Loading...
Item 35 Staff Report Consider Adopting Resolution Approving the Town of Los Gatos Economic Vitality ProgramMEETING DATE: 7/1/02 ITEM NO. 3 5 !ps GAj09 DATE: June 26, 2002 TO: MAYOR AND TOWN COUNCIL • FROM: DEBRA J. FIGONE, TOWN MANAGER SUBJECT: CONSIDER ADOPTING RESOLUTION APPROVING THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM COUNCIL AGENDA REPORT RECOMMENDATION: 1. Open and hold the public hearing; 2. Close the public hearing 3. Consider adopting the attached resolution approving the Town of Los Gatos Economic Vitality Program, subject to any changes the Council deems necessary. BACKGROUND: At its meeting of May 20, 2002, the Council directed staff to notice a public hearing and solicit additional input regarding the Economic Vitality Program (the "Program"). Staff has published a public hearing notice in the Los Gatos Weekly Times for this evening's meeting. In addition, an article regarding the program was written in the Weekly. Finally, the Los Gatos Chamber of Commerce was notified and they invited Town staff to speak at their "Hot Topics Breakfast" on June 18, 2002. Approximately 30 businesses attended this breakfast. DISCUSSION: In July 2002, the Town completed the update of its General Plan. The update was the result of several years of work and extensive community involvement. Two major task forces were formed with representation from all aspects of the residential and business community. The Los Gatos General Plan 2000 is a legal document that closely reflects the interests of the citizens of the Town in terms of how they would like their community to look and feel. (Continued on Page 2) PREPARED BY: Bud N. LortzW` ---- Marty Woodworth - Community Development Director Redevelopment Manager Reviewed by: ' 'S3 Assistant Town Manager OIG Attorney Clerk Sc.- Finance Community Development Revised: 6/26/02 10:52 am N:IDEV\Marty\Formsteconomicvitalitypl ancouncil reportjuly 12002.wpd PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ECONOMIC VITALITY PROGRAM June 25, 2002 The Town is now in the process of implementing the numerous goals and policies outlined in the General Plan. A number of the goals and policies relate to the economic health of the community and the ability to provide residents with goods and services within the Town limits. In order to implement the goals and policies relating to the economic health of the community, staff has prepared the Economic Vitality Program. The purpose of the Economic Vitality Program is to serve the citizens of Los Gatos in several ways. This includes providing residents desired goods and services within the Town limits, generating revenue to the Town so that it can continue to provide high quality municipal services to its residents, generating jobs for residents, and helping businesses to be successful in the community. Through the General Plan and Economic Vitality Program, the charm and high quality lifestyle of Los Gatos can be preserved and enhanced. Attachment 2 is the Economic Vitality Program document that has been prepared by staff. It contains a variety of recommended programs that the Town may wish to undertake in order to maintain a healthy economy. It is based on sound fundamentals that are used successfully by many communities, yet tailored to fit the unique nature of Los Gatos. A primary focus of the Program is working with existing businesses within the Town to maintain and enhance their success. In addition, the Program looks for opportunities to enhance the economy with businesses that will benefit the community and serve its residents. The Program recommends that community survey work include questions about the types of businesses and services that residents would like to see in the community. Information received would be used in the context of the Town's land use policies and to assist staff in its business recruitment efforts. At the May 20, 2002 meeting, the Council directed staff to notice the Program for public hearing in order to receive additional input. A notice of public hearing for the Program was published in the Los Gatos Weekly Times. In addition, an article was written about the Program. Finally, staff contacted the Los Gatos Chamber of Commerce in order to review the Program with them. The Chamber arranged to have staff present the Program at its "Hot Topics Breakfast" on June 18, 2002 at the Toll House. About 30 people attended the meeting. The Chamber notified all of its members of the breakfast via its newsletter (Attachment 3). The Program seemed to be well received at the breakfast. Attachment 4 contains a summary of questions, comments and suggestions from the meeting. In addition, Attachment 5 is an e-mail that staff received with additional comments regarding the Program. CONCLUSION: The Economic Vitality Program will be an effective tool to implement the Town's General Plan and enhance the local economy while preserving the charm and character of Los Gatos. Public outreach has been undertaken, and the Program seems to be supported by the community. It is recommended that the Council adopt the attached resolution approving the Program, with any modifications to it as the Council may deem necessary. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ECONOMIC VITALITY PROGRAM June 25, 2002 ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: The implementation of the Economic Vitality Program will be undertaken with existing Town staff and resources. It is anticipated that the Program, once implemented, will have a positive impact on the Town's revenues and local businesses. Attachments: 1. Resolution approving Economic Vitality Program 2. Economic Vitality Program document 3. Chamber newsletter dated June 2002 4. Questions, Comments and Suggestions from Chamber of Commerce breakfast on June 18, 2002 5. E-mail received 6/19/02 Distribution: Greg Stowers, President, Los Gatos Chamber of Commerce BNL:MW:mdc n RESOLUTION RESOLUTION OF THE TOWN COUNCIL APPROVING THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM WHEREAS, the Economic Vitality Program (the "Program") is ameans to implement goals and policies of the adopted Town of Los Gatos General Plan; WHEREAS, the Program will preserve and enhance the Town's charm and high quality of life; WHEREAS, the Program will help provide goods and services desired by Los Gatos residents; WHEREAS, the Program will increase the economic vitality and diversity of the Town; WHEREAS, the Program will help maintain and increase Town revenues and thereby allow the Town the ability to continue to provide high quality municipal services; WHEREAS, the Program will help strengthen local businesses and recognize the contributions that they make to the Town; WHEREAS, the Program will help the Town anticipate changes in the local economy and deal with them in a proactive manner THEREFORE BE IT RESOLVED, that the Town Council of the TOWN OF LOS GATOS does hereby approve the Economic Vitality Program (Attachment 2), with any changes that it deems necessary. Attachment 1 PASSED AND ADOPTED at a regular meeting of the Town Council held on the day of , 2002, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: /s/ Randy Attaway ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:1DEV\Marty\AGENCY REPORTS\econdevplanresolutionjuly I 2002. wpd 2 MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Economic Vitality Program considered for Los Gatos Town's New Redevelopment Manager to speak at Chamber event June 18 J The Los Gatos Town Council is scheduled to consider adoption of an Economic Vitality Program at its July 1 meeting. The purpose of the program is to enhance the business climate of Los Gatos, provide residents with the goods and services they desire, maintain and enhance Town revenues in order to fund Town services, and to protect and enhance the character and charm of the community. Chamber members and guests from the business community will get a special preview of the program and have the opportunity to meet the Town's new Redevelopment Manager, Marty Woodworth, at a Hot Topics Breakfast on Tuesday, June 18, 7:30-9 a.m. at the Tollhouse Hotel. Space will be limited so send in your reservation quickly. (See reservation form insert.) As the Town's first full-time Redevelopment Manager, Marty's duties include downtown redevelopment efforts, economic development activities throughout the Town, and working to provide affordable housing. Prior to coming to Los Gatos in December, he spent five years as the Assistant Director of Economic Development in San Jose and eight years as the Redevelopment Manager in the City of Campbell. Another successful Chamber mixer! Close to 100 members of the Los Gatos business community enjoyed the Chamber's May mixer at the Chart House. Thank you, Chart House, for a wonderful evening. Also special thanks to raffle prize donors The Toll House, Villa Montalvo, The Moorpark Hotel and the Chart House. Also thank you to our faithful Chamber volunteers: Svetlana Vailey, Mary Anne Bruno, and Norine Ferris. Time to get ready for 2003 Business Referral Directory Chamber members will soon be contacted by the publishers of the 2003 Chamber of Commerce Business Directory and Guide to Los Gatos about advertising opportunities in the new edition, which will be distributed in January. Residents, business owners and managers, and visitors to Los Gatos have found the 2002 directory to be extremely helpful in locating the goods and services they need. There are 7,000 copies of the glossy, all color directory distributed in Los Gatos. With a magazine style format, the directory is designed for a long shelf life with repeated usage and multiple readers. If you are eager to discuss advertising now, call David Carrillo of Performance Publishing Group at (800) 814-7289 x303. ApplicAtions are nova being accepted for Leadership l .os Gatos 2002-03. See brochure Attachment 3 TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM JUNE 18, 2002 7:30 A.M. — 9:30 A.M. QUESTIONS, COMMENTS, SUGGESTIONS 1. Comment: Please add the following on page 6, section D under THREATS: Hillside Development and how it would effect the ambiance of the old lands and the trickle down effect 2. Comment: There were no surprises in the SWOT analysis and how it compared to other Cities. 3. Comment: She depends on Los Gatos for auto dealers and would not think of purchasing a vehicle anywhere else even though she lives in Santa Cruz and always recommends to her neighbors and friends to purchase in Los Gatos. 4. Question: Is there a budget for marketing, advertising, or media advertising that the Town would provide? Is a partnership possible between businesses and the Town of Los Gatos? 5. Question: How can I make proposals to the Town for such events as Holiday shopping and special events? 6. Question: How does the Town monitor hotel occupancy tax? Also, how does the Town monitor vacancy for commercial space? 7. Comment: The Beautification Committee tries to reward businesses for going out of their way for their customers. Also,rewards businesses for special events such Fourth of July. 8. Comment: Aware that the businesses are rent dependent and want everyone to succeed. Also, one of the reasons for the Economic Vitality Program is to open dialogue and communication through the Town and businesses. 9. Comment: Chain Stores can afford the high rents and property owners prefer a Chain Store because they know that they will pay the high rent vs. a regular shop that struggles to pay rent. 10. Question: How does a business target services to a certain age group and how does the Town assess new businesses to fit in the mix? (e.g., Would you allow another kitchen store). Attachment 4 11. Comment: Town should hold meetings with architects, engineers & developers to get feedback on how the Town's development review and building permit processed can become more efficient. N:1DEV\Marty\Economic Vitality Program16-18-02 Comments.doc Page 1 of 1 Marty Woodworth - Toll House presentation From: "Joyce and Donn" <dbyrne64@yahoo.com> To: <mwoodworth@town.Ios-gatos.ca. us> Date: 6/19/2002 2:02 PM Subject: Toll House presentation Marty: I enjoyed your presentation yesterday very much. Regretably, I didn't have time to stick around afterwards. Several questions occur to me: 1. T.G.1.1 refers to transportation "systems". Is this item limited to the VTA Tight Rail? Further, I believe the Campbell -Hacienda station is currently the southern most approved/funded station (?). Is this true? When can we Los Gatos folks expect a station at the old "A to Z" site and, when VTA really comes to town, where does RDA anticipate another station? 2. I understand from your comments and the budget that auto dealers and hotels are your preferred uses from a revenue standpoint. What other uses is RDA looking for in order to satisfy General Plan goals? What uses do you NOT want? 3. What is your plan to get RDA in front of property owners with impending vacancies? 4. Traffic is a growing concern (Sometimes Mr. Davis is right on). What is the Town doing to anticipate this problem? Thank you for your attention. With such an all encompassing and proactive approach to economic development, you certainly have your hands full! I will make a point of introducing myself when next I see you. Attachment 5 file://C:\Documents%20and%20Settings\mwoodworth\Local%20Settings\Temp\GW } 0000'... 6/25/2002 THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM JULY, 2002 Prepared by the Los Gatos Redevelopment Agency 110 E. Main St. Los Gatos, CA 95030 Attachment 2 THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM TABLE OF CONTENTS Page 1. Introduction 1 2. Purpose and Mission 2 3. Guiding Principals 3 4. Economic Vitality Program Summary 3 5. The Town of Los Gatos - A Brief Overview 3 6. Strengths, Weaknesses, Opportunities and Threats (SWOT) 4 7. Detailed Economic Vitality Work Program A. Business Retention and Expansion 6 B. Targeted Business Attraction and Development 8 C. Working with Specific Groups of Businesses/Properties 8 D. Annual Monitoring 9 1. Introduction The Economic Vitality Program is one of the many tools used to implement the Town of Los Gatos General Plan. The General Plan is the community's constitution for development, the foundation upon which all land use decisions are to be based. The General Plan is a legal document that reflects the interests of the citizens of Los Gatos in terms of how they would like their community to look and feel. The Los Gatos General Plan was recently updated after extensive citizen involvement, including the involvement of two major tasks forces which met for seven months each reviewing issues. These tasks forces included members from all neighborhoods, area, and business districts of the Town in order to represent all interests. The Economic Vitality Program will directly or indirectly implement the following General Plan Goals: L.G. 1.1 L.G. 5.1 L.G. 5.2 L.G. 6.2 L.G. 7.4 L.G. 7.5 T.G. 1.1 T.G. 6.1 V.G. 1.1 To preserve, promote, and protect the existing small town character and quality of life within Los Gatos. To provide residents with adequate commercial and industrial services. To maintain a balanced, economically stable community within environmental goals. To preserve downtown Los Gatos as the historic center of the Town with goods and services for local residents while maintaining the existing Town identity, environment and commercial viability. To promote commercial activity that complements the whole Town. To provide a dependable source of income, employment opportunities, goods and services To develop transportation systems that meet current and future needs of residents and businesses. To provide adequate parking for existing and proposed uses, and to minimize impacts on surrounding residential neighborhoods, including construction new public or private parking structures, and valet parking. To promote the construction of Vasona Light Rail and mass transit facilities in the Route 85 median. The Economic Vitality Program will serve the citizens of Los Gatos in several direct ways. First, it will work to maintain, expand and attract successful businesses that serve the needs of local residents. These businesses include retail, service and food related businesses upon which residents depend. By having businesses local, residents do not have to drive longer distances to neighboring communities and it helps foster a true sense of community. In addition, local sales tax dollars remain within the community for uses to serve its residents. Second, the Program will help keep the Town of Los Gatos Government fiscally stable, thereby allowing for continued high quality services to its residents. Although Los Gatos is an affluent area, the Town government has limited resources and limited ability to increase revenues. High 1 quality Town services are an important component in maintaining the high quality of life in the Town. Services such as public safety, land use review and approval, parks and recreation, and street repairs are critical to the Town, but costly. Under California Law, the Town has limited ability to increase tax revenues to pay for services. Maintaining and increasing sales tax and hotel tax revenues are one of the few areas where the Town has some control, without increasing taxes to residents. Therefore, the Economic Vitality Program focuses on business retention, attraction and expansion as means to generate Town revenue in order to provide services to its residents. However, in doing so the Town has the ability to be selective about the businesses it assists while maintaining the high quality standards for which Los Gatos is known. Third, the Program will help to generate jobs for Los Gatos residents. By having a diversity of business types, a variety of local jobs are created for which Los Gatos residents may be eligible. Employment within a community in which residents live is extremely desirable, thus avoiding lengthy commutes that may otherwise be required. Finally, many of the businesses in Los Gatos are locally owned and operated. The Economic Vitality Program strives to help local businesses be successful. This benefits not only the Town and its residents but also the local owners of these businesses. In summary, the Economic Vitality Program shall serve as an important tool in implementing the goals and policies of the Town's General Plan. It will serve the community by assuring the provision of local goods, services and employment for residents while generating revenue for the Town in order to provide municipal services. Through this proactive approach, the Town is more likely maintain a stable economy and a healthy community. 2. Purpose and Mission The purpose and mission of the Town of Los Gatos Economic Vitality Program is to: • Preserve and enhance the Town's charm and high quality of life • Provide goods and services desired by Los Gatos residents • Increase the economic vitality and diversity of the Town • Maintain and increase sales tax revenues • Maintain and increase Transient Occupancy Tax (i.e., Hotel or TOT) • Maintain and increase tax increment revenue to the Redevelopment Agency • Create jobs for Town residents • Diversify and balance the local economy • Recognize the contributions that businesses make to the Town ♦ Anticipate changes in the local economy and deal with them in a proactive manner 2 3. Guiding Principles The Los Gatos Economic Vitality Program is based on the following principles: • Protecting the Town's high quality of life while balancing the need for goods and services for Town residents and tax revenues to support the Town's municipal operations • Providing a wide variety of good and services to serve the community in order to minimize the need for residents to travel to other communities ♦ Recognizing that the Town is not an island, and that it is subject to the economic changes of Silicon Valley, California and the nation, thus requiring a proactive approach in protecting and enhancing its local economy • Being "User Friendly" which provides the best Customer Service for all of the Town's customers • Using a Team Approach to bring all Town departments and resources together to work cooperatively with businesses 4. Economic Vitality Program Summary The focus of the Town of Los Gatos Economic Vitality Program is developed around the following core programs which will be detailed later in this document: A. Business retention and expansion, including business visitations, business recognition, business surveys, and working with the Chamber of Commerce B. Targeted business attraction of key businesses that have been determined to be absent in the Town but desirable by residents to have here. C. Working with specific groups of businesses and property owners including, but not limited to the auto dealers, hotels/motels and the "North Forty." D. Annual monitoring of activities and reporting to the Town Council 5. The Town of Los Gatos - A Brief Overview The Town of Los Gatos is nestled at the base of the Santa Cruz Mountains, approximately 60 miles south of San Francisco in the southwestern portion of Santa Clara County. The Town is bound by the City of San Jose to the north and east, the City of Campbell to the north, and the cities of Monte Sereno and Saratoga to the west, and unincorporated County of Santa Clara and the County of Santa Cruz to the south. Los Gatos is one of Santa Clara County's oldest communities, being incorporated in 1887. It has a population of approximately 30,000 persons and encompasses about 14 square miles. The Town originally developed at a distance from other population centers and therefore 3 evolved as an independent community having residential, commercial and industrial areas. The economics of the Town have changed from wheat farming, milling, logging, orchard and cannery businesses in the 19`h and 20`h centuries to the suburban, "high tech", visitor destination businesses of today. The Town is situated within the largest metropolitan area of northern California, and is closely tied to Silicon Valley and its fast paced economy. Los Gatos, however, retains a mix of residential, commercial and light industrial uses, attracts many visitors, and continues to retain its small town image. Los Gatos prides itself as a "self contained community." Hundreds of businesses serve the residents and act as a destination point for visitors who are attracted to its restaurants, hotels and variety of shops within a pedestrian oriented downtown setting. The Town is also an "inclusive" community with the full mix of ages, family sizes and incomes. Los Gatos has many parks and greenbelt areas, as well as a vibrant downtown area. Downtown Los Gatos is listed on the National Register of Historic Places and is the model of what communities strive to achieve in a downtown. What makes Los Gatos special is its small town atmosphere, strong sense of place, varied architecture, reminders of the past, traditions, unique physical setting, good schools, low crime rate, and the concerned and involved people who make up the community. The overall community consensus is that Los Gatos: • Be a full -serve community that is also environmentally sensitive; • Maintain a balanced, well -designed mix of residential, commercial, service and open space uses, fostering a pedestrian -oriented community with a small town, village -like character; • Support an active business community that provides a wide variety of goods and services and a broad range of employment opportunities, minimizing the need to travel to other communities; • Provides a well -run, efficient municipal government that is fiscally healthy, with high levels of public safety, recreational, art, cultural amenities and that is committed to high quality education. This Economic Vitality Program is one of many tools that the Town will use to strive to achieve the aforementioned goals. 6. Los Gatos Strengths, Weaknesses, Opportunities and Threats (SWOT Analysis) A. Strengths • Highly desirable community with high incomes • Small town atmosphere and strong sense of place • Well educated and involved residents 4 • Strong land use protection policies • Excellent public education system • Extremely successful downtown area • Located in Silicon Valley, the most successful high-tech region in the world • Redevelopment Agency and Chamber of Commerce to assist businesses • Significant Town revenue from auto sales and hotel taxes • Balance of retail, professional and high technology uses • Stable Town government and budget • Good access from Highway 17 and Highway 85, and future light rail B. Weaknesses • Town has limited funding for needed capital improvements such as street upgrades, repair of storm drain lines, downtown parking and traffic improvements • Limited vacant commercial/office/industrial land for new development • High cost of land • High lease rates for commercial buildings • High cost of housing • High cost of labor • Large portion of sales tax revenue (27% comes from a single sector - auto sales) • Traffic in the Town and in the region • Town "perceived" as expensive - may hurt certain uses • Town has little room for expansion of commercial/retail uses • Town has limited ability to increase revenues for municipal services C. Opportunities ♦ Enhancements to the downtown including beautification improvements and parking which will further strengthen the downtown and increase tax revenues • Development of "North Forty" - largest piece of land available in the Town for commercial uses - could be significant revenue generator, employment center, and provide uses that are desirable but currently lacking in the Town. • Sobrato Development - Winchester Blvd. & Highway 85 - one of the largest office sites remaining in the Town. Nearly 300,000 sq. ft. of office space and 135 apartment units to be constructed- could house a corporate headquarters with name recognition for the Town and potential tax revenues depending on the use • Redevelopment/retenanting of certain older properties in town to bring in new and desirable uses, improve the appearance of these buildings, and 5 increase tax revenues • New hotels (e.g. Los Gatos Hotel on Main St.) and expansion of older hotels (e.g., Los Gatos Lodge, Toll House) thereby increasing TOT and tax increment revenue to the Redevelopment Agency • Enhance the image of Los Gatos Blvd. to strengthen this important business district in the Town • Protect and enhance the viability of neighborhood shopping area throughout the Town as an important resident serving use D. Threats • Loss of some of the auto dealers as they move to "auto rows" or "auto malls" (McHugh recently moved to Capital Expressway Auto Mall). Could have significant impact on sales tax revenue for the Town • Slowing local economy - reduction in sales tax (particularly auto dealers) and lower occupancy rates in hotels thus reducing TOT • Loss of one or more high-tech firms that generate significant tax revenue and provide a significant number of jobs for the community • Attempts to address downtown parking issues through parking management plan may not go far enough • Reduced Town revenues resulting in a reduction of municipal services and deterioration of Town infrastructure 7. Detailed Economic Vitality Work Program A. Business Retention and Expansion Al. Business Visitations: The Town should develop a structured business visitation program whereby the most significant businesses in Town in terms of revenues generated and employment will be met with annually. The purpose of the visitations will be to develop relationships with the businesses, discuss how the business is doing (plans to expand or downsize) and offer any assistance that the Town may provide. Staying in touch with businesses will allow the Town to monitor business activity in Town better and project Town revenues. A2. Business Recognition Annual Event: Annually, the Town should hold a business recognition event. This may take the form of a reception or lunch where the larger businesses are invited to meet with Town officials and appreciation is extended by the Town. A3. Letters to New Businesses: When a new business license is issued, a letter from the Town welcoming the business to Town should be sent out along with other Town and/or Chamber information. 6 A4. Annual Letter to Businesses with renewal of business license: Annually in December of each year, business licenses are renewed. This is an opportunity to send out with the renewed license a letter from the Town expressing appreciation for the business being in Los Gatos A5. Survey of Businesses: Periodically, a brief business survey should be mailed out to specified businesses asking for input on how their business is doing and seeking input on how the Town can be more responsive to business. A6. Business Expansion: When staff learns of an existing business that plans to expand, every effort should be made to facilitate an expansion at their current location or with a relocation to a large space within the Town of Los Gatos. The Redevelopment Manager may serve as a liaison in helping to facilitate the permitting process. A7. Business Liaison: The Redevelopment Manager should serve as a liaison between the business community and Town Hall. Businesses that have a concern or problem may contact the Redevelopment Manager who can assist them in resolving the matter. Assistance may include referral to the proper person or department that should handle a matter, scheduling meetings with appropriate Town officials and offering advice. A8. Special Meetings for Non -Downtown Shopping Districts: The shopping centers/district that are not in the downtown area have sometimes expressed concern that they don't feel part of the Town. For these three or four areas, an annual meeting should be held in the area with Town officials to discuss issues and express appreciation for these businesses. A9. Monitor Sales Tax: The Town receives quarterly sales tax reports from its consultant, MBIA. The Redevelopment Manager and Finance Director should review these on a regular basis and look for trends or areas of concern and then contact businesses as may be necessary to determine problems or trends. A10. Work with Chamber of Commerce: The Chamber plays a very important role in working with businesses throughout the Town. The Town and Chamber need to continue to work as partners in assisting the business community. All. Marketing Materials/Gifts: Simple, yet high quality, marketing materials and/or gifts should be developed and distributed when making business visits or during recognition events. These materials should portray the look and feel of the Town. They may take the form of coffee cups, paper weights, a professionally designed Town brochure or similar items. B. Targeted Business Attraction & Development B 1. Targeted Business Attraction: Through citizen surveys and resident contact, the Town should identify uses that are desirable in Town, but currently absent. The Redevelopment Manager on an ongoing basis should contact these businesses and work with them to see if it is possible for them to expand into Los Gatos. Such uses must be in keeping with the Town's vision and character and be of the highest quality design. B2. Targeted Tenanting of Specific Buildings: The Redevelopment Manager should network with the real estate brokerage community and business and property owners in order to be aware when key buildings will have a vacancy. The Redevelopment Manager should work with the building owner, their broker and prospective tenants to find a tenant desirable to the community and assist them through the permitting process. B3. Development of Key Parcels: There may be specific vacant or underutilized parcels that the Town takes a specific interest in their development or redevelopment. The Redevelopment Manager should work to develop a list of potential parcels and then work with the property owners should the wish to pursue development. C. Working with Specific Groups of Businesses/Properties Cl. Auto Dealerships: The seven auto dealerships in Los Gatos provide a number of benefits to the Town including sales and service to Town residents, significant sales tax to the Town (nearly $2 million annually), and jobs for Town resident's. The auto dealers need assistance from the Town in order to update their facilities and make improvements that will keep them competitive in Los Gatos. The Town should meet periodically with the auto dealers to discuss ways to strengthen the automobile sales business in Los Gatos while remaining sensitive to the concerns of surrounding neighborhoods and other land use considerations. C2. Hotels/Motels: The Town has six hotels/motels with a seventh one to be completed by summer 2002. The hotels/motels are an important part of the Los Gatos economy for several reasons. They provide lodging for business and vacation travelers coming to Los Gatos and Silicon Valley. Those travelers also spend money in the Town which support local businesses as well as generates sales tax for the Town. The hotels/motels provide employment for Los Gatos residents and other. Finally, they are an important source of revenue for the Town - Transient Occupancy Tax (TOT) of over $1 million annually. The Redevelopment Manager should meet with the owners/managers of the hotels/motels and provide recommendations or suggestions in terms of how the 8 Town may assist them. This could include plans for expansion and/or renovation of facilities, marketing, and other logistical issues. C3. North Forty: The "North Forty" also know as the "Yuki" property is primarily an orchard area located adjacent to Highway 17 and Highway 85 at the northen end of the Town. This property represents the largest and most significant commercial development opportunity for the Town. Potential for the property includes providing retail uses desired, but currently lacking in the Town, as well as generating significant tax revenues for the Town. The Town should continue to work closely with the Yuki family and the community in completing the Specific Plan to guide future development in this key area. D. Annual Monitoring D 1. Annual Monitoring Report: Annually, the Redevelopment Manager should prepare a report for the Town Council summarizing the previous years economic development efforts, reporting trends, areas of concerns, and areas to focus on for the upcoming year. N:\ D E V \Marty\ec on d e v i to m\e c on d evp I an 2 002. wp d 9 RESOLUTION 2002 -117 RESOLUTION OF THE TOWN COUNCIL APPROVING THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM WHEREAS, the Economic Vitality Program (the "Program") is a means to implement goals and policies of the adopted Town of Los Gatos General Plan; WHEREAS, the Program will preserve and enhance the Town's charm and high quality of life; WHEREAS, the Program will help provide goods and services desired by Los Gatos residents; WHEREAS, the Program will increase the economic vitality and diversity of the Town; WHEREAS, the Program will help maintain and increase Town revenues and thereby allow the Town the ability to continue to provide high quality municipal services; WHEREAS, the Program will help strengthen local businesses and recognize the contributions that they make to the Town; WHEREAS, the Program will help the Town anticipate changes in the local economy and deal with them in a proactive manner THEREFORE BE IT RESOLVED, that the Town Council of the TOWN OF LOS GATOS does hereby approve the Economic Vitality Program (Attachment 2), with any changes that it deems necessary. PASSED AND ADOPTED at a regular meeting of the Town Council held on the 1st day of July, 2002, by the following vote: COUNCIL MEMBERS: AYES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski, Mayor Randy Attaway. NAYS: None AB SENT: None ABSTAIN: None SIGNED: /s/ Randy Attaway MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA S:1RDA7- I -02.35 2 THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM JULY, 2002 Prepared by the Los Gatos Redevelopment Agency 110 E. Main St. Los Gatos, CA 95030 Attachment 2 THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM TABLE OF CONTENTS Page 1. Introduction 1 2. Purpose and Mission 2 3. Guiding Principals 3 4. Economic Vitality Program Summary 3 5. The Town of Los Gatos - A Brief Overview 3 6. Strengths, Weaknesses, Opportunities and Threats (SWOT) 4 7. Detailed Economic Vitality Work Program A. Business Retention and Expansion 6 B. Targeted Business Attraction and Development 8 C. Working with Specific Groups of Businesses/Properties 8 D. Annual Monitoring 9 1. Introduction The Economic Vitality Program is one of the many tools used to implement the Town of Los Gatos General Plan. The General Plan is the community's constitution for development, the foundation upon which all land use decisions are to be based. The General Plan is a legal document that reflects the interests of the citizens of Los Gatos in terms of how they would like their community to look and feel. The Los Gatos General Plan was recently updated after extensive citizen involvement, including the involvement of two major tasks forces which met for seven months each reviewing issues. These tasks forces included members from all neighborhoods, area, and business districts of the Town in order to represent all interests. The Economic Vitality Program will directly or indirectly implement the following General Plan Goals: L.G. 1.1 L.G. 5.1 L.G. 5.2 L.G. 6.2 L.G. 7.4 L.G. 7.5 T.G. 1.1 T.G. 6.1 V.G. 1.1 To preserve, promote, and protect the existing small town character and quality of life within Los Gatos. To provide residents with adequate commercial and industrial services. To maintain a balanced, economically stable community within environmental goals. To preserve downtown Los Gatos as the historic center of the Town with goods and services for local residents while maintaining the existing Town identity, environment and commercial viability. To promote commercial activity that complements the whole Town. To provide a dependable source of income, employment opportunities, goods and services To develop transportation systems that meet current and future needs of residents and businesses. To provide adequate parking for existing and proposed uses, and to minimize impacts on surrounding residential neighborhoods, including construction new public or private parking structures, and valet parking. To promote the construction of Vasona Light Rail and mass transit facilities in the Route 85 median. The Economic Vitality Program will serve the citizens of Los Gatos in several direct ways. First, it will work to maintain, expand and attract successful businesses that serve the needs of local residents. These businesses include retail, service and food related businesses upon which residents depend. By having businesses local, residents do not have to drive longer distances to neighboring communities and it helps foster a true sense of community. In addition, local sales tax dollars remain within the community for uses to serve its residents. Second, the Program will help keep the Town of Los Gatos Government fiscally stable, thereby allowing for continued high quality services to its residents. Although Los Gatos is an affluent area, the Town government has limited resources and limited ability to increase revenues. High 1 quality Town services are an important component in maintaining the high quality of life in the Town. Services such as public safety, land use review and approval, parks and recreation, and street repairs are critical to the Town, but costly. Under California Law, the Town has limited ability to increase tax revenues to pay for services. Maintaining and increasing sales tax and hotel tax revenues are one of the few areas where the Town has some control, without increasing taxes to residents. Therefore, the Economic Vitality Program focuses on business retention, attraction and expansion as means to generate Town revenue in order to provide services to its residents. However, in doing so the Town has the ability to be selective about the businesses it assists while maintaining the high quality standards for which Los Gatos is known. Third, the Program will help to generate jobs for Los Gatos residents. By having a diversity of business types, a variety of local jobs are created for which Los Gatos residents may be eligible. Employment within a community in which residents live is extremely desirable, thus avoiding lengthy commutes that may otherwise be required. Finally, many of the businesses in Los Gatos are locally owned and operated. The Economic Vitality Program strives to help local businesses be successful. This benefits not only the Town and its residents but also the local owners of these businesses. In summary, the Economic Vitality Program shall serve as an important tool in implementing the goals and policies of the Town's General Plan. It will serve the community by assuring the provision of local goods, services and employment for residents while generating revenue for the Town in order to provide municipal services. Through this proactive approach, the Town is more likely maintain a stable economy and a healthy community. 2. Purpose and Mission The purpose and mission of the Town of Los Gatos Economic Vitality Program is to: • Preserve and enhance the Town's charm and high quality of life ♦ Provide goods and services desired by Los Gatos residents • Increase the economic vitality and diversity of the Town • Maintain and increase sales tax revenues • Maintain and increase Transient Occupancy Tax (i.e., Hotel or TOT) • Maintain and increase tax increment revenue to the Redevelopment Agency • Create jobs for Town residents • Diversify and balance the local economy • Recognize the contributions that businesses make to the Town • Anticipate changes in the local economy and deal with them in a proactive manner 2 3. Guiding Principles The Los Gatos Economic Vitality Program is based on the following principles: • Protecting the Town's high quality of life while balancing the need for goods and services for Town residents and tax revenues to support the Town's municipal operations • Providing a wide variety of good and services to serve the community in order to minimize the need for residents to travel to other communities • Recognizing that the Town is not an island, and that it is subject to the economic changes of Silicon Valley, California and the nation, thus requiring a proactive approach in protecting and enhancing its local economy ♦ Being "User Friendly" which provides the best Customer Service for all of the Town's customers • Using a Team Approach to bring all Town departments and resources together to work cooperatively with businesses 4. Economic Vitality Program Summary The focus of the Town of Los Gatos Economic Vitality Program is developed around the following core programs which will be detailed later in this document: A. Business retention and expansion, including business visitations, business recognition, business surveys, and working with the Chamber of Commerce B. Targeted business attraction of key businesses that have been determined to be absent in the Town but desirable by residents to have here. C. Working with specific groups of businesses and property owners including, but not limited to the auto dealers, hotels/motels and the "North Forty." D. Annual monitoring of activities and reporting to the Town Council 5. The Town of Los Gatos - A Brief Overview The Town of Los Gatos is nestled at the base of the Santa Cruz Mountains, approximately 60 miles south of San Francisco in the southwestern portion of Santa Clara County. The Town is bound by the City of San Jose to the north and east, the City of Campbell to the north, and the cities of Monte Sereno and Saratoga to the west, and unincorporated County of Santa Clara and the County of Santa Cruz to the south. Los Gatos is one of Santa Clara County's oldest communities, being incorporated in 1887. It has a population of approximately 30,000 persons and encompasses about 14 square miles. The Town originally developed at a distance from other population centers and therefore 3 evolved as an independent community having residential, commercial and industrial areas. The economics of the Town have changed from wheat farming, milling, logging, orchard and cannery businesses in the 19`h and 20`h centuries to the suburban, "high tech", visitor destination businesses of today. The Town is situated within the largest metropolitan area of northern California, and is closely tied to Silicon Valley and its fast paced economy. Los Gatos, however, retains a mix of residential, commercial and light industrial uses, attracts many visitors, and continues to retain its small town image. Los Gatos prides itself as a "self contained community." Hundreds of businesses serve the residents and act as a destination point for visitors who are attracted to its restaurants, hotels and variety of shops within a pedestrian oriented downtown setting. The Town is also an "inclusive" community with the full mix of ages, family sizes and incomes. Los Gatos has many parks and greenbelt areas, as well as a vibrant downtown area. Downtown Los Gatos is listed on the National Register of Historic Places and is the model of what communities strive' to achieve in a downtown. What makes Los Gatos special is its small town atmosphere, strong sense of place, varied architecture, reminders of the past, traditions, unique physical setting, good schools, low crime rate, and the concerned and involved people who make up the community. The overall community consensus is that Los Gatos: • Be a full -serve community that is also environmentally sensitive; • Maintain a balanced, well -designed mix of residential, commercial, service and open space uses, fostering a pedestrian -oriented community with a small town, village -like character; • Support an active business community that provides a wide variety of goods and services and a broad range of employment opportunities, minimizing the need to travel to other communities; • Provides a well -run, efficient municipal government that is fiscally healthy, with high levels of public safety, recreational, art, cultural amenities and that is committed to high quality education. This Economic Vitality Program is one of many tools that the Town will use to strive to achieve the aforementioned goals. 6. Los Gatos Strengths, Weaknesses, Opportunities and Threats (SWOT Analysis) A. Strengths • Highly desirable community with high incomes • Small town atmosphere and strong sense of place • Well educated and involved residents 4 • Strong land use protection policies • Excellent public education system • Extremely successful downtown area • Located in Silicon Valley, the most successful high-tech region in the world • Redevelopment Agency and Chamber of Commerce to assist businesses • Significant Town revenue from auto sales and hotel taxes • Balance of retail, professional and high technology uses • Stable Town government and budget • Good access from Highway 17 and Highway 85, and future light rail B. Weaknesses • Town has limited funding for needed capital improvements such as street upgrades, repair of storm drain lines, downtown parking and traffic improvements • Limited vacant commercial/office/industrial land for new development • High cost of land • High lease rates for commercial buildings • High cost of housing • High cost of labor • Large portion of sales tax revenue (27% comes from a single sector - auto sales) • Traffic in the Town and in the region • Town "perceived" as expensive - may hurt certain uses • Town has little room for expansion of commercial/retail uses • Town has limited ability to increase revenues for municipal services C. Opportunities • Enhancements to the downtown including beautification improvements and parking which will further strengthen the downtown and increase tax revenues • Development of "North Forty" - largest piece of land available in the Town for commercial uses - could be significant revenue generator, employment center, and provide uses that are desirable but currently lacking in the Town. • Sobrato Development - Winchester Blvd. & Highway 85 - one of the largest office sites remaining in the Town. Nearly 300,000 sq. ft. of office space and 135 apartment units to be constructed- could house a corporate headquarters with name recognition for the Town and potential tax revenues depending on the use • Redevelopment/retenanting of certain older properties in town to bring in new and desirable uses, improve the appearance of these buildings, and 5 increase tax revenues • New hotels (e.g. Los Gatos Hotel on Main St.) and expansion of older hotels (e.g., Los Gatos Lodge, Toll House) thereby increasing TOT and tax increment revenue to the Redevelopment Agency • Enhance the image of Los Gatos Blvd. to strengthen this important business district in the Town • Protect and enhance the viability of neighborhood shopping area throughout the Town as an important resident serving use D. Threats ♦ Loss of some of the auto dealers as they move to "auto rows" or "auto malls" (McHugh recently moved to Capital Expressway Auto Mall). Could have significant impact on sales tax revenue for the Town • Slowing local economy - reduction in sales tax (particularly auto dealers) and lower occupancy rates in hotels thus reducing TOT • Loss of one or more high-tech firms that generate significant tax revenue and provide a significant number of jobs for the community ♦ Attempts to address downtown parking issues through parking management plan may not go far enough • Reduced Town revenues resulting in a reduction of municipal services and deterioration of Town infrastructure 7. Detailed Economic Vitality Work Program A. Business Retention and Expansion Al. Business Visitations: The Town should develop a structured business visitation program whereby the most significant businesses in Town in terms of revenues generated and employment will be met with annually. The purpose of the visitations will be to develop relationships with the businesses, discuss how the business is doing (plans to expand or downsize) and offer any assistance that the Town may provide. Staying in touch with businesses will allow the Town to monitor business activity in Town better and project Town revenues. A2. Business Recognition Annual Event: Annually, the Town should hold a business recognition event. This may take the form of a reception or lunch where the larger businesses are invited to meet with Town officials and appreciation is extended by the Town. A3. Letters to New Businesses: When a new business license is issued, a letter from the Town welcoming the business to Town should be sent out along with other Town and/or Chamber information. 6 A4. Annual Letter to Businesses with renewal of business license: Annually in December of each year, business licenses are renewed. This is an opportunity to send out with the renewed license a letter from the Town expressing appreciation for the business being in Los Gatos A5. Survey of Businesses: Periodically, a brief business survey should be mailed out to specified businesses asking for input on how their business is doing and seeking input on how the Town can be more responsive to business. A6. Business Expansion: When staff learns of an existing business that plans to expand, every effort should be made to facilitate an expansion at their current location or with a relocation to a large space within the Town of Los Gatos. The Redevelopment Manager may serve as a liaison in helping to facilitate the permitting process. A7. Business Liaison: The Redevelopment Manager should serve as a liaison between the business community and Town Hall. Businesses that have a concern or problem may contact the Redevelopment Manager who can assist them in resolving the matter. Assistance may include referral to the proper person or department that should handle a matter, scheduling meetings with appropriate Town officials and offering advice. A8. Special Meetings for Non -Downtown Shopping Districts: The shopping centers/district that are not in the downtown area have sometimes expressed concern that they don't feel part of the Town. For these three or four areas, an annual meeting should be held in the area with Town officials to discuss issues and express appreciation for these businesses. A9. Monitor Sales Tax: The Town receives quarterly sales tax reports from its consultant, MBIA. The Redevelopment Manager and Finance Director should review these on a regular basis and look for trends or areas of concern and then contact businesses as may be necessary to determine problems or trends. A10. Work with Chamber of Commerce: The Chamber plays a very important role in working with businesses throughout the Town. The Town and Chamber need to continue to work as partners in assisting the business community. All. Marketing Materials/Gifts: Simple, yet high quality, marketing materials and/or gifts should be developed and distributed when making business visits or during recognition events. These materials should portray the look and feel of the Town. They may take the form of coffee cups, paper weights, a professionally designed Town brochure or similar items. B. Targeted Business Attraction & Development B 1. Targeted Business Attraction: Through citizen surveys and resident contact, the Town should identify uses that are desirable in Town, but currently absent. The Redevelopment Manager on an ongoing basis should contact these businesses and work with them to see if it is possible for them to expand into Los Gatos. Such uses must be in keeping with the Town's vision and character and be of the highest quality design. B2. Targeted Tenanting of Specific Buildings: The Redevelopment Manager should network with the real estate brokerage community and business and property owners in order to be aware when key buildings will have a vacancy. The Redevelopment Manager should work with the building owner, their broker and prospective tenants to find a tenant desirable to the community and assist them through the permitting process. B3. Development of Key Parcels: There may be specific vacant or underutilized parcels that the Town takes a specific interest in their development or redevelopment. The Redevelopment Manager should work to develop a list of potential parcels and then work with the property owners should the wish to pursue development. C. Working with Specific Groups of Businesses/Properties C 1. Auto Dealerships: The seven auto dealerships in Los Gatos provide a number of benefits to the Town including sales and service to Town residents, significant sales tax to the Town (nearly $2 million annually), and jobs for Town resident's. The auto dealers need assistance from the Town in order to update their facilities and make improvements that will keep them competitive in Los Gatos. The Town should meet periodically with the auto dealers to discuss ways to strengthen the automobile sales business in Los Gatos while remaining sensitive to the concerns of surrounding neighborhoods and other land use considerations. C2. Hotels/Motels: The Town has six hotels/motels with a seventh one to be completed by summer 2002. The hotels/motels are an important part of the Los Gatos economy for several reasons. They provide lodging for business and vacation travelers coming to Los Gatos and Silicon Valley. Those travelers also spend money in the Town which support local businesses as well as generates sales tax for the Town. The hotels/motels provide employment for Los Gatos residents and other. Finally, they are an important source of revenue for the Town - Transient Occupancy Tax (TOT) of over $1 million annually. The Redevelopment Manager should meet with the owners/managers of the hotels/motels and provide recommendations or suggestions in terms of how the 8 Town may assist them. This could include plans for expansion and/or renovation of facilities, marketing, and other logistical issues. C3. North Forty: The "North Forty" also know as the "Yuki" property is primarily an orchard area located adjacent to Highway 17 and Highway 85 at the northen end of the Town. This property represents the largest and most significant commercial development opportunity for the Town. Potential for the property includes providing retail uses desired, but currently lacking in the Town, as well as generating significant tax revenues for the Town. The Town should continue to work closely with the Yuki family and the community in completing the Specific Plan to guide future development in this key area. D. Annual Monitoring Dl. Annual Monitoring Report: Annually, the Redevelopment Manager should prepare a report for the Town Council summarizing the previous years economic development efforts, reporting trends, areas of concerns, and areas to focus on for the upcoming year. N:\DEV\Marty\econdevitem\econdevplan2002.wpd 9 Town Council Minutes July 1, 2002 Redevelopment Agency Los Gatos, California HEARINGS CONTINUED UNIVERSITY AVENUE 404/LOS GATOS-SARATOGA ROAD 92 & 96/APPEAL/CONT. Motion by Mr. Blanton, seconded by Mr. Glickman, To move approval with the following modifications: To modify application by requiringn-lieu fees instead of a BMP unit; To allow for six units; To make neighborhood improvements addressing parking and traffic; To develop a parking plan which will make use of the available public parking in the area; Owner to develop internal parking regulations and issuance of parking permits; To work with the Heritage architecture and address additional articulation to modify the mass; To require a six month review of the parking issues after completion; All items to be paid for by the applicant. Motion is to modify the Architecture and Site application S-01-63 and Conditional Use Permit U-01-14 with these modifications of conditions to Attachment 4 of this meeting's staff report. Carried unanimously. CABLE TELEVISION FRANCHISE TRANSFER (34.34) Mayor Attaway stated that this was the time and place duly noted for public hearing to consider an application to approve transfer of cable television franchise. The following person addressed this issue: Ray Davis asked that Council Member Glickman recuse himself from this issue due to a possible conflict of interest. There was no one else to address the item. Motion by Mr. Blanton, seconded by Mrs. Decker, to close the public hearing for this evening. Carried unanimously. Motion by Mr. Blanton, seconded by Mr. Glickman, to continue this item to July 15, 2002. Carried unanimously. LOS GATOS ECONOMIC VITALITY PROGRAM/RESOLUTION 2002-117 (35.27) Mayor Attaway stated that this was the time and place duly noted for public hearing to consider adopting resolution approving the Town of Los Gatos Economic Vitality Program. The following person addressed this issue: Ray Davis spoke regarding a public component for this program and noted that the development of the program would be far healthier with the addition of community outreach. There was no one else to address the item. Motion by Mr. Pirzynski, seconded by Mr. Glickman, to close the public hearing. Carried unanimously. Motion by Mr. Blanton, seconded by Mr. Glickman, that Council adopt Resolution 2002-117 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING THE TOWN OF LOS GATOS ECONOMIC VITALITY PROGRAM. Carried unanimously. PARKS COMMISSION/SECTION 19.20 OF TOWN CODE/AMENDED ORDINANCE (36.38 & 12) Mayor Attaway stated that this was the time and place duly noted for public hearing to consider introducing ordinance amending Town Code Sections 19.20.010 through 19.20.040, "Parks Commission." There was no one from the audience to address this issue. N:\CLK\Council Minutes\2002\M07-01-02.wpd 7