Friday, May 18, 2012

What happens now?

                                                                              
Now that the City Council has voted 
5-0 to deny any amendment to the existing ban on Pawn Shops in the Venturi mall the next question has to be: 'Now what?'


The Kennesaw Zoning Department has provided the information on how the City will now proceed in this matter:

"The planning and zoning department will be forwarding written notice to the business owner, property owner and legal counsel of property owner that due to denial of the rezoning application, the property is in direct violation of the zoning ordinance and stipulations of 2004. The property owner and business owner will be given notice to cease operation of the pawn shop business within ten days of receipt of said notice. The notice will also state that the business license and certificate of occupancy that was issued will be voided."


Venturi attorney Mr. Sams has already indicated that he will challenge the City in Cobb Superior Court within the 30 days he has to file. 

It seems unlikely that the Pawn Shop will simply depart on it own.  The pending litigation on the matter will delay any actual closure, perhaps for months.

If the initial Sams challenge against the City fails, and it probably will, that may be only one phase of the litigation and of course the City will be named in any such follow up actions.  Up until now both Venturi and Cruchelow have had a common interest - keeping the Pawn Shop in the mall.  But I think the more interesting aspect of this might be a probable legal squabble between Venturi and Cruchelow and the mud slinging there will be interesting to watch. 

The interests of the 2 parties are about to diverge.  The aggrieved Cruchelow Pawn Shop has the reasonable claim against Venturi in that he was up to his arm pits in the 2004 decision to bar 32 types of businesses from any development he put up on that property, so why did he then agree to rent to a Pawn Shop knowing it was one of the excluded types of business on that property? 
The answer is obvious = MONEY.  A five year lease for 2 units with approx. $300,000 in rental, in a mall that for most of its 5 1/2 year existence has been an under preforming lemon.

From Venturi's point of view it was probably a long shot that the Pawn Shop would ever get a license, but nothing ventured then nothing gained.  If the City noticed the usage and denied the license the 2 units would remain available for rental to someone else.  If the City missed the illegal usage aspect then he had his 300K for that 60 month lease.

Initially all went exceedingly well for Venturi and Cruchelow.  The clever wording of the Pawn Shop, calling itself 'Cruchelow Jewelry and Loan' completely misled the City and all the departments signed off on it not noticing that just one time in the 20 page application were the words 'pawn shop' mentioned.  The City just missed those 2 key words and were mesmerised by the word Jewelry.  Who would ever be against a Jewelry store? 

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So the license was issued and the Pawn Shop was opened and all was well in Mudville, until someone returning from being away for a few months noticed that suddently there was a Pawn Shop next to his subdivision and complained March 1st to a City Councilman who bounced it up to the Mayor and City Manager. 

Now all was not well in Mudville.   The 3 strikes were:  1)  Zoning came out against allowing the shop to remain, 2)  Planning Comm. voted 3-0 not to approve any changes and 3)  City Council voted 5-0 to deny any change to allow the Pawn Shop to remain.

Shortly there will be litigation and as mentioned there is a reasonable claim against Venturi.  Of course the Venturi counter to that will include the allegation, now part of sworn testimony before the City Council, that the Cruchelow's well knew that pawn shops were not allowed and that they were bragging in their neighborhood that they had gotten around the City ban and gotten their license anyway. 
                                                                                                                                     
So it may be a long and interesting summer here in Kennesaw. Oh, as to the City, they did make a mistake and they might make some settlement with the shop and join the rest of us on the sidelines to watch the mud fly.

Bill Harris