COUNCIL AGENDA:
FILE:
8/25/26
26-878
ITEM: 10.2
CITY COUNCIL STAFF REPORT
File No. CP25-025 & ER25-026
Applicant: Michael Messinger
Location On the north side of West Santa Clara Street, approximately 140 feet from the intersection of
North Almaden Avenue and West Santa Clara
Street (163 West Santa Clara Street, APN 259-
35-062)
Existing Zoning DC Downtown Primary Commercial
Council District 3
Historic Resource City Landmark Structure
Annexation Date: March 27, 1850 - Original City
CEQA: Exempt under CEQA Guidelines Section
15270
APPLICATION SUMMARY:
Conditional Use Permit to allow a nightclub/bar use with late-night hours until 2:00 A.M. in an existing approximately 15,600-square-foot tenant space on an approximately 0.25- gross-acre site.
RECOMMENDATION:
Staff recommends that the City Council:
1. Consider the exemption in accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15270 for Projects Which Are Disapproved.
2. Adopt a resolution denying a Conditional Use Permit to allow a nightclub/bar use with late-night hours until 2:00 A.M. in an existing approximately 15,600- square- foot tenant space on an approximately 0.25-gross-acre site.
PROJECT DATA
GENERAL PLAN CONSISTENCY
General Plan Designation Downtown
Consistent Inconsistent
Consistent Policies IE-5.3; LU-1.1
Inconsistent Policies ES-3.2; ES-5.4; ES-5.6; IP-10.3; LU-13.4; LU-
13.6 __________________________________________________ _
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
SURROUNDING USES
General Plan Land
Use
Zoning Existing Use
North Downtown
DC Downtown
Primary
Commercial
Residential; Public Eating
Establishment; Office
South Downtown
DC Downtown
Primary
Commercial
Office; Bank; Personal
Service; Public Eating
Establishment; Park
East Downtown
DC Downtown
Primary
Commercial
Residential; Drinking
Establishment
West Downtown
DC Downtown
Primary
Commercial
Residential; Drinking
Establishment; Public Eating
Establishment; Medical
Office; Office
RELATED APPROVALS
See Attachment A for more details.
PROJECT DESCRIPTION
The proposed project is a Conditional Use Permit to allow a nightclub/bar use with late- night hours until 2:00 A.M. in an existing approximately 15,600-square-foot tenant space on an approximately 0.25-gross-acre site.
Site Description and Surrounding Uses
As shown on the attached Vicinity Map (Attachment B), the project is located on the north side of West Santa Clara Street, approximately 140 feet from the intersection of North Almaden Avenue and West Santa Clara Street (163 West Santa Clara Street, APN 259-35-062). The Mason Building, located at 161 West Santa Clara Street, was designated a City Landmark under Resolution No. 70737 and amended under Resolution No. 70852 circa 2002.
1 The Mason Building, located at 161 West Santa
Clara Street, was designated a City Landmark, which meets landmark significance criteria 3, 6, and 7, under Resolution No. 70737 and amended under Resolution No. 70852 circa 2002. These criteria are, broadly, an identification with Paul Masson and Charles Lefranc, who made significant contributions to regional winemaking industries.
The building embodies distinguishing characteristics of Art Deco architecture and was identified as being designed by William H. Weeks, an architect or master builder whose work has significantly influenced the development of San José. The Mason Building is a multitenant building within which the proposed project resides. The subject property’s most recently permitted use was a Drinking Establishment with late-night hours under
1https://sanjoseca.govnita.com/api/workspace/Resolutions/files/1980944291721/view
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
CP10-057. As a condition of CP10-057, if the use ceases for a period of 12 months or longer, the permit will expire, and the subject site will have to obtain a new permit to continue the use. The building was vacant, for lease, without use of the subject site beginning approximately 2017-2018, and expiring sometime in 2019.
The site has existing pedestrian sidewalks along West Santa Clara Street with crosswalks at the intersections of West Santa Clara and both North Almaden Avenue and North San Pedro Street. The site is accessed by one primary pedestrian entrance fronting West Santa Clara Street, with a secondary entrance/exit along the pedestrian walkway/paseo to the rear of the business, which spans the block running east/west between North Almaden Avenue and North San Pedro Street. The site is accessible with existing Valley Transit Authority bus stops, approximately 300 feet both east and west along West Santa Clara Street, serving the 17, 22, 64(A/B), and 68 lines. The site has metered street parking along West Santa Clara Street and is surrounded by publicly accessible parking garages.
Background
Between 2023 and 2026, the City documented a series of Code Enforcement, Planning, Building, and public safety issues associated with the operation of San Pedro Social (Attachment A). Following complaints received in 2023, inspections confirmed unpermitted site improvements and late-night operations without Building or Planning approval. Over the next several years, the City issued multiple Warning Letters, Compliance Orders, and an Appeals Hearing Board Order directing the operator to cease unpermitted late-night activities and obtain the required permits (Attachment C).
Despite these actions, repeated inspections found continued operation as a nightclub without the necessary approvals.
Planning staff worked with the applicant to identify an appropriate entitlement and informed them they could either apply for a Conditional Use Permit (CUP) for operation as a nightclub with late-night use or a Special Use Permit (SUP) as a restaurant with late-night use. The applicant informed staff that they would seek a Special Use Permit for operation as a restaurant with late-night use. Public outreach regarding the proposed project generated significant community interest, which led to a community meeting with 68 people in attendance. While supporters, many of whom were employees, highlighted the business's economic contributions and role as a Downtown destination, opponents, some of whom were residents on either the second floor of this business or adjacent to the business, cited concerns regarding public safety, noise, neighborhood compatibility, and quality-of-life impacts. However, during the community meeting, the applicants’ representatives and supporters opined on their operation as a nightclub being a benefit to Downtown. Staff advised the applicant during the meeting that if the proposed operations were for a nightclub with late-night use, then a Conditional Use Permit would be required, rather than the Special Use Permit for a restaurant with late-night use. After conversion of their SUP to CUP, and throughout four rounds of project review, staff identified significant deficiencies and inconsistencies in the application materials, including operations, security, noise mitigation, queuing, site plans, and supporting documentation. Many of these issues remain unresolved.
The San José Police Department (SJPD) documented repeated operations without a required Entertainment Permit and recommended denial, citing continued violations,
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
public nuisance concerns, and late-night police activity. Inspections by the California Department of Alcoholic Beverage Control also documented nightclub-style operations and potential violations of the establishment's Type 47 liquor license requirements (Attachment D and Attachment E).
The applicant has requested that the project proceed to a public hearing despite outstanding application deficiencies expressed in the Analysis section below.
ANALYSIS
The project was analyzed for conformance with the following:
1. T he Envision San José 2040 General Plan; and
2. Permit Findings.
Permit Findings
Pursuant to Section 20.100.720
2 of the San José Municipal Code, staff finds that the
required findings for approval of the proposed Conditional Use Permit cannot be made.
While the proposed nightclub use would support Downtown activation, economic activity, and late-night entertainment consistent with the Downtown land use designation, the project is not consistent with the Envision San José 2040 General Plan as a whole. The record includes documented health and safety violations associated with unpermitted nightclub operations, multiple police calls for service involving violent incidents and serious injuries, and unresolved historic preservation issues related to an unpermitted building addition on a designated Historic Landmark. Collectively, these issues prevent staff from finding the project consistent with applicable General Plan policies and Municipal Code requirements. The project is also not consistent with applicable City Council policies governing 24-hour (late-night) and nightclub operations.
In particular, the Operations Plan and Security Plan do not adequately demonstrate compliance with City Council Policy 6-23 due to deficiencies in patron queuing management, noise control procedures, separation of ancillary restaurant operations from nightclub activities, and clarity regarding age-restricted access (Attachment F and Attachment G). In addition, SJPD opposes the requested Conditional Use Permit based on documented public safety, nuisance, and compliance concerns associated with prior unpermitted operations, resulting in inconsistency with City Council Policy 6-27. The proposed use may adversely affect the peace, health, safety, and general welfare of persons residing and working in the surrounding area based on the applicant’s documented pattern of operational non-compliance, public nuisance complaints, and police activity. Although the site is physically adequate in size and is served by existing streets, transit, and parking infrastructure, the unresolved land use, operational, and public safety issues outweigh these site characteristics (Attachment H). For these reasons, staff recommends denial of the Conditional Use Permit.
2https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT20ZO_CH20.100ADPE_PT6CO USPE_20.100.720FI
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
Envision San José 2040 General Plan Conformance
The proposed Conditional Use Permit would allow an existing restaurant to operate as a nightclub with late-night hours on weekends within the Downtown land use designation.
The Envision San José 2040 General Plan3 Land Use/Transportation Diagram designates Downtown as supportive of a mix of commercial, residential, and entertainment uses. The proposed nightclub with late-night operation would advance General Plan objectives related to Downtown vibrancy, evening and late-night activity, and economic development by contributing to employment opportunities and general late-night activity. However, the project raises significant concerns regarding public safety, operational compliance, and historic preservation. The record includes documented health and safety violations associated with unpermitted nightclub operations, including obstruction of a fire escape, as well as multiple police calls for service involving violent incidents and serious injuries during late-night operations. Although some violations were corrected, the pattern of incidents raises concerns regarding the project’s ability to operate in a manner consistent with reasonable standards of safety and compatibility. In addition, the project remains incomplete with respect to historic preservation review, as staff have not received sufficient information to determine whether existing exterior modifications comply with the Secretary of the Interior’s Standards and applicable City historic preservation policies.
While the project supports certain economic and activation goals of the Envision San José 2040 General Plan, the unresolved public safety concerns, outstanding code compliance issues, and incomplete historic preservation review prevent staff from finding the project consistent with the General Plan as a whole.
Zoning Ordinance Conformance
The subject site is located within the Downtown Primary Commercial Zoning District, where drinking establishments with an approved occupancy load exceeding 250 persons and operating between 12:00 a.m. and 6:00 a.m. require approval of a Conditional Use Permit by the City Council.
4 The proposed nightclub would operate within an existing approximately 15,600-square-foot tenant space with an occupancy load exceeding 250 persons and late-night hours extending to 2:00 a.m. and, as proposed, is procedurally consistent with the use regulations of the Downtown Zoning District. However, the property also contains an unpermitted building addition that remains subject to an active Code Enforcement case. The subject property is a designated Historic Landmark.
Retention of the addition requires review under the Historic Preservation provisions of Title 13
5 and compliance with the Historic Design Guidelines and the Secretary of the Interior’s Standards. Staff informed the applicant that the addition must either be removed or supported by sufficient documentation to complete the required historic review. The applicant’s current plans retain the unpermitted addition and the information necessary to evaluate its consistency with applicable historic preservation standards has not been provided. As a result, staff cannot make the required findings for historic preservation compliance or determine that the addition conforms with the Municipal Code. Therefore, while the proposed nightclub use conforms with the Downtown Zoning Code, the project remains inconsistent with the Zoning Ordinance overall, due to the unpermitted addition.
3https://www.sanjoseca.gov/home/showpublisheddocument/121586/638828345723130000 4https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT20ZO_CH20.70DOZORE_PT2U SAL_20.70.100ALUSPERE
5https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT13STSIPUPL_CH13.48HIPR
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
City Council Policy 6-23 Guidelines for Evaluation of Nightclubs and Bars City Council Policy 6-236 establishes operational and design guidelines intended to ensure nightclub and bar uses are compatible with surrounding properties and do not adversely affect the public right-of-way. Relevant provisions applicable to the proposed project include management of patron queuing, noise mitigation, age-restricted access controls, and prohibition of ancillary non-separated restaurant operations during nightclub hours.
The applicant’s Operations Plan and Security Plan do not adequately demonstrate compliance with these requirements. The Operations Plan states that patron queuing would occur in an area purportedly approved by the Department of Public Works. Staff confirmed that the applicant’s Sidewalk Seating Permit authorizes outdoor seating only and does not permit queuing within the public right-of-way. Although the Security Plan includes general queue management measures, it lacks sufficient detail regarding monitored access points, staffing levels, rotation schedules, pedestrian circulation, litter abatement, and procedures to ensure windows and doors remain closed during patron screening and admittance. Similarly, while the Operations Plan states that windows and doors will remain closed during entertainment activities, the Security Plan does not include corresponding enforcement procedures. The Operations Plan and Security Plan also do not clearly establish when San Pedro Social’s restaurant operations cease and nightclub operations begin, creating ambiguity regarding the proposed 21-and-over access restrictions.
The project site also includes an ancillary public eating establishment, Square Pie Guys, which operates within the project area and relies on San Pedro Social’s kitchen and restroom facilities through a shared hallway connection. City Council Policy 6-23 prohibits operation of ancillary non-separated restaurant use during nightclub operation.
The submitted documents indicate that restaurant operations would continue during nightclub hours. In addition, as a result, staff finds that the project does not demonstrate consistency with City Council Policy 6-23.
City Council Policy 6-27 Evaluation of 24-Hour Use Conformance City Council Policy 6-27
7 provides guidelines for the appropriate development of establishments that operate on a 24-hour basis in the City of San José while avoiding the problems associated, of which, on a case-by-case review, specific alternative measures may be suitable when demonstrating a project meets or exceeds the guidelines in the policy. The proposed project is located Downtown and either meets or is exempt from the majority of City Council Policy 6-27. However, the sections they are not meeting include the Use Compatibility, Police, and Noise sections. The proposed project attempts to meet these remaining criteria, but were found to be deficient.
The Security Plan attempts to address use compatibility measures such as queue management in the right-of-way, but it does not include the number of monitored right- of-way entrances/exits; enforcement procedures regarding how windows and doors are to be kept closed during patron queue pat-down and admittance; the number of staff
6https://www.sanjoseca.gov/home/showpublisheddocument/12797/636669914957130000 7https://www.sanjoseca.gov/home/showpublisheddocument/12789/636669914941370000
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
and rotation schedule for the right-of-way queue areas; litter, refuse, and debris abatement.
Noise mitigations were provided by a sound technician, but proof of certification or other qualifications were not provided, and the base level noise measurements lack information regarding whether the measurements were taken during the unpermitted nightclub operations or during restaurant operations. Complaints regarding noise and specifically vibration as part of the nightclub operations were received by residents living above San Pedro Social. No abatement strategies regarding vibration were provided by an identifiably qualified person.
SJPD reviewed both the Special Use Permit and Conditional Use Permit, which resulted in two separate memoranda, sent to the applicant on May 8, 2025, and June 11, 2026, respectively. SJPD acknowledges the role that entertainment venues play in supporting Downtown vitality and recognizes the demand for businesses that contribute to the City's nighttime economy. Nightclub and entertainment uses may be appropriate when operated in compliance with applicable permits, regulations, and City policies. However, based on the totality of circumstances observed during 2024, 2025, and 2026, concerns which include multiple violent calls for service, many of which occurred during late-night or after-hours periods; surveillance footage depicting physical altercations on and around the premises; operation of the business in a manner consistent with a nightclub, including cover charges, bottle service, and VIP ticket sales, prior to obtaining the required permits; operation without a valid entertainment permit; and operation of late- night activities prior to obtaining the appropriate land use approvals, SJPD does not support issuance of a Conditional Use Permit for the proposed nightclub and late-night operation.
Based on the documented public safety, operational, and compliance concerns raised by SJPD, and deficient noise and use compatibility findings, staff find the project is not consistent with City Council Policy 6-27.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Staff recommends denial of the application. Pursuant to Public Resources Code section 21080, CEQA applies to discretionary projects proposed to be carried out or approved by a public agency. The action is statutorily exempt under CEQA Guidelines Section 15270 for Projects Which are Disapproved. The denial would not approve any change in use, physical improvement, expansion, or operational entitlement and therefore would not authorize any activity that may result in a direct or reasonably foreseeable indirect physical change in the environment. Accordingly, no further CEQA review is required for denial of the Conditional Use Permit.
If the City Council approves the Conditional Use Permit, the staff may consider whether the project qualifies for the Class 1 categorical exemption for Existing Facilities under CEQA Guidelines Section 15301. Class 1 applies to the operation, permitting, leasing, licensing, or minor alteration of existing public or private structures or facilities involving negligible or no expansion of existing or former use. The proposed action would allow a nightclub/bar use within an existing tenant space and, as modified and conditioned, would not authorize substantial physical expansion of the existing facility.
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
However, because the site is an existing historic structure, and a small unpermitted addition shown on the plan set was made without prior historic evaluation, staff must also consider the exceptions to categorical exemptions under CEQA Guidelines Section 15300.2. In particular, Section 15300.2(f) provides that a categorical exemption shall not be used for a project that may cause a substantial adverse change in the significance of a historical resource. Therefore, to support the findings for Class 1 exemption, the applicant would either have to demolish the unpermitted addition or provide adequate information that would support findings for the Class 1 exemption.
PUBLIC HEARING NOTIFICATION
Although this item does not meet any of the criteria above, staff followed City Council Policy 6-30: Public Outreach Policy. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet and 1,000 feet of the project site and posted on the City website (Attachment I). A community meeting was held on August 11, 2025, at 6:30 P.M. via Zoom to describe the applicant’s proposed project, the City’s review process, and to obtain community input on the proposed project located at 163 West Santa Clara Street. The proposal at that time was to seek a Special Use Permit for the late-night operation of a public eating establishment until 2:00 A.M.
The community meeting reflected both support for and opposition to the continued operation and extended late-night activities at the subject site. Supporters, including patrons, employees, DJs, and business affiliates, emphasized the venue’s contribution to Downtown vibrancy, economic activity, and nightlife, while highlighting its security measures, professional management, and perceived safety compared to other nearby establishments. In contrast, opponents, including nearby residents and stakeholders, raised concerns regarding recurring fights, police activity, intoxicated patrons, noise extending beyond the premises, and crowd-related impacts affecting surrounding residential uses and the public right-of-way. Additional concerns were raised regarding the scale of the security presence and whether the operation remains compatible with neighboring residential uses and consistent with its approved entitlements. Overall, public testimony demonstrated a clear division between those who view the venue as an important downtown destination and those who view its operations as contributing to adverse neighborhood impacts. Ultimately, the applicants indicated they planned to operate a nightclub, which the permit at that time would not support, and the project was converted to a Conditional Use Permit. The staff report is also posted on the City’s website. Staff have been available to respond to questions from the public.
/s/
Chris Burton, Director
Planning, Building and Code
Enforcement
For questions, please contact John Tu, Division Manager, Planning, Building, and Code Enforcement Department, at (408) 535-6818.
HONORABLE MAYOR AND CITY COUNCIL
August 4, 2026
Subject: CP25-025 & ER25-026 - Conditional Use Permit for Certain Real Property Located at 163 West Santa Clara Street (San Pedro Social)
ATTACHMENTS:
Attachment A – Related Approvals and Code Case History
Attachment B – Vicinity Map
Attachment C – Appeals Hearing Board Warning Letter
Attachment D – Alcohol Beverage Control Form dated 12-20-22 Attachment E – San José Police Department Final Memo
Attachment F – Operations Plan
Attachment G – Security Plan
Attachment H – Site Plan
Attachment I – Appeals Hearing Board Notice of Hearing