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Item 3 - Staff Report with Exhibits 1 through 7.501 Monterey Avenue PREPARED BY: Sean Mullin, AICP Senior Planner Reviewed by: Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MEETING DATE: 02/28/2024 ITEM NO: 3 DATE: February 23, 2024 TO: Planning Commission FROM: Joel Paulson, Community Development Director SUBJECT: Requesting Approval to Eliminate a Housing Unit from the Town’s Housing Inventory on Property Zoned R-1D. APN 410-15-052. Categorically Exempt Pursuant to CEQA Guidelines Section 15301: Existing Facilities. PROPERTY OWNER/APPLICANT: Katrina and Carlos Azucena. RECOMMENDATION: Approval. PROJECT DATA: General Plan Designation: Medium Density Residential Zoning Designation: R-1D, Single-Family Residential Downtown Applicable Plans & Standards: General Plan; Residential Design Guidelines Parcel Size: 8,712 square feet Surrounding Area: CEQA: The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, 15301: Existing Facilities. Existing Land Use General Plan Zoning North Single-Family Residential Medium Density Residential R-1D South Single-Family Residential Medium Density Residential R-1D East Single-Family and Two-Family Residential Medium Density Residential R-1D West Single-Family and Multi-Family Residential Medium Density Residential R-1D PAGE 2 OF 5 SUBJECT: 501 Monterey Avenue/S-23-038 DATE: February 23, 2024 FINDINGS: ▪ The project meets the objective standards of Chapter 29 of the Town Code (Zoning Regulations). CONSIDERATIONS: ▪ As required by Section 29.20.150 of the Town Code for granting approval of an Architecture and Site application. ACTION: The decision of the Planning Commission is final unless appealed within ten days. BACKGROUND: The subject site is located on the on the northwestern corner of Monterey Avenue and Andrews Street (Exhibit 1). The subject property is approximately 8,712 square feet, developed with an existing three-unit, multi-family residence (addressed 501 Monterey Avenue) and a single-family residence (addressed 306 Andrews Street). The property is legal nonconforming since the R-1D zone does not permit a multi-family residential use and there is more than one principal residential structure on the property. The project is being considered by the Planning Commission as the applicant is requesting to eliminate a housing unit by combining two units in the multi-family residence into one unit. PROJECT DESCRIPTION: A. Location and Surrounding Neighborhood The subject site is located on the on the northwestern corner of Monterey Avenue and Andrews Street and is developed with an existing three -unit, multi-family residence (addressed 501 Monterey Avenue) and a single-family residence (addressed 306 Andrews Street). The surrounding area contains adjacent single-family residences to the north and south, and two-family and multi-family residences to the east and west. B. Project Summary The applicant is requesting approval of an Architecture and Site application to eliminate a housing unit from the Town’s housing inventory by combining two units in the multi -family residence located at 501 Monterey Avenue into one unit. The proposed project consists of removing a wall between the two units to combine them and removing an existing kitchen from the studio unit. The existing third unit located on the second floor would remain. PAGE 3 OF 5 SUBJECT: 501 Monterey Avenue/S-23-038 DATE: February 23, 2024 PROJECT DESCRIPTION (continued): C. Zoning Compliance The permitted uses in the R-1D zone are: (1) Single-family dwelling, provided that there is not more than one (1) principal residential structure on a lot. (2) Two-family dwelling, provided that there is not more than one (1) principal residential structure on a lot. (3) Family daycare home. (4) Residential care facility, small family home. The subject property is legal nonconforming because the zone does not allow for multi - family residential uses and the property is developed with more than one principal residential structure. The applicant proposes to remove an interior wall separating an existing studio unit and a two-bedroom unit in the multi-family residence at 501 Monterey Avenue. The applicant indicates that the proposed modifications would return the property to how it was originally constructed (Exhibit 4). The Town Code allows nonconforming residential uses to continue interminably and limits the expansion of nonconforming structures. The proposed project will continue and not intensify the nonconforming residential use. Additionally, the project does not include expansion of the nonconforming structure. DISCUSSION: The applicant is requesting approval to combine two existing units into one unit in a multi - family residence. The project would result in the loss of one housing unit from the Town’s housing inventory. The applicant provided a Letter of Justification and floor plans detailing that a wall separating the two units would be removed to combine a studio unit with a two- bedroom unit (Exhibits 4 and 6). Additionally, the existing kitchen would be removed from the studio unit. The existing third unit located on the second story would remain. Requests to eliminate housing units from the Town’s housing inventory are rare. The applicant’s Letter of Justification indicates that the proposed elimination of a housing unit would result in no net loss to the Town’s housing inventory given the ongoing approval of accessory dwelling units (ADU) throughout the Town (Exhibit 4). The applicant also indicates that a three-bedroom unit resulting from the proposed project would be more appealing to a family looking to reside in the Town and outlines potential benefits to the Town as a result. Staff estimates that certificates of occupancy were approved for more than 100 ADUs between 2018 and 2023. In contrast, the Town received two applications to eliminate two housing units PAGE 4 OF 5 SUBJECT: 501 Monterey Avenue/S-23-038 DATE: February 23, 2024 DISCUSSION (continued): from the housing inventory in 2023, including the subject application. The proposed project would not result in a net loss of housing units to the Town. ENVIRONMENTAL REVIEW: The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, Section 15301: Existing Facilities. PUBLIC COMMENTS: Written notice was sent to property owners and residents within 300 feet of the property. Public comments received by 11:00 a.m., Friday, February 23, 2024, are included as Exhibit 7. CONCLUSION: A. Summary The applicant is requesting approval of an Architecture and Site application to eliminate a housing unit from the Town’s housing inventory by combining two units in the multi -family residence located at 501 Monterey Avenue into one unit. The proposed project consists of removing a wall between the two units to combine them and removing an existing kitchen from the studio unit. The third unit located on the second floor would remain. The project would not intensify the existing nonconforming use of the property, would not expand the existing nonconforming structure, and would not result in a net loss of housing units in the Town. B. Recommendation Based on the analysis above, and justification provided by the applicant, staff recommends approval of the Architecture and Site application subject to the recommended conditions of approval (Exhibit 3). If the Planning Commission finds merit with the proposed project, it should: 1. Find that the proposed project is Categorically Exempt, pursuant to the adopted Guidelines for the implementation of the California Environmental Quality Act Section 15301: Existing Facilities (Exhibit 2); 2. Make the finding that the project complies with the objective standards of Chapter 29 of the Town Code (Zoning Regulations) with the exception of the request for a reduced front yard setback (Exhibit 2); 3. Make the considerations as required by Section 29.20.150 of the Town Code for granting approval of an Architecture and Site application (Exhibit ); and PAGE 5 OF 5 SUBJECT: 501 Monterey Avenue/S-23-038 DATE: February 23, 2024 CONCLUSION (continued): 4. Approve Architecture and Site Application S-23-038 with the conditions contained in Exhibit 3 and the development plans in Exhibit 6. C. Alternatives Alternatively, the Commission can: 1. Continue the matter to a date certain with specific direction; or 2. Approve the application with additional and/or modified conditions; or 3. Deny the application. EXHIBITS: 1. Location Map 2. Required Findings and Considerations 3. Recommended Conditions of Approval 4. Letter of Justification 5. Exterior and Interior Photos 6. Development Plans 7. Public Comments received by 11:00 a.m., Friday, February 23, 2024 This Page Intentionally Left Blank ANDRE W S S T OLIVE S T SAN BENITO AVMONTEREY AVN SANTA CRUZ AVTHURS T O N S T MONTGOMERY STASHLE R A V SAN BENITO AV501 Monterey Avenue and 306 Andrews Street 0 0.250.125 Miles ° Update Notes:- Updated 12/20/17 to link to tlg-sql12 server data (sm)- Updated 11/22/19 adding centerpoint guides, Buildings layer, and Project Site leader with label- Updated 10/8/20 to add street centerlines which can be useful in the hillside area- Updated 02-19-21 to link to TLG-SQL17 database (sm)- Updated 08-23-23 to link to "Town Assessor Data" (sm) EXHIBIT 1 This Page Intentionally Left Blank PLANNING COMMISSION – February 24, 2024 REQUIRED FINDINGS AND CONSIDERATIONS FOR: 501 Monterey Avenue and 306 Andrews Street Architecture and Site Application S-24-038 Requesting Approval to Eliminate a Housing Unit from the Town’s Housing Inventory on Property Zoned R-1D. APN 410-15-052. Categorically Exempt Pursuant to CEQA Guidelines Section 15301: Existing Facilities. PROPERTY OWNERS/APPLICANTS: Katrina and Carlos Azucena FINDINGS Required finding for CEQA: ■ The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, Section 15301: Existing Facilities. Required compliance with the Zoning Regulations: ■ The project meets the objective standards of Chapter 29 of the Town Code (Zoning Regulations). CONSIDERATIONS Required considerations in review of Architecture and Site applications: ■ As required by Section 29.20.150 of the Town Code, the considerations in review of an Architecture and Site application were all made in reviewing this project. EXHIBIT 2 This Page Intentionally Left Blank PLANNING COMMISSION – February 28, 2024 CONDITIONS OF APPROVAL 501 Monterey Avenue and 306 Andrews Street Architecture and Site Application S-24-038 Requesting Approval to Eliminate a Housing Unit from the Town’s Housing Inventory on Property Zoned R-1D. APN 410-15-052. Categorically Exempt Pursuant to CEQA Guidelines Section 15301: Existing Facilities. PROPERTY OWNERS/APPLICANTS: Katrina and Carlos Azucena PROJECT PLANNER: Sean Mullin TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval and in substantial compliance with the approved plans. Any changes or modifications to the approved plans and/or business operation shall be approved by the Community Development Director, DRC, or the Planning Commission depending on the scope of the changes. 2. EXPIRATION: The approval will expire two years from the approval date pursuant to Section 29.20.320 of the Town Code, unless the approval has been vested. 3. OUTDOOR LIGHTING: Exterior lighting shall be kept to a minimum, and shall be down directed fixtures that will not reflect or encroach onto adjacent properties. No flood lights shall be used unless it can be demonstrated that they are needed for safety or security. 4. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement (“the Project”) from the Town shall defend (with counsel approved by Town), indemnify, and hold harmless the Town, its agents, officers, and employees from and against any claim, action, or proceeding (including without limitation any appeal or petition for review thereof) against the Town or its agents, officers or employees related to an approval of the Project, includin g without limitation any related application, permit, certification, condition, environmental determination, other approval, compliance or failure to comply with applicable laws and regulations, and/or processing methods (“Challenge”). Town may (but is no t obligated to) defend such Challenge as Town, in its sole discretion, determines appropriate, all at applicant’s sole cost and expense. Applicant shall bear any and all losses, damages, injuries, liabilities, costs and expenses (including, without limitation, staff time and in-house attorney’s fees on a fully-loaded basis, attorney’s fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any Challenge (“Costs”), whether incurred by Applicant, Town, or awarded to any third party, and shall pay to the Town upon demand any Costs incurred by the Town. No modification of the Project, any application, permit certification, condition, environmental determination, other approval, change in EXHIBIT 3 applicable laws and regulations, or change in such Challenge as Town, in its sole discretion, determines appropriate, all the applicant’s sole cost and expense. No modification of the Project, any application, permit certification, condition, environmenta l determination, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant’s indemnity obligation. 5. COMPLIANCE MEMORANDUM: A memorandum shall be prepared and submitted with the building plans detailing how the Conditions of Approval will be addressed. Building Division 6. PERMITS REQUIRED: A Building Permit is required for the renovation of the existing home. 7. EMERGENCY ESCAPE AND RESCUE OPENINGS: Every sleeping room shall have not less than one operable emergency escape and rescue opening meeting the requirements of the 2022 California Residential Code, Section R310.2 or 310.3. 8. APPLICABLE CODES: The current codes, as amended and adopted by the Town of Los Gatos as of January 1, 2023, are the 2022 California Building Standards Code, California Code of Regulations Title 24, Parts 1-12, including locally adopted Reach Codes. 9. CONDITIONS OF APPROVAL: The Conditions of Approval must be blue lined in full on the cover sheet of the construction plans. A Compliance Memorandum shall be prepared and submitted with the building permit application detailing how the Conditions of Approval will be addressed. 10. BUILDING & SUITE NUMBERS: Submit requests for new or changing building addresses to the Building Division prior to submitting for the building permit application process. 11. SIZE OF PLANS: Minimum size 24” x 36”, maximum size 30” x 42”. 12. APPROVALS REQUIRED: The project requires the following departments and agencies approval before issuing a building permit: a. Community Development – Planning Division: (408) 354-6874 b. Engineering/Parks & Public Works Department: (408) 399-5771 c. Santa Clara County Fire Department: (408) 378-4010 d. West Valley Sanitation District: (408) 378-2407 e. Local School District: The Town will forward the paperwork to the appropriate school district(s) for processing. A copy of the paid receipt is required prior to permit issuance. Carlos and Katrina Azucena 306 Andrews St. Los Gatos, CA 95030 Online Pre-aplication# 23TMP-003683 - Parcel Number 41015052 November 6, 2023 Town of Los Gatos Community Development Department 110 E. Main St Los Gatos, CA 95030 Re:Letter of Justification Combination of Dwellings at 501 Monterey Ave, Los Gatos CA 95030 Dear Planning Department of Los Gatos, This letter outlines the justification of the efforts to combine two dwelling units, units #1 and #3, at 501 Monterey Ave, Los Gatos, CA 95030. The project would consist of taking the legal studio unit (#3) and recombining it with the main house (#1) through the hallway,which, at some point was boarded off to create the second unit. The kitchenette in unit #3 would also be removed and converted to a closet for what would become the master bedroom. This would return the property to how it was originally constructed. We understand that with the number of developments and ongoing approval of ADUs in town, by doing this there would be no net loss to the housing inventory. The primary purpose of combining the two units is to allow the residence to become a three-bedroom, two-bathroom home vs. a two-bedroom, one-bathroom unit, allowing for a more appealing, potentially long-term living for a family looking to reside in Los Gatos.We are looking to have a home that is more desirable to a family that may take advantage of the excellent schools and become more invested in, and ultimately contribute to the community, patronize local business, and participate in the family-friendly atmosphere that the Town offers.It would also work for our own family during a time of financial hardship in the event we needed to downsize.The neighborhood is primarily single-family residences and the new layout would better fit the spirit and characteristics of the neighborhood and allow for the space that an average family may need. No exterior architectural changes to the house would be made and therefore 501 Monterey Ave. will remain consistent with the current character of the neighborhood. For all of the reasons outlined above we respectfully request that the Commission approve a Permit for the Project. EXHIBIT 4 Such an approval would allow the applicant to introduce a more appealing space for a family that will be vital to the continued success of the Town’s Central Business District. We hope you find this to be sufficient justification for the proposed combination of the two units. Sincerely, Carlos and Katrina Azucena Floorplan of 501 Monterey Ave. Los Gatos CA 95030 Unit #1 and #3 (yellow outline) Aerial View of 501 Monterey Ave. Los Gatos CA 95030 Front view of #1 501 Monterey Ave. Hallway of #1 501 Monterey Ave. The Orange arrow shows the temporary wall to be removed to combine #3 as the master bedroom. Front view of #3 501 Monterey Ave. #1 501 Monterey Ave. The door of unit #3 leads to the hallway of unit #1 501 Monterey Ave. The kitchen in Unit #3 is to be removed and converted into a closet. This Page Intentionally Left Blank EXHIBIT 5 This Page Intentionally Left Blank EXHIBIT 6 From: Jim Ballingall <> Sent: Friday, February 16, 2024 8:26 PM To: Sean Mullin <SMullin@losgatosca.gov> Cc: Katrina Azucena >; Subject: 501 Monterey Ave : Proposed Plans [EXTERNAL SENDER] To The Town of Los Gatos, We are writing this letter in full support of the proposed plans to combine the two units at 501 Monterey Ave. Carlos and Katrina Azucena have shared with us their plans to restore 501 Monterey Ave to its original layout by combining the two units. We are asking you to approve their request. We live at - just two houses down from 501 Monterey Ave and look forward to them being given this opportunity to enhance our community through this project. Sincerely, Jim and Brigitte Ballingall Los Gatos, CA EXHIBIT 7