So, you wanna open up shop in Burbank ...
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Jackson Bell
When Mitch Gerhardt and his family-owned and -operated business,
Gerhardt Gear Co. Inc., decided to relocate to a larger building, the
city of Burbank bombarded them with stipulations.
For instance they are not allowed to work later than 9 p.m. on
weekdays, 3 p.m. on Saturdays and they cannot work at all on Sundays.
And because of parking limitations, they are allowed only 50
employees.
But to Gerhardt and his 21-year-old family business, the
restrictions imposed by the city are strict but reasonable. Their new
Burbank location is adjacent to a residential area, after all.
He doesn’t mind the rules because being in Burbank is worth it.
“We like the way the city is run,” he said. “There is no graffiti,
a low crime rate and the property value is better than neighboring
cities.”
New businesses or existing ones looking to make a change must seek
approval by the city.
The first step to obtain that permission is completed through the
Burbank Planning Division of the Community Development Department.
“We are the folks who are ultimately responsible for assuring that
the appropriate properties are used and it won’t impact the
surrounding neighbors,” said Jeremy Ochsenbein, an associate planner
for the city.
Many factors play into how the Planning Division handles a new
business. If the business is permitted by right -- that is, it is
seeking a property zoned according to its industry -- then the
Planning Division approves it. But if the business requires a
conditional-use permit -- an allowance for the use of land that
requires special consideration such as unusual traffic or noise and
effects on property values or safety -- further action must be taken.
An application must be filled out and a nonrefundable fee of $990
must be paid. Then, the Planning Board composed of five members
appointed by the City Council will grant a public hearing. The
prospective business owner and community members are allowed to voice
their opinions on whether the board should approve it.
It is then determined whether the business is permitted to operate
at the desired location.
“It keeps the zoning issues straightened out and keeps someone
moving next door to your home and setting up an auto body shop,” said
Al Van Wagenen, a code compliance inspector for the License and Code
Compliance Division.
But the Planning Division is willing to be as accommodating as
possible, said Peter Bentley, owner of The Winemaking Store.
“The people there have guided us from step to step through the
process,” he said. “They were there to help us bring our new business
through.”
The next step for the business is dealing with the License and
Code Services Division of the Community Development Department.
Division Supervisor Terre Hirsch said there are two reasons for it:
to regulate certain business activities and to generate revenues.
Every business must have a business permit, which is thought of as
an application fee and costs either $15 or $25, depending on the
business. Next, the business tax is a flat-rate tax costing $70.05
plus from $4.20 to $8.50 per employee. Finally, the business license
is used as a regulatory device and costs vary depending on the
business.
“Historically, Burbank has worked very closely with businesses,”
Hirsch said. “Any business that comes to town we have our arms open
to and the cost here is reasonable.”
Case in point: Los Angeles has a gross receipts tax and if Disney
was located there, it would pay several hundred thousand dollars, he
said. In Burbank, Disney pays an estimated $12,000. Glendale has no
business tax.
Altogether, Burbank’s total annual revenue from its approximately
15,000 businesses is $1.4 million.
But it is that stringent approach the city takes that ultimately
makes it desirable.
“Burbank is much more strict than other cities, but it is because
[city officials] take pride in their city,” Gerhardt said. “We feel
like we are well taken care of.”