Item 10.2
Conditional Use Permit to Operate a Nightclub with Late-Night Hours for San Pedro Social, Located at 163 West Santa Clara Street August 25, 2026
File Nos. CP25-025 & ER25-026
Presenters:
Chris Burton, Director
Manira Sandhir, Deputy Director, Planning
John Tu, Division Manager, Development Review
Sgt. Chau Pham, Police Sergeant, Police Department
1 Site Description
www.sanjoseca.gov/planning
• Site Address: 163 W. Santa Clara St
• Site Area: 0.25-gross-acre site
• Existing Use: Mixed Use
• General Plan Land Use Designation:
Downtown
• Zoning District: DC Downtown
Commercial
• History of code cases and police incidents
2 Project Description
www.sanjoseca.gov/planning
• CP25-025: A Conditional Use Permit to allow a
nightclub/bar use with late-night hours until 2:00 a.m. • Approx. 15,600-square-foot tenant space on a
0.25-gross-acre site.
In the Downtown Zoning Districts, occupancy
exceeding 250 people goes directly to City Council.
3 Conditional Use Permit Review
Project was reviewed for consistency with the following:
• Envision San José 2040 General Plan
• Municipal Code
• Citywide Design Standards and Guidelines
• City Council Policy 6-23 (Guidelines for Evaluation of Nightclubs and Bars) • City Council Policy 6-27 (Evaluation of 24-Hour Use Conformance) • City Council Policy 6-30 (Public Outreach)
• California Environmental Quality Act (CEQA)
Coordination with Police Department on safety and operations plan. 4 www.sanjoseca.gov/planning
Police Department CUP Review
www.sanjoseca.gov/planning
• The Vice Unit reviews proposed projects from the Planning Department.
• Criteria during review:
• The crime statistics and if it is over the 20% crime index (High crime areas).
• The census tract information and if it is overly concentrated (For alcohol).
• Is the project requesting late night use?
• How would late night use affect the area, patrol division, and the community?
• Is there a community protest? Councilmember protest?
5 Police Department CUP Review
www.sanjoseca.gov/planning
• Public safety concerns:
1. Police Calls for Service
2. Undercover Inspections
3. Community Complaints
6 Police Calls for Service
• •On 3/23/2025, at approximately
2:08 a.m., an assault with a deadly
weapon or force likely to produce
great bodily injury occurred in
front of San Pedro Social located
at 163 W Santa Clara St in San
José (Case # 25-082-0089).
7 www.sanjoseca.gov/planning
Police Calls for Service
• On 2/16/2025, at approximately 12:05
a.m., a reporting party called in stating
that a suspect punched a victim and the
victim was bleeding from the head.
• The reporting party reported
approximately 20-30 subjects fighting on
the sidewalk along 163 169 W. Santa
Clara Street and (Case #25-047-0005).
• Large physical fight where officers were
assaulted. General increase in violence
and public nuisance.
8 www.sanjoseca.gov/planning
Undercover Inspections
9 www.sanjoseca.gov/planning
• Vice Unit personnel posed as customers on 3 separate
occasions on July 10, 2025, September 5, 2025, and
September 13, 2025.
• Entered premise from 10 p.m. to 12 a.m.
• Business closed by midnight each time.
• Never able to order food past 10 p.m., required by their ABC liquor license.
• Had DJ playing music, patrons dancing, violating Public Entertainment.
• Administrative citations issued for various Municipal Code violations.
Undercover Inspections
10 www.sanjoseca.gov/planning
• On 6/27/2026 at approximately
7:10 p.m., during a premise
check, SP Social employee was
observed pouring Costco tequila
into empty tequila bottles with a
different label (well tequila).
These are misdemeanor
violations of the CA Business
and Professions Code.
• The manager admitted to the
conduct. The California
Department of Alcohol Beverage
Control was notified.
Community Complaints
11 www.sanjoseca.gov/planning
• The Vice Unit received videos
from community members
highlighting public safety
concerns.
• The police were not called during
these incidents and were made
aware later in December 2025.
Community Complaints
12 www.sanjoseca.gov/planning
• Business is sill open past
midnight, even if they are hosting
a private event.
Community Complaints
13 www.sanjoseca.gov/planning
• Concerns about narcotics activity
from employees.
Police Department Recommendation
14 www.sanjoseca.gov/planning
• The Police Department is opposed to San Pedro Social
Club’s CUP for late night use.
Environmental Review
• Staff recommends denial of this Permit, which is statutorily exempt under CEQA Guidelines Section 15270 for Projects Which are Disapproved.
• If City Council approves the Permit, the project may qualify for the Class 1 categorical exemption for Existing Facilities under CEQA Guidelines Section 15301, or some other CEQA path based on the information available.
15 www.sanjoseca.gov/planning
Staff Recommends Denial
Staff recommends City Council Deny the Project for the following:
• The use was in operation without permit, subject to a Code Enforcement Case. Repeated noncompliance through Code Enforcement was documented, among which blocking the residential fire escape with beer kegs was found.
• Investigations by Alcoholic and Beverage Control state department have found violations of the site's ABC License.
• SJPD recommends denial on health/safety grounds, taking into consideration how the business was operating while unpermitted. Therefore, Planning staff cannot make health/safety findings for approval of the Conditional Use Permit.
• The applicants requested the project be heard at Council before all Staff comments on Safety and Operations Plans were addressed and corrected. This leaves insufficient findings for approval under Council Policies and both Permit and CEQA findings. 16 www.sanjoseca.gov/planning
Staff Recommendations
• Staff recommends City Council:
• 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.
17 www.sanjoseca.gov/planning
Item 10.2
Conditional Use Permit to Operate a Nightclub with Late-Night Hours for San Pedro Social, Located at 163 West Santa Clara Street August 25, 2026
File Nos. CP25-025 & ER25-026
Presenters:
Chris Burton, Director
Manira Sandhir, Deputy Director, Planning
John Tu, Division Manager, Development Review
Sgt. Chau Pham, Police Sergeant, Police Department
18