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Home My WebLink AboutRES 2022-107RESOLUTION NO. 2022-107 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REVOKING BUSINESS LICENSE CERTIFICATE NO. 13709873 FOR THE SWEET SPOT CLUB LOCATED AT 73338 HIGHWAY 111, #O, PALM DESERT, AND MAKING FINDINGS IN SUPPORT THEREOF WHEREAS, on August 15, 2017, the City of Palm Desert Planning Commission adopted Resolution No. 2707, approving a Conditional Use Permit (“CUP”) for Private Members Only Social Business Club with 25 Conditions of Approval to be located at 73338 Highway 111, #O Palm Desert, California; and WHEREAS, the Statement of Information filed on October 18, 2021 , with the California Secretary of State by the Sweet Spot, LLC (“Business Owner”), located at 73338 Highway 111, #O Palm Desert, California, lists Social Club as their type of business; and WHEREAS, after applying to the California Department of Alcohol B everage Control (“ABC”), ABC issued a Type 48 License, which corresponds to a bar use, not a private club, to the Business Owner for the business Sweet Spot Café (“ABC Licensed Business”) at 73338 Highway 111, Palm Desert; and WHEREAS, on July 13, 2022, the Business Owner applied for a business license certificate with the City of Palm Desert (“City”) for the business Sweet Spot Club for a Private Membership Club; and WHEREAS, on July 13, 2022, the City approved and issued Business License No. 13709873 (“Business License”) for the Sweet Spot Club (“City Licensed Business”) as a Private Membership Club, consistent with the approved CUP; and WHEREAS, on November 9, 2022, the City Attorney’s Office issued a Cease and Desist Letter (“C&D Letter”) to the Business Owner listing the violations of the CUP conditions, in addition to operating in violation of the current business license and the Palm Desert Municipal Code (“PDMC”); and WHEREAS, the C&D letter provided corrective actions with specified dates of compliance, which the Business Owner failed to meet; and WHEREAS, on November 18, 2022, the City of Palm Desert City Manager suspended the Business License pursuant to PDMC § 5.04.160(C) to preserve the peace, health, safety, or general welfare of the city and for the failure to comply with the corrective actions outlined in the C&D Letter; and WHEREAS, pursuant to California Constitution Article XI, § 7, and Chapter 5.04 of the PDMC, the City Council, is authorized to revoke the B usiness License; and Resolution No. 2022-107 Page 2 WHEREAS, on November 18, 2022 , written notice of a revocation hearing scheduled for December 15, 2022, at 4:00 p.m. with City Council in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert, was provided to the Business Owner pursuant to PDMC § 5.04.160(B); and WHEREAS, the City Council of the City of Palm Desert, California, did on the 15th day of December 2022, hold a duly noticed public hearing to consider the revocation of the Business License; and WHEREAS, all interested parties were afforded the opportunity to rebut the oral and written evidence that the applicant, City staff, presented in support of its position that revocation of the Business License was appropriate; and WHEREAS, members of the public were afforded an opportunity to testify regarding the revocation; and WHEREAS, the City Council carefully considered all information pertaining to the revocation, including the staff report and attachments, and all the information, evidence, and testimony presented at its public hearing on December 15, 2022, after which it exercised its independent judgment to revoke the Business License; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Supporting Evidence. The staff report and attachments and all the information, evidence, and testimony presented at the December 15, 2022, public hearing are incorporated hereto by reference. SECTION 3. Findings. Based on the Supporting Evidence presented to the City Council at the above-referenced public hearing on December 15, 2022, including the staff report with attachments and all information presented at the hearing in support of and in opposition to the revocation, the City Council makes its own findings a s following in accordance with PDMC § 5.04.160(B). Resolution No. 2022-107 Page 3 Finding Number 1: City Council must revoke the Sweet Spot Club’s business license to preserve the peace, health, safety, or general welfare of the city. A. The Business Owner violated the CUP Conditions of Approval, which results in good and sufficient reasons to revoke the Business License to preserve the peace, health, safety, or general welfare of the city Finding Number 2: Satisfactory evidence has been provided that the Business Owner has violated any provision of other laws relating to the city, county, state, and federal government. A. The business cannot operate or offer massages. Providing massage services requires a license pursuant to PDMC § 5.87.050. B. The business violated California ABC law and the Rules and Regulations of the Department as outlined in the November 4, 2022, Official Warning Notice. Finding Number 3. The City Licensed Business is conducting a business other than that for which licensed. A. The business is operating as a bar open to the public and not a private club. B. The business is licensed as the Sweet Spot Club; however, the ABC license is for the Sweet Spot Café. C. The business offers/offered massage therapy services. D. The business allows for the reservation of gaming tables, card tables, and poker tables. SECTION 4. Based upon the findings set forth in Sections 1, 2, and 3 of this Resolution, the City Council revokes the Business License effective immediately. SECTION 5. This decision of the City Council is final and binding upo n approval of this Resolution. A copy of this certified Resolution will be transmitted to the interested parties by first-class mail. Interested parties may seek judicial review of this decision. Pursuant to Code of Civil Procedure Section 1094.6, any petition to the court must be filed no later than the 90th day from the date on which this decision became final. SECTION 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Anthony J. Mejia, MMC, the City Clerk of the City of Palm Desert is the custodian of the record of proceedings. Resolution No. 2022-107 Page 4 SECTION 7. Execution of Resolution. The Mayor signs this Resolution and the City Clerk shall attest and certify to the passage and adoption thereof. ADOPTED ON DECEMBER 15, 2022. KATHLEEN KELLY MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2022-107 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on December 15, 2022, by the following vote: AYES: HARNIK, NESTANDE, QUINTANILLA, TRUBEE, AND KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _____________________. ANTHONY J. MEJIA CITY CLERK Kathleen Kelly (Dec 21, 2022 15:47 PST) Kathleen Kelly Anthony Mejia (Dec 21, 2022 15:47 PST) Anthony Mejia (Dec 21, 2022 15:47 PST) Dec 21, 2022