Alternatively, should the City Council decide to approve the MUP as applied for, then that approval is exempt under CEQA Regulations §§15301, 15303(c) &(e), 15304(b) 15311(a) &(b), and 15332, because it establishes rules and procedures to alter existing facilities, permit new construction or conversion of small structures; permit minor alterations to the land and landscaping; construct or replace accessory commercial structures, signs, and parking lots; and permits an in-fill development project which are all exempt under the aforementioned CEQA Regulations. The MUP is therefore categorically exempt from further CEQA review under CEQA Regulations §§15301, 15303(c) &(e), 15304(b), 15311(a) &(b), and 15332.
PUBLIC INPUT
To date, there has been no public input regarding this hearing. 12347 E. Carson Street
October 22, 2025
ATTACHMENTS
Exhibit A - Director’s Denial Letter - dated 12/12/24
Exhibit B – Proposed Project Documents - Application, Proposed Site Plan, Business Operation Description
Exhibit C – Photos of Existing Site Conditions
Exhibit D – Applicant’s Appeal to Planning Commission Letter – 12/20/24 Exhibit E – Planning Commission Meeting Record – 1/29/25 - Staff Report and Attachments Exhibit F – Letter from Applicant’s attorney regarding proposed Conditions of Approval (3/5/25) Exhibit G - Planning Commission Meeting Record – 3/5/25 - Staff Report, Resolution 2025-001 and Agenda Materials
Exhibit H – Resolution No. 029-2025 Upholding Planning Commission Decision – Approve MUP Exhibit I – Resolution No. 029-2025 Overturning Planning Commission Decision – Deny MUP