Apparently it was related to prostitution and such.
Not entirely sure about the details of the story behind the thing so I am filling the blanks but, apparently, that neighborhood was renowned for being "red-district-y", especially of the gay kind. Cars would come in, pick up whoever, then drive back and away after doing a u-turn.
And since the city couldn't just stop prostitution from taking place, they came up with the "no u-turn" sign instead.
The crime-riddle city in the Golden State has earned a reputation as one of the country's most dangerous and has prompted residents to trigger a recall election against its mayor.
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