17 Staff Report.Apply HEOZ and Amend Land Use Designation
PREPARED BY: Jocelyn Shoopman, Associate Planner and
Erin Walters, Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Department Director, and Economic Vitality Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/07/2023 ITEM NO: 17
DATE: November 1, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Recommendation of the Planning Commission to Adopt a
Resolution to Amend the General Plan Land Use Designation of 16492 Los
Gatos Boulevard and Assessor Parcel Number (APN) 532-07-086 from Low
Density Residential to Neighborhood Commercial; Amend the General Plan
Land Use Designation of Caltrans Right-of-Way Adjacent to 14685 Oka Road
from Low Density Residential to Medium Density Residential; and Introduce
an Ordinance Titled “An Ordinance of the Town of Los Gatos Amending the
Zoning Code from R-1:8 (Single-Family Residential) to R-M (Multiple-Family
Residential) for a Caltrans Right-of-Way Property Located Adjacent to 14685
Oka Road; and Apply the Housing Element Overlay Zone (HEOZ) to Provide for
Increases to the Allowable Density, Height, Floor Area Ratio, and Lot
Coverage for Residential Development on the Following Sites Included in the
Sites Inventory Analysis of the 2023-2031 Housing Element:
APN’s 424-06-116, 424-07-116, 424-08-029, 424-08-058, 424-08-059, 424-08-
060, 424-08-074, and 532-07-085; 620 and 14000 Blossom Hill Road; 16210,
16240, 16245, 16250, 16260, 16270, and 16392 Burton Road; Cal Trans Right-
of-Way Adjacent to 14685 Oka Road; 110 and 206 Knowles Drive; 445 Leigh
Avenue; 440 Los Gatos Almaden Road; 16603 Lark Avenue; 14823, 14831,
14849, 14859, 14917, 14925, 15795, 16151, 16203, and 16492 Los Gatos
Boulevard; 165 Los Gatos Saratoga Road; and 14800 and 14840 Oka Road.“
An Environmental Impact Report (EIR) was Prepared and Certified for the
2040 General Plan Update on June 30, 2022, which Included the Proposed
General Plan and Zoning Code Amendments. No further Environmental
Analysis is Required. Zoning Code Amendment Application Z-23-003 and
General Plan Amendment Application GP-23-003. Applicant: Town of Los
Gatos.
PAGE 2 OF 5 SUBJECT: General Plan Designation Amendment and Apply HEOZ/GP-23-003/Z-23-003 DATE: November 1, 2023
RECOMMENDATION:
Approve a recommendation of the Planning Commission to adopt a resolution (Attachment 1)
to amend the General Plan land use designation of 16492 Los Gatos Boulevard and assessor
parcel number (APN) 532-07-086 from Low Density Residential to Neighborhood Commercial;
and amend the General Plan land use designation of Caltrans right-of-way adjacent to 14685
Oka Road from Low Density Residential to Medium Density Residential; and introduce an
ordinance (Attachment 2) titled “An Ordinance of the Town Council of the Town of Los Gatos
Amending the Zoning Code from R-1:8 (Single-Family Residential) to R-M (Multiple-Family
Residential) for a Caltrans Right-of-Way Property Located Adjacent to 14685 Oka Road; and
apply the Housing Element Overlay Zone (HEOZ) to provide for increases to the allowable
density, height, floor area ratio, and lot coverage for residential development on the sites
included in the Sites Inventory Analysis of the 2023-2031 Housing Element” as listed in the
subject line above.
BACKGROUND:
The Town of Los Gatos is required to prepare an updated Housing Element for the period
covering 2023-2031 that is certified by the State Housing and Community Development
Department (HCD). The Housing Element is one of nine State-mandated elements that must be
included in every General Plan. The Housing Element assesses housing needs for all income
groups within the community and identifies implementation programs to meet those housing
needs. Unlike other General Plan elements, the Housing Element must be updated every eight
years, rather than every 10 to 20 years, must address statutory requirements regarding its
content, and is subject to mandatory review by HCD. The Town’s Regional Housing Needs
Allocation (RHNA) for this sixth cycle planning period is 1,993 units.
On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with
modifications to the Sites Inventory, finding that it was in substantial compliance with State
law. Two of the Implementation Programs contained in the Housing Element adopted by Town
Council are the basis for the items under consideration and described in further detail below.
On March 31, 2023, the Revised Draft Housing Element was submitted to HCD and included
four additional parcels to the sites inventory based on the receipt of property owner interest
forms. On May 30, 2023, the Town received HCD’s findings/comment letter on the Revised
Draft Housing Element submitted in March.
The Town resubmitted the Draft Revised 2023-2031 Housing Element to HCD for review and
comment on October 2, 2023. The materials distributed to HCD and additional materials on the
ongoing Housing Element update process can be viewed online at:
https://www.losgatosca.gov/1735/Housing-Element.
PAGE 3 OF 5 SUBJECT: General Plan Designation Amendment and Apply HEOZ/GP-23-003/Z-23-003 DATE: November 1, 2023
BACKGROUND (continued):
On August 23, 2023, the Planning Commission opened the public hearing on this item, heard
public comments, and continued the item to September 13, 2023. On September 13, 2023, the
Planning Commission heard additional public comments, and made a recommendation to Town
Council for approval. The staff reports and attachments for the August 23, 2023, and
September 13, 2023 Planning Commission meetings were previously provided as part of the
October 3, 2023 Town Council staff report and can be viewed at the following link:
https://meetings.municode.com/adaHtmlDocument
On October 3, 2023, the Town Council continued the item to November 7, 2023, pending a
potential discussion with HCD regarding the adequacy of the Town’s Sites Inventory. Staff has a
meeting scheduled with the Town’s HCD reviewer on November 7, 2023, and will provide a
verbal update on the results of the meeting at the November 7, 2023, Town Council meeting.
DISCUSSION:
As described in the August 23, 2023 Planning Commission staff report (Attachment 3), the
proposed General Plan land use designation changes included in the Draft Resolution
(Attachment 1) and the zoning designation changes included in the Draft Ordinance
(Attachment 2) are implementing two of the programs in the Housing Element by updating the
development regulations on the properties listed above to make them consistent with the
development assumptions shown in the Sites Inventory.
On July 20, 2023, at a special meeting, the General Plan Committee (GPC) reviewed the
proposed modifications described above and recommended approval of the General Plan
amendments to the Planning Commission and Town Council.
On September 13, 2023, the Planning Commission reviewed the proposed modifications
described above and recommended approval to Town Council.
This agenda item includes all of the sites reviewed by the Planning Commission with the
exception of certain sites because of anticipated Council Member recusals and the removal of
site A-1 as described below. The application of the HEOZ to the sites that require recusals will
be considered as separate agenda items:
• 401 - 409 Alberto Way; and 50 Los Gatos Saratoga Road: Will be considered as Item 18.
• 15300, 15349, 15367, 15405, 15425, 15480, and 15500 Los Gatos Boulevard: Will be
considered as Item 19.
• 101 South Santa Cruz Avenue: Will be considered as Item 20.
• 50 Park Avenue and 61 Montebello Way: The Regional Housing Needs Allocation (RHNA)
capacity only accepts net new units. Site A-1 has a minimum capacity of five units,
PAGE 4 OF 5 SUBJECT: General Plan Designation Amendment and Apply HEOZ/GP-23-003/Z-23-003 DATE: November 1, 2023
DISCUSSION (continued):
whereas there are 11 housing units on-site. Due to the housing capacity resulting in less
than the exiting number of units on-site, and in response to the HCD Findings/Comment
Letter received by the Town on May 30, 2023, the site has been removed from the Sites
Inventory.
PUBLIC COMMENTS:
Public notification has included a legal ad in the paper, noticing property owners, tenants, and
properties located within 300 feet of all the sites listed within the Town. The meeting has also
been publicized on the Town’s website and through the Town’s social media platforms. No
comments have been received as of the preparation of this staff report.
ENVIRONMENTAL ASSESSMENT:
An Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan
Update on June 30, 2022, which included the proposed General Plan and Zoning Code
amendments. No further Environmental Analysis is required.
CONCLUSION:
Staff recommends that the Town Council:
1. Make the finding that no further environmental analysis is required (Attachments 1 and
Attachment 2);
2. Make the required finding that the General Plan amendments are internally consistent with
the existing goals and policies of the General Plan and its elements, in that the amendments
will provide for the development of housing for the sites in the Sites Inventory to comply
with the Town’s RHNA (Attachment 1);
3. Make the required finding that the proposed zone changes are consistent with the General
Plan and its elements in that the proposed zone changes are consistent with the proposed
General Plan land use designations (Attachment 2); and
4. Adopt a resolution to approve General Plan Amendment application GP-23-003
(Attachment 1); and
5. Introduce an ordinance of the Town Council of the Town of Los Gatos for Zone Change
application Z-23-003 (Attachment 2).
PAGE 5 OF 5 SUBJECT: General Plan Designation Amendment and Apply HEOZ/GP-23-003/Z-23-003 DATE: November 1, 2023
ALTERNATIVES:
Alternatively, the Town Council may:
1. Continue this item to a date certain with specific direction to staff; or
2. Refer this item back to the Planning Commission with specific direction.
Attachments:
1. Draft Resolution with Exhibit A – Location Maps
2. Draft Ordinance with Exhibit A – Location Maps
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