Resale shop claims Texas City wrongfully denied business license

John Suayan, Galveston Bureau Aug. 24, 2010, 4:37am

GALVESTON - A resale business has filed suit against the city of Texas City after numerous attempts to obtain a license have failed, recent court documents say.

Kelly Industries' suit claims that in 2003 the city ordered the plaintiff to conform to a municipal code for resale stores. The code requires that the store obtain a license and build an 8-foot high solid fence around the premises in exchange for certain services such as sewer and storm drains for three years.

The city at the time annexed the area in which Kelly Industries' operations is based.

The original complaint was filed Aug. 16 in Galveston County District Court.

Kelly Industries insists it abided by the policy, but its application was denied. The plaintiff was told to erect a fence and provide parking spaces before it could acquire a license, which Kelly Industries said is cost prohibitive.

The plaintiff alleges that no other dealer in secondhand goods within the city limits of Texas City has been required to meet those requirements.

The suit argues that the city attempted to shut Kelly Industries down while the defendant did not honor any of its agreements established with the ordinance.

"Furthermore, no such license requirement was in effect at the time of annexation, and none was in the annexation plan approved by the city commission," it says.

Consequently, the plaintiff seeks unspecified monetary damages and a temporary restraining order.

Attorney Mark Aronowitz of Texas City is representing Kelly Industries, and Galveston County 212th District Court Judge Susan Criss is presiding over the case.

Case No. 10-cv-2273

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