Item 34 Staff Report Consideration of a Modification to Town Policy Permitting the Sale of Beer and Wine with Meals in the C-2 Zone (Continued from November 20, 1989)Council Agenda
Date: 2/20/90
Item: 3, j
TOWN OF LOS GATOS
Council Agenda Report
DATE: February 15, 1990
TO: MAYOR AND TOWN COUNCIL
FROM: DEBORAH A. ACOSTA, TOWN MANAGER
SUBJECT: CONSIDERATION OF A MODIFICATION TO TOWN POLICY PERMITTING THE SALE OF
BEER AND WINE WITH MEALS IN THE C-2 ZONE. (CONTINUED FROM NOVEMBER 20,
1989).
RECOMMENDATION:
1. It is recommended that the Town Council:
a. Modify the Town's policy for restaurants in the C-2 zone to allow the sale
of beer and wine with meals subject to all conditions of the use permit
on a case -by -case basis.
b. Direct the Planning Commission to consider an amendment to the Zoning
Ordinance to regulate establishments with entertainment.
TOWN COUNCIL ACTION:
On August 21, 1989, the Town Council considered an appeal of the Planning
Commission's decision in denying a request to serve beer and wine as part of an
existing restaurant operation at 27 E. Main Street. The matter was continued
to November 20, 1989, to allow staff time to review the Town's policy of not
allowing more liquor licenses downtown and to address concerns raised by the
Council (i.e., public safety, sufficient police staff, parking), including
reports from the Police Chief and the number of licenses which have been issued
outside the central business district since this policy has been in effect. Due
to the earthquake, the matter was continued to the meeting of February 20, 1990.
(Continued on Page 2)
PREPARED BY: LEE E. BOWMAN e_
Planning Director
LEB:SLB:cher
PL06\CNCLRPTS\2-20#2B
Reviewed by: Attorney
TOWN COUNCIL ACTION DIRECTED TO:
ACTION OF COUNCIL:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: HEARING TO CONSIDER THE APPEAL OF 27 E. MAIN STREET
DATE: FEBRUARY 20, 1990
PLANNING DEPARTMENT REVIEW:
There are currently 88 restaurants in the Town of Los Gatos (including donut
shops, ice cream parlors and restaurants temporarily out of business due to the
earthquake). Of the 88 restaurants, 41 are located in the C-2 zone (Central
Downtown Business District). Of these 41 restaurants, 10 have a license to serve
beer and wine and 5 have a separate bar. There are 8 bar establishments in Los
Gatos, 4 of which are located in the C-2 zone. Since 1978, the Town has approved
six Conditional Use Permits for a restaurant to serve alcoholic beverages with
meals outside of the C-2 zone.
Since 1978, the Town has approved two Conditional Use Permits for a restaurant
to serve alcoholic beverages within the C-2 zone. The first approved was for
the Mandarin Delight restaurant, which took over a portion of the Noodle Palace.
The justification for this approval was that the Noodle Palace Restaurant had
a separate bar, and the bar's service area would be cut in half by the addition
of Mandarin Delight. The other approval was for the Main Course (currently "And
Chili's"). This approval was justified since the Main Course took over a liquor
store, and therefore, the liquor license for off -site consumption would be
modified to on -site consumption.
As for the Town Council' s concern regarding changing the Town policy, the request
for a restaurant to serve alcoholic beverages requires a Conditional Use Permit,
therefore, any concerns the Town has regarding, the use can be conditional, (i.e.
hours of operation, type of beverages, use, etc.). One of the conditions the
Town has been applying to these types of permits since 1986 is that the permits
are subject to annual reviews by the Police Department. If it is determined that
the sale of alcohol is a nuisance, the permit shall be subject to reevaluation
by the Planning Commission. As of this date, there have not been any problems
that the Commission has had to address. In addition, when reviewing new
applications for a bar and/or restaurant, a policy of the Land Use Element of
the Downtown Specific Plan requires that no new bars and/or restaurants be
approved unless it can be demonstrated that they will not cause traffic or public
safety problems. The parking requirement will not change for a restaurant if
it serves alcohol with meals. However, if a separate bar is proposed in the
downtown area, the parking requirement will increase from one parking space for
every four seats to one space for every three seats. Since most uses in the
downtown do not have excess parking, requests for a separate bar would be almost
impossible to obtain unless additional parking can be provided on -site.
POLICE DEPARTMENT REVIEW:
The Chief of Police has stated that their department does not object to the sale
of any type of alcoholic beverages in conjunction with a legitimate restaurant
business. According to the Department, this type of business actually reduces
public safety problems as opposed to a business that serves only alcohol and/or
provides entertainment.
In reviewing Police Department records for 1989, the Los Gatos Police Department
made a total of 598 drunk/drunk driving arrests. Of these arrests, only three
were known to have become intoxicated at a restaurant which served alcohol with
meals. Eighty-seven arrests are known to be related to bar establishments and
54 are related to restaurants which had a separate bar. From this analysis, it
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: HEARING TO CONSIDER THE APPEAL OF 27 E. MAIN STREET
DATE: FEBRUARY 20, 1990
appears that a large number of police problems associated with alcohol are from
businesses which are a bar establishment or have a separate bar.
RECOMMENDATION:
From the above analysis, the Planning and Police Departments agree that the
serving of beer and wine with meals is not anticipated to result in additional
police problems. Therefore, it is recommended that the Town Council modify the
Town's policy for restaurants in the C-2 zone to allow the sale of beer and wine
with meals. However, due to the problems associated with bars, it is recommended
that requests for a separate bar in conjunction with a restaurant still be dis-
couraged. Another issue the Council may want to consider in the future is the
regulation of entertainment establishments. The Zoning Ordinance does not
specifically address inside entertainment establishments and as indicated by the
Police Department, a major source of police problems are from entertainment
establishments which serve alcohol with or without meals.
FISCAL IMPACT:
Possible increase in tax revenues.
EXHIBITS:
New Submittal:
1. Town Council minutes of August 21, 1989.
DISTRIBUTION:
Ilham & Mina Arif, 27 E. Main Street, Los Gatos, CA 95032
Cal -Irish, 39 E. Main Street, Los Gatos, CA 95032
Chamber of Commerce
Los Gatos Downtown Association
TOWN OF LOS GATOS
CALIFORNIA
TOWN COUNCIL/PARKING AUTHORITY AGENDA
AUGUST 21, 1989
MINUTES
✓MAIN STREET E. 27/HIGH-THAI/OW: CAL-IRISH/APP: ARIF/HEARING
Mayor Benjamin stated that this was the time and place duly noted for public
hearing to consider the appeal of the Planning Commission's denial of request
to serve beer and wine as part of an existing restaurant operation in the
C-2-LHP zone, U-83-28A. Property: 27 E. Main Street. Owner: Cal -Irish.
Applicant: Ilham and Mina Arif.
The following people from the audience addressed the issue:
Ilham Arif, 27 E. Main St., the owner of the restaurant, spoke of the need for
his business to serve beer or wine with the meals.
The following people expressed great satisfaction with the restaurant and
would like the facility to also serve beer and wine with the meals:
Larry Miller, 18608 Favor Ridge, Los Gatos.
David Barton, 14842 Nelson Way, San Jose.
Ranston Long, 15973 Shannon Road, Los Gatos.
Joe Tabor, 110 Oak Rim Court #26, Los Gatos.
Bob Welsh, 14850 Oka Road #12, Los Gatos.
Susan Barton, 14842 Nelson Way, San Jose.
Bruce Jenkie, 54 Cleland Ave., Los Gatos.
Phil Schatz, 135 Riviera, Los Gatos.
Bruce Eisenhardt, 310 Almendra, Los Gatos.
Dorothy Miller, 18608 Favor Ridge Road, Los Gatos.
Marie Connors, 365 Los Gatos Blvd., (And Chili's), business owner.
No one else from the audience wished to speak to this issue.
Mr. Ferrito stated the following relating to this issue: that he was a strong
proponent of the limited availability of liquor licenses issued in Town; he
did not feel that this stand was due to religious or moral reasons on his part
or the Council's, mentioning that he personally serves alcoholic beverages in
his home to guests; he does not feel that this policy protects restaurants
with poor service and food; the real issue is that a liquor license runs with
the land and there is no reason to open up the availability of these licenses
when Council has no way of removing them after their issuance; and the policy
of not allowing more liquor licences in downtown is based upon the expectation
of attrition of these liquor establishments.
Mayor Benjamin would like to look at this policy for the following reasons:
there was a previous problem ten to fifteen years ago with the bars downtown
and their clientele; would like to make a policy that delineates the criteria
for a restaurant before a permit is allowed; would like staff to look at this
issue and bring back a report for Council.
Mr. Hamilton is in favor of a study regarding this policy and in favor of any
of the restaurants already in existence who would wish a license to be able to
receive one.
Mr. Ilham Arif agreed to a continuance of his appeal during which time the
Council will review the Town's liquor license policy. EXIST r 1
Mr. Ventura has been a long time advocate of the prohibition of new alcohol
permits in the downtown for the following reasons: public safety was at risk
due to the large numbers of people downtown under the influence of alcohol
roaming the streets; the problem had been so severe that there was not
TOWN OF LOS GATOS
CALIFORNIA
TOWN COUNCIL/PARKING AUTHORITY AGENDA
AUGUST 21, 1989
MINUTES
MAIN STREET/HIGH-THAI CONTINUED/HEARING
sufficient police staff to cover the need; he questioned the possibilities of
expanding the size of a restaurant after the beer and wine permit was issued;
and would not approve the addition of any sitting bar within the facility;
how can the rules and regulations imposed locally be imposed on a State
regulated beer and wine license; what does the addition of beer and wine
licenses to the downtown community do to the parking districts.
Motion by Mr. Carlson, seconded by Mr. Hamilton, that Council continue this
issue for three months until November 20, 1989, at which time staff will bring
back a study and recommendation taking into account the testimony received
tonight and at other times Council was asked to review this policy, and to
address the concerns of Mr. Ferrito including reports from the police chief
and the number of licenses which have been issued out side the central
business district since this policy has been in effect. Carried by a vote of
4 ayes. Mr. Ferrito voted no.
February 20, 1990
Los Gatos, California
MINUTES OF FEBRUARY 20, 1990
Continued to March 5, 1990
MINUTES OF FEBRUARY 12, 1990
Motion by Mr. Ventura, seconded by Mrs. Benjamin, to approve the minutes of February 12,
1990 as submitted. Carried unanimously.
CODE ENFORCEMENT/REFERRALS TO TOWN ATTORNEY
Informational item received and filed.
PLAZA LA POSADA 241/UNDERGROUND NONLIVING SPACE/RESOLUTION 1990-4
Motion by Mr. Ventura, seconded by Mrs. Benjamin, that Council adopt Resolution )90-44
entitled, RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
GRANTING THE APPEAL OF A DECISION OF THE PLANNING COMMISSION IN
GRANTING APPROVAL OF PLANS FOR THE CONSTRUCTION OF A NEW SINGLE-
FAMILY RESIDENCE IN THE R-1:10.000 ZONE AND MODIFYING SAID APPROVAL (241
PLAZA LA POSADA -RONALD J. HAAS), incorporating the findings and decision of the Town
Council at its meeting of February 5, 1990. Carried by a vote of 4 ayes. Mr. Carlson voted no
asking that record show that it is not fair to limit the living space to 2,472 sq. feet.
Motion by Mrs. Benjamin, seconded by Mr. Hamilton, that the swimming pool is not required
to be filled in before construction of the home. Carried by a vote of 4 ayes. Mr. Ventura voted
no.
INFORMATION SYSTEMS/PEAT MARWICK/CONTRACT/CONSULTING SERVICE
Motion by Mr. Carlson, seconded by Mr. Ventura, that Council adopt Resolution 1990-45
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY
FOR A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES, which
includes needs analysis through recommendations but does not include preparation of RFPs or
contract negotiations with vendors. Carried unanimously.
BUDGET REPORT/SECOND QUARTER
Recommendation to continue this item to March 5, 1990.
BEER AND WINE WITH MEALS/C-2 ZONE/MODIFICATION OF TOWN POLICY
Motion by Mr. Ventura, seconded by Mr. Carlson, to reagendize this item and schedule it for
a Public Hearing. Carried unanimously.
TC:DI:MM022090
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