Downtown San Jose venue faces $50,000 fine, lawsuit over alleged violations

SAN JOSE HAS SLAPPED a $50,000 fine on a late night, downtown establishment over allegations that it has been operating illegally. But the owner said protracted efforts to bring his business into compliance have been thwarted by one bureaucratic roadblock after another.

Freddie Jackson, owner of Kaizen Lounge on East San Fernando Street, said he has been wrangling with the city over permits since November 2024, shortly after the venue first opened. The longtime San Jose entrepreneur said he had been forced into the new location because his previous business was among those displaced by the downtown BART extension. As the permitting process has played out, he has been cited numerous times by city and state authorities for allegedly operating without proper permits — and now faces a lawsuit from the city over the alleged infractions.