Item 33 - Zoning Ordinance Amendment No. 2022-03: Updates to Chapter 41

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ZOA No. 2022-03: Zoning Code Amendments and Updates January 17, 2023 Page 7 3 1 6 0 massage establishments and other professional service uses be regulated in a uniform manner, prohibiting local governments from requiring restrooms, showers, or other facilities not required of other professional services. The changes to state law preempted City regulations and made several provisions of the Code inconsistent with state law and resulted in the City being unable to enforce the massage ordinance, and establishments and technicians were able to operate within the City without obtaining a CUP, LUC, or massage establishment permit. The passage of SB 731 had unintended consequences that resulted in the proliferation of massage establishments that engaged in unlawful activity that local governments had to deal with. On January 1, 2015, California Assembly Bill (AB) 1147 (AB 1147) became effective, amending several sections of the Business and Professions Code and of the Government Code relating to massage establishments. By adopting AB 1147, the State Legislature returned broad control over land use in regulating massage establishments to local governments, provided only reasonable and necessary fees and regulations were enacted. Subsequently, the City adopted Ordinance No. NS-2903, which made changes to Chapter 22 and Chapter 41 of the SAMC, establishing a by-right massage establishment permitting program. The program allowed the establishment and operation of massage establishments with approval of a Certificate of Occupancy issued by the Planning and Building Agency and an annual massage establishment permit issued by the Police Department, provided operating and permit requirements were met. Despite the existing requirements and development standards in place, massage establishments have proven to present opportunities for acts of prostitution, human trafficking, and the use and sale of illegal drugs, resulting in increased enforcement actions. Staff proposes to amend Chapter 41 of the SAMC to require a CUP for massage establishments, which would allow the City to more closely regulate this use and adopt conditions of approval to avoid or mitigate any impacts this use may have on the surrounding properties. The amendments distinguish ancillary massage establishments (i.e., commonly part of a spa in a hotel, athletic club, or gym), chair massage (i.e., massage business providing seated massages in an open area), from a massage establishment business. Ancillary massage establishments and chair massage businesses would not require a CUP. The proposed amendments will reduce the burdens on the City’s enforcement agencies and permit the deployment of services to other matters. Retail Uses in Industrial Zoning Districts The global Covid-19 pandemic has resulted in impacts to local communities and businesses alike. It has also resulted in novel business concepts and the manner and types of spaces in which they operate to change. The Chapter 41 of the SAMC currently permits retail uses in the Light Industrial (M1) zoning district and Heavy Industrial (M2) zoning districts when they are ancillary to a primary industrial use and occupy no more than five percent of the gross square footage of the tenant space. To respond to changing business practices and needs, and to allow additional flexibility to allow