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09~'23/2002 14:50 FAX [~010/012 <br />Alien M~tkin~ Leek G~mble & M~ll~ry LLP <br /> <br /> Mayor Richard S. Claire <br /> Vice Mayor SeffIra <br /> September 23, 2002 <br /> Page 9 <br /> <br /> Therefore, there being no appropriate standard in place at the time of the iSsuance cfa <br /> Redwood City business license to CosmoProf, CosmoProfmust be permitted to conduct its <br /> business at the location permittad by the City of Redwood City. <br /> <br /> Although CosmoProf asserts that it is open to a segment of the general public, nothing in <br /> the delVmifion of Retail Use requires that a Retail Use be open to the general public. The City <br /> cannot add an unpublished additional requirement to the definition cfa Retail Use to deny <br /> CosmoProfits right to operate. Imposition of secret government requirements and undisclosed <br /> standards deprive the public of notice and fair h,~ ,a~, g and result in denial of due process. Clark <br /> v. City oftfermosa Beach (1996) 48 Cal. App. 4 1152. Due process precludes arbilxary and <br /> irrational governmental decision-making. Consequently, additional requirements, such as calling <br /> for the business to be open to the "general public," cannot be added post-hoc to the text of the <br /> Zoning Ordinance to prohibit a use that would otherwise meet the definitiun set forth in the <br /> Zoning Ordinance. <br /> <br /> 7. .I. nnovations' Right to Open CosmoProf is Vested <br /> Innovations has a vested right to open and operate its CosmoProfstore. When a <br /> developer has performed substantial work and incurred substantial liabilities in good faith <br /> reliance upon a permit issued by the government, its right to complete eonstructinn and operate <br /> has vested. Avco Community Developers, Inc. v. South Coast Regional Commission (1976) <br /> 17 Cal. 3d 785. Redwood City issued innovations a building permit and a business license for <br /> the construction and operation of CnsmoProf on the Property. Relying on these permits in good <br /> faith, Innovations performed substantial work on the Property.' Innovations installed a display <br /> counter in the front window, improved the interior systems, and will install a rear door canopy. <br /> Innovations also widened the rear ramp for safer accessibility. Innovations spent more than <br /> $50.000 on improvements to the Property before the City announced that CnsmoProf could not <br /> open. <br /> <br /> Innovations has incurred substantial liability in reliance on the Redwood City permit and <br /> license, hanovations' lease obligates Innovations to pay an average o£$3,488. I 1 per month in <br /> rent for five years, a total of $2091286.60 for a premise the City permitted and licensed, but now <br /> has determined cannot open. No indication was made by the City when issuing the permit and <br /> license that the use would be prohibited. Nor was there any information in the Zoning Ordinance <br /> or discoverable in the area of the Property that the intended use may be prohibited. <br /> <br /> <br />