16 Addendum - Automobile Dealerships Study SessionCOUNCIL AGENDA REPORT
DATE: April 14, 2006
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION EXPRESSING SUPPORT FOR
AUTOMOBILE DEALERSHIPS AND DIRECTION ON ACTION ITEMS
FROM THE AUTOMOBILE DEALERSHIPS STUDY SESSION
MEETING DATE: 4/17/06
OTHER BUSINESS '
ADDENDUM
REMARKS:
The attached letters (Attachments 8 and 9) were received after the report on this matter was
finalized.
Attachments:
1-7. Previously Submitted
8. Letter from Matteoni, O'Laughlin and Hechtman, received April 14, 2006
9. Letter from Gayle Countryman Jones, received April 14, 2006
Distribution:
John Moore, Moore GMC Truck, Pontiac, Buick, 15500 Los Gatos Blvd, Los Gatos, CA 95032
Ron Battistella, Los Gatos Auto Mall, 620 Blossom Hill Rd, Los Gatos, CA 95032
Marc Chase, Bentley of Silicon Valley, 66 E. Main St, Los Gatos, CA 95032
Bruce Swanson, Swanson Ford, 16005 Los Gatos Blvd, Los Gatos, CA 95032
Mark Maxwell, Los Gatos Acura, 16151 Los Gatos Blvd, Los Gatos, CA 95032
David Spencer, Los Gatos Chevrolet, 15600 Los Gatos Blvd, Los Gatos, CA 95032
David Moeller, South Bay Honda, 16213 Los Gatos Blvd, Los Gatos, CA 95032
Russ Hill, United Auto Group, Inc., 16151 Los Gatos Blvd, Los Gatos, CA 95032
Gayle C. Jones, Trustee, 2272 Channel Rd, Newport Beach, CA 92661
Thomas Moore, PO Box 223179, Carmel, CA 93922
James S. & Paula K. McHugh, Trustee, 16150 Kennedy Rd, Los Gatos, CA 95032
Elizabeth K. Dodson, 15585 Los Gatos Blvd, Los Gatos, CA 95032
Robert Swanson Family Partnership LP, 16005 Los Gatos Blvd, Los Gatos, CA 95032
Nancy Roberts Bowen, 16300 Ridgecrest, Monte Sereno, CA 95030
Russell V. Roessler, Trustee, 99 Almaden Blvd, Ste 300, San Jose, CA 95113
Grant R. Bishop, Trustee, PO Box 125, Los Gatos, CA 95031
N:1DEVIRANDY\Town Council\AUTO DEALERSHIPSILGAUTODLR RPT 041706Addendum.wpd
PREPARED BY: BUD N. LO NTZ
DIRECTOR OF COMMUNITY DEVELOPMENT
Reviewed by: ,�J� Assistant Town Manager Or/ Attorney Clerk Finance
Community Development Revised: 4/14/06 4:04 pm
Reformatted: 5/30/02
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Matteoni
Q'Laughlin
OtHechtrnan
5. AWYER 5
RECEIVED
APR 1 4 2006
r YOR & TOWN COTUNCr
(408) 293-4300
(408) 293-4004 fax
TO:
FROM:
RE:
DATE:
MEMORANDUM
Town Clerk
Norm Matteoni
April 17, 2005 Town Council Agenda; Item 16 re Auto Dealership Sites
April 14, 2006
Dear Town Clerk
Please place the attached correspondence before the Council for its April 17th meeting and
provide a copy to the Town Manager, Planner and Attorney.
Thank you.
ATTACHMENT 8
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4-14-06;12:4OPM
rti I\ 1Z Le_ouu 1J• 1CJ I I\VI I•
Matteoni
Q'Laughlin
Hechtman
AWYER
Orman E. Matteoni
Peggy M. O'Laughlin
Bradley M. Matteoni
Barton G. Ilerhtman
Gerry Houlihan
8
848 The Alameda
San Jose, CA 95126
ph. 408.293.4300
nt.) fax.408.293.4(104
.•� �A www.malteoni.com
April 14, 2006
FACSIMILE AND REGULAR MAIL
Mayor and Members of the Council
Town of Los Gatos
P. O. Box 949
Los Gatos, CA 95031
Re: Possible Town Actions Concerning Auto Dealership Sites
Dear Mayor and Town Council:
I have reviewed the Council Agenda report for Item 16 on
the April 17 Council meeting. As you know, 1 represent Swanson Ford.
I offer these preliminary considerations and I will be
attending the meeting.
First, we do not oppose the planned development (PD)
requirement to change the land use of an auto dealership site; but,
Swanson has a developer in hand who is ready who is ready to proceed
with a PD Zoning application. Thus, the timing of amending the Town
zoning code should not affect anyone who comes forward with a PD
application.
Second, there are problems with the fiscal impact analysis
requirement. The report indicates (and I have heard Council members
say) that land use will not be decided by revenue generation, but this
proposed, requirement singles out auto dealers. Furthermore, there are
no guidelines to determine what the fiscal impact is measuring. Is it
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Mayor and Members of Town Council of Los Gatos
April 14, 2006
Page 2
simply to be a measurement of prospective sales tax revenues from some new commercial
operation versus the last operative sales tax revenues from an auto dealer?
Third, you need to make a distinction in defining auto dealership sites.
Former sites in Town carry the zoning designation of "highway commercial" and are not
restricted to auto dealerships. Is staff proposing new restrictions for existing dealers?
Fourth, the Swanson developer, Peter Pau, has raised the possibility of
entering into a development agreement. This purpose was to assure the Town of a
minimum amount of sales tax revenue from his proposed development. Town Staff
projects four to six months to prepare and adopt an ordinance to implement a development
agreement. This time line should not in any way delay the application on the Swanson
parcel. The process can be simultaneous with any application for PD zoning. Moreover,
there are several cities in the immediate area that have adopted such ordinances, which
can serve as a model. The implementing ordinance is not complicated. My recollection
is that the City of San Jose adopted its ordinance in the late 1980s, which was prompted
by Hewlett-Packard sale of a North San Jose campus that had not been built out to Ford
Aerospace. When Ford Aerospace sought a development agreement, the City was able
to put in place an ordinance to permit this in 30 to 45 days and built the development
agreement into the modification of the PD zoning process for Ford Aerospace.
The Council needs to take a very practical approach here. Recognize, at
least for my client, that the auto dealership no longer exists and there is an active
development application that will proceed by PD and that is about to be filed`.
NORMAN E. MATTEONI
NEM:jm
cc: Robert Swanson
April 14, 2006
GAYLE COUNTRYMAN JONES
16111Viewfield Rd.,Monte Sereno, CA 95030
408-832-3882
Mayor and Members of the Council
Town of Los Gatos
PR .1 4 700
6
TOWN OF LOS GATOS
CLERK DEPARTMENT
i_�
Seventy years ago on February 29, 1936, my Dad, James Countryman opened his doors to the
dream of a lifetime to him, a car dealership. Oldsmobile had granted him a franchise in a little
town called Los Gatos, a place he dearly loved and where he had grown up. Later he was to
add Cadillac.
Dad always told me the story of how, on the day he opened his doors, he had $50 left in his
pocket. He pumped gas out front, sold cars inside, and married my mother who became the office
manager. And Off they went as the American dream. They survived through wars, high interest
rates, recessions, gas rationing, etc. Through all the years, we fondly called the dealership "The
Garage."
Now 70 years later a new family has moved to Los Gatos to occupy the facility that eventually
was built by my parents in 1964 at 15600 and 15650 Los Gatos Blvd on the corner of Los Gatos
Almaden Rd. The Spencer family, Dave Spencer, his son Chris and daughter Kelly now own and
run the dealership business with a Chevrolet franchise and a lot of car experience. They even
named the business Los Gatos Chevrolet which I am sure made you happy along with me. I own
the property and I am their landlord.
It is my greatest hope that the Spencer family will feel very welcomed in Los Gatos and
successful. l hope all of you will find the time to visit our dealership and meet the members
of this delightful family that are building their future around this dealership and Los Gatos.
l like the words, " We want our car dealerships to succeed." I encourage you to put your minds to
thinking about how you can help facilitate success, how you can govern with encouragement,
how you can support dealers trying to improve their facilities, how as a community we can coexist
better. And in so doing, please, please abandon this list of resolutions for they are only
detrimental to your very own goals of having more dealerships and successful dealerships, They
will discourage not encourage business improvement and involvement in Los Gatos.
Yes, There are only five dealerships left. However, they are good ones. And if we want to
encourage existing businesses and have new ones come, or vacant ones to be filled, I
recommend that you find, in your analysisthe following:
1) the conclusion that you have all the controls you need to govern the existing
dealerships and to provide for all the supervision and power necessary to facilitate new,
acceptable, attractive development of existing dealerships and vacated, or closed
dealership properties.
2) the conclusion that we cannot live in the past. We must step into the "Now" and look
to what we are going to do to succeed in the 21 8t century with vision, flexibility and
creativity. Additionally, recognize Los Gatos needs to build a positive image to the
business world if it wants businesses to stay here and come here.
3) the conclusion that to benefit Los Gatos and its future, you should choose OPTION
ONE! And only OPTION ONE! — A NO ACTION VOTE!
ATTACHMENT 9
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•
Thank you for your time and consideration on this matter.
Most sincerely,
Gaylj ountryman Jones
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