For nearly half a century, NoHo Locksmith has quietly operated from a small kiosk tucked behind a Smart & Final parking lot in North Hollywood.

The shop has cut keys dating back to the 1920s, survived recessions, and even endured the infamous 1997 North Hollywood shootout — two bullet holes from that day still mark the structure of the kiosk.

Now, after 50 years in business, the family-run operation may be forced to close for good — and not because customers stopped coming, but because of a permitting dispute with the city.

David Lejbowicz, who bought the locksmith business from his uncle in 2013, says the trouble began when he tried to apply for a city permit to renovate the aging kiosk. But instead of approval, he received a shock: He said the city told him the structure was never legally permitted in the first place and must be torn down.

The city now claims the land where the kiosk sits is zoned only for parking, even though Lejbowicz says he has documentation dating back to 1952 showing the structure was approved for commercial use. He’s also paid business taxes for years, receives mail at the address and files state and federal taxes tied to the location — all of which, to him, suggests the business has long been recognized as legitimate.

“We have been here a long time,” Lejbowicz told CBS News Los Angeles. “This will affect the livelihood of three separate families. We all depend on this business.”

The city of Los Angeles isn’t suing Lejbowicz directly. Instead, it’s taken legal action against the property’s landlord, accusing them of unlawfully erecting a structure without securing the proper permits. But regardless of who’s named in the lawsuit, Lejbowicz and his two employees are caught in the middle of this dispute, with their jobs hanging in the balance.

Experts say situations like this are becoming more common, especially for older businesses operating out of structures built decades ago.

Over time, cities add zoning rules, safety codes and land-use regulations on top of older ones. What may have been allowed in the 1950s can clash with modern zoning maps, digital records or updated interpretations of the law. In some cases, paperwork gets lost. In others, rules change faster than buildings do.

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Matt Goulet, a land-use and planning expert interviewed by CBS News, explains that cities typically don’t scrutinize legacy businesses unless something triggers attention, such as a complaint or, as in this case, a permit application. Once flagged, long-standing shops can suddenly find themselves forced to prove decades-old compliance under modern standards.

“The city of LA has been, over the last 90 years or so, has been slowly layering on more and more layers of zoning and permitting requirements, and so it’s a very complex code,” said Goulet.

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For small businesses, especially sole proprietors and family operations, this kind of dispute can be devastating.

Permitting delays can stretch on for months or even years. During that time, businesses may face legal costs, halted renovations or outright closure, often without the resources to wait it out. Unlike large corporations, small operators rarely have teams of lawyers or compliance specialists on standby.

Even if a path forward exists, it’s rarely fast. Business owners can appeal to city councils or planning commissions, but those processes are slow, political and expensive. And in the meantime, the bills are still coming in.

Cities generally have wide authority to deny permits if a structure violates zoning rules, lacks proper documentation or fails to meet safety standards. Even long-running businesses aren’t automatically grandfathered in, particularly if the city believes the original approval was improper or incomplete.

That said, businesses aren’t entirely powerless. Owners can appeal permit denials through administrative hearings or city council reviews. They can also seek variances or conditional-use permits, work with landlords to resolve compliance issues and even challenge the city’s interpretation in court.

Before renovating, relocating or expanding, it’s critical for small business owners to understand local permitting and zoning rules, especially in older buildings. Getting requirements in writing, confirming zoning classifications and reviewing historical permits can help avoid surprises down the road.

Budgeting for delays is also essential. Even routine permits can take longer than expected, and unexpected challenges can derail timelines entirely.

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CBS News Los Angeles (1).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.