Staff Report.15349-15367 Los Gatos Blvd
PREPARED BY: Sean Mullin, AICP
Planning Manager
Reviewed by: Town Attorney and 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: 04/23/2025
ITEM NO: 6
DATE: April 18, 2025
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider a Request for Approval to Demolish Existing Commercial Structures,
Construct a Multi-Family Live/Work Development (55 Units), a Conditional
Use Permit for a Live/Work Development, a Condominium Vesting Tentative
Map, Site Improvements Requiring a Grading Permit, and Removal of Large
Protected Trees, Under Senate Bill 330 (SB 330) on Property Zoned CH:HEOZ.
Located at 15349-15367 Los Gatos Boulevard. APNs 424-19-048 and 424-19-
049. Architecture and Site Application S-24-015, Conditional Use Permit U-24-
006, Subdivision Application M-24-008. No Additional Environmental Review
is Necessary Pursuant to CEQA Guidelines Sections 15162: Subsequent EIRs
and 15168: Program EIR, Since the Proposed Project’s Environmental Impacts
were Adequately Addressed in the 2020 General Plan EIR and/or 2040
General Plan EIR, as Applicable. Property Owner: Jonathan Peck. Applicant:
City Ventures. Project Planner: Sean Mullin.
RECOMMENDATION:
Consider a request for approval to demolish existing commercial structures, construct a multi-
family live/work development (55 units), a conditional use permit for a live/work development,
a condominium vesting tentative map, site improvements requiring a Grading Permit, and
removal of large protected trees, under SB 330 on property zoned CH:HEOZ, located at 15349-
15367 Los Gatos Boulevard.
PROJECT DATA:
General Plan Designation: Mixed Use Commercial
Zoning Designation: CH:HEOZ, Restricted Highway Commercial,
Housing Element Overlay Zone
Applicable Plans & Standards: General Plan; Objective Design Standards for Qualifying
Multi-Family and Mixed-Use Residential Development
Parcel Size: 68,151 square feet (1.56 acres)
Surrounding Area:
PAGE 2 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
CEQA:
An Initial Study (Exhibit 1) was prepared for the project concluding that additional
environmental review is not necessary pursuant to California Environmental Quality Act (CEQA)
Guidelines Sections 15162: Subsequent EIRs and 15168: Program EIR, since the proposed
project’s environmental impacts were adequately addressed in the 2020 General Plan EIR
and/or 2040 General Plan EIR, as applicable.
FINDINGS:
▪ As required, additional environmental review is not necessary pursuant to CEQA Guidelines
Sections 15162: Subsequent EIRs and 15168: Program EIR, since the proposed project’s
environmental impacts were adequately addressed in the 2020 General Plan EIR and/or
2040 General Plan EIR, as applicable;
▪ As required that the project is consistent with the General Plan;
▪ As required by Section 66474 of the Subdivision Map Act;
▪ As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit;
▪ The project meets the objective standards of Chapter 29 of the Town Code (Zoning
Regulations) except for the waivers requested pursuant to State Density Bonus Law;
▪ The project meets the Town of Los Gatos Objective Design Standards for Qualifying Multi-
Family and Mixed-Use Residential Development except for the waivers requested pursuant
to State Density Bonus Law;
▪ As required by State Density Bonus Law for granting a concession pursuant to California
Government Code Section 65915 (d) and for granting waivers pursuant to California
Government Code Section 65915 (a)(2); and
▪ As required by California Government Code Section 65863 regarding state RHNA
requirements, the Town’s Housing Element Sites Inventory, and No Net Loss Law.
CONSIDERATIONS:
▪ As required by Section 29.20.150 of the Town Code for granting approval of an Architecture
and Site application.
Existing Land Use General Plan Zoning
North Commercial Mixed Use Commercial CH
South Commercial Mixed Use Commercial CH:HEOZ
East Commercial/Health
Care
Mixed Use Commercial CH:PD
West Single-Family
Residential
Low Density Residential R-1:8
PAGE 3 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
ACTION:
The Planning Commission will provide a recommendation to the Town Council who will render
the final decision on the proposal.
BACKGROUND:
Senate Bill 330
The Housing Crisis Act of 2019, or SB 330, became effective on January 1, 2020, and will remain
in effect until it sunsets on January 1, 2030. SB 330 provides an expedited review process for
housing development projects and offers greater certainty by allowing an optional vesting
opportunity through the Preliminary Application process. Submittal of a Preliminary Application
allows a developer to provide a specific subset of information on the proposed housing
development ahead of providing the full amount of information required by the Town for a
housing development application. Once the preliminary application is “deemed submitted” and
payment of the permit processing fee is made, a vesting date is established, freezing the
applicable fees and development standards that apply to the project while the applicant
assembles the rest of the materials necessary for a full application submittal. Eligible projects
are exempt from discretionary review and must be consistent with objective zoning and design
standards. The statute requires that a final decision be made in no more than five public
hearings, including appeals. The SB 330 preliminary application for this project achieved a
vesting date of April 30, 2024.
State Density Bonus Law
State Density Bonus Law (SDBL) created a mechanism to obtain more favorable development
requirements for projects with affordable or senior units. To meet the affordable housing goals,
developers are entitled to a density bonus that corresponds to specified percentages of units
set aside for very-low, low, or moderate-income households. In addition to the density bonus,
SDBL provide three provisions that must be granted to qualifying projects:
1. One or more concession that provides cost reductions for the development. Under the law,
a concession includes a reduction in site development standards and/or regulations when
such regulations potentially make the project economically infeasible for the developer to
build. These can include a reduction in site development standards or modification of
zoning or architectural design requirements that exceed minimum building standards. The
number of allowed concessions is determined on a sliding scale based on the percentage of
units that will be set aside as affordable units and the household income category of those
affordable units.
2. Waivers are reductions or modifications of any development standards and other
regulations that would physically preclude the development of a project at the density
permitted. Development standards include, but are not limited to, height limitations,
setback requirements, FAR, open space requirements, or parking requirement that apply to
PAGE 4 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
a residential development pursuant to any ordinance, general plan element, policy,
resolution, or regulation. There is no limit in the number of waivers an applicant can
request through SDBL.
3. Reductions in parking requirements based on the number of bedrooms in each unit.
The proposed project qualifies for a density bonus and all associated provisions under the SDBL.
Housing Accountability Act - Builder’s Remedy
The California Legislature adopted the Housing Accountability Act (HAA) to "significantly
increase the approval and construction of new housing for all economic segments of California's
communities by meaningfully and effectively curbing the capability of local governments to
deny, reduce the density for, or render infeasible housing development projects" [Gov. Code §
65589.5(a)(2)(K)]. It is the policy of the state that the HAA "be interpreted and implemented in
a manner to afford the fullest possible weight to the interest of, and the approval and provision
of, housing." [Gov. Code § 65589.5(a)(2)(L)]. The "Builder's Remedy" provision of the HAA
specifically prohibits a local agency from relying on inconsistency with zoning and general plan
standards as a basis for denial of a qualifying housing development project unless the agency
has adopted a sixth cycle housing element in substantial compliance with State law by January
31, 2023. The Town’s Sixth Cycle Housing Element was certified by HCD on July 10, 2024. The
preliminary application for this project achieved a vesting date of April 30, 2024, prior to
certification of the Town’s Housing Element. Therefore, the project is eligible for the Builder's
Remedy; however, the applicant has not invoked Builder’s Remedy. Therefore, this is not a
Builder’s Remedy project and all deviations from the Town’s standards included in the project
are requested exclusively through SDBL.
Project Site
The subject property consists of two lots totaling 1.56 acres located on the west side of Los
Gatos Boulevard, approximately 160 feet south of the intersection with Garden Lane (Exhibit 4).
The property is a through lot, having frontage on both Los Gatos Boulevard and Garden Lane
and the existing commercial developments are accessed from Los Gatos Boulevard. The
property is almost completely developed having a variety of trees along the Garden Lane
property line and several street trees along Los Gatos Boulevard. The property is relatively flat,
with only five feet of elevation change from north to south. The southern lot is developed with
the Genuine Automotive service center and the northern lot is developed with a multi-suite
commercial retail building. The property has a General Plan designation of Mixed Use
Commercial and is zoned CH:HEOZ, or Restricted Commercial Highway with a Housing Element
Overlay Zone (HEOZ). The HEOZ overlay is applied to sites included in the Sites Inventory of the
Housing Element and modifies development standards such as density, lot coverage, FAR, and
height. The HEOZ became effective on December 21, 2023. The preliminary application under
SB 330 was deemed submitted on April 30, 2024, establishing the vesting date for the
application. Therefore, the application is subject to the provisions of the HEOZ, including
minimum density.
PAGE 5 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
On May 16, 2024, the applicant submitted a formal application, within 180-days of the
established vesting date as required by state law.
On February 6, 2025, the applicant submitted application materials that were deemed
complete through the Town’s technical review process within the timelines prescribed by state
law. On March 5, 2025, the application was deemed consistent with applicable Town standards
and ready for consideration through the Town’s public hearing process.
The application includes a Vesting Tentative Map, requiring approval by the Town Council
pursuant to Town Code Section 29.10.020. The applicant seeks a recommendation on the
development proposal from the Planning Commission to the Town Council, who will render the
final decision on the project.
PROJECT DESCRIPTION:
A. Location and Surrounding Neighborhood
The subject property consists of two lots totaling 1.56 acres located on the west side of Los
Gatos Boulevard, approximately 160 feet south of the intersection with Garden Lane
(Exhibit 4). The property is a through lot, having frontage on both Los Gatos Boulevard and
Garden Lane with the existing commercial developments accessed from Los Gatos
Boulevard. The property is almost completely developed and includes a variety of trees in
various states of health and condition along the Garden Lane frontage. The property is
relatively flat, with only five feet of elevation change from north to south. The southern lot
is developed with the Genuine Automotive service center and the northern lot is developed
with a multi-suite commercial building. The Rotten Robbie gas station is located to the
north and a multi-suite commercial building is located to the south. Single-family residences
are located to the west, across Garden Lane, and Sutter Health is located to the east across
Los Gatos Boulevard.
B. Project Summary
The applicant proposes demolition all commercial structures and construction of a multi-
family live/work development consisting of 55 units distributed among five separate
buildings (Exhibit 16). The applicant submitted a Project Description Letter (Exhibit 5) and
Letter of Justification (Exhibit 6) discussing the project. New private alleys would provide
circulation through the site, taking access from two locations on the east side of Garden
Lane. Only pedestrian access from Los Gatos Boulevard will be provided. The proposed
project also includes a right-of-way dedication of three feet along the Garden Lane frontage
and frontage improvements along Los Gatos Boulevard and Garden Lane. Of the 55
proposed units, 8 units would be designated as Below Market Price units.
PAGE 6 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
C. Zoning Compliance
The property is zoned CH:HEOZ, or Restricted Highway Commercial with a HEOZ overlay.
The CH zone is intended for development of vehicular-oriented activities and sales along
highway frontages, intermingled with compatible retail, service and administrative
activities. Residential uses are only allowed in the CH zone within a mixed-use or live/work
development with approval of a Conditional Use Permit (CUP). The applicant proposes a
multi-family live/work development requiring approval of a CUP. The dedicated live/work
units are two-bedroom units situated along Los Gatos Boulevard. The Town Code does not
define live/work units; therefore, the applicant’s proposed interpretation of live/work units
appears consistent with the zoning regulations and would be permissible with approval of a
CUP.
The HEOZ overlay modifies development standards such as density, lot coverage, FAR, and
height. The proposed project meets the minimum required density under the HEOZ overlay
and complies with FAR and height standards. Lot coverage standards do not apply to this
property.
The applicant requests a number of waivers to Town standards through SDBL, as well as one
concession. The requested waivers and concession are discussed below.
DISCUSSION:
A. Architecture and Site Analysis
The project includes 55 units distributed among five buildings (Exhibit 16). The unit types
include studio, two, and three bedrooms floor plans. The buildings would range from six to
15 attached dwelling units in a townhouse configuration, each served by private roadways
and alleys. A summary of the unit types and buildings is provided on sheet PI-1 of Exhibit 16.
A Project Description Letter and Letter of Justification discussing the project are included as
Exhibits 5 and 6.
B. Building Design
The project includes an architectural vernacular incorporating the traditional forms and
materials found throughout the Town (Exhibit 16, Sheet MB-1). The buildings are three
stories tall with maximum heights ranging from 41 feet, six inches to 45 feet, where 45 feet
is the maximum allowed through the HEOZ overlay. Exterior materials include composition
roof shingles; lap, shingle, and board and batten Hardieboard siding; vinyl windows; and
wood railings. The well-articulated forms used on the five buildings is consistent and the
distribution of the siding materials is varied to differentiate each building and emphasize
the identity of the individual units.
PAGE 7 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
Review by the Town’s Consulting Architect is typically required for Architecture and Site
applications. For this application, it should be noted that the feedback provided by the
Consulting Architect is subjective in nature and should not be used as the basis for a
decision since the Town’s review is limited to objective standards only, pursuant to SB 330.
The Town’s Consulting Architect reviewed the proposed project and provided feedback and
recommendations (Exhibit 7). The Consulting Architect noted the challenge posed by the
constraints of the site and the need to meet the minimum density applicable to the
property with sympathy to the Town’s small scale and character. The Consulting Architect
discussed issues and concerns related to guest parking, internal pedestrian circulation, site
edge landscaping, façade massing, setbacks along Los Gatos Boulevard, roof slopes, and
façade articulation and materials. The Consulting Architect made recommendations on
following topics:
1. Guest parking and internal pedestrian circulation;
2. Los Gatos Boulevard frontage;
3. Garden Lane frontage;
4. Façade roof slopes; and
5. Façade articulation and materials.
The applicant submitted a letter responding to these recommendations and summarizing
design changes that were made (Exhibit 8).
C. Height
The buildings are three stories tall with maximum building heights ranging from 41 feet, six
inches to 45 feet, where 45 feet is the maximum allowed in the CH zone with the HEOZ
overlay. A summary of the proposed building heights is provided in the following table.
Building Height Summary
Building Maximum Height Proposed Maximum Height Allowed
A 45’– 0”
45 feet
pursuant to the
HEOZ overlay
B 42’– 0”
C 42’– 10”
D 42’– 4”
E 42’–0”
Subdivision and Site Design
The project includes a vesting tentative map for condominium purposes (Exhibit 16, Sheet
C-2). The subdivision design creates a single lot that accommodates the five buildings and
easements for private alleys, public service, emergency vehicle access, and sanitary sewer.
Additionally, the subdivision includes a three-foot right-of-way dedication along Garden
Lane as required by the Town.
PAGE 8 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
The proposed development would take access at two points along Garden Lane (Exhibit 16,
Sheet C-4). Vehicular access to the property would no longer be provided from Los Gatos
Boulevard, where only limited pedestrian access would be accommodated. Vehicular
circulation through the site would be provided via private alleys in a U-shaped configuration
connecting the two access points at Garden Lane. A guest parking area would be provided
on the north end of the site.
The five buildings would be sited adjacent to the alleys, while addressing both Los gatos
Boulevard and Garden Lane. Building A would parallel Los Gatos Boulevard and Alley B,
providing a strong street presence along Los Gatos Boulevard. Building B would be situated
along the south property line and adjacent to Alley A, at an angle to Garden Lane. Buildings
C and D would be adjacent to Alleys A and C respectively and would frame the common
green space between the buildings and adjacent to Garden Lane. Building D would be
adjacent to Alley C and the guest parking area to the north. The private garages in the five
buildings would be directly accessible from the proposed alleys.
In addition to private yards and balconies, the primary open space provided on the site is
located between Buildings C and D, adjacent to Garden Lane (Exhibit 16, Sheet L1). The
space provided for community recreation spaces exceeds the Town Code and ODS
requirements for such spaces. The conceptual landscape plan shows that trees, shrubs, and
other plantings would be distributed throughout the site.
D. Grading and Retaining Walls
The Preliminary Grading Plan included as Sheet C-5 of Exhibit 16 provides information
regarding earth movement and the location and height of retaining walls. The grading
activities would adjust the elevations of the site to accommodate the five buildings,
alleyways, parking areas, and other site amenities. The maximum proposed grading depths
include up to 8.3 feet of cut and 0.5 feet of fill. Preliminary cumulative grading quantities
total 16,974 cubic yards, well above the 50 cubic yard threshold for requirement of a
Grading Permit. The Town’s Parks and Public Works Engineering staff have included a
condition of approval requiring submittal and evaluation of a Grading Permit in parallel with
the required Building Permits (Exhibit 3).
One retaining wall is proposed along the south property line with a maximum height of six
feet. The retaining wall would be approximately 300 feet long without a break or change in
direction, which does not meet the ODS that retaining walls not run in a continuous
direction for more than 50 feet without a break, offset, or landscape pocket. The applicant
has requested a waiver to this standard through SDBL and provided justification for the
request in Exhibit 9.
PAGE 9 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
E. Transportation Analysis
A Transportation Study was prepared by Hexagon Transportation Consultants, Inc. (Exhibit
1, Appendix H) for the proposed project. As noted in the study, Town Council designated
the use of Vehicle Miles Traveled (VMT) as the metric for conducting transportation
analyses pursuant to CEQA and establishing the thresholds of significance to comply with
Senate Bill 743 (Resolution 2020-045). Consistent with State CEQA Guidelines Section
150643, the Town of Los Gatos has adopted thresholds of significance to guide in
determining when a land use project will have a significant transportation impact. The
Traffic Study concludes that the project is consistent with the Town’s Housing Element and
General Plan; therefore, a VMT analysis is not required for the project. However, the
Housing Element and General Plan require all projects consistent with them to implement
applicable VMT reduction measures in accordance with General Plan EIR Mitigation
Measure T-1. The project would need to implement a TDM plan in accordance with the
General Plan TDM policy (Policy MOB-1.1).
The project will provide two high visibility crosswalks at the Garden Lane/Oak Park Drive
intersection, install a new curb ramp on the south side of Garden Lane for the new
crosswalk, provide a curb extension to reduce the Garden Lane crossing distance, and
provide a detached sidewalk along the Garden Lane frontage. The project will also
contribute to the planned Townwide Class IV protected bike lane improvement on Los
Gatos Boulevard. These improvements would help reduce area VMT.
In addition to the VMT analysis, the Traffic Study provides a trip generation analysis based
on the Institute of Transportation Engineer’s (ITE) Trip Generation Manual (2021). The
Traffic Study estimated that the proposed project would generate 266 new daily trips over
existing conditions, including 22 new trips (4 inbound and 18 outbound) during the AM peak
hour, and 9 new trips (6 inbound and 3 outbound) during the PM peak hour. The
intersection level of service analysis shows that with the project traffic, the study
intersections would continue to operate at acceptable levels of service and experience no
queuing issues.
The Traffic Study included recommended conditions of approval, which have been included
in Exhibit 3.
F. Parking
Based on the vesting date of the application, the applicable Town Code requirements for
parking in a multi-family residential project are one and one-half spaces for each unit, plus
one space per unit for guest parking. This equates to 83 parking spaces and 55 guest parking
spaces, a total of 138 parking spaces. Since the project qualifies under SDBL, the applicant
has selected to utilize the reduced parking requirements from the statute, which supersede
the Town’s. Through SDBL, the parking requirement is 79 total spaces with no guest parking
PAGE 10 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
requirement. The proposed project includes 88 spaces accommodated in the private
garages and nine guest parking spaces.
G. Tree Impacts
There are approximately 59 existing trees in the vicinity of the development. The
development plans show that all 59 trees would be removed, 55 of which are protected
trees, and one is a large protected tree under the Town Code. Based on the canopy size of
the protected trees proposed for removal, approximately 119 24-inch box trees would need
to be planted onsite to offset the removal. The applicant has the option to request in-lieu
payment for any required replacement trees that cannot be accommodated on site. The
preliminary landscape plan shows that 50 trees are proposed on site, 19 of which would
qualify as replacement plantings being 24-inch box trees (Exhibit 16, sheet L3.)
The applicant submitted an Arborist Report for peer review by the Town’s Consulting
Arborist. Following several rounds of review, the revised Arborist Report from the applicant
was confirmed to meet the Town’s requirements by the Consulting Arborist. The Arborist
Report for the project is included as Exhibit 10. Since all trees are proposed for removal,
tree protection measures are not required.
H. Below Market Price (BMP) Units
The proposed project includes a total of 55 units, eight of which would be designated as
affordable units. The Town’s BMP ordinance and guidelines requires that multi-family
residential developments with 20 to 100 market rate units provide a number of BMP units
as determined by the formula included in Town Code Section 29.10.3025 (b)(2). The project
includes 47 market rate units, requiring a minimum of eight BMP units. The proposed eight
BMP units meets the Town’s BMP requirements.
Sheet PO-2 provides that four units would be dedicated as moderate-income and four
would be dedicated as low-income. As required by the BMP Guidelines, the moderate-
income units will be restricted to those whose income is above 80 percent, but no greater
than 120 percent of the median area income, and the low-income units will be restricted to
those whose income is above 50 percent, but no greater than 80 percent of the median
area income. Conditions of approval are included in Exhibit 3 pertaining to the provision and
sale of the BMP units.
I. Live/work units
The property is zoned CH:HEOZ, which allows residential uses within a mixed-use or
live/work development with approval of a CUP. The applicant proposes a multi-family
live/work development and requests approval of a CUP. The four live/work units are located
in Building A with frontage along Los Gatos Boulevard. The Town Code does not provide a
definition for live/work units. The applicant provides in their Letter of Justification that the
PAGE 11 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
designated live/work units are desirable in that they provide opportunities for housing that
can accommodate the needs, preferences, and financial capabilities of current and future
residents in terms of different housing types, tenures, density, size, and costs pursuant to
General Plan Policy LU-2.2 and LU-6.7 (Exhibit 6). Additionally, the applicant indicates that
live/work units along Los Gatos Boulevard will contribute to the economic vitality of the
area, providing opportunities for entrepreneurship and creativity.
J. State Density Bonus Law Concession and waivers
As discussed above, through SDBL, qualifying projects are entitled to a density bonus, as
well as concessions, waivers, and parking reductions. The proposed project is entitled to
one concession, unlimited waiver requests, and reduced parking requirements.
The property is zoned CH:HEOZ. Residential uses are only allowed in the CH zone within a
mixed-use or live/work development with approval of a CUP. The applicant applied for a
CUP for a live/work development.
As discussed above, the project includes eight BMP units, meeting the Town Code
requirements. The applicant requests a concession to the requirements included in the
Town’s BMP Guidelines. The BMP Guidelines requires that the BMP units be consistent to
the market rate units in bedroom count, unit size, exterior appearance, location, and
provided parking. The applicant provided a Letter of Justification that details the requested
concession, indicating that the BMP units have been curated with affordability in mind and
are consistent with the BMP Guidelines for exterior appearance, location, and provided
parking (Exhibit 6). The BMP units include studio and two-bedroom floor plans, but do not
include any three-bedroom floor plans. Regarding unit size, the market rate units range in
size from 282 to 1,569 square feet, while the BMP units range in size from 328 to 947
square feet.
A Letter of Justification discussing the waivers to development standards requested by the
applicant and why they are needed to construct the project Is included as Exhibit 9. The
findings for granting concessions and waivers pursuant to SDBL are included in Exhibit 2.
K. No Net Loss Law
Pursuant to Government Code Section 65863 (No Net Loss Law), the Town must maintain
adequate capacity in the Housing Element to accommodate its remaining unmet Regional
Housing Needs Assessment (RHNA) by each income category at all times throughout the
entire planning period. To comply with the No Net Loss Law, as the Town makes decisions
regarding zoning and land use, or development occurs, the Town must assess its ability to
accommodate new housing within the remaining capacity of the Housing Element. If the
Town approves a development of a parcel identified in the Housing Element with fewer
units than anticipated, the Town must either make findings that the remaining capacity of
the Housing Element is sufficient to accommodate the remaining unmet RHNA by each
PAGE 12 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
income level, or identify and make available sufficient sites to accommodate the remaining
unmet RHNA for each income category. The Town may not disapprove a housing project on
the basis that approval of the development would trigger the identification or zoning of
additional adequate sites to accommodate the remaining RHNA.
As described in the table below, the project provides fewer Very Low, Low, and Moderate
Income units than anticipated in the Sites Inventory of the Housing Element, but more
Above Moderate Income units, producing a net cumulative gain of nine units for the site.
No Net Loss Evaluation
Evaluation of the Proposed Project’s Impact on the Anticipated Development Potential Assumed in the Housing
Element Site Inventory for the Subject Property
Units by Income Category
Very Low Low Moderate Above
Moderate
Net Total
Anticipated Development
Potential Included in the Sites
Inventory of the Housing
Element 19 9 9 9 46
Proposed Project 0 4 4 47 55
Net Site-Level Impact from the
Proposed Project to Housing
Element Assumed
Development Potential -19 -5 -5 +38 +9
Following the Town Council’s approval of the project located at 50 Los Gatos-Saratoga Road
(Los Gatos Lodge) on March 4, 2025, the capacity of the Housing Element and the remaining
RHNA were adjusted to reflect the approval. The table shows that the cumulative impact of
the proposed project on the remaining capacity of the Housing Element allows the Town to
maintain a positive surplus in each income category. The remaining capacity of the Housing
Element is adequate to meet the Town’s remaining RHNA requirements. The No Net Loss
findings can be made (Exhibit 2), and the Town is not required to identify additional sites to
accommodate the remaining RHNA as a result of this project.
PAGE 13 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
No Net Loss Evaluation
Evaluation of the Proposed Project’s Impact on the
Remaining Cumulative Housing Element Sites Inventory Surplus
Units by Income Category
Very Low Low Moderate Above
Moderate
Net Total
Remaining Housing Element
Sites Inventory Surplus 71 41 39 122 273
Net Site-Level Impact from the
Proposed Project to Housing
Element Assumed
Development Potential -19 -5 -5 +38 +9
Remaining Housing Element
Sites Inventory Surplus with
Project Approval 52 36 34 160 282
L. Neighbor Outreach
The applicant provided a summary of their neighborhood outreach efforts, which is
included as Exhibit 11.
M. CEQA Determination
The Town Council adopted the 2040 General Plan and certified the 2040 General Plan EIR
on June 30, 2022. On April 2, 2024, the Town Council voted to rescind the Land Use Element
and Community Design Element of the 2040 General Plan. Therefore, the Town’s current
General Plan consists of the Land Use Element and Community Design Element of the 2020
General Plan, and the remaining elements of the 2040 General Plan.
CEQA Guidelines Section 15168 provides that a programmatic EIR, in this case the 2040
General Plan EIR, may serve as the EIR for subsequent activities or implementing actions,
provided that it contemplates and adequately analyzes the potential environmental impacts
of those subsequent activities. If the Town, as the CEQA Lead Agency, determines, pursuant
to Section 15162 of the CEQA Guidelines, no Subsequent EIR would be required, the agency
can approve the activity as being within the scope of the project covered by the
programmatic EIR, and new environmental documentation would not be required. In
addition, as discussed under CEQA Guidelines Section 15168(c)(2), where later activities
involve site specific operations, the agency should use a written checklist or similar device
to document the evaluation of the site and the activity to determine whether the
environmental effects of the operation were within the scope of the programmatic EIR. If
additional analysis is required, it can be streamlined by tiering from this programmatic EIR.
In accordance with Sections 15168(c)(2) and 15168(c)(4) of the CEQA Guidelines, a Modified
Initial Study Checklist (Exhibit 1) was prepared to provide project-level consideration of
potential new or more severe significant impacts associated with the proposed project to
PAGE 14 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
determine whether the project: 1) is within the scope of activities evaluated in the 2040
General Plan EIR; and 2) would trigger any of the criteria in CEQA Guidelines Section 15162.
The Modified Initial Study Checklist includes a number of project-level technical studies,
including: an Air Quality and Greenhouse Gas Assessment; Biological Site Assessment
Report; Arborist Report; Historic Resources Evaluation; Geotechnical Investigation; Phase I
and Phase II Environmental Site Assessment; Noise Assessment; and Transportation Analysis
(Exhibit 1). All technical reports were peer reviewed by the Town or the Town’s consultants.
The Modified Initial Study Checklist determined that the project’s environmental impacts
have been considered in the 2040 General Plan EIR that was certified by the Town, which
remains relevant, and the conditions set forth in Section 15162 are not triggered by the
proposed project. In addition, the analysis determined that the proposed project is within
the scope of activities evaluated in the 2040 General Plan EIR and the Environmental
Analysis for the 6th Cycle Housing Element. As such, this Modified Initial Study Checklist is
the appropriate environmental document for the proposed project, pursuant to CEQA
Guidelines Section 15168 and no additional environmental review is necessary.
PUBLIC COMMENTS:
Project identification signage was installed on the Los Gatos Boulevard and Garden Lane street
frontages by October 4, 2024, consistent with Town policy. Visual simulations were completed
by the Town’s consultant and posted to the Town’s website by March 20, 2025 (Exhibit 12).
Written notice was sent to property owners and tenants within 1,000 feet of the subject
property and notice of public hearing signage was installed on the street frontages by March
27, 2025, in anticipation of the Planning Commission meeting.
Staff conducted outreach through the following media and social media resources, for both the
availability of the visual simulations and notice of the public hearing:
• The Town’s website home page, What’s New;
• The Town’s Facebook page;
• The Town’s Twitter account;
• The Town’s Instagram account; and
• The Town’s NextDoor page.
Public comments received by 11:00 a.m., Friday, April 18, 2025, are included as Exhibit 15.
CONCLUSION:
A. Summary
The applicant is requesting approval of Architecture and Site, Conditional Use Permit, and
Subdivision applications to demolish existing commercial structures, construct a multi-
family live/work development (55 units), a Conditional Use Permit for a live/work
PAGE 15 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
development, a condominium vesting tentative map, site improvements requiring a Grading
Permit, and removal of large protected trees, under SB 330 on property zoned CH:HEOZ,
located at 15349-15367 Los Gatos Boulevard. As detailed above, the application was
submitted and is being processed under SB 330. The project qualifies for a concession and
unlimited waivers under SDBL. The project is eligible for the Builder's Remedy; however, the
applicant has not invoked the Builder’s Remedy. Therefore, this is not a Builder’s Remedy
project and all deviations from the Town’s standards included in the project are requested
exclusively through SDBL for which the applicant provided justification addressing the
required findings for each.
B. Recommendation
Staff recommends that the Planning Commission consider the request and, if merit is found
with the proposed project, forward a recommendation that the Town Council approve the
Architecture and Site, Conditional Use Permit, and Subdivision applications by taking the
following actions:
1. Make the finding that additional environmental review is not necessary pursuant to
CEQA Guidelines Sections 15162: Subsequent EIRs and 15168: Program EIR, since the
proposed project’s environmental impacts were adequately addressed in the 2020
General Plan EIR and/or 2040 General Plan EIR, as applicable (Exhibit 2);
2. Make the finding that the project is consistent with the General Plan (Exhibit 2);
3. Make the finding that the proposed project complies with Section 66474 of the State
Subdivision Map Act and make affirmative findings to approve the subdivision (Exhibit
2);
4. Make the findings as required by Section 29.20.190 of the Town Code for granting a CUP
(Exhibit 2);
5. Make the finding that the project meets the objective standards of Chapter 29 of the
Town Code (Zoning Regulations) except for the concession and waivers requested
pursuant to State Density Bonus Law (Exhibit 2);
6. Make the finding that the project meets the Town of Los Gatos Objective Design
Standards for Qualifying Multi-Family and Mixed-Use Residential Development except
for the waivers requested pursuant to State Density Bonus Law (Exhibit 2);
7. Make the affirmative findings as required by State Density Bonus Law for granting a
concession pursuant to California Government Code Section 65915 (d) and for granting
waivers pursuant to California Government Code Section 65915 (a)(2) (Exhibit 2);
8. Make the findings that the proposed project complies with California Government Code
Section 65863 regarding state RHNA requirements, the Town’s Housing Element Sites
Inventory, and No Net Loss Law (Exhibit 2); and
9. Make the considerations as required by Section 29.20.150 of the Town Code for
granting approval of an Architecture and Site application (Exhibit 2);
10. Approve Architecture and Site Application S-24-015, Conditional Use Permit U-24-006,
Subdivision Application M-24-008 with the recommended conditions contained in
Exhibit 3 and the development plans in Exhibit 16.
PAGE 16 OF 16
SUBJECT: 15349-15367 Los Gatos Boulevard/S-24-015, U-24-006, and M-24-008
DATE: April 18, 2025
C. Alternatives
Alternatively, the Planning Commission can:
1. Continue the matter to a date certain with specific direction; or
2. Recommend approval of the applications with additional and/or modified conditions; or
3. Recommend denial of the applications.
EXHIBITS:
1. Final Initial Study – March 2025
(available online at https://www.losgatosca.gov/DocumentCenter/Index/2223)
2. Required Findings and Considerations
3. Recommended Conditions of Approval
4. Location Map
5. Project Description Letter
6. Letter of Justification
7. Consulting Architect’s Report
8. Applicant’s Response to Consulting Architect’s Report
9. Letter of Justification for SDBL Concession and Waivers
10. Final Arborist’s Report
11. Neighbor Outreach Summary
12. Visual Renderings
13. Objective Design Standards Checklist
14. Site Photos
15. Public comments received by 11:00 a.m., Friday, February 7, 2025
16. Development Plans