Sunroom Desk

Does Glendale welcome or discourage new businesses? City council candidate Michael Teahan said at the February 21 Royal Canyon Property Owners Association forum that business owners have a difficult time setting up shop in the city. He believes Glendale should streamline its business permit process and charge annual business license fees (Glendale currently does not have annual license fees for businesses).

Incumbent candidate Ara Najarian differed at that forum, stating that Glendale had a good reputation in the region for welcoming businesses. Najarian cited a Los Angeles County Economic Development Commission (LAEDC) study which gave Glendale a high “business-friendly” ranking.

Teahan’s website has a page titled Make Glendale Better for Business, with the following language:

The calling card of the city of Glendale has long been to be business friendly. However, we have a reputation for being among the most hostile to business in Southern California. We have replaced a business license system with a complicated set of conditional use permits that make opening a business in Glendale an arduous and complicated process. One of the reasons for this system is the city’s position that once approved, the city is ill equipped to manage and insure that businesses operate as good neighbors in the community.

Opposition to a business license has been the implication that it would be simply another funding source for the city and be exploited for unnecessary budget expenditures. A properly executed business license system could provide the accountability businesses need to have to serve the community in which they operate and at the same time be restricted by ordinance from funding any non business development related operations.

Najarian countered that the LAEDC had cited Glendale as a top business-friendly city in 2008. November 18, 2008 Glendale city council meeting minutes record Najarian’s report on the LAEDC November 2008 Eddy Awards ceremony. Santa Clarita was named 2008’s most business-friendly city, but Glendale was a finalist and Najarian was instrumental in publicizing that fact:

Council Member Najarian commented that last night he, Development Services Director Phil Lanzafame and staff members, attended the Los Angeles County Development Commission Gala in Beverly Hills and that the City of Santa Clarita received first place for the number one business-friendly City in the Los Angeles County. This morning, Mr. Najarian called the Chairman who indicated that if there was a second place, Glendale would have won and thanked the Development Services Department.

City of Glendale Economic Development Manager Ken Hitts, who previously worked as LAEDC San Fernando Valley alliance director and currently serves on the LAEDC Board of Governors, submitted Glendale’s application for the award. This YouTube video features the promotional spots created by Santa Clarita, Glendale and other cities who vied for the award (Glendale’s spot begins at about 1 minute, 15 seconds into the video).

According to LAEDC San Fernando Valley Regional Manager Elan Shore, a 12-member independent panel judged the city applicants based on criteria such as cost of doing business, taxes and licenses, and small business programs. Findings were based on results from an annual study undertaken by researchers at Claremont College.

Teahan approached the issue from his own business experience in Portland, Oregon and anecdotes from business owners here in Glendale; Najarian approached the issue from a business/government coalition comparison of Glendale with other regional business centers. What do newly-established Glendale business owners think? Sunroom Desk welcomes comments on the issue.