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Item 05 - 114 Royce St, Ste. A - Staff Report & Exhibits 1-4TOWN OF LOS GATOS ITEM NO: 5 PLANNING COMMISSION STAFF REPORT Meeting Date: December 14 , 2016 PREPARED BY : APPLICATION NO: LOCATION: APPUCANT/ CONTACT P ERSON: PROP ERTY OWNER: J e nnifer Anner, Associate Planner jarmer@ los gatosca.gov Co nditional Use Pennit Application U-16-006 114 Royce Street, Suite A (center of block b etween N. Santa Cru z a nd Uni vers ity A venues) Genevieve Locquiao Royce St. Mx, LLC APPLICATION SUMMARY: Requesting approval for an indoor children's play space with ancillary retail o n property zoned C-2. APN 529-04-026. RECOMMENDATION: PROJECT DATA : CEQA: DEEMED COMPLETE: October 26 , 20 16 FINAL DATE TO TAKE ACTION: Apri l 26, 20 17 Approval, subj ect to conditions. G eneral Plan Designation: Zoning Designation : Centra l Bus in ess Di strict Central Bus iness Di s tri ct Co mmer c ia l, C-2 Applicable Plans & Standards: General Plan P arce l Size: 5,805 square feet Surrounding Area: Existin g La nd Use General Plan No rth Commercial Central Business Di strict East Publi c Parking Lot Central Business Di strict South Commercial Central Business District W est Commercial Central Business Di stri c t Zoning C-2 C-2 C-2 C-2 The proj ect is Categorica ll y Exempt purs ua nt to the a d opted Guidelines for the Imple m entati o n of th e California Quality Act, Section 1530 I : Existing Faci liti es. No significant effect on the environm ent will occur si n ce the project u ses an existing s tructure with no increase in fl oor area. Planning Commission Staff Report -Page 2 114 Royce Street, Suite A /U-16-006 December 14 , 2016 FINDfNGS: ACTION: EXHIBITS: BACKGROUND: • As required, pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, this project is Categorically Exempt, Section 15301: Existing Facilities . • As required by Section IV.B of the Redevelopment Plan for the Central Los Gatos Redevelopment Project that it meets the u se set forth in the Town 's Redevelopment Plan. • As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit. The decision of the Planning Commission is final unless appealed within ten days . 1. Location Map 2. Findings 3. Recommended Conditions of Approval (two pages) 4. Business Description/Letter of Justification, recei ved October 5, 2016 (three pages) The proposed project would occupy a commercial space that was previously occupied by We 've Got Your Back but has been vacant for one and a half years. The business owner has recently occupied the space as a children's retail store, but would like to pursue the business model described in this Conditional Use Permit (CUP) application. The subject space is one of seven ground floor commercial suites in the existing building. The existing building also has one second- story residential unit. Two of the current businesses in the building occupy more than one suite. The existing building is built up to the property lines and has no onsite parking, but the parcel has 18 s paces in the parking assessment district. PROJECT DESCRIPTION: A. Conditional Use Permit The applicant is requesting approval to operate an indoor children's play space (Mon Amie Harlow). The maximum hours of operation would be l 0 :00 a.m. to 8:00 p .m . seven days a week. The applicant provided a description of the business/letter of justification (Exhibit 4) describing the proposal, including a proposed layout for the commercial space. Staff has determined that the proposed business falls under the commercial recreation use listed in the Table of Conditional Uses (Town Code Sec. 29 .20.185), which is allowed with a CUP in the C-2 zone. Planning Commission Staff Report -Page 3 114 Royce Street, Suite A /U-16-006 December 14 , 2016 When reviewing a CUP , the deciding body should consider the information in the applicant's business plan ; howev er, the key consideration should be the explicit proposed use since the busines s plan can change from owner to owner. The explicit use may be, and is often, defined in the recommended conditions of approval as a "use" condition. The CUP runs with the land, and the deciding body should review applications based on the explicit use as opposed to the applicant or the applicant's business plan. B. Location and Surrounding Neighborhood The project site is located on the north side of Royce Street in the center of the block between N . Santa Cruz and University A venues (Exhibit 1 ). Commercial uses and public parking border the property on all sides. C. Zoning Compliance The zoning designation allows commercial recreation and amusement establishments, subject to the approval of a CUP. ANALYSIS: A. Project Summary The project would occupy a 1,387-square foot commercial space (Suite A) within an existing commercial building for an indoor children 's play space (Mon Amie Harlow). The business is described to be like an indoor park. Much like a public park there would be a play area for children and the opportunity to reserve the space for parties on weekends. The users would come and go throughout the day and there would be a requirement that a parent or guardian be present at all times to supervise the children and keep them safe. The applicant is proposing a maximum of 20 children and associated parents/guardians, and three employees at any one time. The applicant provided a description of the business/letter of justification (Exhibit 4) describing the proposal, including a proposed layout for the commercial space. The applicant is proposing to operate during the following hours: Monday -Sunday I 10 :00 a.m. -8:00 p.m. I The project would not result in an increase of average daily trips (ADT) or peak hour trips over the previous retail space, as the use would be considered specialty retail by the Trip Generation Manual. The applicant has described their business as similar to other businesses in the region, specifically Play Los Altos . Planning Commission Staff Report -Page 4 114 Royce Street, Suite NU-16-006 December 14 , 2016 B. Parking The mixed-use building has 18 parking spaces in the parking assessment di s trict. The building is currently nonconforming as to parking when calculated for existing uses for all s uites . It should be noted that parking for residential uses was not required to be provided when the parking assessment dis trict was formed. Suite Business Use Square Feet Parking Parking -Rate A Proposed Commercial 1,387 11300 4 .62 Proiect Recreation/Retail B/F OSpa Personal Service 1,424 11300 4 .75 c Len's Barber Personal Service 242 1/300 0.81 Shop D I E Family Tree Professional 935 11250 3.74 Wellness Office G Comic Book Retail 629 1/300 2.10 H Residential Reside ntial 1,026 1.5 + 2.50 (upstairs) Apartment 1 guest Total 5,643 18.51 Sections 29.10.207 and 29.10.150 of the Town Code state that commercial uses that are nonconforming as to parking s hall provide parking to the maximum extent possible g iven existing physical constraints on the property and shall not intensify the use. The existing building s ize and location prevent s any additional onsite parking, the proposed commercial use is subject to the downtown retail parking requirement (1 s pace per 300 square feet), and is not proposing to add any additional area. As described in the project summary above, the project will have variable attenda nce with no specified s tart or end times and no drop-off is allowed. C . Conditional Use Permit Findings In order t o grant approval of a Conditional Use Permit, the deciding bo dy must m ake the fo llowing findings: 1 . The proposed use of the property is essential or desirable to the public convenience or welfare; and 2. The proposed use would not impair the integrity and character of the zone; and 3. The proposed use would not be detrimental to public health, safety o r general welfare; and Planning Commission Staff Report -Page 5 114 Royce Street, Suite NU-16-006 December 14 , 20 16 4. The proposed use of the property is in harmony with the various e lements or objectives of the General Plan and the purposes of the Town Code. In regards to the fir st finding, th e proposed use is de sirable to the public convenience because it provides an entertainment space for yo un g children thereby increasing the diversity of uses in the downtown. As required by finding two, the proposed use would not impair the integrity of the zo ne, in that the proposed use is a commercial use and would be located in a commercial zone. In regard s to the third finding, the proposed use wo u ld not be detrimental to public h ealth , safety or general wel fare, a nd the conditions regarding the operating hours, number of chi ldren, and employees placed on the permit would maintain the welfare of the community. In regards to the final finding, the proposed use is in harmony with the General Plan and Town Code . D. General Plan The goals a nd polici es of the 2020 General Plan applicable to thi s project include but are not limited to: • Policy LU-2. I -Minimize vehicl e miles traveled for goods an d services by allow ing and e ncouragin g stores that provide these goods within walking distance of neighborhoods in Los Gatos. • Policy LU-9.2 -Maintain a variet y of commer cial uses, including a strong Downtown commercial area combined with Los Gatos Boul evard and strong neighborhood commercial centers to meet the shopping needs of residents and preserve the small -town atmosphere. • Pol icy LU-9.6 -Encou rage development that maintains and expands resident-oriented services and/or creates employment opportuniti es for local residents consistent with overall land use policies of the Town. E. Environmental Review T he project is Categoricall y Exempt pursuant to the adopted Guidelines for th e Impl ementation of Californi a Environmental Quality Act, Section 15301: Existing Faci lities. No significant effect o n the environme nt will occur s ince th e project uses an existing structure with no increase in floor area. PUBLIC COMMENTS: At this time , the Town has not received an y pub li c comment. Planning Commission Staff Report -Page 6 114 Royce Street, Suite A/U-16-006 December 14 , 2016 SUMMARY AND RECOMMENDATION: A. Summary Staff has recommended conditions of approval regarding the maximum number of children, employees, and operating hours. The proposed use would not be an intensification of use in regards to parking. The proposed use would close by 8:00 p.m . each day. The proposed use is in conformance with the Town Code and is consistent with the General Plan. B . Recommendation Staff recommends approval of the SUP based on the summary above. If the Planning Commission finds merit with the proposed project, it should: 1. Make the required findings pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, that this project is Categorically Exempt, Section 1530 I Existing Facilities (Exhibit 2); and 2. Make the required findings as required by Section 29.20 .190 of the Town Code for granting approval of a Conditional Use Permit (Exhibit 2); and 3. Approve Conditional Use Permit application U-16-006 with the conditions contained in Exhibit 3. If the Commi ssion has concerns with the proposed use, it can: 1. Approve the application with additional and/or modified conditions of approval ; or 2. Continue the application with direction to a specific hearing date; or 3. Deny the application. pproved by: Joel Paulson, AICP Associate Planner Community Development Director JP:JA:cg cc: Genevieve Locquiao, 6407 Nepo Ct, San Jose, CA 95119 Royce St MX, LLC, 1777 Saratoga Ave, Suite 209 , San Jose , CA 951 2 9 N :\DEV\PC REPO RTS\2 0 16\Royce St 114-A 12-14-16 [CUP].docx 114 Royce Street .EXHIBIT 1 This Page Intentionally Left Blank PLANNING COMMISSION -December 14, 2016 REQUIRED FINDINGS FOR: 114 Royce Street. Suite A Conditional Use Permit U-16-006 Requesting approval of a Conditional Use Permit for an indoor children's pla y space with ancillary retail on property zoned C-2. APN : 529-04-026. PROPERTY OWN ER: Royce St. Mx, LLC APPLICANT: Genevieve Locquiao FINDINGS Required finding for CEQA: • The project i s Categorically Exempt pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town . No significant effect on the environment will occur since the project uses an exi sting structure with no increase in floor area . Required finding for the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area: • That th e proposed project i s consistent with the Redevelopment Plan for the Central Lo s Gato s Redevelopment Project Area (Sect ion IV .B) in th at the subject property i s de signated commercial and the propo sed use falls under commercial u ses. Required findings for a Conditional Use Permit: • As required by Section 29 .20.190 of the Town Code for granting a Conditional Use Permit: The deciding body, on th e ba sis of the evidence submitted at the hea rin g, may grant a conditional use permit when specifically authorized by the provi sion s of the Town Code if it finds that : (1) The propose d use is desirable to the public convenience becau se it provides an entertainment space for young children thereby increasing the diversi ty of u ses in the downtown; and (2) The propose d use would not impair the integrity of the zone, in that the propose d u se is a commercial use and would be located in a commercial zone; and (3) The propose d use would not be detrimental to public health, safety or general welfare, and the conditions regarding the operating hours, number of children , and employee s placed on the permit would maintain the welfare of the community; and (4) The propose d use is in harmony with the General Plan and Town Code . N:\DEV\FI N DINGS\2016\Royce 114A.d ocx EXHIBIT 2 This Page Intentionally Left Blank PLANNING COMMISSION -December 14, 2016 CONDITIONS OF APPROVAL 114 Royce Street. Suite A Conditional Use Permit U-16-006 Requesting approval of a Conditional Use Permit for an indoor children's play space with ancillary retail on property zoned C-2 . APN: 529-04-026. PROPERTY OWNER: Royce St. Mx, LLC APPLICANT: Genevieve Locquiao TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL : This application shall be completed in accordance with all of the conditions of approval and in substantial compliance with the approved plans. Any changes or modifications to the approved plans shall be approved by the Community Development Director, DRC or the Planning Commission depending on the scope of the changes. 2. EXPIRATION: The approval will expire two years from the approval date pursuant to Section 29 .20.320 of the Town Code, unless the approval has been vested . 3. LAPSE FOR DISCONTINUANCE: If the activity for which the Conditional Use Permit has been granted is discontinued for a period of one (1) year, the approval lapses pursuant to Section 29.20.340 of the Zoning Ordinance . 4. USE: The approved use is for commercial recreation for children . 5. HOURS OF OPERATION: Maximum hours of operation are 10:00 a .m. to 8 :00 p .m . 6 . NUMBER OF CHILDREN : Maximum number of patrons is limited to twenty (20) children and associated parents/guardians. A parent or guardian will be present at all times to supervise children, no drop-off will be allowed . 7. NUMBER OF STAFF : Maximum number of staff is three (3). 8. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy must be obtained prior to commencement of use. 9. BUSINESS LICENSE: A business license is required from the Town of Los Gatos Finance Department prior to commencement of use. 10. SIGN PERMIT : A Sign Permit from the Los Gatos Community Development Department must be obtained prior to any changes to existing signs or installation of new signs . 11. TOWN INDEMNITY: Applicants are notified that Town Code Section 1 .10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval , and may be secured to the satisfaction of the Town Attorney. 12. COMPLIANCE MEMEMORANDUM: A memorandum, in compliance with standard Town practice, shall be prepared and submitted with the building permit detailing how the conditions of approval will be addres sed. EXHIBIT 3 Building Division 13. PERMITS REQUIRED : A Building Permit will be required for any alterations that may be required as a result of the change in occupancy to children's day care and to document compliance with all the current accessibility requirements for this type of occupancy per California Building Code Section 118-202.3 Alterations (change in occupancy). This is a combination Permit that includes all required electrical, mechanical, and plumbing work as necessary. 14. CONDITIONS OF APPROVAL: The Conditions of Approval must be printed in full on the cover sheet of the plans . A compliance Memorandum shall be prepared and submitted with the Building Permit Application detailing how the Conditions of Approval will be addressed. 15. PLANS: Four sets of plans, size 24' x 36". Please provide, at a minimum, an accurate Floor Plan of the facility to scale and dimensioned showing the complete layout existing and Proposed . Please show all door sizes, the restroom layout and dimensions, and ind icate a Clear 36 inch aisle width between play areas as well as between fixtures. 16. ADVISORY COMMENTS for CHANGE OF OCCUPANCY : A Change of Occupancy is considered an Alteration per Chapter llB of the California Building Code and as interpreted by the Office of the State Architect, Accessibility Division. In addition to all new work complying with the Code for accessibility, when existing buildings are altered or a change of occupancy occurs they must be made accessible to persons with physical disabilities in accordance with the CBC Section 118-202 Accessibility for Existing Buildings and Facilities. Existing accessibility features and/or elements required to be accessible in order of priority Include: (a) Accessible main entrance with required signage and door hardware; (b) Accessible path of travel throughout the facility; (c) Accessible restrooms. 17. CERTIFICATE OF OCCUPANCY: A Certificate of Occupancy shall be issued where it has been determined that the requirements for the new occupancy classification have been met. 18. APPROVALS REQUIRED : the project requires the following departments and agencies approval before issuing a Building Permit. a. Community Development -Planning Division: Jennifer Armer at (408) 399-5706 b . Santa Clara County Fire Department : (408) 378-4010 TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS : Engineering Division 19. GENERAL : The Applicant's representative in charge shall be at the job site during all working hours. 20. APPROVAL : This application shall be completed in accordance with all ofthe conditions of approval and in substantial compliance with the latest reviewed and approved development plans . Any changes or modifications to the approved plans or conditions of approvals shall be approved by the Town Engineer. N :\DEV\CONDITIONS\2016\Royce 114A.docx ( October 5 , 2016 Community Development Department 110 E Main St Los Gatos, CA 95030 REce nveo nrr o 5 20 16 TOWN OF LOS GAT PLA NNI NG 01v1s1o~s Re: Proposal for Conditional Use Permit C-2 relating to the property located at 114 Royce St., Suite A, Los Gatos, CA 95030 Dear Planning Commission , I am writing to request a Conditional Use Permit C-2 (the "CUP") relating to 114 Royce St., Suite A , Los Gatos (the "Property") to allow for the operation of a children's indoor play space with a small retail component , Mon Amie Harlow. The purpose of the 1387 sq ft space will be to provide a safe, clean and fun environment for physically active children aged 6 and under to play in and explore . It will feature a playful and modern vintage market, theater, reading nook, among other age appropriate toys, as well as include a retail area located at the front of the store. Attachment A shows the proposed layout of the property. We would like to accommodate up to 20 children in our business at any given time. We will provide stroller parking as we anticipate many of our customers will walk to our site. Hours of Operation: • Open to the public from 1 Oam-8pm Monday through Friday • Weekends : We will offer reservation times for private party celebrations, otherwise th e property will be open to the public from 1 Oam-8pm Security Procedures : • Staff will check-in and check-out each parent and child • A sat ety gate will be put in place to control the flow of traffic • Parents will be required to remain onsite and supervise their children to ensure safety during the duration of their stay. In and out privileges will not be allowed • 24-hour security cameras will be enforced Categorization and Parking: We see ourselves as a "service based business with a retail componenf'. Town staff has informed us that there is no parking requirement for this type of use, but that we may be required to meet the parking requirement for "group classes", however, we do not see our business model as that of a "group class". Much like other service based retail businesses - with hours of operation rather than set start and stop class times -our business base will fluctuate throughout the day, so there should be no parking requirement tor our business. Why Los Gatos, CA: EXHIBIT 4 Los Gatos is the perfect location for us . While still in the heart of beautiful downtown, this spac e will be a perfect fit for a playspace given that it has very little foot traffic for a standalone retail. We selected the Royce Street location because of the synergy between shopping , dining and cafe type surroundings. My business will complement the downtown area as there are services and retail for the 6 and under age group, but no other busin e ss that offers a safe , fun space to play and explore. We are confident with this location choice as this concept has proven to be successful at similar neighboring communities such as, Los Altos and Saratoga. The property has been vacant for over 1.5 years due to the difficulty of it being zoned for retail. Converting the property into a kid -friendly establishment will not only increase the downtown vibrancy but also soc ialization within the community. We look forward to your cons ideration. Sincerely, G~Owner Mon Amie Harlow 114 Royce St., Suite A Los Gatos, CA 95030 408.597.7971 Attachment A s torage res troom ~ ( tra ins ) m ( buildfng ) I!! ro blodts CJ) c +:I ro m seatillg area f safety gat e This Page Intentionally Left Blank