Staff Report.4 New York Ave Grant Agreement
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Attorney, Director of Parks and Public Works, and Interim 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: 10/04/2022 ITEM NO: 12
DATE: September 28, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Granting 4 New York Avenue to the Los Gatos-Saratoga
Union High School District and Authorize the Town Manager to Negotiate and
Execute the 4 New York Avenue Grant Agreement and All Documents Needed
to Complete the Transaction in a Form Acceptable to the Town Attorney
RECOMMENDATION:
Adopt a Resolution (Attachment 1) granting 4 New York Avenue to the Los Gatos-Saratoga
Union High School District and authorize the Town Manager to negotiate and execute the 4
New York Avenue Grant Agreement in substantially the form presented and all documents
needed to complete the transaction in a form acceptable to the Town Attorney.
BACKGROUND:
To date, the Town has pursued a property strategy which focuses on finding long-term
solutions for the disposition of Town-owned properties either through pursuit of public
purpose/benefit, monetization, or a hybrid of both. Following are property dispositions
approved by the Town Council to date:
• October 2018 entered into an Exclusive Negotiating Agreement with Sarah Chaffin for
the siting and development of affordable (teacher) housing at 20 Dittos Lane – Public
Purpose
• March 2019 entered into an Exclusive Negotiating Agreement with Imwalle Asset
Management for 4 Tait Avenue and Forbes Mill - Monetization/Public Purpose
• May 2019 sale of 148000 Winchester Blvd to Santa Clara County Fire District (“County
Fire”) for $1.9 million – Monetization/Public Purpose
PAGE 2 OF 3 SUBJECT: Grant Agreement for 4 New York Avenue DATE: September 29, 2022
BACKGROUND (continued):
• April 2020 sale of 14850 Winchester Blvd to Santa Clara County Fire District (“County
Fire”) for $1.2 million – Monetization/Public Purpose
On September 13, 2016, the Town Council declared 4 New York Avenue as surplus property and
directed staff to pursue disposition options (Attachment 2). Given that the Town is transferring
the property to the School District, a State agency, for the agency’s use, the transfer is exempt
from noticing requirements of the State Surplus Lands Act. On October 16, 2018, the Town
Council asked staff to reengage in direct negotiations with the Los Gatos-Saratoga Union High
School District (LGSUHSD) due to the synergies associated with the High School being the
dominant land use in the area.
DISCUSSION:
Over the years the Town and LGSUHSD (“Parties”) have discussed multiple scenarios for the
High School to obtain ownership of 4 New York Avenue. Beginning in 2021, property
disposition discussions between the Parties began coalescing around ways LGSUHSD could
significantly collaborate on enhancing traffic management around the High School and other
opportunities for public benefit.
On June 15, 2021, the Town Council reviewed a proposal from LGSUHSD for the transfer of the
Venue property and some interior campus streets to the school district. In response to the
proposal Council provided LGSUHSD with the core elements required of LGSUHSD for
acceptance of their offer. On February 4, 2022, the Town Manager received a response from
LGSUHSD to the Council’s core elements of a property transfer agreement (Exhibit A to
Attachment 3).
As referenced in the Grant Agreement (Attachment 3), in exchange for the granting of 4 New
York Avenue the District agrees to the following material commitments:
A. Convening a working group to address parking and traffic issues in the vicinity of
the High School;
B. Expanding existing parking and improve ingress/egress/student drop off at the
pinch point of New York Avenue and Pleasant Street to address traffic and
parking issues;
C. Allowing future ingress/egress from the property on which the Los Gatos Lodge
is currently located;
D. Retaining KCAT at the property known as “the Venue” with multi-generational
programming for community benefit;
E. Continuing LGHS as a community resource with the community continuing to
have appropriate access to the open spaces on campus;
PAGE 3 OF 3 SUBJECT: Grant Agreement for 4 New York Avenue DATE: September 29, 2022
DISCUSSION (continued):
F. Working toward amending the District’s Master Plan to show access at the
property line shared with the property currently occupied by the Los Gatos
Lodge;
G. Developing design for bicycle/pedestrian access at the property line shared with
the property currently occupied by the Los Gatos Lodge; and
H. Cooperating with Town to grant necessary public utility easements and
emergency vehicle access easements on portions of streets on the High School
campus proposed for vacation by the Town.
In addition to the granting of 4 New York Avenue, the Parties have agreed to the Town vacating
New York Avenue from the western terminus (Venue) to the western lot line of 116 New York
Avenue and Chicago Avenue. Staff will return to Council with a Summary Vacation Resolution
once all the appropriate public utility easements and emergency vehicle access easements have
been established.
CONCLUSION:
Successful completion of these transaction will result in significant community benefit through
enhanced traffic management and the resumption of community programming at 4 New York
Avenue.
COORDINATION:
This staff report has been coordinated with the Town Manager, Town Attorney, Parks and
Public Works Department, and Finance Department.
FISCAL IMPACT:
None.
ENVIRONMENTAL ASSESSMENT:
In accordance with CEQA Guidelines Section 15312, this transfer of surplus government
property is categorically exempt from CEQA.
Attachments:
1. Resolution Granting 4 New York Avenue
2. 2016 Resolution Declaring 4 New York Avenue Surplus
3. Draft Grant Agreement with Exhibit A - Property Description and Exhibit B - LGSUHSD
Proposal