Business owners in Auburn are scratching their heads over a potential new amendment to an ordinance that would allow the city to revoke business licenses. A draft of the updated ordinance — which has not been passed yet — was recently released to the public in the form of a city memorandum.
“Establishing a process for revocation of a business license is an additional tool in enforcing compliance with city law regarding licensing and taxation,” said City Manager Megan McGowen-Crouch in the memorandum. “This includes ensuring that appropriate taxes and license fees are collected when owed as well as ensuring that actions of businesses that negatively affect the health, safety and welfare of the citizens of Auburn are handled appropriately.”
The city does not currently have an ordinance that allows it to directly revoke a business license. Auburn is the only Big 10 City in the state to not have such an ordinance.
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Instead, the current ordinance allows the City Council to vote on whether or not to have the district court pursue a license revocation on the city’s behalf. The new amendment would instead allow the city to take direct action on a license revocation.
“If they pass this provision, this would allow the city council to hear basic evidence from staff, determine if they want to hold a hearing, and then if they do want to hold a hearing the business owner would be at the hearing,” McGowen-Crouch told Opelika-Auburn News. “Everybody presents evidence, and the city council gets to decide what we’re going to do moving forward.”
Per the ordinance draft, essentially the city of Auburn would be able to revoke a license if a business were considered to be a danger to the public health, if the business somehow violated the law, or if a business gave out false or misleading information in regard to obtaining or renewing its business license.
According to McGowen-Crouch, the language being used in the draft is common throughout the state.
“This language is identical to 90 other cities in the state of Alabama,” she said. “Yes, it is broad in that regard, but I think there’s been a lot of concern from people saying, ‘Well, if I’m violating some minor city ordinance, I’m afraid that this means that you guys would take something to the city council.’ Absolutely not. This means that after an exhausting process if it is negatively affecting public health, safety, or welfare that is where we could take them.”
According to Anna Hovey, president and CEO of the Auburn Chamber of Commerce, local businesses owners who have reached out to her have been concerned about the verbiage but don’t see the new ordinance amendment as a bad reflection on the city.
“I don’t think they’re receiving it as a negative, of not being supportive of business and therefore they’re making this change. I haven’t really heard that,” Hovey said. “There’s been some feedback from some members whose pause with it as it stands now is how broad and how general it is.”
Hovey indicated most understand that if the city has the ability to grant a license, then the city should have some sort of mechanism to take the license away as well.
“We are lucky that we are in a city that people want to have a business and want to invest, and want to come here,” Hovey said. “I just want the city to be mindful about keeping that business-friendly environment.”
A FAQ released to the public by the city, among other questions, outlines who can and who cannot recommend that a business license be revoked if the ordinance is passed.
According to the FAQ, while citizens would be able to let the city manager know if there are any issues with a business, citizens would not be able to formally recommend a business license revocation.
Also, while the city council would be able to express concern about a business to the city manager, they will not have the documents to support a business license revocation.
As the ordinance draft currently stands, only Auburn city staff and the Auburn police can recommend a business license be revoked if they have sufficient evidence to do so.
The city manager would then evaluate that recommendation, and if necessary, bring it before the city council.
“Only the city council acting as a body can decide to consider the revocation/denial/non-renewal of a license,” the ordinance amendment draft said.
Also, if a license were to be revoked, and a public hearing needed be held, the licensee would have to be given at least 10 days notice before the hearing.
According to McGowen-Crouch, one of the motivating factors behind the city pursuing this new ordinance is three local businesses being “extremely delinquent” on their taxes. Alabama law allows for these business to stay open even though they are not paying their taxes.
“The thing of it is, why is it fair to the other 7,097 businesses who are being lawful that somebody gets to continue to operate by not paying their taxes?” she said. “The only way by law that that can change is we have to go to district court, or we have to take it to the city council… one way or the other we will pursue this and what we’re doing is we’re really trying to be fair and equitable to the businesses who are complying which is the vast majority now.”
McGowen-Crouch added: “The goal is to keep the business open and for the city to receive the taxes that the business is collecting on behalf of the city.”
The City of Auburn will hold a presentation on the potential new ordinance amendment at its Committee of the Whole meeting on Dec. 20 at 5:15 p.m. in the City Council Chamber at 141 N. Ross St. The public is encouraged to come to the meeting or view it online at www.auburnalabama.org/agenda.
