Code changes wipe out illicit massage businesses in Gresham, city says

GRESHAM, Ore. (KPTV) - It is a citywide crackdown with results — the City of Gresham said changes it made to its code last fall helped wipe out illicit massage businesses.

“Illicit massage businesses are something we all see, and we know is happening out there,” community services manager Jessica Harper said.

She said thankfully, Gresham now has a handle on the issue.

“In October 2025, the city implemented a new code process to require massage businesses to get a specific license for their business that requires an in person inspection,” she said. “It made it really clear what was different when we went into these illicit locations.”

Illicit massage businesses are often used as fronts for commercial sex operations. Not only has the city shut down seven in the last year, Harper said she is not aware of any others.

“It’s exciting to be a part of something that we set out to do to protect legitimate massage businesses and also the community from the illicit activity that was happening,” she said.

Earlier in September, city council strengthened the code even more to deter people from opening illicit massage businesses. Now, former locations are off-limits for new massage business licenses for three years, and anyone involved in an illegal operation can never get one again.

Harper said the city also expanded the code to cover reflexology businesses.

“Reflexology is focused on hands, feet and head massage. Those businesses are not required to have a state massage therapist license,” she said. “It’s sort of a loophole in the illicit business world.”

Some owners of legal massage businesses, like Alta Ulrich, are grateful the city is taking the issue seriously. She owns Hive Recovery Collective.

“I think it’s really important that someone is doing something,” she said.

Ulrich hopes other cities take notice and adopt something similar.

“Ultimately, making sure that people performing massage have the license to do so is going to solve a lot of problems,” she said.

24/7 Properties, a property management company whose signage could be seen on one of the former businesses, sent the following statement to FOX 12: “Since 24/7 Properties took over, that parlor was already shut down. We’ve been actively working to enforce strict compliance with local codes and regulations, and we’re committed to improving the quality of businesses and rentals alike in the Gresham area.”

FOX 12’s investigative team has been digging into illicit massage businesses for months. You can watch our most recent report here.