CITY OF GRESHAM CRACKS DOWN ON ILLICIT MASSAGE BUSINESSES - 09/23/26
GRESHAM, Ore.— Since implementing a massage business license code in October 2025, the City of Gresham has closed seven illicit massage businesses (IMBs) that were operating in the community.
The City identified and closed these businesses by creating a more detailed application process for massage businesses, including an in-person application and a thorough inspection of each business site. This work is a collaborative effort between the City's code compliance and business license teams as well as crime analysts from the Gresham Police Department.
"I want to thank City staff for listening to the massage community and working so quickly to respond to our concerns," said local massage therapy business owner Alta Ulrich. "Gresham has found itself becoming a leader in this work."
Through this work, the City identified several key factors commonly associated with illicit massage businesses; red flags often found in human trafficking cases. These include business that:
- Have living spaces on site.
- Employ unlicensed massage therapists.
- Are open late hours.
- Have surveillance cameras, window coverings and locked front entries.
- Have phone numbers included in results for online searches of illicit services.
The City of Gresham is sharing all information gathered during illicit massage business cases, including the names of individuals involved, with the Oregon Department of Justice's Organized Crime Unit. The unit focuses on connections between IMBs and organized crime and will use this information to hold anyone connected with IMBs criminally responsible for their actions.
“There is no question this work is making a tremendous difference in our community,” said Gresham City Council President Cathy Keathley. “That success reflects both the exceptional, timely work of City staff and a strong partnership with our legitimate massage businesses."
The work has not happened in a vacuum. Throughout the creation of the code and subsequent enforcement, City staff have worked closely with legitimate massage business owners in Gresham to ensure the code updates allow them to continue operating and promoting their businesses without interruption.
"Strong enforcement against illicit massage businesses and protecting legitimate professionals do not have competing goals," said Ulrich. "The progress that we have made gives us confidence that we can keep doing this work together.”
On Sept. 1, 2026, Gresham City Council approved amendments to the massage business license code to close loopholes and strengthen enforcement while continuing to support legitimate massage businesses in the community. These updates include preventing confirmed IMB operators from future massage business licensure and including reflexology businesses in the City’s massage business license requirements.
"These business owners put their trust in the City to protect their interests while working alongside us to create a safer community," said Keathley. "This is a great example of what we can accomplish when the City and our business community work together toward a shared goal.”
Read the full City of Gresham Massage Business License Code here.
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About Gresham:
Gresham is a vibrant and growing city where tradition blends seamlessly with innovation and opportunity. As Oregon's fourth-largest city, our community is built on a foundation of hard work, deep roots in agriculture, and a shared commitment to creating a thriving future. Discover more about what makes Gresham special by visiting GreshamOregon.gov.