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Desk Item.Item # 11 - Referendum 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 10/18/2022 ITEM NO: 11 DESK ITEM DATE: October 18, 2022 TO: Mayor and Town Council FROM: Gabrielle Whelan, Town Attorney SUBJECT: Discuss the Housing Element Process and the Next Steps for the Referendum of the 2040 General Plan Land Use and Community Design Elements, and Provide Direction on the Preferred Approach for the Referendum REMARKS: The following information is provided in response to questions from Council Members since the posting of the staff report, and attachment 1 contains public comments received between 11:01 a.m. Monday October 17, 2022 and 11:00 a.m. Tuesday, October 18, 2022. How different does a new/replacement Land Use Element need to be from the Land Use Element that is the subject of the referendum? Case law addressing this issue provides that the new legislation can’t be “essentially identical” to, or retain all the “essential features” of, the referended legislation. The new legislation needs to be “essentially different.” Courts recommend that public agencies focus on the features that gave rise to the objection to begin with and avoid re-enacting those features. For example, I have located case law discussing referenda of a lease and a franchise (but no cases in the land use context). In both cases, the public agency re-approved the lease and franchise, but with slightly different terms such as the length of the agreements. The court ruled that, when entry into the lease and the franchise was the subject of the referendum, the public agency could not just make slight changes to the terms. What is the remedy in the event that new legislation is “essentially identical” to the referended legislation? The remedy for a referendum proponent would be to seek a writ of mandate to overturn the agency’s approval of the new legislation and to seek a stay against its implementation. Alternatively, the new legislation could be referended. PAGE 2 OF 2 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022 REMARKS (continued): If the Land Use and Community Design Elements are rescinded, will the resolution suspending those two Elements need to be revised? Yes, the Town Council would need to adopt a resolution to either: 1) Provide that the 2020 Land Use and Community Design Elements will remain in effect until revised Elements are adopted; or 2) Adopt revised Elements. ATTACHMENTS: 1. Public Comments ATTACHMENT 1 From: Anne Roley Sent: Monday, October 17, 2022 8:01 PM To: Town Manager <Manager@losgatosca.gov> Subject: RE: 10/18/22 Town Council Meeting - 2040 General Plan EXTERNAL SENDER Los Gatos Town Manager and Town Councilmembers, I encourage you to consider the following items when making decisions for the 2040 General Plan. Only Up Zone the density of land necessary to meet the State Mandated 1,993 homes. Be creative in how you implement housing development without up zoning our residential neighborhoods. Spread development out over the next 20 years. We need a strategic growth plan for the future housing developments in Town, which includes traffic, schools, utilities, police, and fire. Financial consideration is an important element of all plans for development. We need transparency for a balanced budget regarding future growth and development. Uphold the Town's current #1 Land Use Goal "to preserve, promote, and protect the existing small-town character and quality of life within Los Gatos. Keep Our Town a Small Town. Put “small-town” back as a Land Use Goal in the 2040 General Plan With Appreciation, Anne Robinson Roley Los Gatos, CA. 95032 ATTACHMENT 1 From: Bill Kraus Sent: Monday, October 17, 2022 10:36 PM To: Rob Rennie <RRennie@losgatosca.gov>; matthew ; Marico Sayoc <MSayoc@losgatosca.gov>; Town Manager <Manager@losgatosca.gov> Subject: General Plan - Housing In Los Gatos EXTERNAL SENDER Dear Town Manager, Please assure the email reaches the two council members who I do not have addresses for. Dear Mayor, Council, and Town Manager: Our household is against the Town housing element that exceeds the state mandate. Our household is also FOR affordable housing. Those two stands are NOT mutually exclusive. Just increasing the housing stock does not make housing more affordable. Look at cities like New York and Tokyo where housing densities are high and prices are high and neither has the Los Gatos quality of life most residents wish to retain. When housing densities increase in a highly desirable Town like Los Gatos, the prices don't decrease but the quality of life does. By meeting the minimum housing element numbers required by the state, the Town will be compliant and impact the character of the Town no more than necessary. Now those new housing units in the housing element can be properly planned so housing is more affordable for critical workers, others climbing the economic ladder, and under-represented folks that many desire to join our community. How can that be done? One simple approach is as the Town allows more density, then have it come at a cost where the property owner does not get all the increase in value. An example: say the Los Gatos Lodge wants to redevelop as housing and the current zoning allows three stories and 20 units per acre. The Town could have a benefit for the landowner that they could add a story and 33% more density IF 50% of the extra units are added to the deed restricted BMP (Below Market) program. That means the Town would allow 27 units per acre and four stories IF 3.5 units per acre are added to the BMP program. The result is more units for the housing element and more units for the BMP program where those we wish to join our community can find a home. This can be police, fire fighters, teachers, and under- represented folks that can't afford to live in Town but could with the extra units in BMP. Some might say it is too difficult to craft something like this and yes it is not easy to balance property rights, state mandates, and affordable housing but if we don't both manage the growth and maximize the fairness of distribution of new housing, then we will have the worst of sprawl and inequity. So please change our approach to only meet minimum mandates while maximizing the fairness of the distribution of the added units to folks who otherwise could not afford to live here. Thank you, Bill Kraus - Los Gatos resident for 59 years