Desk Item.Draft Site Inventory
PREPARED BY: Erin Walters and Jocelyn Shoopman
Associate Planner and Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022 ITEM NO: 23 DESK ITEM
DATE: June 7, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Draft Site Inventory as Recommended by the Housing Element
Advisory Board.
REMARKS:
The following information is provided in response to Council Member questions:
• Provide information on the decision-making process, criteria, and principles for the Draft Site
Inventory.
Town staff identified sites for potential inclusion in the Initial Draft Site Inventory and
provided this information to the Housing Element Advisory Board (HEAB) at their meetings
on April 21, 2022, May 5, 2022, and May 19, 2022. This initial work involved identifying
sites that may have the potential for new residential development within the eight-year
timeframe of the Housing Element planning period. Factors used for site consideration
include, but are not limited to, the Department of Housing and Community Development
(HCD) Housing Element Site Inventory Guidebook, property size, whether the site was
recently developed, environmental constraints to the site, public feedback, and submittal of
a Property Owner Interest Form. Based on the guidance of the HCD Housing Element Site
Inventory Guidebook, the types of sites evaluated for inclusion in the Draft Site Inventory
include:
1. Vacant and non-vacant sites zoned for residential use;
2. Vacant and non-vacant sites zoned for nonresidential use that allow residential
development (mixed-use);
3. Nonresidential sites in the 2040 Draft General Plan Community Place Districts;
4. Projects that have residential planning entitlements and have not received building
permits; and
PAGE 2 OF 5 SUBJECT: Housing Element Draft Site Inventory DATE: June 7, 2022
REMARKS (continued):
5. Sites on which the property owner has expressed or previously expressed interest in
residential or mixed-use redevelopment.
Following HCD review and discussion of policy and program development, the Draft Site
Inventory will be combined with updated policies and programs to create an initial draft
Housing Element for public feedback and HCD review.
• What were the HEAB’s recommendations on the Draft Site Inventory.
On May 19, 2022, the HEAB recommended the sites included in the Tier 1 site list, with the
following three modifications to be included in the Draft Site Inventory:
1. Reduce the number of housing units in the North Forty;
2. Add the site located at 206 Knowles Drive; and
3. Add the California Department of Transportation Right of Way land off of Oka Road.
An update of the Tier 1 site list with these modifications was included as Attachment 1 for
the Town Council’s consideration.
• Clarify the criteria for the sites selected for Tiers 1, 2, and 3 as it is unclear.
Based on the HEAB’s recommendations, staff selected sites for Tier 1 based on the following
criteria:
1. Gross lot area in excess of half an acre;
2. Zoning;
3. Draft General Plan land use designation;
4. Property Owner Interest Form;
5. Previous interest in residential development by the property owner; and
6. Sites included in the current Housing Element.
Staff further distributed the sites recommended by the HEAB into two additional categories,
Tier 2 and Tier 3.
Tier 2 sites have been identified as possible sites to consider adding to Tier 1, if necessary,
and generally fall into one or more of the following categories:
1. Gross lot area in excess of half an acre (majority);
2. Shopping Centers with long term tenants;
3. Churches;
PAGE 3 OF 5 SUBJECT: Housing Element Draft Site Inventory DATE: June 7, 2022
REMARKS (continued):
4. Town Parking Lots;
5. Banks; and
6. Sites less likely to develop housing.
Tier 3 sites have been identified as the least likely for new housing development based on
the following criteria:
1. Gross lot area less than half an acre;
2. Gross lot area greater than 10-acres;
3. Not zoned for residential use; and
4. Sites with active Planning applications for commercial development.
Refinement of the Draft Site Inventory will continue throughout the Housing Element
Update process, in response to additional Property Owner Interest Forms, and feedback
from HCD.
• Why was the density for the North Forty reduced?
On May 19, 2022, the HEAB recommended that the number of units in the North Forty Area
be reduced. A letter was submitted by Eric S. Phillips with Burke, Williams & Sorensen, LLP,
representing Grosvenor USA, requesting the number of units for the North Forty parcels
under Grosvenor ownership be reduced. This letter was included in the Desk Item Report
as Attachment 6 for the HEAB’s May 19, 2022, meeting.
https://www.losgatosca.gov/DocumentCenter/View/30711/Item1Desk-Item-with-
Attachment-6
• Does the Town have projections for the number of units generated by Senate Bill 9?
The Town does not have a projection for the number of units that could be generated by
Senate Bill 9 (SB 9) projects at this time as there is not yet sufficient history to base
projections on, and the Town has not received direction from HCD on alternative acceptable
methods for inclusion in the Housing Element. To date, the Town has received five SB 9
Urban Lot Split Applications and one SB 9 Two-Unit Housing Development Application.
• Why does the Draft Site Inventory exceed the Town’s Regional Housing Needs Allocation
(RHNA) plus the 15 percent buffer?
The table on the following page summarizes the total number of potential housing units
(2,046 units) based on the Draft Site Inventory as recommended by the HEAB. Since the
May 19, 2022, HEAB meeting, the Town received one additional Property Owner Interest
PAGE 4 OF 5 SUBJECT: Housing Element Draft Site Inventory DATE: June 7, 2022
REMARKS (continued):
Form for the property located at 15795 Los Gatos Boulevard. The site had previously been
included in the Tier 2 site list; however, based on the property owner’s interest in a
residential development, the Tier 1 site list and recommended Draft Site Inventory has been
modified to include this site (Attachment 1).
The table above also includes the Town’s average production of Accessory Dwelling Units
(ADUs) over the eight-year planning period for an estimated total of 200 housing units as
well as approximately 202 housing units associated with approved or pending Planning
entitlements. Combined, this results in 2,448 units, exceeding the RHNA (1,993 units) and
the recommended 15 percent buffer (299 units) by 156 units. The Council may choose to
reduce the number of sites included in the Draft Site Inventory to closer align with the
Town’s RHNA allocation and 15 percent buffer.
• Provide an overview of the Housing Element Update process.
The next steps in the Housing Element Update process include the next HEAB meeting on
June 16, 2022, when the HEAB will begin review and discussion of policy and program
development for the initial draft Housing Element. Pending completion of this work, the
initial draft Housing Element will be provided for public and initial HCD review. As part of
the Housing Element Update process, HCD now requires that prior to submittal of a first
draft of the Housing Element to HCD for their review and a comment, a jurisdiction must
make the draft available for public comment for 30 days. Staff anticipates providing HCD
the initial draft Housing Element in late August or mid-September.
• Will zoning changes be required for the sites selected in the Draft Site Inventory?
The site located at 206 Knowles Drive, included in the Winchester Boulevard Area is zoned
Controlled Manufacturing (CM) with a General Plan Land Use designation of High Density
Residential. The Zoning Ordinance does not permit residential uses in the CM zone;
therefore, the Zoning designation would need to be amended to align with the General Plan
Land Use designation. In addition, the North Forty Specific Plan would also need to be
amended to permit additional units in excess of the maximum of 270 units. No other sites
included in the Draft Site Inventory will require amendments to the Zoning designation.
Draft Tier 1
Number of Units
Tier 1 Sites 2,046 units
ADUs 200 units
Pipeline Projects 202 units
Total 2,448 units
PAGE 5 OF 5 SUBJECT: Housing Element Draft Site Inventory DATE: June 7, 2022
REMARKS (continued):
• What is the role of the property owners’ intent in site inclusion?
Pursuant to the HCD Housing Element Site Inventory Guidebook, if the Draft Site Inventory
identifies nonvacant sites to address a portion of the RHNA, the Housing Element must
describe the realistic development potential of each site within the planning period. One
method the Town will utilize to fulfill the requirement of providing substantial evidence of a
site’s likelihood to redevelop, is the Property Owner Interest Form.
• Will the Town’s Housing Element consultant be available for questions?
The Town’s Housing Element Consultant will not be in attendance.
Attachment 6 includes public comment received between 11:01 a.m., Thursday, June 2, 2022,
and 11:00 a.m., Tuesday, June 7, 2022.
ATTACHMENTS:
Previously Received with the June 7, 2022, Staff Report:
1. HEAB Recommended Draft Site Inventory
2. Revised Draft Tier 2 Sites
3. Draft Tier 3 Sites
4. May 19, 2022, Housing Element Advisory Board Staff Report (with Attachments 1-5)
5. May 19, 2022, Housing Element Advisory Board Desk Item Report (with Attachment 6)
Received with this Desk Item Report:
6. Public Comment received between 11:01 a.m., Thursday, June 2, 2022, and 11:00 a.m.,
Tuesday, June 7, 2022
Harmonie Park Development | 221 Bachman Avenue | Los Gatos, CA 95030
June 7, 2022
Mayor Rob Rennie and
Los Gatos Town Council Members Via Email: publiccomment@losgatosca.gov
Town of Los Gatos
110 E. Main St.
Los Gatos, CA 95030
SUBJECT: Public Comment Item #23 - Housing Element Site Inventory
Dear Mayor Rennie and Honorable Town Council Members:
I am writing representing the interests of Grosvenor Americas. As expressed in our counsel’s May 18, 2022, letter to the Housing Element Advisory Board, Grosvenor is very interested in developing as much housing as is feasible on the property it controls within the “North Forty Area,” which is designated as “Site E-1 N40 Phase II” on the Recommended Draft Site Inventory that you will consider at your June 7, 2022 council meeting.
We thank you for including Site E-1 in your “Tier 1 Sites” category for inclusion in the upcoming Housing Element update. We also appreciate that the Housing Element Advisory Board considered our request to reduce the allocation in the Housing Element update to Site E-1 from 390, and we support the current recommended allocation of 200 units for the area. As we have discussed with Staff, we wish to further clarify what maximum density the Town will assign to Site E-1 in the General Plan Land Use Element and the Housing Element. Although the current Recommended Draft Site Inventory shows a density of 13 du/ac, we do not believe it was the intent of Staff to reduce the proposed General Plan 2040 density for Site E-1 to 13 du/ac. Instead, the 13 du/ac figure is simply a mathematical exercise representing the average density across the entire site if 200 units were to develop. We request that the density remain at 20 du/ac or more as originally recommended, which we believe is consistent with Staff’s intended recommendation.
Although we do not think that buildout of more than 200 units is feasible under current market conditions, we remain interested in providing additional housing should conditions change in the future. Designating Site E-1 for at least 20 du/ac will preserve the flexibility to deliver more than 200 units in the future, which would help take development pressure off of other sites in the Town’s Housing Element site inventory. Moreover, to maintain the ability to create 200 units as part of a mixed-use development, it may be necessary to build at or above 20 du/ac on parts of the site, while devoting other parts of the site to commercial uses.
We also note that the Housing Element Advisory Board has recommended that 110 of the 200 units be planned as affordable for very low-, low-, and moderate-income households. The proposed 13 du/ac density would not support an assumption of affordability for lower income households. Under the Government Code’s and HCD’s current default densities appropriate to accommodate lower-income households, a density of 30 du/ac would be necessary to support the Town’s affordability assumptions.
Finally, when the property develops, we fully expect to meet the Town’s generally applicable affordability requirements, and we are open to possibly exceeding them to the extent feasible. Accordingly, we are agreeable to the Town continuing to assume 110 of the units will be affordable to very low-, low-, and
ATTACHMENT 6
PUBLIC COMMENT ITEM 23 - JUNE 7, 2022 TOWN COUNCIL HEARING 2
moderate-income households provided that the overall density level is at least 20 du/ac; however, we do not anticipate developing a project that includes the exact affordability mix shown. Therefore, if the Town elects to keep the affordability mix as shown to help with its current planning obligations, it likely will need to make “no net loss” findings when it takes action to approve residential development on Site E-1. Thank you for your consideration and your efforts to ensure that the Town has a legally compliant and realistic Housing Element, and we look forward to continuing to work with the Town to deliver much needed housing in the coming years. Thank you for your consideration.
Sincerely,
Don Capobres
cc: Steve Buster, Grosvenor Americas
Whitney Christopolous, Grosvenor Americas
Eric Phillips, BWS Law
Jennifer Renk, Sheppard Mullin