Title
Report regarding consideration and approval of application for a Conditional Use Permit to allow a Hookah Lounge and Private Events Permit with a Parking Reduction within an existing 3,875 square foot restaurant space located at 1429 San Mateo Avenue in the Mixed Industrial High (MIH) Zoning District in accordance with the South San Francisco Municipal Code (SSFMC) and determination that the project is categorically exempt per CEQA Class 1 Section 15301, Existing Facilities. (Billy Gross, Principal Planner)
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MOTIONS TO ADOPT STAFF RECOMMENDATIONS:
1. Move to determine the project is exempt from CEQA.
2. Move to approve the Use Permit entitlement, subject to the attached draft Findings and draft Conditions of Approval.
RECOMMENDATION
Recommendation
Staff recommends that the Planning Commission conduct a public hearing and take the following actions:
1. Move to find the Project is categorically exempt under the provisions of the California Environmental Quality Act (CEQA), Class 1, Section 15301, Existing Facilities; and,
2. Move to make findings and approve Project P25-0084, including Conditional Use Permit UP25-0005, subject to the attached draft Findings and draft Conditions of Approval.
Body
BACKGROUND
Existing Site / Code Enforcement History
The properties at 1429-1431 San Mateo Avenue are separate lots but have been tied together since the original buildings were constructed. The existing building on 1429 San Mateo Ave. was constructed in the early-1960s and the existing building on 1431 San Mateo Ave. was constructed as an addition to 1429 San Mateo Ave. in the mid-1960s. The combined building was originally used as a bakery, with the retail/public portion of the business at the front of the 1429 San Mateo Ave. building. The two properties have had separate businesses since at least the early-2000s.
1431 San Mateo Ave. has been occupied by Cresco Equipment Rentals since 2002; the only aspect of the 1431 San Mateo property that is subject to the proposed planning application is the use of parking spaces at the front of the property.
1429 San Mateo Ave. has been occupied by a restaurant use since at least 2004. In keeping with the original layout of the bakery, public seating for the restaurant is located at the front of the building, with the kitchen and accessory restaurant space occupying the front half of the building and storage occupying the rear half.
In March 2022, the City’s Code Enforcement Division issued a Notice of Violation (NOV) to the previous business owners of 1429 San Mateo Ave. for the use of hookah within the building. During inspections, Code Enforcement Officers also discovered that the rear storage area had been converted into a banquet hall, without permits. The City notified the previous business that a “Hookah Lounge” use required approval of a Conditional Use Permit, and that the rear area could only be used as storage space until the necessary building improvements were completed, with the required permits. The hookah paraphernalia was removed, and the Code Enforcement Case was closed in April 2022.
In September 2024, Code Enforcement issued a new NOV related to the reappearance of hookah within the business, the construction of an unpermitted enclosure for outdoor seating in the front parking lot, and other miscellaneous unpermitted building improvements within the building. The business recently changed ownership when the current applicant purchased the business in 2025, and has been working with City staff to bring the property into compliance.
Tobacco Retailer Ordinance History
In May 2025, the City Council amended the South San Francisco Municipal Code (SSFMC) to adopt by reference Chapter 4.98 of the San Mateo County Ordinance Code (SMCOC), “Tobacco Retailer Permit”. SMCOC Chapter 4.98 specifically prohibits any person or tobacco retailer from selling or offering to sell any flavored tobacco product or tobacco product flavor enhancer.
In June 2025, the Planning Commission reviewed, discussed and recommended approval of proposed amendments to the Zoning Ordinance for the purpose of ensuring internal consistency and to streamline enforcement of tobacco regulations. One of the Zoning Ordinance amendments was the removal of “Hookah Bar/Smoking Lounge” use classification. In August 2025, the City Council adopted the proposed amendments. As part of Council’s final action to approve the amendment, they included a provision that if an application for a Conditional Use Permit for a “Hookah Bar / Smoking Lounge” was submitted to the Planning Division prior to the date of the City Council action, the Zoning Ordinance Amendment to remove “Hookah Bar / Smoking Lounge” as a conditionally permitted use would not apply to the application. The current business owner submitted a use permit application on August 21, 2025, prior to the City Council’s action, thus this application was able to proceed even though “Hookah Bar / Smoking Lounge” is no longer a permitted use. If approved, this would be the only use of this type located within South San Francisco.
PROJECT DESCRIPTION
1429 San Mateo Avenue Business Overview
In conjunction with the 2024 NOV the applicant team has obtained building permits to correct previous unpermitted construction inside the existing building. Per the building permit plans, the existing dining area in the front of the building is approximately 500 square feet, while the new banquet area in the rear of the building is approximately 2,000 square feet. The remaining 1,375 square feet encompasses the kitchen, storage and service areas. The applicant has also removed the unpermitted outdoor seating enclosure.
Based on the submitted statement of operations (Attachment 3), the proposed use would consist of two basic uses: a full-service restaurant in the front dining area, with hours of operation from 11:00 A.M. to 11:00 P.M., and a hookah bar in the rear banquet area, with hours of operation from 5:00 P.M. to 12:00 A.M. Sunday through Thursday and 5:00 P.M to 1:30 A.M Friday and Saturday. Ancillary entertainment activities, such as DJs and live bands, may be offered within the hookah bar / banquet area. The banquet area would also be available to rent for private events such as birthday parties, weddings and similar activities.
MUNICIPAL CODE CONSISTENCY ANALYSIS
Restaurant / Hookah Bar Uses
Municipal Code Consistency
The project site is located in the Mixed Industrial High (MIH) Zoning District. Per SSFMC Table 20.100.002 (Use Regulations - Non-Residential Zoning Districts) that was in effect when the Conditional Use Permit was submitted in August 2025, Restaurant, Full Service uses are permitted, while Hookah Bar/ Smoking Lounge uses are allowed subject to approval of a Conditional Use Permit.
As stated above in the Tobacco Retailer Ordinance History section, SMCOC Chapter 4.98, adopted by reference by the City, prohibits any person or tobacco retailer within San Mateo County from selling or offering any flavored tobacco product or tobacco product flavor enhancer. The County Ordinance does not prohibit non-nicotine, non-tobacco flavored product from being offered. Based on this, the proposed Hookah Bar use would be in compliance with both City and County ordinances by only providing non-nicotine, non-tobacco flavored product. The proposed Conditions of Approval for this Use Permit include the following general requirements that would be applicable to the Hookah Bar use:
- Hookah products can only be non-nicotine, non-tobacco
- Hookah advertising must specify that all hookah products are non-nicotine / non-tobacco
- No one under the age of 21 is allowed within the banquet area during hookah service hours; signage in keeping with this requirement must be installed at all entrances to the banquet area
- Failure to comply with the hookah use conditions of approval could result in Use Permit revocation
Parking Requirements
The project site is located within a Transit Station Area, as the site is located within a half-mile of a transit corridor with a fixed route bus service. Per SSFMC Section 20.330.004 (Required Parking Spaces), and in accordance with California Assembly Bill 2097, no off-street parking is required for any use located within a Transit Station Area. Therefore, the expanded Restaurant, Full Service and Hookah Bar/Smoking Lounge do not require parking.
Proposed Private / Special Events
Municipal Code Consistency
One-time private or special events are primarily regulated under SSFMC Title 6, Chapter 6.48 (Special Event Permits). This chapter regulates two general event types; “Private event” refers to birthday parties, weddings or similar activities held in a rented/leased venue, and “Special event” refers to events that include entertainment, concerts or performances open to the public. The applicant is proposing live entertainment during operation of the hookah bar, which could be considered a special event, and proposing renting the banquet area for private events during evenings and weekends.
Permitting requirements for private / special events are primarily dependent on the number of attendees; events attended by seventy-four or fewer people do not need an event permit, while events with seventy-five or more people are required to submit an event permit application for each separate event (30 days in advance of the event date for private events and 60 days in advance of the event for special events).
SSFMC Subsection 6.48.040 (Exemptions from Event Permit Requirements) allows an exemption from the typical event permitting requirements for a commercial recreation use or eating and drinking establishment operating with a use permit to regularly provide such events. The applicant has applied for a use permit to enable regularly scheduled private / special events. In keeping with this allowance, the Conditions of Approval for this Use Permit include requirements that would be applicable to any private/special event held at the subject property, including:
- Reduced advance notification timeline for events (from 30/60 days to 15 days)
- Allowed event hours of operation (Sunday through Thursday, 6:00 P.M. to 12:00 A.M., and Friday and Saturday, 11:00 A.M. to 1:30 A.M.)
- Requirement for on-site security personnel
- Alcohol service must cease at least one hour prior to event conclusion
- Live entertainment restrictions
Parking Requirements
Private/special events would be held within the expanded banquet area; per the building permit plans, the maximum occupancy of the banquet area is approximately 133 people. At that level of occupancy, a private event would be comparable to a Community Assembly use, which typically requires a Parking Management and Monitoring Study to assist in determining the parking requirement. Prior to the adoption of the current Zoning Ordinance, the previous 2010 Zoning Ordinance required one parking space per 28 square feet of assembly area where movable seats are provided; this standard would result in a parking requirement of 71 spaces for the banquet area. Staff notes that this standard assumes a higher density of seating than most other jurisdictions; a more moderate density standard of one parking space per 50 square feet would result in a parking requirement of 40 spaces for the use of the banquet area for a private event.
The businesses at 1429-1431 San Mateo Ave. share the ten existing parking spaces located at the front of the property, accessed from San Mateo Ave. The 1431 San Mateo Ave. tenant, Cresco Equipment Rentals, operates during typical daytime business hours, closing at 5:00 P.M. on weekdays (and does not operate on the weekends). All ten shared spaces would be available to the 1429 San Mateo use after 5:00 PM on weekdays, and at all hours on weekends. The applicant will also enter into a shared parking agreement with the adjacent property at 1423 San Mateo Ave. to provide fourteen additional off-street parking spaces during evening hours. Together, this would result in a total of 24 off-street parking spaces within proximity to the project site.
In addition to off-street parking, there are approximately 100 on-street parking spaces on San Mateo Ave and Lowrie Ave within a one-quarter mile walk of the subject property. Existing light industrial and service uses in the area typically have normal daytime business hours of operation (early morning to early evening on weekdays and closed on weekends). This is illustrated by the availability of on-street parking during a 24-hour period; vacant on-street parking on San Mateo Ave. is very difficult to find on weekdays between the hours of 8:00 A.M. to 6:00 P.M. and then becomes easy to find during evenings and weekends. On-street parking surveys completed by the applicant present this data, displaying the number of occupied on-street spaces on the west side of San Mateo Ave. each hour (see Attachment 4); staff site visits during the evening and weekends confirmed the survey results.
SSFMC Subsection 20.330.005 (Location of Required Parking) allows off-site parking facilities as part of an Alternative Parking Plan, subject to approval of a Conditional Use Permit. SSFMC Subsection 20.330.006 (Parking Reductions) also allows required parking to be reduced through approval of a Conditional Use Permit if specific criteria can be met, including special conditions related to the nature of the proposed operation and parking demand not exceeding the capacity of on-street parking.
The proposed hours of operations of the Hookah Lounge and private events are during evenings and weekends, the opposite of surrounding industrial and service uses in the area. This allows the applicant to use both off-site parking facilities at neighboring properties (via shared parking agreements) and on-street parking to provide over 100 parking spaces within one-quarter mile of the project site. Staff is of the opinion that this is adequate to meet the parking needs of a maximum-occupancy private event and recommends approval of a Conditional Use Permit for an Alternative Parking Plan with off-site parking facilities and for a Parking Reduction for Private / Special Events.
GENERAL PLAN CONSISTENCY
The General Plan designates the subject site as Mixed Industrial High (MIH) within the Lindenville Sub-Area and Lindenville Specific Plan, and the Hookah Bar/ Smoking Lounge use is consistent with the Specific Plan policy that residents, employees and visitors have many options to fulfill their everyday needs in Lindenville, including shopping, dining and enjoying open spaces.
ENVIRONMENTAL REVIEW
The proposed project has been determined to be categorically exempt under the provisions of the California Environmental Quality Act (CEQA), Class 1, Section 15301, Existing Facilities because the project consists of interior modifications only to an existing commercial tenant space located in an existing commercial building to allow for a restaurant and hookah bar. Therefore, no further environmental analysis is required.
CONCLUSION
The project proposes expanding an existing under-utilized restaurant to also allow a hookah bar and private events, both which can be approved at this location subject to use permit approval. The hookah lounge will comply with City and County regulations by only serving non-nicotine, non-tobacco flavored products to patrons 21 years of age or older. Private events can be accommodated at this site due to differing hours of operation from the surrounding neighborhood and adequate parking within a one-quarter mile radius. The recommended Conditions of Approval will ensure proper management of private events and hookah service and help mitigate any negative impacts to the surrounding industrial neighborhood. Six- and twelve-month reviews of the Use Permit are also recommended to confirm compliance with the use permit terms.
Therefore, staff recommends that the Planning Commission take the following actions:
1. Make a determination that the project is categorically exempt under the provisions of the California Environmental Quality Act (CEQA), Class 1, Section 15301, Existing Facilities; and,
2. Approve Planning Project P25-0084, including Conditional Use Permit UP25-0005, subject to the attached draft Findings and draft Conditions of Approval.
Attachments
1. Findings and Conditions of Approval
2. Project Plans (Excerpt from Building Permit Plans for Tenant Improvements)
3. Statement of Operations
4. On-Street Parking Occupancy Survey