Lake Forest Council extends temporary moratorium on new massage establishments for 10 months, 15 days

The Lake Forest City Council on Sept. 16 voted 4-0, with Councilman Doug Serbo absent, to extend an urgency ordinance imposing a temporary moratorium on new massage establishments for 10 months and 15 days.

City staff said the pause is intended to give time for research and stakeholder outreach after staff reported a rise in massage businesses operating without valid licenses and “reports of illicit activities such as prostitution.” Amy Stoneage, assistant director of community development, told the council the city adopted a 45-day moratorium on Aug. 19 and that state law allows two possible extensions that together can last up to two years.

Stoneage said, “Since adoption of the moratorium, city staff began conducting a comprehensive review of existing massage-related regulations and researching best practices from other Orange County cities. We have also initiated coordination with the sheriff’s department and code enforcement.” She recommended the 10-month, 15-day extension to allow staff time to draft zoning and regulatory standards.

The moratorium, as explained by Stoneage during the public hearing, prevents new massage establishments from obtaining use permits or building permits; it does not force existing businesses to close. “During the moratorium, new massage establishments are currently not permitted to obtain a use permit or building permits, and existing businesses cannot expand. However, businesses already operating may continue and renew their licenses,” Stoneage said.

During public comment, Brian McMillan, a Lake Forest property owner, urged the council not to extend the moratorium and challenged the factual basis staff used to justify it. “There have been no charges, no convictions of prostitution in Lake Forest, period,” McMillan said, arguing the city’s prior statements amounted to “baseless” accusations and warning of potential legal challenges.

Council members asked staff to clarify the moratorium’s scope. One councilmember asked whether the moratorium affected existing businesses; Stoneage replied, “No. It does not. It does not, actually affect personal service businesses at all. This is a moratorium exclusively affecting massage businesses.” Councilmembers also asked how long the study would take and whether the council could end the moratorium sooner than the full 10 months and 15 days; staff said the recommendation was for the longer extension to allow thorough research but that the council could shorten it if it chose.

The council voted to adopt the extension; the clerk announced the motion passed 4-0 with Councilman Doug Serbo absent. City staff said the extension is intended to provide time for legal review, stakeholder outreach, and drafting of proposed zoning and regulatory standards that would address illegal activity associated with some massage operations.

The council also directed staff to prepare the written report required by state law before extending a moratorium and to continue coordination with the Orange County Sheriff’s Department and code enforcement as part of the review.

The extension will remain in effect while staff prepares proposed regulations for future council consideration.