NoHo Locksmith kiosk at risk of closing after owner requests renovation permits

A North Hollywood locksmith kiosk that has been in business for half a century, and made it through a notorious police shootout, is now at risk of shutting down for good, over a permitting issue.

NoHo Locksmith sits at the back of the Smart and Final parking lot at the corner of Vanowen Street and Laurel Canyon Boulevard, and is in the middle of a court battle between the city and the property's landlord.

Owner David Lejbowicz points out the two bullet holes that remain from the 1997 North Hollywood shootout between police and two armed robbers that left 12 officers and eight civilians injured. Then there are all the keys, some of which date back to the 1920s. "We have been here a long time," Lejbowicz says of the family business that he bought from his uncle 12 years ago.

He said everything was going well until a couple of years ago, when he decided to apply for a city permit to renovate the space. That's when the city delivered some shocking news.

"The city maintains the position that the shop was never built legally," Lejbowicz says.

Despite having a document dating back to 1952, showing that the kiosk was permitted for commercial use, the city now says the area where it stands is only permitted for parking. Lejbowicz said at this point, "They say I have to tear it down."

Lejbowicz bought the kiosk in 2013 and has been paying business taxes to the city.

"I pay the state board of equalization taxes, which is sales tax. I pay my federal taxes at this address. I get my mail at this address, so it appears to me that many government entities recognize me as being a legal business," Lejbowicz said.

The city confirmed it is suing Lejbowicz's landlord, the owner of the Smart and Final property and the parking lot where the kiosk sits.

The complaint accuses the landlord of "unlawfully erecting a building…without applying for and securing all permits and licenses required by law." The city attorney tells CBS News California Investigates that David Lejbowicz is not named in the lawsuit. However, he and his two employees will be impacted by the outcome.

"This will affect the livelihood of 3 separate families. We all depend on this business. It's one of the very last locksmith shops in the Valley," Lejbowicz said.

Matt Goulet is principal of Urbanomics Planning and an expert on the challenges that small businesses face when it comes to permitting.

"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," he said.

Goulet said the city doesn't usually come after a business unless it gets a complaint, or the business lands on its radar, as NoHo Locksmith did when Lejbowicz applied for the renovation permit. Goulet explains that this issue is coming up more and more with smaller, older businesses.

He explained that business owners can appeal to the city council, but it is a long and drawn-out process. "It's a messy situation, and knowledge and preparation is key, and also talking to the right folks to help out if possible," Goulet said. He noted that the city has slowly been removing "P Zones," or zones only permitted for parking, to allow for more housing and commercial properties.

So in theory, the land beneath NoHo Locksmith could eventually be rezoned, but that may take months, even years, and Lejbowicz may not be able to wait it out. The case goes to court next month.