Staff Report Econ Recovery Reso
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: 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: 05/02/2023 ITEM NO: 10
DATE: April 27, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Rescind and Replace the Town’s Economic Recovery Resolution 2022-066
with Draft Economic Recovery Resolution (Attachment 1) to Continue to
Support the Town’s Economic Recovery Efforts, Including the Completion of
the Construction and Implementation of the Semi-Permanent Parklet
Program, and to Allow Time for the Planning Commission and Town Council
to Consider Implementing Amendments to the Town Code that Reflect the
Streamlining Efforts of the Resolution.
RECOMMENDATION:
Rescind and replace the Town’s Economic Recovery Resolution 2022-066 with Draft Economic
Recovery Resolution (Attachment 1) to continue to support the Town’s economic recovery
efforts, including the completion of the construction and implementation of the semi-
permanent parklet program, and to allow time for the Planning Commission and Town Council
to consider implementing amendments to the Town Code that reflect the streamlining efforts
of the Resolution.
BACKGROUND:
The Town Council remains proactive, adaptive, and flexible in its efforts and actions to support
the business community through the dynamic economic recovery environment created by the
COVID-19 pandemic. The Council has been steadfast in its support of the Town’s business
community, while delicately balancing competing interests and continuing to consider
additional options to provide available assistance.
One key element of continued economic recovery support is the currently adopted Economic
Recovery Resolution, Resolution 2022-066, which provides flexibility and additional
opportunities for businesses to adapt to the dynamic environment.
PAGE 2 OF 4 SUBJECT: Approve an Extension to the Economic Recovery Resolution DATE: April 27, 2023
BACKGROUND (continued):
Some of the ongoing opportunities of note in the Resolution include: Town-subsidized business
permits; the ability for private commercial properties to flex their space for outdoor dining and
other business opportunities; the subsidized semi-permanent parklet program with grant
funding allocated by the Town Council using American Rescue Plan Act (ARPA) funds;
streamlined opportunities that reduce cost and timelines for businesses to locate, relocate,
bifurcate, and evolve within the Town; and time extensions on the expiration of permits.
At the direction of the Town Council, these efforts and initiatives have provided many
businesses with new options and flexibility to pivot during some of the most trying economic
times. In addition, the Town Council adopted updated Strategic Priorities in January 2023,
which continue to prioritize Economic and Community Vitality efforts including business
process and permit streamlining.
The Economic Recovery Resolution was first adopted on May 26, 2020, then extended on three
subsequent occasions with the current, Resolution 2022-066, sunsetting on June 30, 2023. As
the Town Council continues to acknowledge the successful support and process streamlining
the Resolution provides the Town’s business community, staff is recommending another
extension to the Resolution (Attachment 1), until October 31, 2023.
DISCUSSION:
Since the semi-permanent parklet program and grant funding structure were adopted on April
20, 2021, Town staff has been working continuously with stakeholders to implement the semi-
permanent parklet program. This project originally set a completion date of December 31,
2022, requiring all parklets to be fully built with final inspection approval, and the required
paperwork filed for grant payment. Given the disruption in supply chains, increased costs of
labor and materials, and most notably, the severe winter storms of December 2022 through
April of 2023, parklet project timelines have been extended and many put completely on hold
and the stakeholders were unable to move forward with completing the parklet build-outs.
Thus, staff is recommending additional time for the stakeholders to complete the work, and
submit their documents for grant funding. The Town Council previously allocated the funds for
the semi-permanent parklet program using existing Downtown Revitalization Funds and ARPA
funding. The time extension will not increase the amount needed to fund the program.
The chart below offers a snapshot of general phases in the parklet design and construction
process, with the column on the right noting the number of semi-permanent parklets currently
in that phase.
PAGE 3 OF 4 SUBJECT: Approve an Extension to the Economic Recovery Resolution DATE: April 27, 2023
DISCUSSION (continued):
PARKLET PHASES # OF
PARKLETS
Parklet complete, full grant issued 20
Parklet complete, awaiting grant documents or grant payment in process 5
Parklet in construction 1
Parklet building permit issued and agreements executed 10*
Parklet in design, building permit review, or agreement processing phase 0
* Of these ten businesses, three have indicated they no longer plan to build a parklet; and six
businesses will be combining efforts to construct three large parklets, internally divided.
In addition to completing the construction phase of the semi-permanent parklet program, staff
has been working to evaluate the economic vitality opportunities and flexibility provided by the
Economic Recovery Resolution since its original adoption in June of 2020, and craft proposed
Town Code amendments that enhance, support, and extend this streamlining. It is not
anticipated that this work could be completed by the sunset date of Resolution 2022-066. For
this reason, staff is recommending an extension of the temporary streamline options to remain
consistent for businesses until a time in which the proposed amendments may be fully
discussed and vetted by both the Planning Commission and Town Council.
In consideration of the need for this extension, staff recognizes that the local, state, and federal
emergency orders regarding the COVID-19 pandemic have all been rescinded, thus the
proposed draft Economic Recovery Resolution does not cite these documents and recognizes
that while the emergency orders are no longer in place, the lasting effects of the pandemic still
exist as challenges for the Town’s business community. An extension of the streamlining efforts
offers additional support to the Town’s business retention and attraction efforts.
CONCLUSION:
Town staff recommends that the Town Council rescind Resolution 2022-066 and adopt the
attached draft Economic Recovery Resolution to allow additional time for the completion of the
construction and implementation of the semi-permanent parklet program and allow time for
the Planning Commission and Town Council to consider implementing amendments to the
Town Code that reflect the streamlining efforts of the Resolution. The Planning Commission
began their discussion and recommendations to the Town Council on April 26, 2023 and Town
Council is tentatively scheduled to discuss the Commission’s recommendations at its June 20,
2023 meeting.
PAGE 4 OF 4 SUBJECT: Approve an Extension to the Economic Recovery Resolution DATE: April 27, 2023
COORDINATION:
The preparation of this report was coordinated with the Community Development Department
and Town Attorney’s office.
FISCAL IMPACT:
Funding for the Economic Recovery efforts supported by the Economic Recovery Resolution
have been previously allocated by the Town Council.
ENVIRONMENTAL ASSESSMENT:
The program extended by this resolution is statutorily and categorically exempt from CEQA as
outlined in the resolution.
Attachment:
1. Draft Economic Recovery Resolution