CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #A2
DATE: December 10, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Elise McCaleb, Community Development Director
SUBJECT: CITY COUNCIL REVIEW OF APPEAL OF BUSINESS LICENSE DENIAL
PURSUANT TO HAWAIIAN GARDENS MUNICIPAL CODE, SECTION
5.04.230 AND 18.100.170 (APPELLANT: CHAVEZ UNLIMITED
CONSTRUCTION, INC.) FOR PROPERTY LOCATED AT 12347 E. CARSON STREET
SUMMARY
The Community Development Department (“Department”) received the Business License Application for Chavez Unlimited Construction, Inc. (“Appellant”) on April 22, 2025 requesting a business license for Office and Professional Use at the property located at 12347 E. Carson Street. For the reasons stated below, the business license application for the proposed office use at the Property was denied by the Community Development Director based on the Director’s interpretation of Code provisions and the determination that the principal use is not an office but a contractor storage yard which is not permitted by the City of Hawaiian Gardens’ General Commercial (C-4) zoning designation.
Following the denial, the property owner appealed the decision, and the matter is now before the City Council pursuant to Hawaiian Gardens Municipal Code Section 5.04.230 and 18.100.170.
RECOMMENDATION
It is recommended that the City Council consider the record of the decision by the Community Development Director denying the business license application for office use, hear public testimony, affirm the decision and adopt Resolution 034-2025, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWAIIAN
GARDENS, CALIFORNIA AFFIRMING THE DECISION BY THE
COMMUNITY DEVELOPMENT DIRECTOR AND DENYING BUSINESS
LICENSE APPLICATION FOR CHAVEZ CONSTRUCTION UNLIMITED,
INC. AT 12347 E. CARSON STREET
12347 E. Carson Street
December 10, 2025
BACKGROUND
Location and Zoning Map
The subject site is located at 12347 E. Carson Street (“Property) and is zoned C-4 General Commercial. The Property is also the subject of a pending City Council land use review of the Planning Commission’s approval of a minor use permit approving boat sales on the Property. The Property abuts other 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 Single-Family 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, Wood Doctor Manufactured Housing Construction Inc. that sold and repaired mobile homes1. The current Property Owner has a business license to use the mobile home trailer for office use pertaining to the Property Owner’s 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.
1 The permitted use of Wood Doctor was a continuation of an existing non-conforming use and entailed:
the set up and repair of mobile homes on a temporary basis, staging for construction and repair of mobile homes, an existing office, and the temporary storage of equipment as related to mobile home repair. The business license was closed out on March 12, 2024. Once the use ceased to operate for a period of six months, the use was determined abandoned, and all non-conforming rights were deemed to be lost. 12347 E. Carson Street
December 10, 2025
On April 22, 2025, Appellant submitted a request for a business license for office and professional use at the property. Upon review of the information provided and in accordance with the authority provided to the Community Development Director under Hawaiian Gardens Municipal Code (HGMC) Section 18.20.040, the Director interpreted provisions of the Zoning Code, and determined that the proposed principal use is not an office but is rather a contractor storage yard, which is not consistent with the permitted uses in the C-4 Zone. (The basis for this denial is described in more detail below) On May 16, 2025, a letter was sent to the Appellant indicating that the application was incomplete and requesting that they provide further information and evidence of their proposed use of the subject property in order to determine whether the use was consistent with the C-4 zoning designation and pursuant to HGMC Section 5.04.020. The City requested a written and detailed business description, including but not limited to the proposed activities, hours of operation, number of employees, and equipment to be used on site, store onsite, and how/where it would be stored.
On May 20, 2025, a letter was sent by the Appellant’s attorney (Attached) regarding the request for additional information, stating that: “Chavez uses the property as an office (e.g. a professional place of business away from his home) for its construction business where the owners customarily arrive daily to manage jobs, book appointments, and generally conduct day-to-day operations.” No further information or evidence was provided and the letter did not respond to the specific requests for information made by the City.
Findings and Basis for Denial
On June 25, 2025, a letter was sent to the property owner and business owner denying the business license application. Staff evaluated the application and observed operations and determined that the business is more akin to a “contractor (storage) yard.” The letter to the Appellant noted that “contractor yards” are permitted only in the Light Manufacturing (M-1) zoning designation portions of the City when a Minor Use Permit is approved. While there is no specific definition of “contractor yard” in the City’s Municipal Code, the letter noted that observations from public right-of-way areas conducted on multiple site visits3 showed that the Appellant keeps equipment such as a power buggy/concrete dumper and materials such as bricks and pallets on site. It also appeared that the Appellant and his workers drive personal vehicles to the site at the beginning of the day and leave the vehicles onsite for the day. Then, the Appellant and his workers take the truck and trailer to a job(s) and return to leave the work truck and trailer there overnight and drive a vehicle away from the site. The City has also received various complaints from nearby residents about loud machinery during early morning hours. It is evident by all appearances and observed business operations and activity that the subject Property is not being used as 3 Site visits were conducted and photos were taken at the subject Property on the following dates:
11/26/24, 1/22/25, 2/3/25, 4/10/25, 4/22/25. Installed slats in fence without permits or review by planning and removed barbed wire. Unable to see into site after 4/29/25. 12347 E. Carson Street
December 10, 2025
an office as its principal use. Based upon these observations and information provided, the Appellants request for business license was denied.
There is no dispute that the uses permitted in the C-4 Zone includes “general offices” and “administrative/professional offices” (HGMC Section 18.60.050). There is also no dispute that “contractor yards” are not a permitted use in the C-4 Zone. Nevertheless, this decision was guided by the following:
1. In reviewing this matter and any undefined terms, Staff was guided by the provisions of HGMC Section 18.20.010 (General Interpretation).
2. In reviewing the intended and primary use of the property, Staff was guided by HGMC Section 18.20,020 (Use of Terms) and 18.20.030 (Definitions), including the following:
“Use or land use”. The purpose or activity for which land or buildings are arranged, designed, or intended, or for which land or buildings are occupied or maintained and shall include any manner of performance of such activity.” From the description provided and observations of the Appellant’s use of the site, staff concluded that the purpose or activity for which the land and business are occupied was for the purpose of maintaining a contractor yard. Since contractor yards are specifically authorized in a different zoning designation (i.e. M-1), contractor yards are not a permitted use in the C-4 (General Commercial) zoning designation.
The Appellant has argued that use of property is a “general office.” While the Code does not contain a specific definition of “general office” we note that HGMC Section 18.20.030 defines the term “office” without reference to “general.” It provides:
“Offices or professional offices. A building or portion of a building used as a place of business by persons primarily engaged in rendering professional services. It does not include offices of retail stores, or those incidental to the handling, sale or disposition of commodities.”
Even if the definition of “office” is more general in nature and may encompass using a portion of the mobile home trailer for administrative and clerical day-to day operations as the Appellant contends, we note that the qualifying language of this definition still requires the building be used as a place of business by persons “primarily engaged” in rendering services. It does not contemplate the use of property for purposes of storage of vehicles, equipment, construction materials and as a morning dispatch center for construction employees with incidental and accessory general office use.
HGMC Section 18.20.010 indicates that any word or phrase in question shall be defined by utilizing other specified sources. According to Lawinsider.com, “contractor’s yard” refers to a yard where equipment and materials are stored or where a contractor performs 12347 E. Carson Street
December 10, 2025
shop or assembly work. It is used by building trades or other construction contractors.” Moreover, Webster’s Dictionary, defines “office” as: a place where a particular kind of business is transacted or a service is supplied: such as a place in which the functions of a public officer are performed; the directing headquarters of an enterprise or organization or the place in which a professional person conducts business. These plain language definitions support the Director’s interpretation that the proposed principal use is a contractor yard, not an office.
3. Staff acknowledges that HGMC Section 18.70.060 sets forth requirements for non-residential uses including parking, storage, fencing, lighting, design, and maintenance. However, such regulations are applicable only to otherwise permitted non-residential uses. If the principal use is not permitted in the C-4 Zone such that a business operates without proper authorization, the regulations allowing ancillary storage and equipment uses do not apply. Moreover, while the HGMC may not categorically prohibit outdoor storage, there is no ambiguity that building materials of the type stored by the appellant are prohibited from being displayed outdoors (HGMC Section
18.70.060(I). In addition, exterior storage of vehicles and equipment, even if allowed, must comply with specified limits and standards including that they be fully screened.
Moreover, while outdoor storage alone does not transform the use to a contractor yard, as noted above, the Appellant’s storage of hardscape building materials, use of construction vehicles onsite, and observed construction business operations, taken in totality, all point to the conclusion that the use is a contractor yard.
4. Finally, staff notes that the intended business operations as a contractor yard is not compatible with the stated purposes of the C-4 Zone or the Hawaiian Gardens General Plan. Section 18.60.020 of the HGMC provides, 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 areas 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.” (HGMC
18.60.020(A).)
The Hawaiian Gardens General Plan - Land Use Element describes the policies and goals applicable to the City’s Commercial designations. These provide:
Goal LU-4: Provide commercial retail opportunities that serve residents and visitors.
Policies:
LU-4.4 Encourage the development of high-quality commercial projects. 12347 E. Carson Street
December 10, 2025
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.
Here, there is no indication that the Appellant is offering retail goods or services to residents or visitors. A resident or visitor cannot visit the site to obtain any services or buy any products. On the contrary, the current unpermitted use of the Property has produced complaints about noise. As noted previously, it is evident that the Property is being used by a contractor who does work and conducts business almost entirely off site.
In addition, the storage of contractor equipment and building materials on an unimproved lot, as well as closed gates are not characteristic of high-quality commercial development, which would ordinarily have a permanent building, signage, hours of operation, lighting, parking lot paving and striping. Allowing a contractor yard with equipment storage is incompatible with the purpose of the C-4 zone and general plan goals.
RECOMMENDATION
Approve recommendation to find that the Appellant’s proposed use of the Property is not permitted in the C-4 Zone confirming the Director’s determination, and affirm the Community Development Director’s decision denying the business license application and adopt Resolution No. 034-2025.
Alternative Option:
Continue the Public Hearing and direct staff to bring back a resolution finding that the Appellant’s proposed use of the Property is consistent with the C-4 Zone, reversing the decision, approving the business license, and imposing appropriate conditions of approval.
Attachments:
Attachment A - Letter dated 5/20/25 from Cox Castle & Nicholson, LLP to Elise McCaleb Attachment B – Resolution No. 034-2025