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PAGE 2 OF 5 <br />SUBJECT: A DOPT A RESOLUTION TO ALLOW THE DEVELOPMENT REVIEW <br />COMMITTEE TO APPROVE CERTAIN MODIFICATIONS TO EXISTING <br />CONDITIONAL USE PERMITS FOR RESTAURANTS FOR A PERIOD OF 18 <br />MONTHS AS RECOMMENDED BY THE POLICY COMMITTEE. <br />JUNE 1 4 , 2018 <br /> <br /> <br />S:\COUNCIL REPORTS \2018 \06 -19 -18 \CUP Amendments \Staff Report.FINAL.docx <br />DISCUSSION : <br /> <br />As the commercia l environment continues to evolve, existing businesses are challenged with <br />remaining relevant and competitive while creating in -store experiences for customers that <br />cannot be matched by online shopping platforms. Additionally, sales tax information and <br />industry reports indicate that food uses such as restaurants are a growing sector of the retail <br />environment and often are the destination s that draw customers to an area, wh ere they then <br />patronize surrounding businesses. <br /> <br />Through the work of the Policy Committee, Planning Commission , and Town Council, the Town <br />has taken strides to creat e , modify , and rescind Town policies and Code language to generate <br />opportunities for busines ses to continue to grow in Town , i ncluding the a doption of : a Late <br />Night Entertainment Policy ; an Outdoor Seating Policy; Town Code language permitting <br />business es to offer v alet p arking; a resolution suspending formula retail regulations for 18 <br />months; and an amendment to the Town Code language to allow restaurants to calculate <br />parking requirements and seating capacities separate ly. <br /> <br />In addition, o n April 3, 2018 theATownACouncilAvotedAtoArescindAtheATown’sA lcoholABeverageA <br />P olicy given that the StateAofACalifornia’sA Alcohol Beverage Control (ABC) provides enforcement <br />and over sight of the s tate law and permit requirements for businesses t hat sell and serve <br />alcohol. <br /> <br />The adoption s , amendment s , or rescissions noted above provide a menu of options for new <br />and existing businesses to use to thrive in Los Gatos . Some existing restaurants would need to <br />modify their current CUPs to bring them into alignment with these new options . Staff has met <br />with several downtown businesses over the last year that would like to make minor changes to <br />their CUPs; howev er, the risk of the time and money associated with the current process, <br />coupled with the uncertainty of approval is a deterrent for them to apply. As a result, the Policy <br />Committee is recommending a streamlined, simplified, less expensive, and shorter pat h <br />forward for restaurant uses to modify their existing CUPs. While most businesses currently <br />expressing interest in CUP modifications are located in the C -2 zone/d owntown, the intent is to <br />open this opportunity to restaurants Town -wide. <br /> <br />The CUP modific ations that current Los Gatos restaurants have inquired about include: <br />changing ho urs of operation ; amending language that disallows indoor entertainment before <br />10:00 p.m. and/or outdoor seating ; adding a beer and wine license so that mimosas may be <br />served with brunch or beer and wine may be served with lunch ; switch ing from beer and wine <br />only to full liquor to allow for craft c ocktails ; and other similar requests which are in line with <br />indus try standards for restaurants. For example, b usinesses that may seek to clean -up