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Ord 2118 - Urgency Interim Ordinance extending moratorium on personal service businsses located on the ground floor in the C2 Central Business District Commercial ZoneORDINANCE 2118 AN URGENCY INTERIM ORDINANCE EXTENDING MORATORIUM ON PERSONAL SERVICE BUSINESSES LOCATED ON THE GROUND FLOOR IN THE C2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE. WHEREAS, Government Code § 65858 allows a legislative body, without following the procedures otherwise required prior to the adoption of a zoning ordinance, to adopt, as a urgency measure, an interim ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan, or zoning proposal which the legislative body, planning commission or planning department is intending to study within a reasonable time; and WHEREAS, the zoning provisions of the Los Gatos Town Code does not provide a definition of "Personal Service Business" nor does it contain adequate procedures for investigating and addressing the impacts of a new Personal Service Businesses in the central business district; and WHEREAS, applications have been received by the Town for approval of two new Personal Service Businesses in the central business district, and inquiries have been made of Town staff in anticipation of a third such application; and WHEREAS, concerns have been raised in the community regarding potential detrimental impacts of additional Personal Service Businesses in the central business district, including but not limited to, location, parking, traffic circulation, and land use mix; and WHEREAS, concerns have also been expressed that decisions regarding applications for new Personal Service Businesses should consider the importance of a balanced mix of land uses throughout the central business district; and WHEREAS, the Town does ' not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of businesses located therein or the trend of applications for types of businesses, including Personal Service Page 1 of 5 Businesses; and WHEREAS, absent comprehensive regulations and a current analysis of the central business district, the Town is unable to ensure informed, consistent, uniform and fair decisions on applications for new Personal Service Businesses in the central business district; and WHEREAS, the Town Council has directed the Town Department of Community Development to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district; and WHEREAS, approval of applications for new Personal Service Businesses during the time Town staff is studying the business environment and the value of imposing regulations on such businesses in the central business district could result in conflicts with any regulations that might ultimately be adopted, and WHEREAS, since September 2, 2003 when the moratorium on personal service businesses was established, staff began a survey of other city regulations and prepared a work plan for developing personal service regulations. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: 1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning applications for permits for Personal Service Businesses located on the ground floor in the C -2 central business district commercial zone received by the Town after August 29, 2003, or has executed a lease by or before August 29, 2003 for locations which Personal Service Businesses would operate, shall be approved by the Town. 2. Findings a. The Town of Los Gatos has long been recognized as 'having a unique downtown business environment with an unusual mix of business that distinguishes it from other retail areas and has contributed to its long time and financial success. Page 2 of 5 b. The Town's General Plan contains numerous goals, policies and implementing strategies intended to preserve its unique retail environment. For example, the land use designation CBD for central business district (2.4.2) is described as "[encouraging] a mixture of community- oriented commercial goods, services and lodging, that is unique in its accommodation of small town style merchants and the maintenance of a small town feel and character." Elsewhere, concerning the historic downtown area, is a goal to maintain mixture of goods and services, identity, environment and commercial viability (LG.6.2) and a policy to "[e]ncourage the development and retention of small business and locally -owned stores and shops that are consistent with small town character and scale." (L.P.6.2) C. The Town does not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of businesses located therein, or the trend of applications for types of businesses, including Personal Service Businesses. d. While the precise number of Personal Service Businesses in the central business district has yet to be determined, an initial review of Town business license information indicates that in calendar year 2001 approximately 35 locations in the central business district were used for Personal Services Business, that the number increased slightly to 37 locations in calendar year 2002, and that thus far in calendar year 2003 the number has increased to approximately 40 locations. These include hair salons, barber shops, nail salons and day spas. e. A nationwide economic recession has reduced demand for many retail goods resulting in retail business failures and increasing retail space vacancies in the central business district. f. Within the 30 to 60 day period preceding this ordinance, applications have been received by the Town seeking permits for two new Personal Service Businesses in the central business district and inquiries have been made of Town staff in anticipation of a third such application. Page 3 of 5 g. While the total number of Personal Service Businesses may vary upon completion of a more detailed survey, the preliminary information referred to herein, coupled with the pending and anticipated applications for more such businesses, suggests the existence of a large and rapidly increasing number of businesses in the central business district specializing in hair, nails and skin care and a trend of vacant retail spaces converting to personal service uses. h. An increase in the existing number of Personal Service Businesses in the central business district potentially threatens the Town's unique downtown retail environment in a number of ways, including, but not limited to, an over concentration of Personal Service Businesses that can take over existing retail spaces, may reduce the attractiveness of the central business district to retail consumers and to new retail businesses alike, and ultimately may limit the ability of the central business district to successfully compete with other business districts in the region. L For the reasons stated herein, the issuance of building or zoning permits for new Personal Service Businesses located on the ground floor in the central business district commercial zone during the term of this Interim Ordinance poses a current and immediate threat to public health, safety and welfare. j. The Town Department of Community Development has been directed to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district. k. Approval of applications for building or zoning permits for Personal Service Businesses may be in conflict with the regulations to be analyzed and adopted by the Town and would undermine the purpose of studying such regulation, thereby reducing the quality of life within the community to the extent the overall public health, safety and welfare are detrimentally affected. Page 4 of 5 3. Term This Interim Ordinance shall expire August 1, 2004, unless extended by Town Council pursuant to Government Code § 65858. 4 Report At least 10 days prior to expiration of this Interim Ordinance, the Town Council shall issue a written report pursuant to Government Code § 65858 (d) describing the measures taken to alleviate the conditions which have led to the adoption of this Interim Ordinance. 5. Severability If any part of this Interim Ordinance is held to be invalid or inapplicable to any situation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Interim Ordinance or the applicability of this Interim Ordinance to other situations. 6. Posting Within 15 days after its passage, the Town Clerk shall cause this Interim Ordinance to be published once in a newspaper of general circulation published and circulated in the Town and posted in at least three public places within the Town. This Interim Ordinance was passed and adopted at a regular meeting of the Town Council of the Town of Los Gatos on October 6, 2003, and adopted by at least a four - fifths (4/5) vote of the Town Council as follows: COUNCIL MEMBERS: AYES: Steve Glickman, Joe Pirzynski, Mike Wasserman, Sandy Decker. NAYS: Diane McNutt ABSENT: None ABSTAIN: None / SIGNED: c MAYO�AOF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GA S LOS GATOS, CALIFORNIA Page 5 of 5