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

Thursday, May 17, 2012

Council denies amendment for pawnshop


by Geoff Folsom
gfolsom@mdjonline.com
May 17, 2012 12:53 AM  
KENNESAW — The Kennesaw City Council voted down an amendment Wednesday evening that would have allowed a pawnshop in a Cobb Parkway strip mall to stay open.

The council voted 5-0 to agree with a recommendation from city planning and zoning staff, as well as the city’s planning commission, denying the request from property owner Celestino Venturi to amend his strip mall’s zoning to allow for a pawnshop for the duration of its five-year lease. He had allowed the Cruchelow Jewelry & Loan pawnshop to open on Dec. 28, 2011, in his Mack Dobbs Point shopping center at Cobb Parkway and Mack Dobbs Road, despite having agreed not to let a pawnshop, or 31 other types of business, to open at the site when he got initial zoning approval in 2004.

But a city oversight last year, and subsequent city council approval, allowed the pawnshop to get a business license, as well as pawn and precious metal licenses.

Lawyer Garvis Sams, who represented Venturi, said after the meeting that he planned to appeal the decision to Cobb Superior Court.

“We’re disappointed. We were hoping that they would have a different opinion and decision,” he said of the city council.

Sams, who has 30 days to file a challenge, said the property owner’s constitutional rights were violated.

“Their decision to prohibit us from using the shopping center for the highest and best use is tantamount to a taking of Mr. Venturi’s property rights,” he said.

The decision came at the end of a 45-minute special called meeting, attended by around 40 people, though some of them were there for a council work session later in the evening.

Some residents of the nearby Summer Stream and Summerbrooke subdivisions spoke against the pawnshop.

“The impact of this particular business is directly on these two subdivisions,” Gary Greenhut said. “It’s also on the church that’s across the street, and the new school across the street.”

One person, Thomas D. Smith, who claimed to be the only person who can easily see the shopping center from his house, spoke in favor of the pawnshop.

“I’ve had no problem with this business,” he said. “I’ve seen no difficulty with anything they do. I visited the pawnshop and thanked them for being there.”

After the meeting, Bill Harris, who has maintained a website critical of the pawnshop, said that not only is Venturi likely to sue the city, but he expects the pawnshop owners, John and Serena Cruchelow, to sue Venturi for letting them move into two suites in his strip mall, despite knowing that was not allowed.

“I’m very much in favor of it,” Harris said of the city’s decision. “It’s a positive thing, and we’ll see where it goes from here.”

Kennesaw Mayor Mark Mathews, who did not vote on the matter, said he agrees with the rest of the council. He said he will wait and see whether a lawsuit is filed.

“We’ll have to go through the process and see what happens,” he said.

Councilman Bruce Jenkins said he was not concerned about the decision opening the city up to litigation; instead he was interested in “maintaining the integrity of the zoning that was originally in place and the agreement with the neighborhood.”

This was the second high-profile case Sams had lost in as many days, with the Cobb Board of Commissioners voting Tuesday against a permit that would have allowed another of his clients, the Bankhead C&D Transfer Station, to take in household garbage at its site in south Cobb. In both cases, Sams’ clients had gone ahead with their plans without zoning approval.


Read more: The Marietta Daily Journal - Council denies amendment for pawnshop

City refuses zoning change for Venturi 5-0


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On Wed. May 16th at 6 PM a Special Call Meeting of the Kennesaw City Council was held. The meeting lasted 45 minutes and 50 people attended. All Council members were present. John and Serena Cruchelow and Tino Venturi were present.

After Zoning Administrator Simmons outlined the subject matter of the meeting, Mr. Garvis Sams spoke for 15 minutes in support of the Venturi/Cruchelow request for approval of an Ordinance to amend a rezoning condition which had earlier been submitted by Mr. Venturi's Mack Dobbs Properties. Nothing 'new' was added, just restated for the record. A stenographer was present to record what was said. Future litigation is probable.

4 people spoke in opposition to any change in zoning and one person spoke in favor of having the Pawn Shop remain.

The 5 member City Council voted 5-0 to deny the request for a change in zoning to allow the Pawn Shop to remain.

The Venturi attorney, Mr. Garvis Sams, said that he would file a challenge in the Cobb Superior Court within the required 30 days.


Pawn Shop Rezoning Request Denied by Council

Property owner Tino Venturi lost his bid to keep the pawn shop open at the Mack Dobbs shopping center.

Cruchelow Jewelry & Loan, located at 2958 Cobb Parkway in the Mack Dobbs Point strip mall, will have to close its doors after losing a long battle with neighbors from two nearby subdivisions—Summer Brooke and Summer Stream. The city's planning commission had voted 3-0 against the rezoning request earlier this month.


"Please show all of us that laws are meant to be followed," said Summer Stream resident Lisa Stabler during the public hearing portion of the meeting. After the vote, Stabler and many other residents left feeling their voices were heard. "The mayor and city council did the right thing," said Stabler.

Cruchelow Jewelry & Loan owners John and Serena Cruchelow were in attendance, along with property owner Tino Venturi and his attorney, Garvis Sams. After a lengthy public hearing on April 3, the city council was unable to reach an agreement at that meeting as to what to do about the pawn shop.

"Cruchelow Jewelry is a successful extension of a successful shopping Center," said Sams, giving a chronology of the case between the city and his client. "We request approval of this application so this business can continue to operate."


About 40 residents from Summer Stream and Summer Brooke were in attendance, several publicly voicing their disapproval of the pawn shop.

But longtime Kennesaw resident Thomas Smith said he was there to support the Cruchelows.
"Personally, I'm delighted the shopping center is there, and I have no problem with this business," said Smith, who said he can see the pawn shop from his house. "You said OK in 2011 and now you say, 'oops, it's not supposed to be there,'" said Smith, addressing the council. "What part of the baby do you want to cut in two? Good luck, gentlemen and ladies."

Friday, May 11, 2012

Back to the Drawing Board for the City?

When last we left it, the City of Kennesaw had decided it did not have the authority to enforce the George Code section which prevents the use of 'Loan' by Pawnbrokers.

Now the Georgia Attorney General Sam Olens has opined as follows:
Municipalities are empowered to ensure compliance with O.C.G.A. § 44-12-138 pursuant to O.C.G.A. § 44-12-136, which provides that “[m]unicipal authorities may license pawnbrokers, define their powers and privileges by ordinance, impose taxes upon them, revoke their licenses, and exercise such general supervision as will ensure fair dealing between the pawnbroker and his customers.” There is no “Pawnbrokers” licensing board on the state level. It is usually either the local sheriff or police department that oversees pawn shops.

I have today written to the City Mayor and City Manager asking that the prior advice to the City Council be reviewed and that action now be taken to enforce the Georgia code which provides that:

Georgia Code - Property - Title 44, Section 44-12-138(a)(1) Any pawnbroker as defined in paragraph (2) of Code Section 44-12-130 shall include most prominently in any and all types of advertisements the word 'pawn' or the words 'pawn transaction.' A pawnbroker shall not use the term 'loan' in any advertisements or in connection with any advertising of the business of the pawnbroker; provided, however, that the provisions of this sentence shall not apply to a pawnbroker in business on March 1, 1992, which uses the term 'loan' in connection with the name of the business or with advertising of the business.

Georgia Code - Property - Title 44, Section  44-12-139.

Unless specified to the contrary in this part, the failure of any pawnbroker to do anything required of him or her under this part or the act of doing anything prohibited under this part shall cause the pawnbroker, upon a first conviction, to be guilty of a misdemeanor punishable by a fine not to exceed $500.00 or by 12 monthśimprisonment, or both. Upon a second or subsequent conviction, the pawnbroker shall be guilty of a misdemeanor of a high and aggravated nature."

See code at:  http://www1.legis.ga.gov/legis/2005_06/fulltext/hb675.htm

Monday, May 7, 2012

Commission recommends against pawnshop

Commission recommends against pawnshop
by Geoff Folsom
gfolsom@mdjonline.com
May 03, 2012 11:28 PM
KENNESAW — The city of Kennesaw’s planning commission denied a rezoning request that would allow a pawnshop to stay in a shopping center in a 3-0 vote Thursday.

Kennesaw City Council will have the final say on whether or not the store can remain open on May 16.

Planning and zoning director Darryl Simmons acknowledged that his own error allowed the Cruchelow Jewelry & Loan pawnshop to go into the Mack Dobbs Point shopping center, but said that error had to be corrected.

“It is my responsibility to make sure that all of the zoning conditions are met,” he said. “It was my oversight and my error that allowed the processing of that business license and subsequently their moving in to that suite ... Based on my analysis, based on the minutes of the 2004 review and based on the original intent of the land use restrictions, it is planning and zoning administrator’s recommendation that we uphold the 2004 rezoning conditions in its entirety.”

The property’s owner, Celestino Venturi, is asking the city to amend the zoning at the strip mall he owns that houses Cruchelow Jewelry & Loan, located at Cobb Parkway and Mack Dobbs Road. He wants the store to be allowed to remain in the shopping center for the remainder of its five-year lease. The pawnshop was allowed to go in the center despite a condition in the city’s 2004 approval of Venturi’s initial zoning request that prohibited certain businesses — including pawnshops — from being placed in the Mack Dobbs Point shopping center.

During the initial zoning process, neighbors expressed concern over the strip mall, which led to an agreement being reached about what types of businesses could go in the shopping center. Also among the 32 prohibited uses, which were written into city ordinances, were adult bookstores, tattoo parlors and golf driving ranges.

But the Kennesaw City Council approved pawn and precious metal and business licenses for Cruchelow Jewelry & Loan last year. The store opened Dec. 28, 2011.

Many of the 50 people in attendance at the meeting opposed the pawnshop.

“They built this business to disguise it as a pawnshop,” said Carol Robertson, a resident of the nearby Summer Stream subdivision. “If you want to be a jewelry, be a jewelry. If you want to be a firearm sales, be a firearm sales. But do not be a pawnshop, because that broke the rules.”

But attorney Garvis Sams, who represented Venturi, said pawnshops have become more upscale since the use was first restricted in 2004. He even submitted a photograph of a ribbon-cutting, attended by Mayor Mark Mathews, taken in February at Cruchelow Jewelry & Loan, before resident complaints started coming in.

“It’s aesthetically pleasing,” he said. “I would consider it a high-end retail store with a pawn capacity as well.”

Venturi also apologized for his role in putting the pawnshop in his shopping center, but said it has had no problems or any complaints of “bad looking” people around.

“I would like to say on my behalf that I have always been an upstanding citizen in Kennesaw,” Venturi said. “I have created jobs, tax revenue. I think I have created a nice looking center.”

But Bill Harris, who has helped lead a campaign against the pawnshop, said Venturi knew what he was doing.

“He knew back in September 2011 what the intended use was,” Harris said. “We’re getting stabbed in the back, and we don’t like it.”

Sams also submitted a petition with 164 signatures in support of the pawnshop, in an attempt to offset petitions with more than 100 signatures that have been submitted by residents of surrounding subdivisions. After the meeting, he denied claims that they were obtained from “transients” staying in extended stay hotels near the pawnshop. Sams said around “75 percent” of the signatures were from Kennesaw residents, with a “couple” each from Marietta and Acworth residents.

Sams said he hoped to get better results when the city council takes up Venturi’s rezoning request at a special called meeting on May 16.

“We’re disappointed, but we’ve got two weeks to work on it and get some more support for the applicant,” he said.

City council previously discussed shutting the store down because state law prohibits pawnshops from using the word “loan” in its name or advertising. But it determined at its April 2 meeting that the city did not have authority to rule on this law, saying it is a state issue.


Read more: The Marietta Daily Journal - Commission recommends against pawnshop

Saturday, May 5, 2012

One Less Pawn Shop in Kennesaw




You might have noticed that there was a small out of the way Pawn Shop tucked into the strip mall at Jiles Road and Main Street.  It was across the street from a school and kitty corner from the CVS drug store.


This shop and it's annoying road side 'Pawn Shop Open' signs are now history.


It might not have been the pawn shop we hoped to go under but I guess we will just have to take what we can get and keep working on the other one.

Top:  Pawn Shop in March
Bottom:  Closed in May

Thursday, May 3, 2012

Planning Commission voted 3-0 to deny request for rezoning.

The City of Kennesaw Planning Commission met Thursday, May 3, 2012 and addressed items A-D in the 2 hour long meeting.
Item D was the request for Rezoning of the Mack Dobbs Properties, LLC to allow the Cruchelow Jewelry and Loan, an admitted Pawn Shop, to remain in the Venturi mall despite it being listed as an excluded type of business per the 2004 restrictions on business types that Venturi agreed to in order to have his property rezoned from residential to business.



Kennesaw Zoning Administrator Mr. Simmons spoke and gave a complete review of both the 2004 City Council decision and summarized the City error in letting the Pawn Shop get a business license. He stated that the Zoning Department did NOT recommend the requested change and asked that the Planning Commission deny the request by Sams/Venturi.

Mr. Sams, the same zoning lawyer representing Venturi in 2004, spoke to 30 minutes but did not manage to explain why he had agreed to exclude Pawn Shops 8 years ago and was suddenly now in favor of them. Mr. Venturi spoke for 3 minutes.

5 people spoke in the public comments section, 4 against the Rezoning Request and 1 in favor.

When I spoke I mentioned that it was understandable that Mr. Venturi would want the shop to remain as he had a 60 month lease with the Cruchelow's and over the 5 years of the lease it would result in rentals of approx. $300,000.   I further pointed out that area residents felt that they were being 'stabbed in the back' by this reconsideration of the zoning to allow the Pawn Shop to remain.

Attorney Mr. Sams had earlier mentioned that there was a petition presented to the City with approx 160 names of people in favor of the Pawn Shop remaining.   Later Mr. Simmons provided this petition to one of the speakers who were against the shop and both he and I looked at it briefly while other people spoke. We both noted that some of the handwriting seemed similar and also that there were a lot of people listing out of area addresses (Marietta) who would not be impacted by the Pawn Shop.

The vote was taken and it was 3-0 to deny the request for rezoning of the mall to allow Pawn Shops. The next meeting on this topic will be May 16th at 6 pm in the City Hall Council Chambers.

































My Opinion:

On May 3rd we did get 2 small but significant 'wins', with the Zoning Department recommendation not to change the zoning and with the Planning Commission voting 3-0 to defeat the request to make the change, the issue is still not decided and area residents should not become complacent and assume that the matter is now resolved.

We still must have the City Council make a decision as to either enforcing the zoning, giving in to the property owner or making some middle of the road decision which would allow the shop to remain for the term of the 5 year lease.

One of the main items for the City will be the possible cost of litigation if they decide to remove the pawn shop. I am sure that the City Attorney has (or will) inform the Council on what to expect if they decide to go forward and require the pawn shop to close.

With recent litigation costing the City 1.8 million for a discrimination suit settlement*, it may be that they will be reluctant to embark on a course which almost surely will result in a civil suit for the City. Continued public pressure is the only way to make sure that our initial tentative gains are not thrown out by the reluctance of the City Council to make a firm decision to uphold the 2004 agreement.

If readers think that the matter is now over and stop attending Council meetings and no longer contact Council members, then we risk having the Council give in and grant a variance allowing the pawn shop to remain in the mall. Keep up the contacts with the City Council and also attend the meetings, if you do not then our initial gains will mean nothing and the threats of the Venturi/Cruchelow lawyers to sue will have swayed the Council into a compromise that will allow the pawn shop to remain.


* details at:  http://mdjonline.com/view/full_story/3269184/article-Kennesaw-doles-out--1-8M-for-racial-suit

Tuesday, May 1, 2012

A bit more publicity about the coming hearings

Pawn Shop Issue Back on Agenda
From: http://kennesaw.patch.com

The city will hold public meetings on the pawn shop issue Thursday, May 3, and Wednesday, May 16.
The city will hold two public meetings this month in regards to a controversial pawn shop that opened in the Mack Dobbs Point strip mall this year despite a 2004 agreement prohibiting such businesses from the property.

The Kennesaw City Council was unable to make a final decision during a public hearing April 3, which saw attendance from Cruchelow Jewelry & Loan owners John and Serena Cruchelow, along with their attorney Michael Pryor.

"The Cruchelows believe they have done everything they needed to do to obtain a business license," said Pryor, who acknowledged that the property landlord, Celestino Venturi, applied for rezoning that would allow the pawn shop to operate on his property.

"My clients want to be in compliance with state law and are willing to take down their 'loan' sign as soon as possible," said Pryor in addressing the council. "They don't have a problem with that." According to Bill Harris, a Kennesaw resident who attended the initial agreements prohibiting pawn shops from the property in 2004 and who has brought the issue to light in his blog, the loan sign remained unchanged as of April 27.

A copy of the lease between Venturi and the Cruchelows obtained by Harris states that the tenants shall use the premises "for the retail sale repair, and loan of jewelry; for a gold buying operation, for the purchase, loan and sale of firearms (but Tenant may not sell ammunition); and for pawn brokering services and for no other purpose whatsoever."

Venturi was in attendance during the 2004 agreement between himself, residents and the city in which he was granted rezoning for the property from residential to commercial on condition that certain types of businesses, including pawn shops, would not be allowed.

The first of two hearings on another rezoning request that would allow the pawn shop to stay will take place at City Hall Thursday, May 3, at 7 p.m. followed by another meeting on Wednesday, May 16, at 6 p.m. The City Council also has a scheduled work session on Wednesday, May 2, at 6 p.m.

What do you think? Should the pawn shop stay, or should it go? Tell us in the comments.

Go to article viahttp://kennesaw.patch.com/articles/pawn-shop-issue-back-on-agenda