Attachment 2 - Draft Town Code Amendments Tracked Changes1 of 14
Ordinance August 1, 2023
ORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 29, “ZONING REGULATIONS,” OF THE TOWN CODE
REGARDING LAND USE AND ECONOMIC RECOVERY AMENDMENTS RELATED TO PERSONAL
SERVICE BUSINESSES, BARS, TAP/TASTING ROOMS, SPECIALTY FOOD RETAIL, BANKS,
FINANCIAL AND INVESTMENT SERVICES, OFFICE ACTIVITIES, FORMULA RETAIL, GROUP
CLASSES, VETERINARIANS, AND DEFINITIONS.
WHEREAS, pursuant to the Town’s police power, as granted broadly under Article XI,
Section 7 of the California Constitution, the Town Council has the authority to enact and
enforce ordinances and regulations for the public peace, morals, and welfare of the Town and
its residents; and
WHEREAS, due to the severe economic impacts of the COVID-19 Pandemic and its
economic impacts that followed including supply chain disruptions and inflation causing
hardship on the community and the Town organization, the Town Council deemed it necessary
to take additional action to suspend enforcement of certain provisions of the Town of Los Gatos
Town Code and provided temporary process streamlining measures to facilitate the retention
and attraction of Los Gatos businesses, reduce economic impacts, foster recovery, encourage
economic vitality, and reduce commercial vacancies; and
WHEREAS, on June 3, 2020, in response to the COVID-19 Pandemic, the Town of Los
Gatos adopted Economic Recovery Resolution 2020-022, which was intended to provide
economic relief to businesses experiencing economic uncertainty during the COVID-19
emergency orders. Resolution 2020-022 has since been extended and expanded by Resolutions
2021-002, 2021-051, 2022-066, and current Resolution 2023-027 with a sunset date of October
31, 2023; and
WHEREAS, while the emergency orders for the recent COVID-19 Pandemic have been
lifted, the ongoing effects of the Pandemic, harsh winter storms, and inflation and supply chain
issues have created difficult and negative impacts on the Los Gatos business community; and
WHEREAS, the Town Council for the Town of Los Gatos continues to prioritize economic
recovery through increased flexibility and opportunity; business permit streamlining; and
economic and community vitality; and
WHEREAS, the Town of Los Gatos Town Council has an adopted strategic priority related
to Economic Vitality and Pandemic Recovery, which prioritizes: economic recovery through
increased flexibility and opportunity; business permit streamlining; and economic and
community vitality; and
ATTACHMENT 2
Draft Ordinance: subject to
modification by Town Council based
on deliberations and direction
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Ordinance August 1, 2023
WHEREAS, in consideration of the recent termination of Federal, State, and local
emergency orders, and the sunset date of the current Economic Recover Resolution
approaching, staff prepared amendments to the Town Code to continue the Town Council’s
pre-Pandemic streamlining efforts and to offer post-Pandemic economic recovery support for
businesses consistent with the Town Council Strategic Priorities; and
WHEREAS, on April 26, 2023, the Planning Commission reviewed and commented on
the proposed amendments regarding land use and economic recovery and forwarded a
recommendation to the Town Council for approval of the proposed amendments with
modifications; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law
and came before the Town Council for public hearing on June 20, 2023; and
WHEREAS, on June 20, 2023, the Town Council reviewed and commented on the
proposed amendments regarding land use and economic recovery and the Town Council voted
to introduce the Ordinance with specific modifications.
WHEREAS, this matter was regularly noticed in conformance with State and Town law
and came before the Town Council for public hearing on August 1, 2023.
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as
follows:
SECTION I. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” is amended
to add the following between the definitions of “Automobile wrecking” and “Bar” to read as
follows with underlining (underlining) indicating new text:
Bank, retail means commercial and non-profit banks and credit unions, which are
primarily focused on in-person customer services such as: cash deposits/withdrawals, loans,
checking and savings accounts, currency exchanges, mortgages, personal loans, and debit or
credit card services. This classification does not include payday lending businesses or check
cashing businesses. The term "payday lending business" as used herein means retail businesses
owned or operated by a "licensee" as that term is defined in California Financial Code Section
23001(d), as amended from time to time. The term “check cashing business” as used herein
means a retail business owned or operated by a “check casher” as that term is defined in
California Civil Code Section 1789.31 as amended from time to time.
SECTION II. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” is amended
to add the following between the definitions of “Fence height” and “Home occupation” to read
as follows with underlining (underlining) indicating new text:
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Ordinance August 1, 2023
Financial and investment services means businesses that offer financial advice and
services, including but not limited to: investment banking, portfolio management, private
equity, and venture capital.
SECTION III. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” is amended
to add the following between the definitions of “Occupancy” and “Open space” to read as
follows with underlining (underlining) indicating new text:
Office activities means office uses, including but not limited to: administrative;
professional; medical; dental; optical; real estate; insurance; financial and investment services;
venture capital; technology incubator facilities; biotechnology incubator facilities, including dry-
lab facilities where testing and analyses is performed using data, coding, and computer systems
and excluding wet-lab facilities where testing and analyses are performed using physical
samples, biological matter, chemicals, and/or hazardous substances; and other similar office
uses characterized by an absence of retail sales.
SECTION IV. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” is amended
to add the following between the definitions of “Shopping center” and “Stables” to read as
follows with underlining (underlining) indicating new text:
Specialty food retail means businesses that are primarily walk-in and impulse businesses
that do not generally serve meals, but offer pre-packaged/pre-prepared foods and/or made-to-
order beverages and have limited to no seating. Examples include but are not limited to: tea
houses, donut shops, juice/smoothie bars, and ice cream/frozen yogurt shops. Specialty food
retail does not include coffee houses.
SECTION V. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” is amended
to add the following between the definitions of “Swimming pools” and “Townhouse” to read as
follows with underlining (underlining) indicating new text:
Tap/tasting room means an establishment operating within the hours of 10:00 a.m. and
10:00 p.m. devoted to the sampling and sale of alcoholic beverages for on- and/or off-site
consumption. Food service is not required.
SECTION VI. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” definitions
of “Formula retail business” is amended to read as follows with underlining (underlining)
indicating new text and strikeouts (strikeouts) indicating deleted text:
Formula retail business means a retail business which, along with seven (7) eleven (11)
or more other business locations, is required by contractual or other arrangement to maintain
any of the following: standardized merchandise, services, decor, uniforms, architecture, colors,
signs or other similar features.
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SECTION VII. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” definitions
of “Bar,” “Convenience market,” and “Personal service” are amended to read as follows with
underlining (underlining) indicating new text and strikeouts (strikeouts) indicating deleted text:
Bar means a drinking place operating within the hours of 6:00 a.m. and 2:00 a.m. where
alcoholic beverages and snacks are served for on-site consumption.; possibly with
entertainment such as music, television screens, video games or pool tables. Food service is
not required.
Convenience market means an activity that includes the retail sale of food, beverages,
and small personal convenience items, primarily for off-premises consumption and typically
found in establishments with long or late hours of operation and in a relatively small building;
but excluding delicatessens and other specialty food shops retail and also excluding
establishments which have a sizeable assortment of fresh fruits and vegetables and fresh-cut
meat.
Personal service business means uses that predominately sell personal convenience
services directly to the public, including but not limited to,: acupressure, barbers, beauty salons
and related services, cosmetologists, electrolysis, estheticians, facial and/or skin care, hair
dressers and/or hair stylists, hair removal and/or replacement, manicurists, massage therapists,
myofascial therapists, nail salons, pedicurists, permanent make-up, rolfers (therapists), skin and
body care, piercing, spas, tanning salons, tattooing, cleaners, dog grooming, tailors, and other
services of a similar nature. Personal service business does not include travel agencies,
insurance offices, law offices, architect offices, or any other type of office use.
SECTION VIII. Subsection (b) of Section 29.10.150, “Number of Off-Street Spaces Required,” of
Chapter 29, “Zoning Regulations,” is amended to read as follows with underlining (underlining)
indicating new text and strikeouts (strikeouts) indicating deleted text:
(b) Parking requirements for downtown. In addition to other parking requirements, one
visitor parking space for each residential unit other than detached single-family or two-
family dwelling shall be required unless the Planning Commission makes a finding that
more or less visitor parking is necessary due to the size or type of housing unit(s). The
parking requirement for various uses in the downtown are as follows:
(1) Retail and commercial stores shops, personal service businesses, specialty food
retail, restaurants, bars, taverns and nightclubs, and tap/tasting rooms. One (1)
parking space for each three hundred (300) square feet of gross floor area.
(2) Business and professional offices, retail banks, financial institutions and
investment services, insurance companies, social service agencies and studios.
One (1) parking space for each two hundred fifty (250) square feet of gross floor
area.
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SECTION IX. Subsections (c)(9) and (10) of Section 29.10.150, “Number of Off-Street Spaces
Required,” of Chapter 29, “Zoning Regulations,” is amended to read as follows with underlining
(underlining) indicating new text and strikeouts (strikeouts) indicating deleted text:
(9) Retail and commercial stores shops, personal service businesses, specialty food
retail, restaurants, bars, taverns and nightclubs, and tap/tasting rooms. One (1)
parking space for each two hundred thirty-five (235) square feet of gross floor
area.
(10) Business and professional offices, retail banks, financial institutions and
investment services, insurance companies, social service agencies and studios.
One (1) parking space for each two hundred thirty-five (235) square feet of gross
floor area.
SECTION X. Subsection (1) of Section 29.20.185, “Table of Conditional Uses,” of Chapter 29,
“Zoning Regulations,” is amended to read as follows with underlining (underlining) indicating
new text and strikeouts (strikeouts) indicating deleted text:
TABLE OF CONDITIONAL
USES
RC HR R1 RD R-M R-1D RMH O C-1 C-2 CH LM CM
(1) Commercial
a. Banks, retail X X X
b. Savings and loan
office Reserved
X X X
c. Drive-up window
for any business
X X X
d. Supermarket X X X
e. Super drugstore X X X
f. Department store X X X
g. Shopping center X X X
h. Motel X X
i. Hotel X X
j. Restaurant
including those
with outdoor dining
areas or takeout
food
X X X X X
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k. Establishment
selling alcoholic
beverages for
consumption on
premises
1. In conjunction
with a
restaurant or
specialty food
retail use
X X X X
2. Without food
service (bar)
X
3. Tap/tasting
room
X X X X
l. Establishment
selling alcoholic
beverages for
consumption off-
premises (this
provision only
applies to
establishments
commencing or
expanding off-
premises sales after
April 23, 1981)
X X X
1. In conjunction
with a
specialty food
retail use
X X X X
m. Convenience
market
X X X
n. Reserved
o. Formula retail
business greater
than 6,000 10,000
s.f
X X X X
p. Personal service
businesses (as set
X
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Ordinance August 1, 2023
forth in section
29.60.320)Reserved
q. New office building
approved or
constructed after
May 1, 2006
X X X
r. New retail sales of
firearms,
ammunition and
/or destructive
devices as set forth
in section
29.70.100
X
SECTION XI. Subsection (9)(c) of Section 29.20.185, “Table of Conditional Uses,” of Chapter 29,
“Zoning Regulations,” is amended to read as follows with underlining (underlining) indicating
new text:
TABLE OF CONDITIONAL
USES
RC HR R1 RD R-M R-1D RMH O C-1 C-2 CH LM CM
(9) Agriculture and
Animal Services
c. Veterinary
hospital (without
kennel)
X X X X
SECTION XII. Subsection (b) of Section 29.20.190, “Findings and Decision,” of Chapter 29,
“Zoning Regulations,” is amended to read as follows with underlining (underlining) indicating
new text and strikeouts (strikeouts) indicating deleted text:
(b) The deciding body, on the basis of the evidence submitted at the hearing, may deny a
conditional use permit for a formula retail business greater than six thousand (6,000)
ten thousand (10,000) square feet or a personal service business if any of the following
findings are made:
(1) The proposed use of the property is not in harmony with specific provisions or
objectives of the general plan and the purposes of this chapter;
(2) The proposed use will detract from the existing balance and diversity of
businesses in the commercial district in which the use is proposed to be located;
(3) The proposed use would create an over-concentration of similar types of
businesses, or
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(4) The proposed use will detract from the existing land use mix and high urban
design standards including uses that promote continuous pedestrian circulation
and economic vitality.
SECTION XIII. Section 29.20.745, “Development Review Committee,” of Chapter 29, “Zoning
Regulations,” is amended to read as follows with underlining (underlining) indicating new text:
Sec. 29.20.745. Development Review Committee.
The Development Review Committee shall:
(1) Regularly review and make recommendations to the Planning Commission
concerning the determination of all matters which come before the Planning
Commission except zoning ordinance amendments, zone changes (not including
rezoning to PD), general plan adoptions and amendments, specific plan adoptions
and amendments, and capital improvement plans.
(2) Review and make recommendations to the Council concerning community-oriented
bulletin boards and kiosks proposed to be erected on public property.
(3) May on its own motion review and make recommendations concerning matters not
assigned to it.
(4) Reserved.
(5) Determine and issue zoning approval for the storage of hazardous materials as
provided in division 1 of article VII of this chapter.
(6) Determine appropriate screening (fencing, landscaping or a combination) for
hazardous materials storage sites as provided in division 1 of article VII of this
chapter.
(7) Determine and issue zoning approval for grading permits as provided in section
29.10.09045(b) and (c) of this chapter.
(8) Reserved.
(9) Determine and issue zoning approval for lot line adjustments and lot mergers.
(10) Reserved.
(11) Under the provisions of section 29.10.070 of this chapter and section 66424.2 of the
Subdivision Map Act, determine whether lots have merged.
(12) Determine and issue zoning approval for single-family dwellings.
(13) Determine and issue zoning approval for minor subdivisions of land consisting of
four lots or less.
(14) Determine and issue zoning approval for minor modifications to Planned
Developments when the Official Development Plan is not altered.
(15) Determine and issue zoning approval for requests for reduction to setbacks on
nonconforming lots.
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(16) Determine and issue zoning approval for restaurants, specialty food retail use selling
alcoholic beverages for consumption off-site or on-site, and tap/tasting rooms.
(17) May refer any matter assigned by ordinance to the Development Review Committee
for decision to the Planning Commission for decision.
(18) Determine and issue zoning approval for special parking lot surfaces for nurseries or
botanical gardens under subsection 29.10.155(1).
(19) Determines requests for reasonable accommodation when action is not required of
the Council, Planning Commission or the Planning Director.
(20) Determines applications for demolition, conversion, and removal of accessory
dwelling units.
(21) Determine and issue zoning approval for group classes in the C-2 zone.
No Planning Commission action is invalid because of omission of review and
recommendation.
SECTION XIV. Section 29.60.085, “Permitted uses,” of Chapter 29, Zoning Regulations,” is
amended to read as follows with underlining (underlining) indicating new text and strikeouts
(strikeouts) indicating deleted text:
Activities allowed in the O or office zone must be those which would not unreasonably
interfere with residential uses or other activities within the O zone, and which are in the
following categories:
(1) Offices, administrative, professional, medical, dental and optical laboratories
associated with a professional use, real estate, insurance, stocks and bonds; and
other similar offices characterized by absence of retail sales.
(2) Retail sales by a pharmacy within a medical building.
(3) Group classes.
(4) Personal service businesses.
SECTION XV. Section 29.60.210, “Permitted Uses,” of Chapter 29, “Zoning Regulations,” is
amended to read as follows with underlining (underlining) indicating new text and strikeouts
(strikeouts) indicating deleted text:
Sec. 29.60.210. Permitted uses.
(a) Activities allowed in the C-1 or neighborhood commercial zone are those which do not
unreasonably interfere with nearby residential uses and which are in the following
categories:
(1) Retailing, including formula retail up to six thousand (6,000) ten thousand (10,000)
square feet.
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(2) Personal service businesses and service businesses necessary for the conduct of
households.
(3) Office activities.
(4) Limited manufacturing activities when a majority of sales are made, on site, to the
ultimate consumer.
(5) Activities permitted in the LM zone which were approved on or before February 1,
1993 provided any change of use must be a conforming use in the C-1 zone.
(6) Group classes.
(7) Specialty food retail without alcoholic beverages.
(b) Examples of proper C-1 activities are grocery stores, launderettes, or dry cleaning
agencies, drugstores, barbershops, appliance repair shops, and offices. Examples of
activities which are not proper in the C-1 zone are vehicle service and sales, palmists and
soothsayers, manufacturing, wholesaling, or laundry.
SECTION XVI. Section 29.60.320, “Permitted Uses,” of Chapter 29, “Zoning Regulations,” is
amended to read as follows with underlining (underlining) indicating new text and strikeouts
(strikeouts) indicating deleted text:
Sec. 29.60.320. Permitted uses.
(a) Activities permitted in the C-2 or Central District Commercial Zone are those involving the
conduct of commerce and general business and the sale of commodities necessary for the
needs of residents and visitors of the Town, such as:
(1) Retailing, including formula retail up to six thousand (6,000) ten thousand (10,000)
square feet.
(2) Reserved.
(3) Reserved.
(4) Office activities subject to subsection (c) below.
(5) Limited manufacturing activities when a majority of sales are made, on site, to the
ultimate consumer.
(6) Wholesaling without warehousing on the premises.
(7) Single-family and two-family uses, in conjunction with the other uses permitted in this
section.
(8) Personal service businesses.
(9) Specialty food retail without alcoholic beverages.
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(b) Examples of proper C-2 activities are apparel stores, antique stores, artist studios, craft
studios, auto part sales, artist supply shops, and EV sales, service, and repair. Examples of
activities which are not proper in the C-2 zone are manufacturing, warehousing, laundry or
dry cleaning plants.
(c) Personal service businesses and office activities in the C-2 zone are subject to the
following: Office activities in the C-2 zone shall not be located on the ground floor along
any street, alleyway, or public parking lot except in the areas described below:
(1) Personal service businesses may be allowed on the ground floor in the C-2 zone with a
conditional use permit. However, personal service businesses are considered a
permitted use in the areas described in subsection (2)a—g below and in the
remainder of the C-2 zone.
(2) Office activities in the C-2 zone shall not be located on the ground floor along any
street, alleyway, or public parking lot except in the areas described below:
a.(1) Lyndon Avenue;
b.(2) Properties abutting Wood Road;
c.(3) The west side of Victory Lane:
d.(4) The south side of Los-Gatos-Saratoga Road excluding:
i.a. That portion of the property located at the southwest corner of Los-Gatos
Saratoga Road and Santa Cruz Avenue described more precisely as located
between a straight line extended northerly along the west side right-of-way
line of Santa Cruz Avenue and one hundred forty (140) feet west of that
extended line.
ii.b. The south side of Los Gatos-Saratoga Road between Santa Cruz Avenue and
University Avenue; and
e.(5) The east side of South Santa Cruz Avenue directly across the street from Wood
Road.
f.(6) The north and south side of West Main Street west of Victory Lane.
g.(7) Tenant suites located at 114 Royce Street with entries at the rear of the building and
that do not have street frontage.
(3d) Notwithstanding subsection (c)(2), office activities on ground floors described below shall
be considered conforming and shall be allowed to continue so long as the office use is not
discontinued for one hundred and eighty (180) consecutive days. If the office use is
discontinued for such a period, then the office use shall not be resumed, and token use
shall not toll or interrupt a period of discontinuance.
a.(1) Office activities existing on June 17, 1991; or
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b.(2) Office activities in a building under construction on July 16, 1990, if the applicable
architecture and site approval specifically stated that the building was approved for
office activities.
SECTION XVII. Section 29.60.420, “Permitted Uses,” of Chapter 29, “Zoning Regulations,” is
amended to read as follows with underlining (underlining) indicating new text and strikeouts
(strikeouts) indicating deleted text:
Sec. 29.60.420. Permitted uses.
(a) Activities allowed in the CH or restricted highway commercial zone are those which do not
unreasonably interfere with nearby residential uses and which are in the following
categories:
(1) Retailing, including formula retail up to six thousand (6,000) ten thousand (10,000)
square feet.
(2) Personal service businesses and service businesses necessary for the conduct of
households.
(3) Office activities.
(4) Limited manufacturing activities when a majority of sales are made on site to the
ultimate consumer.
(5) Group classes.
(6) Specialty food retail without alcoholic beverages.
(b) Examples of proper CH activities are grocery stores, launderettes or dry-cleaning agencies,
drugstores, barbershops, appliance repair shops, and offices. Examples of activities which
are not proper in the CH zone are palmists and soothsayers, manufacturing, wholesaling,
or laundry or dry-cleaning plants.
SECTION XIII. Subsection (a) of Section 29.70.100, “Permitted Uses,” of Chapter 29, “Zoning
Regulations,” is amended to read as follows with underlining (underlining) indicating new text
and strikeouts (strikeouts) indicating deleted text:
(a) Activities allowed in the LM or commercial-industrial zone are those service-oriented and
light industrial uses which may be inappropriate in a general commercial zone and which
are in the following categories:
(1) Retailing, including formula retail up to six thousand (6,000) ten thousand (10,000)
square feet.
(2) Personal service businesses.
(3) Service businesses necessary for the conduct of households or businesses.
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(4) Office activities approved on or before July 1, 1982; provided, that no change of use
to office shall be permitted in the LM zone.
(5) Limited manufacturing.
(6) Wholesaling and warehousing.
(7) Group classes.
(8) Specialty food retail without alcoholic beverages.
SECTION XIX. Severability.
In the event that a court of competent jurisdiction holds any Section, subsection,
paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or
otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the
validity of the remaining portions of this Section. The Town hereby declares that it would have
adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section
irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences,
clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise
invalid.
SECTION XX. CEQA.
Adopting this Ordinance is not a project subject to CEQA because it can be seen with
certainty that it will not impact the environment (CEQA Guidelines Section 15378).
SECTION XXI. Publication.
In accordance with Section 63937 of the Government Code of the State of California,
this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby
directs the City Clerk to cause this Ordinance or a summary thereof to be published or posted in
accordance with Section 36933 pf the Government Code of the State of California.
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SECTION XXII. Effective Date.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on the 20th day of June 2023, and adopted by the Town Council of the Town of Los
Gatos at its regular meeting on the 1st day of August 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________