For nearly half a century, NoHo Locksmith has quietly operated from a small kiosk tucked behind a Smart & Final parking lot in North Hollywood.<\/p>\n
The shop has cut keys dating back to the 1920s, survived recessions, and even endured the infamous 1997 North Hollywood shootout \u2014 two bullet holes from that day still mark the structure of the kiosk.<\/p>\n
Now, after 50 years in business, the family-run operation may be forced to close for good \u2014 and not because customers stopped coming, but because of a permitting dispute with the city.<\/p>\n
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.<\/p>\n
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\u2019s also paid business taxes for years, receives mail at the address and files state and federal taxes tied to the location \u2014 all of which, to him, suggests the business has long been recognized as legitimate.<\/p>\n
\u201cWe have been here a long time,\u201d Lejbowicz told CBS News Los Angeles. \u201cThis will affect the livelihood of three separate families. We all depend on this business.\u201d<\/p>\n
The city of Los Angeles isn\u2019t suing Lejbowicz directly. Instead, it\u2019s taken legal action against the property\u2019s landlord, accusing them of unlawfully erecting a structure without securing the proper permits. But regardless of who\u2019s named in the lawsuit, Lejbowicz and his two employees are caught in the middle of this dispute, with their jobs hanging in the balance.<\/p>\n
Experts say situations like this are becoming more common, especially for older businesses operating out of structures built decades ago.<\/p>\n
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.<\/p>\n
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Matt Goulet, a land-use and planning expert interviewed by CBS News, explains that cities typically don\u2019t 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.<\/p>\n
“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.<\/p>\n
Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here\u2019s the number that counts (and how to make it skyrocket)<\/a><\/p>\n For small businesses, especially sole proprietors and family operations, this kind of dispute can be devastating.<\/p>\n 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.<\/p>\n Even if a path forward exists, it\u2019s 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.<\/p>\n 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\u2019t automatically grandfathered in, particularly if the city believes the original approval was improper or incomplete.<\/p>\n That said, businesses aren\u2019t 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\u2019s interpretation in court.<\/p>\n Before renovating, relocating or expanding, it\u2019s 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.<\/p>\n Budgeting for delays is also essential. Even routine permits can take longer than expected, and unexpected challenges can derail timelines entirely.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n