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Exhibit 5 - Project Description LetterSummerHill Homes Townhome-Style Condominiums 50 Los Gatos-Saratoga Road Project Description SummerHill Homes proposes to redevelop a portion of an approximately 8.82-acre site on Los Gatos- Saratoga Road in Los Gatos with a new 155-unit for-sale townhome-style condominium community. The project will take advantage of the site’s convenient access to neighborhood shops and services in downtown Los Gatos. With attractive landscaping, outdoor amenities and architecture complementing the Town’s charm, SummerHill expects the project to be a great homeownership opportunity for people living or working in Los Gatos. Location & Setting The project site is located at 50 Los Gatos-Saratoga Road. The site is currently occupied by Los Gatos Lodge, a “garden hotel” built in the late 1950’s and early 1960’s. On-site operations consist of temporary lodging of hotel guests, meeting and event rooms, recreational areas, dining areas, routine facility maintenance, accessory office uses and a duplex dwelling unit for hotel staff. In addition to the buildings and other structures, the project site is improved with paved drives and parking areas, patios and walkways, a swimming pool and landscaped areas. The eastern edge of the site is wooded and steeply sloped. With the exception of the duplex dwelling unit, all existing structures and improvements will be removed for the project. To the southwest, the site is bordered by Los Gatos High School. To the northwest and north, the site is bordered by Los Gatos-Saratoga Road and the Highway 17 interchange, with commercial uses and future residential development to the north. The areas to the east of the site are predominantly single-family residential neighborhoods. SummerHill plans to keep the wooded slope as a landscape buffer between the project and the immediate neighbors. Project Overview •SummerHill proposes to develop 155 new condominiums in 28 three-story townhome-style buildings, with attractive landscaping and common area amenities. •The project will offer a mix of two-, three- and four-bedroom floorplans, with an average living area of approximately 1,823 square feet.1 The two-bedroom floorplans will have approximately 1,527 square feet of living area. The three-bedroom floorplans will range from approximately 1,345 to 1,941 square feet of living area. Approximately half of the three-bedroom homes will have an attached two-car garage with a side-by-side configuration, and remainder will have an attached two-car garage with a tandem configuration. The four-bedroom floorplans will range 1 The square footages are calculated based on measuring to the outside face of stud consistent with industry practice. For reference, the architectural plans also include floor area measurements based on the Town Code. EXHIBIT 5 Project Description SummerHill Homes Townhome-Style Condominiums at 50 Los Gatos-Saratoga Road -2- 2024-11-15 from approximately 1,988 to 2,260 square feet of living area. All of the two- and four-bedroom homes will have an attached two-car garage with a side-by-side configuration. • The architecture draws on Mission-style aesthetics, with arched porch elements, low-sloping hip and gable roofs with rounded roof tiles, metal accent details and railings. Window shapes and sizes are straightforward and create a rhythm for the elevations. Exterior materials include a high-quality mix of decorative tile accents at key window locations and porch openings. Color schemes have been thoughtfully developed to showcase the Mission-style architecture. • Vehicular circulation is provided through an entry drive from Los Gatos-Saratoga Road and on- site private alleys. The project will provide 330 off-street parking spaces. Each unit will have an attached private two-car garage — side-by-side garages for 124 of the units and tandem garages for 31 of the units. Guest parking will be provided in convenient locations around the site. Bike storage for residents will be provided in each garage, and sixteen bike racks will be provided for the convenience of guests. All of the units will have private decks or front patios. In addition, the project will feature approximately 17,700 square feet of community recreation spaces with landscaping and amenities. • Approximately 30,000 square feet of wooded hillside located on the designated remainder parcel along the east side of the site will be reserved as open space. The designated remainder parcel will remain private and will not be developed as part of the project.2 • SummerHill proposes to provide a new bicycle and pedestrian path on site to connect Los Gatos- Saratoga Road with the rear of the project site, adjacent to Los Gatos High School, subject to credit towards the project’s development impact fees. A gate at the rear of the site would provide access to the high school should the school district decide to provide access. While the new path would not provide a direct benefit to the project, it would provide a substantial benefit to the Los Gatos community by offering an additional route to the high school to alleviate the existing traffic congestion along Los Gatos Boulevard and E. Main Street during the morning peak traffic hours. The pathway will also include an emergency gate at the southern end to allow pedestrians to exit if needed. • SummerHill proposes to provide an opportunity for a reciprocal emergency vehicle access route between the project site and Los Gatos High School, subject to the school district providing the necessary right of way interests, and subject to Government Code section 66462.5 and other applicable legal requirements. With the consent of the school district, the emergency access route would give the fire department a critically important secondary means of emergency access to the high school and would give the high school a secondary exit route for students during an emergency. SummerHill and the school district have entered into an agreement to further contract for the construction of an emergency vehicle access route and reciprocal emergency access and expect to present the further contracts to the school district’s Board of 2 SummerHill does not propose to record a conservation easement or other development restriction on the remainder parcel. Project Description SummerHill Homes Townhome-Style Condominiums at 50 Los Gatos-Saratoga Road -3- 2024-11-15 Trustees for final approval in December 2024. If, however, SummerHill and the school district are not able to finalize the terms regarding an emergency vehicle access route and reciprocal emergency access, SummerHill will provide a secondary connection to Los Gatos-Saratoga Road for emergency access to the project. • SummerHill proposes to provide 26 units at below market rate pricing. 16 homes will be made affordable for Low income households and 10 homes will be made affordable to Moderate income households, in accordance with the Town’s Below Market Price Housing Program Guidelines. Requested Approvals The site is designated Mixed Use Commercial in the Land Use Element of the 2020 General Plan and is zoned Highway Commercial (CH). The site is identified as a Housing Inventory Site in the 2023–2031 Housing Element adopted by the Town on June 4, 2024. The Mixed-Use Commercial designation allows residential use on the site in a mixed-use project, with up to 50 percent land coverage and a 35-foot height limit. The Highway Commercial District allows multifamily residential use (in a mixed-use project), subject to the approval of a conditional use permit. SummerHill expects to request the following reviews and approvals for the project: • Architecture and Site Approval • Conditional Use Permit for residential use • Concessions or incentives, waivers and reductions of parking requirements pursuant to the State Density Bonus Law • Vesting Tentative Subdivision Map • Tree Removal Permit • CEQA review Inclusionary Housing and State Density Bonus Law SummerHill proposes to designate certain units as inclusionary units affordable to Low, Lower or Moderate Income households to comply with the Town’s Below Market Price (BMP) Program and to qualify for benefits under the State Density Bonus Law and other relevant provisions of the Government Code. By designating at least 10% of the units as inclusionary units affordable to Low Income households, the project qualifies for a density bonus, an incentive or concession, waivers or reductions of development standards and parking reductions under the State Density Bonus Law. Consistent with the State Density Bonus Law, at this time, SummerHill expects to utilize the following, to the extent needed to comply with applicable, objective standards: • A concession or waiver to eliminate the requirement to include a retail, office or other commercial mixed-use component in the project. • A waiver or reduction of development standards to increase the height limit to approximately 40 feet, in order to accommodate a Mission-style architectural aesthetic with gabled and hipped roofs, consistent with the architectural styles of the nearby neighborhoods. SummerHill also Project Description SummerHill Homes Townhome-Style Condominiums at 50 Los Gatos-Saratoga Road -4- 2024-11-15 requests the waiver to accommodate adjustments to adjacent grade or building materials during the preparation of construction drawings, grading and construction. • A waiver or reduction of development standards to reduce the minimum requirements for area and dimension for condominium private open space under section 29.10.065(a) of the Town Code. • A waiver or reduction of development standards to reduce the number of short-term bicycle parking spaces required. • A waiver or reduction of development standards to reduce the rear setback requirement. • A waiver or reduction of development standards to reduce the minimum width for private on- site alleys for purposes of vehicle backup. • A waiver or reduction of development standards to reduce or eliminate the additional third- floor setback. • A waiver or reduction of development standards to allow certain sections of retaining wall along the property line to run in a straight continuous direction for more than 50 feet. • A waiver or reduction in development standards to allow a fence or wall in the required setback area along the Highway 17 offramp and Los Gatos-Saratoga Road west of the entry to the project site. • A waiver or reduction in development standards to allow partial screening of ground-level utility cabinets. • A waiver or reduction in development standards to allow alternate architectural techniques to differentiate the base, middle and top of alley-facing façades. • A modification of vehicle parking standards to allow certain units to meet parking requirements by providing one standard space and one tandem space. Each home will have two attached, covered parking spaces. Additional parking will be provided for guests. • To the extent that the project as proposed exceeds the maximum density allowed by the General Plan and the Town’s Zoning Code, a density bonus to allow the development of 155 units. SummerHill reserves the right to request additional waivers or reductions of development standards as the project is reviewed. Vesting Tentative Subdivision Map SummerHill will prepare a Vesting Tentative Subdivision Map and condominium plans to create separate parcels for the individual units and establish appropriate access, utility and service easements. Each building will be located on a separate lot and the common area will be divided into multiple parcels for the purpose of annexation into the homeowners association. Following approval of the Vesting Tentative Map, SummerHill will prepare a Final Map. Project Description SummerHill Homes Townhome-Style Condominiums at 50 Los Gatos-Saratoga Road -5- 2024-11-15 CEQA SummerHill anticipates that preliminary environmental review will confirm that the potential environmental impacts of the project were adequately evaluated in the Environmental Impact Report prepared and certified for the 2040 General Plan. SummerHill anticipates that the Town will prepare a CEQA checklist or addendum to confirm that no supplemental or subsequent EIR is required. Design and Construction The homes will be mapped as separate legal units pursuant to a condominium plan. The homes will be designed as R2-occupancy condominiums per the 2022 California Building Code with an NFPA 13 sprinkler system. Electric meters and telecommunications services will be grouped at the ends of each building, and service to the individual units will run through soffits in the garages of the units. For the comfort of the residents, SummerHill will design the windows, doors and exterior wall assemblies to dampen noise and vibration from the nearby freeway. In addition, MERV 13 filtration will be installed on the air intake for the HVAC systems to enhance indoor air quality. Community Amenities & Landscaping Common areas within the community will be maintained by a professionally managed homeowners association. The homeowners association will be responsible for maintaining the common area landscaping, common area amenities, and private alleys. No Displacement The project will provide 155 new homes for the Town with no loss of existing housing. The Los Gatos Lodge limits guests to short-term stays, so there are no residents of the Lodge that will be displaced by the closure. SummerHill plans to retain the existing duplex located at 225 and 227 Bella Vista Avenue. The duplex is not part of the proposed project. Sustainability The project will be constructed in compliance with the current California Green Building Standards Code (Title 24) and the Town of Los Gatos Energy Reach Code. In addition, SummerHill will install a solar energy system for each unit, and each unit will have a Level 2 EV-ready parking space. Utilities, Public Services and Stormwater Management • Domestic water service will connect to an existing San Jose Water Company water main in Los Gatos-Saratoga Road. Irrigation service for the common area landscaping will be provided through a separate meter. Service for on-site fire hydrants and the NFPA 13 fire sprinkler system will be provided through a separate connection to the water main. • Sanitary sewer service will be provided by a private on-site sanitary sewer system that connects to a West Valley Sanitary District sewer main in Los Gatos-Saratoga Road. • Stormwater will be treated on site as required to meet municipal stormwater permit requirements. Stormwater will be conveyed by gravity and pump to bioretention areas and Project Description SummerHill Homes Townhome-Style Condominiums at 50 Los Gatos-Saratoga Road -6- 2024-11-15 other low impact development (LID) treatment measures before being discharged to existing public storm drains and swales that currently serve the site. Hydromodification measures will be used to detain project stormwater so that post-project flows are equal to or less than pre- project flows. • New on-site electric, cable and telephone lines will be placed underground. Consistent with current utility company policy, transformers, cabinets and control boxes will be pad-mounted and screened with landscaping. • Garbage and recycling service will be provided by West Valley Collection & Recycling. Each garage will include designated space for waste, compost, and recycling bins. Residents will place their bins at their garage apron for pickup.