CC_APPEAL STAFF REPORT_MASSAGEACESAPPEAL _032626.DOCX
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PL250447 – MASSAGE ACES APPEAL Page 1 March 26, 2026 STAFF REPORT MASSAGE ACES APPEAL (PL250447) PROJECT DATA: Project Address 1761 East Warner Road, Suite 16 Property Owner Cobblestone Center LLC Applicant Yinyu Shi Appellant Matt Smith Zoning District PCC-1 (Planned Commercial Center) Gross / Net Site Area 7.7 acres Total Building Area 100,725 s.f. Vehicle Parking 421 spaces (4 min. required) Bicycle Parking 20 spaces (2 min. required) Hours of Operation 9:30 a.m. to 9:00 p.m., Daily *NOTE: THIS ITEM IS A QUASI-JUDICIAL MATTER. PRE-MEETING CONTACT WITH THE CITY COUNCIL ON QUASI-JUDICIAL MATTERS IS PROHIBITED. ANY MATERIALS OR CONVERSATION CONCERNING THE ITEM SHALL ONLY BE PRESENTED TO THE CITY COUNCIL AT THE SCHEDULED PUBLIC HEARING. COMMENTS: This site is located at the southwest corner of Warner Road and McClintock Dr, within the Cobblestone Center Plaza, in the PCC-1, Planned Commercial Center Neighborhood zoning district. The subject Suite 16 is located within the commercial center which includes an existing grocery store, service uses, medical uses (veterinary and dental), and restaurant uses. Single-family residences are adjacent to the south and west, and commercial uses to the east and north across Warner Road. There are existing approved massage establishments on the northwest, northeast, and directly south of the site. STAFF ANALYSIS: The appellant asserts that the Development Review Commission approval use permit for MASSAGE ACES (PL250382) does not satisfy three (3) of the required Use Permit approval criteria. The appellant identifies concerns related to approval criteria (c), (d), and (e) as summarized below. Section 6-308(E) Approval criteria for Use Permit (in italics): Criterion (c): Contribution to the deterioration of the neighborhood or to the downgrading of property values, which is conflict with the goals, objectives or policies of the city’s adopted plans for General Plan; The appellant contends that the approval did not adequately consider the cumulative impact of additional massage establishments within the immediate vicinity of the site. The appellant states that there is an existing massage establishment operating on the north side of Warner Road near Massage Aces that operated with limited hours and later expanded its hours of operation into the evening. According to the appellant, the approval of MASSAGE ACES (PL250382), an additional massage establishment, into a larger space than the existing massage establishment; could contribute to concentration of similar uses in proximity. The appellant cites a petition expressing opposition signed by more than 55 nearby residents as evidence of concerns regarding neighborhood stability and character. PL250447 – MASSAGE ACES APPEAL Page 2 March 26, 2026 There are no separation requirements for massage establishments in the Zoning and Development Code. The use is allowed with a Use Permit regardless of the number or location of similar uses in the area. Criterion (d): Compatibility with existing surrounding structures and uses; and The appellant asserts that the proposed use is not compatible with surrounding uses when considered in context. The appellant asserts that the presence of an existing massage establishment in the area, combined with the approval of the proposed Use Permit, results in an over-concentration of similar uses that is inconsistent with the character of the surrounding area. The appellant also states that the proposed space is larger than the existing massage establishment, which, according to the appellant, may result in increased activity, longer hours of operation, and additional impacts on nearby residential and commercial properties. The appellant asserts that the approval does not sufficiently address all compatibility with surrounding uses will be maintained, particularly during late night hours. In review of the surrounding area, the presence of existing similar uses provides justification for compatibility with surrounding uses. The hours of operation are specified by the applicant of each business and are conditioned as part of the approval process; expansion of the hours or the size of the suite would constitute an expansion of use and require a return to the decision-making body for a new Use Permit pursuant to Section 6-308.I.1. Criterion (e): Adequate control of disruptive behavior both inside and outside the premises, which may create a nuisance to the surrounding area or general public. The appellant raises concerns that the approval lacks sufficient conditions to ensure adequate control of disruptive behavior both inside and outside of the premises. The appellant references an existing massage establishment in the area that has expanded its hours overtime, thus increasing late night activity. The appellant asserts that the approval of an additional massage establishment without clearly defined operational limits, hours of operation, or mitigation measures may increase the likelihood of loitering noise and other disturbances without adequate control of disruptive behavior would create a nuisance for nearby residents. Existing uses on the site include: retail/restaurant buildings, and commercial uses. The appellant is requesting the City Council take action on ZUPA250005 Appeal of the Development Review Commission’s decision to approve a Use Permit for a massage establishment. For further processing, depending on the outcome of this hearing, the applicant would need to obtain a Massage Establishment License and applicable building permits for tenant improvements. PUBLIC INPUT As of the creation of this report, staff have not received input relating to the appeal. DEVELOPMENT REVIEW COMMISSION The Development Review Commission voted 6-0 on consent to approve a Use Permit to allow a massage establishment in the PCC-1, Planned Commercial Center Zoning District. Prior to the hearing, staff received eight comments, in opposition, one in favor, and an email from the appellant PL250447 – MASSAGE ACES APPEAL Page 3 March 26, 2026 advising of a petition with over 50 signatures in opposition. The email contained a signed petition with over 56 signatures from residents of seven Tempe neighborhoods, adjacent to the subject project. Prior to the Development Review Commission (DRC) public hearing, all public input was provided to the commissioners. During the hearing, there was no request for public comment to speak on the item before a motion was made to approve the consent agenda. USE PERMIT CRITERIA AND OPTIONS: Council Options on Appeal Approve the appeal of the DRC’s decision (find in favor of the appellant) and effectively deny the Use Permit, which would prevent Massage Aces from operating at this location; Deny the appeal of the DRC’s decision (find in favor of the DRC), and effectively approve the Use Permit; Massage Aces would then move forward to required next steps; Deny the appeal of the DRC’s decision, with modified or added conditions (the Council may decide that conditions are needed to address any deleterious effects from the proposed use). The City Council may choose to keep, modify, or add to any proposed conditions; Continue to a future date certain, requesting additional information before making a final decision on the appeal; or, Remand back to the DRC for further consideration on the Use Permit issues raised. If this occurs, Council should give specific direction to DRC as to why they are sending back for further consideration. ZDC § 6-308. ZDC Appeal Criteria Section 6-803 A. 1. The petition for appeals to the City of Tempe shall contain: a. The name of the applicant and the city case file number; b. The name, address and signature of each petitioner; and c. The specific grounds for appeal. The appeal shall be limited to the issue(s) raised in the petition. ORIGINAL CONDITION(S) OF APPROVAL: (Non-standard conditions are identified in bold) EACH NUMBERED ITEM IS A CONDITION OF APPROVAL. THE DECISION-MAKING BODY MAY MODIFY, DELETE OR ADD TO THESE CONDITIONS. 1. The Use Permit is valid only after a Building Permit has been obtained, the required inspections have been completed and a Final Inspection has been passed. As part of the Building Permit process, on-site storm water retention may be required to be verified or accomplished on this Site. 2. The Use Permit is valid for the plans as submitted within this application. Any additions or modifications may be submitted for review during the building plan check process. 3. Hours of operation to end no later than 9:00 p.m. on a daily basis, Sunday through Saturday. 4. The Use Permit is valid for MASSAGE ACES and may be transferable to successors in interest through an administrative review with the Community Development Director, or designee. PL250447 – MASSAGE ACES APPEAL Page 4 March 26, 2026 5. All required permits and clearances shall be obtained from the Audit and Licensing Division of the City of Tempe prior to the Use Permit becoming effective. 6. All required Federal, State, County, and Municipal permits, licenses, and clearances shall be obtained, or the Use Permit is void. 7. If there are any complaints arising from the Use Permit that are verified by a consensus of the complaining party and the City Attorney’s office, the Use Permit will be reviewed by City staff to determine the need for a public hearing to reevaluate the appropriateness of the Use Permit, which may result in revocation of the Use Permit. 8. An application for an updated Shared Parking Model must be submitted, within 90 calendar days of the Use Permit approval. An applications must be made to Community Development by visiting www.tempe.gov/planning. ADDED CONDITIONS OF APPROVAL: EACH NUMBERED ITEM IS A CONDITION OF APPROVAL. THE DECISION-MAKING BODY MAY MODIFY, DELETE OR ADD TO THESE CONDITIONS. 9. Return to the appropriate decision-making body for review of compliance with conditions of approval within six (6) months. The timing for the six-month review period to commence begins when the business is in full operation. Advise Community Development staff when in full business operation. 10. Storefront windows shall provide transparent glazingto allow surveillance into the structure and from the front reception lobby area. Only clear or lightly tinted glass with up to fifty percent (50%) transparency for windows, doors, and display windows shall be considered transparent. Opaque, etched, frosted or mirrored glass is not transparent. CODE/ORDINANCE REQUIREMENTS: THE BULLETED ITEMS REFER TO EXISTING CODE OR ORDINANCES THAT PLANNING STAFF OBSERVES ARE PERTINENT TO THIS CASE. THE BULLET ITEMS ARE INCLUDED TO ALERT THE DESIGN TEAM AND ASSIST IN OBTAINING A BUILDING PERMIT AND ARE NOT AN EXHAUSTIVE LIST. ZONING AND DEVELOPMENT CODE: Specific requirements of the Zoning and Development Code (ZDC) are not listed as a condition of approval but will apply to any application. To avoid unnecessary review time and reduce the potential for multiple plan check submittals, become familiar with the ZDC. Access the ZDC through www.tempe.gov/zoning or purchase from Community Development. HISTORY & FACTS: April 3, 1977 The property was annexed into the City of Tempe. December 9, 2025 The Development Review Commission approved the request for a Use Permit to allow a Massage Establishment in the PCC-1 zoning district for MASSAGE ACES (PL250382). February 5, 2026 City Council continued the appeal of the Development Review Commission approval for MASSAGE ACES (PL250382). March 26, 2026 City Council is scheduled to hear the continuance of the appeal of the PL250447 – MASSAGE ACES APPEAL Page 5 March 26, 2026 MASSAGE ACES (PL250382) Use Permit approval ZONING AND DEVELOPMENT CODE REFERENCE: Section 3-202, Permitted Uses in Commercial and Mixed-Use Districts Section 6-308, Use Permit Section 6-801-803, Appeals