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Item No: 2 Meeting Date: Nov 7, 2011 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Review Possibility of Allowing Massage Therapy as a Permitted Home Occupation Introduction: At the City Council’s meeting on October 24, 2011, resident Mary Jo Howell asked the Council whether it would be willing to amend the City Code to be more permissive toward allowance of “massage therapy” as a home based business in Mounds View. The City Council asked staff to schedule a discussion for the Council at the next work session, November 7, 2011. Discussion: Massage Therapy is a licensed business activity in Mounds View. The regulations pertaining to massage therapy can be found in Chapter 514 of the Mounds City Code, originally adopted in 1996 via Ordinance 583. There are many licensing and zoning requirements associated with such a business and they are expressly permitted only in the B2, B3 & B4 commercial business zoning districts. Such a use is not permitted in a residential zone or as a home-based business, as indicated in Section 514.10, Subd. 2, regarding locations ineligible for a therapeutic massage license. This clause reads, “A therapeutic massage enterprise may not be licensed if the location of such enterprise is not in conformance with Title 1100 of the Mounds View Municipal Code.” The City’s intent in limiting such businesses to commercial business districts was to minimize the risk and impact of inappropriate activity occurring. In addition, conducting inspections to verify compliance with all the licensing requirements is inherently more challenging when such activity is conducted in one’s home. Staff requested information from other communities as to their allowance of massage therapy as a home occupation. Ten communities responded that the activity was allowed or permitted, although most required some sort of license or conditional use permit. Five communities, including three neighboring to Mounds View (Fridley, New Brighton and Shoreview) indicated such as activity was NOT allowed. Ms. Howell reported that the City of New Brighton permitted massage therapy in a residential district, which is technically correct, however if the premises is used as a home, then it is NOT permitted. Thus, in New Brighton, it is not a permitted home-based business. Staff asked Police Chief Tom Kinney, who’s experienced first-hand the challenges of investigating and prosecution of illegitimate massage therapy operators, for his thoughts on the request to allow massage therapy as a home-based business. Chief Kinney indicates that, in his opinion, the practice of massage therapy is best conducted in a public commercial business setting so as to avoid illegitimate conduct that may potentially occur behind closed residential doors. The more transparency with this type of business, as with any business for that matter, the less likelihood abuse could occur.