Staff Report.North Forty Phase II
PREPARED BY: Jocelyn Shoopman
Senior Planner
Reviewed by: Planning Manager, Community Development Director, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 10/29/2025
ITEM NO: 1
DATE: October 24, 2025
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider a Request to Construct a Mixed-Use Residential Development (450
Units), a Vesting Tentative Map, Site Improvements Requiring a Grading
Permit, and Removal of Large Protected Trees Under Senate Bill 330 (SB 330)
on Property Zoned North Forty Specific Plan: Housing Element Overlay Zone.
Located at 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250,
16260, and 16270 Burton Road; and Assessor Parcel Number 424-07-116.
APNs 424-07-009, -052, -053, -081, -094, -095, -115, and -116. Architecture
and Site Application S-23-031 and Subdivision Application M-23-005.
Additional Environmental Review is Necessary Pursuant to CEQA Guidelines
Section 15183: Projects Consistent with a Community Plan, General Plan, or
Zoning Since the Proposed Project’s Environmental Impacts were Adequately
Addressed in the 2040 General Plan EIR, as Applicable. Property Owner: Yuki
Farms LLC. Applicant: Grosvenor Property Americas c/o Steve Buster. Project
Planner: Jocelyn Shoopman.
RECOMMENDATION:
Consider a request to construct a mixed-use residential development (450 units), a vesting
tentative map, site improvements requiring a grading permit, and removal of large protected
trees under Senate Bill 330 (SB 330) on property zoned North Forty Specific Plan: Housing
Element Overlay Zone (HEOZ), located at 14859, 14917, 14925, and 16392 Los Gatos Boulevard;
16250, 16260, and 16270 Burton Road; and Assessor Parcel Number 424-07-116.
PROJECT DATA:
General Plan Designation: North Forty Specific Plan (NF-SP)
Zoning Designation: NF-SP:HEOZ, Housing Element Overlay Zone
Applicable Plans & Standards: General Plan; Objective Design Standards for Qualifying
PAGE 2 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
Multi-Family and Mixed-Use Residential Development; and
NF-SP
Parcel Size: 682,017 square feet (15.65 acres)
Surrounding Area:
CEQA:
An Initial Study (Exhibit 21) was prepared for the project concluding that additional
environmental review is not necessary pursuant to California Environmental Quality Act (CEQA)
Guidelines Section 15183: Projects Consistent with a Community Plan, General Plan, or Zoning
since the proposed project’s environmental impacts were adequately addressed in the 2040
General Plan EIR.
FINDINGS:
▪ As required, additional environmental review is not necessary pursuant to CEQA Guidelines
Sections 15183: Projects Consistent with a Community Plan, General Plan, or Zoning since
the proposed project’s environmental impacts were adequately addressed in the 2040
General Plan EIR;
▪ As required that the project is consistent with the General Plan with the incentives,
concessions, waivers, and parking reductions requested pursuant to State Density Bonus
Law;
▪ As required by Section 66474 of the Subdivision Map Act;
▪ The project meets the objective standards of Chapter 29 of the Town Code (Zoning
Regulations) with the concessions, waivers, and parking reductions requested pursuant to
State Density Bonus Law;
▪ The project meets the objective standards of the North Forty Specific Plan with the
incentives, concessions, waivers, and parking reductions 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 with the waivers requested pursuant to
State Density Bonus Law;
▪ As required by State Density Bonus Law for granting concessions pursuant to California
Government Code Section 65915 (d) and for granting waivers pursuant to California
Government Code Section 65915 (a)(2); and
Existing Land Use General Plan Zoning
North Residential and Commercial NF-SP NF-SP:HEOZ
South Residential NF-SP NF-SP:HEOZ
East Residential and Commercial Mixed Use
Commercial
R-1:10, C-1, CH:PD, and NF-SP
West Highway 17 N/A N/A and NF-SP
PAGE 3 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
▪ 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.
ACTION:
The Planning Commission will provide a recommendation to the Town Council who will render
the final decision on the proposal.
BACKGROUND:
On April 30, 2025, the Planning Commission held a special meeting to consider the request,
take public comment, and discuss the project. The Planning Commission continued the item to
a date uncertain pending completion of the environmental analysis.
As discussed in the April 30, 2025, staff report, the Housing Crisis Act of 2019, or SB 330 statute,
requires that a final decision on a project 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 18, 2023. The Planning Commission meeting of October 29, 2025, is the second public
hearing for this application.
A. Housing Accountability Act
The Housing Accountability Act (“HAA”) is codified at Government Code Section 65589.5.
Per the HAA, a local agency may not deny, reduce the density of, or make infeasible housing
development projects that are affordable to low- or moderate-income households and are
consistent with local objective development standards.
In order for a development to qualify for the protections under the HAA it must meet the
definition of a “housing development project.” Furthermore, for a project to qualify for the
affordable housing protections, it must also meet the definition of “Housing for very low-,
low-, or moderate-income households.”
1) What is an eligible housing development project?
Pursuant to Government Code Section 65589.5(h)(2), a “housing development project”
is a use consisting of residential units only, mixed use developments consisting of
residential and non-residential uses with at least two-thirds of the square footage
PAGE 4 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
designated for residential use, or transitional or supportive housing. Because the term
“units” is plural, a development must consist of more than one unit to qualify under the
HAA. The development can consist of attached or detached units and may occupy more
than one parcel, so long as the development is included in the same development
application.
Pursuant to Government Code Section 65589.5(h)(3), “a housing development
affordable to lower- or moderate- income households” means a project that provides
either of the following:
• At least 20 percent of the total units shall be sold or rented to lower income
households. Lower-income households are those persons and families whose
income does not exceed that specified by Health and Safety Code, § 50079.5, which
is 80 percent of area median income.
• 100 percent of the units shall be sold or rented to persons and families of moderate
income, or persons and families of middle income. Moderate-income households
are those persons and families whose incomes are 80 percent to 120 percent of area
median income (Health and Safety Code, § 50093.) Middle-income households are
those persons and families whose income does not exceed 150 percent of area
median income (Gov. Code, § 65008 subd. (c).)
In addition, the rent or sales prices of the affordable housing that is provided cannot
exceed the following:
• For lower-income units, the monthly housing cost does not exceed 30 percent of 60
percent of area median income with adjustments for household size made in
accordance with the adjustment factors on which the lower income eligibility limits
are based.
• For moderate-income units, the monthly housing cost does not exceed 30 percent of
100 percent of area median income with adjustments for household size made in
accordance with the adjustment factors on which the moderate-income eligibility
limits are based.
2) What are Objective Development Standards?
Pursuant to Government Code Section 65589.5(f), local agencies are not prohibited
from requiring a housing development project to comply with objective, quantifiable,
written development standards, conditions, and policies that were in effect at the time
of project vesting. Those standards, conditions, and policies must meet the following
criteria:
- Be appropriate to, and consistent with, meeting the local agency’s share of its
Regional Housing Needs Allocation;
PAGE 5 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
- Be applied to facilitate and accommodate development at the density permitted on
the site and proposed by the development; and
- Meet the definition of “objective.” Objective standards are those that involve no
personal or subjective judgment by a public official and are uniformly verifiable by
reference to an external and uniform benchmark or criterion available and knowable
by both the development applicant and the public official.
3) HAA Provisions Addressing Disapproval of Housing Development Projects
Pursuant to Government Code Section 65589.5, the HAA limits, but does not prohibit a
local agency from disapproving a housing development project. The HAA defines
“disapproval” to include the following:
- A vote to disapprove a housing development project application.
- Failure to comply with statutory deadlines for a decision, including, but not limited
to:
o 90 days after certification of an environmental impact report pursuant to the
California Environmental Quality Act (“CEQA”);
o 60 days from the date of adoption of a negative declaration pursuant to
CEQA;
o 60 days from a determination by the local agency that the project is exempt
from CEQA.
The foregoing is a non-exhaustive list of the local agency actions that constitute
“disapproval” of a housing development project under the HAA.
4) Ability to Impose Development Conditions
The HAA does not prohibit a local agency from imposing conditions of approval on
housing development projects. However, the HAA limits the application of conditions
that lower the residential density of the project and, for housing affordable to low- and
moderate-income households, would render the project economically infeasible or
would have a substantial adverse effect on the viability of the proposed housing --
unless specific findings are made and supported by a preponderance of evidence in the
record. The “preponderance of the evidence” standard requires that local agencies
weigh the evidence and conclude that the evidence on one side outweighs the evidence
on the other side (i.e. 51 percent to 49 percent).
5) Determination of Consistency with Applicable Standards is Based on “Reasonable
Person” Standard
In most cases, courts will uphold an agency’s determination if there is “substantial
evidence” to support that determination. “Substantial evidence” means that there is
PAGE 6 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
reasonable, adequate evidence in in the administrative record to support of the
agency’s findings. However, when a project is subject to the HAA, a housing
development project will be deemed consistent with local standards if there is
substantial evidence that could allow a “reasonable person” to conclude that it is
consistent.
6) Application of State Density Bonus Law
The use of a density bonus pursuant to state density bonus law does not constitute a
valid basis on which to find a proposed housing development project is inconsistent with
local standards. Here, with the use of incentives, concessions, and waivers that are
available pursuant to state density bonus law, the project is consistent with Town
standards. However, in order to be eligible for these incentives, concessions, and
waivers, the applicant must “seek and agree” to build affordable housing.
7) Denial of a Housing Project that is Consistent with Local Standards
When a proposed housing development complies with applicable local standards, but
the local agency proposes to disapprove the project or to impose a condition that the
project be developed at a lower density, the local agency shall adopt written findings
supported by a preponderance of the evidence that both of the following conditions
exist:
- The housing development project would have a specific, adverse impact upon the
public health or safety unless the project is disapproved or approved upon the
condition that the project be developed at a lower density.
- There is no feasible method to satisfactorily mitigate or avoid the adverse impact,
other than the disapproval of the housing project or the approval of the project
upon the condition that it be developed at a lower density. “Feasible” means
capable of being accomplished in a successful manner within a reasonable period of
time, taking into account economic, environmental, social, and technological factors.
8) Denial or Conditioning of Affordable Housing Affordable to Low- and Moderate-Income
Households
The HAA specifies findings that local agencies must make if they wish to deny a housing
development project that provides housing affordable to low-or moderate-income
households, or condition such a project so as to render it infeasible or have a substantial
adverse effect on the viability or affordability of the project. These findings are in
addition to the findings described above. Under the version of the HAA that was in
effect at the time that the preliminary application for this project was submitted, the
local agency must make one of the following specific findings based upon a
preponderance of the evidence:
PAGE 7 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
- The local government has an adopted Housing Element and has met its share of the
RHNA in all income categories proposed in the housing development project.
- The housing development project would have a specific, adverse impact upon public
health or safety and there is no feasible method to mitigate or avoid the impact
without rendering the project unaffordable or financially infeasible.
- Denial of the housing project or the imposition of conditions is required to comply
with specific state or federal law, and there is no feasible method to comply without
rendering the project unaffordable to low- and moderate-income households.
- The housing development project is proposed on land zoned for agriculture or
resource preservation that is either 1) surrounded on two sides by land being used
for agriculture or resource preservation; or 2) does not have adequate water or
wastewater facilities to serve the housing development project.
- The housing development project meets both of the following conditions:
o Is inconsistent with both the zoning ordinance and general plan land use
designation as specified in any element of the general plan as it existed on the
date the application was deemed complete. This finding cannot be used when
the project is inconsistent with one but is consistent with the other.
o The local government has an adopted Housing Element in substantial compliance
with state housing element law.
o This finding cannot be used when:
▪ The project is proposed for a site identified as suitable or available for very
low, low, or moderate-income households within the Housing Element and
the project is consistent with the specified density identified in the Housing
Element.
▪ The local agency has failed to identify sufficient adequate sites in its
inventory to accommodate its RHNA, and the project is proposed on a site
identified in any Element of its General Plan for residential use or in a
commercial zone where residential uses are permitted or conditionally
permitted.
In September 2024, the California State Legislature passed, and the Governor signed
into law, Assembly Bill 1893, which went into effect on January 1, 2025. AB 1893 made
revisions to the findings in subsection (d) of Government Code Section 65589.5.
However, the applicant for this project has not chosen to invoke the provisions of AB
1893. Therefore, the findings enumerated above are the ones that remain relevant to
this project.
9) Violations of the HAA
If a plaintiff alleges an HAA violation and prevails, the court must issue an order
compelling compliance with the HAA in 60 days. The court may also issue an order
directing the local agency to approve the project. If the plaintiff prevails, the court
PAGE 8 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
awards attorney fees and costs to the plaintiff. If the local agency fails to comply with
the order, the court must impose a minimum fine of $10,000 per housing unit.
B. Explanation of Concessions/Incentives and Waivers
The applicant is seeking to use state density bonus law, which is codified at Government
Code Sections 65915 through 65918.
The intent of state density bonus law is to encourage builders and local governments to
include low- and moderate-income housing units in proposed developments. Under the
statutes, the local authority must grant a density bonus or other specified incentives or
concessions to a developer who “seeks and agrees” to build affordable housing.
Concessions and Incentives
So long as the required percentage of affordable housing is provided, a developer may opt
to request “concessions and incentives” without seeking the density bonus. A local agency
may decline to grant the concessions or incentives only under certain limited circumstances
set forth in Government Code Section 65915(d). Those circumstances are:
1) The concession or incentive does not result in identifiable and actual cost reductions to
provide for affordable housing;
2) The concession or incentive would result in a “specific adverse impact . . . upon public
health and safety or the physical environment or on any real property that is listed in
the California Register of Historical Resources,” which cannot be feasibly mitigated
without rendering the development unaffordable to low-income and moderate-income
households; or
3) The concession or incentive would be contrary to state or federal law. (Gov. Code
Section 65915(d)(1)(A)-(C).)
Concessions and incentives include the following:
1) Reduction in site development standards;
2) Modifications of zoning or architectural design requirements that exceed state
standards;
3) Approval of mixed-use zoning in conjunction with the project if commercial, office,
industrial, or other land uses will reduce the cost of, and are compatible with, the
development; and
4) Any other regulatory incentive or concession proposed by either party that results in
“identifiable and actual cost reductions to provide for affordable housing costs” or to
provide for affordable rents. (Gov. Code Section 65915(k).)
PAGE 9 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
Under the statute, two incentives or concessions are granted for projects that include at
least 17 percent of the total units for lower income households. This applicant is proposing
a project with 17 percent of the residential units affordable for lower income households
and is therefore entitled to two incentives or concessions.
This applicant is seeking two incentives or concessions.
The first request is to eliminate the requirement for commercial uses on the ground floor of
the townhomes and affordable multi-family apartment building (Exhibit 24). The applicant
states that this will result in a cost reduction in that although portions of the Project
incorporate commercial elements, it is not financially feasible to develop commercial spaces
on the ground floor of all the buildings on the Project site. Therefore, eliminating this
development standard will result in cost savings to help provide the level of affordability
proposed.
The second request is to deviate from the Town’s Below Market Rate Program Guidelines.
The Town’s Below Market Rate Program Guidelines provide that affordable units are to be
provided concurrently with market rate units:
“Phasing of the Construction of On- and Off-Site BMP Units: On- and off-site BMP units shall
be constructed and Certificates of Occupancies secured concurrently with or prior to the
construction of the market-rate units. The BMP requirement will be calculated on the basis
of the whole development. The Town Council may grant an exception to these phasing
requirements during the Planned Development approval process.”
The applicant is asking to build 127 market-rate townhomes before constructing any
affordable units. The applicant states that this will provide for a “cost reduction” in that the
applicant will receive cash for the sale of the townhome parcels, which can be used to fund
the project infrastructure and will reduce the need for financing and the associated interest
payments. In staff’s view, this explanation satisfies the legal standard for establishing a cost
reduction. If the Town disagrees, the burden is on the Town to produce evidence that there
is no cost reduction associated with the requested incentive or concession.
However, state density bonus law only applies if an applicant is “seeking and agreeing” to
build affordable housing. In this application, the applicant is proposing to build affordable
housing, but is not committing to do so.
For that reason, staff recommends imposing the Town’s standard Below Market Program
condition of approval, which requires that the same ratio (here, 17%) of affordable units to
market rate units be provided throughout construction.
The applicant has proposed an alternative condition of approval, which would provide that
127 market rate townhomes could be built first and that, if the 255-unit multi-family
PAGE 10 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
apartment building is built before the 100% affordable housing project, the 67 affordable
units will need to be included in the 255-unit multi-family building in addition to the ten
proposed to be included already. The applicant’s proposed condition of approval is included
for the Planning Commission’s consideration in Exhibit 24.
In discussions with the applicant, the following additional proposed conditions of approval
were proposed, but the applicant declined to agree to them:
1) Include a deadline for development of either the 100% affordable housing building or
the multi-family apartment building.
2) Limit the number of building permits issued for the townhomes until building permits
are pulled for the affordable units.
3) Make a deposit to be used toward the development of affordable housing if the
affordable housing units are not constructed within a specified period of time.
4) Pay a penalty for each affordable unit that has not been constructed within three years
of pulling the first townhome building permit.
In Phase 1 of the project, the BMP condition of approval read as follows:
“BMP Units. BMP applicants shall be qualified by the Santa Clara Housing Authority. The
affordable units shall be required to be maintained for the term required under state
density bonus law or for the life of the buildings, whichever is longer. The developer shall
enter into an Affordable Housing Agreement with the Town prior to issuance of building
permits. The proposed BMP units must be available and/or occupied prior to final
occupancy issuance for the 187th market rate unit.”
Waivers of Development Standards
Applicants are eligible for unlimited waivers of development standards when they “seek and
agree” to provide affordable housing. This applicant is also requesting waivers from the
Town’s development standards. A local agency may not apply any development standard
that will have the effect of physically precluding the construction of a development meeting
the criteria for density bonuses set forth in Government Code Section 65915(b) or with the
concessions or incentives permitted by Government Code Section 65915.
One waiver that this applicant is seeking is a waiver of the Town’s setback requirement in
the North 40 Specific Plan. Section 2.5.7 of the North 40 Specific Plan, “Perimeter Overlay
Zone,” requires that “buildings or portions of buildings located within 50 feet of Los Gatos
Boulevard shall be restricted to a maximum building height of 25 feet.” The applicant is
proposing a 100-foot building to be located 20 feet from Los Gatos Boulevard.
PAGE 11 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
C. BMP Unit Phasing
The applicant has proposed that the 127 market rate townhomes be constructed first. The
applicant’s stated rationale is that the profits from the sale of the townhome parcel are
needed in order to fund the required project infrastructure, which will reduce the cost of
project financing.
The applicant anticipates that the 100% affordable housing project will be built by Eden
Housing after construction of the townhomes. In the event that the 100% affordable
housing project has not begun construction when the townhomes have been finished, the
applicant will include all of the required affordable units in the multi-family apartment
building with the ability to transfer the affordability restrictions to the 100% affordable
housing project in the future. The applicant’s proposal does not include a timeline by which
the affordable housing units will be built.
Over many months, Town staff and the applicant have discussed a wide variety of options
to guarantee that construction of the affordable units will start by a specified date. The
options discussed included:
1) Requiring that affordable units be constructed along with market-rate units, such that
17% of the constructed units are affordable at all times during construction.
2) Requiring that construction on the affordable units begin after a specified number of
townhomes, but not all 127 townhomes, have been built.1
3) Imposing a monetary penalty if the affordable units have not been built by a specified
date.
4) Requiring a deposit that will be forfeited if the affordable units have not been built by a
specified date.
To date, the applicant has not been able to guarantee that construction of the affordable
units will start by a specified date. Staff is recommending that the Planning Commission
recommend option #1 above to the Town Council for consideration. Staff and the applicant
will be prepared to discuss the other options at the public hearing.
D. 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
1 Staff is currently gathering information regarding whether such a condition of approval would render the project
“economically infeasible,” which is prohibited by the state Housing Accountability Act.
PAGE 12 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
regarding zoning and land use, or as development is approved, the Town must assess
whether it has adequate site capacity in the Housing Element to accommodate its RHNA at
all income levels. If the Town approves a development of a parcel identified in the Housing
Element with fewer units than anticipated, or at different income levels than projected, the
Town must either find that the remaining capacity of the sites identified in the Housing
Element is sufficient to accommodate the remaining unmet RHNA by each income level or
identify and make available sufficient sites to accommodate the remaining unmet RHNA for
each income category.
If a developer proposes fewer units than shown in the Housing Element, then the developer
may be required to identify additional sites if the Town does not have adequate capacity for
its total RHNA. However, If the approval of a housing development results in the remaining
sites capacity becoming inadequate to accommodate the RHNA by income category, the
Town may not disapprove the development but has up to 180 days from the approval to
identify and rezone, “sufficient additional, adequate, and available sites” to accommodate
the remaining RHNA for each income category. Sites identified and rezoned must meet the
following criteria:
• Must be considered an adequate site pursuant to the requirements of Government
Code section 65583.2; and
• If the capacity to be replaced was on a site that was zoned by-right pursuant to
Government Code section 65863.2 (h) and (i), then the replacement site must also
satisfy those requirements.
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.
No Net Loss Evaluation
Proposed Project’s Impact on the Anticipated Development in the Housing Element Sites Inventory
Units by Income Category
Very Low Low Moderate Above
Moderate Net Total
Anticipated Development Included
in the Housing Element Sites
Inventory
184 89 92 87 464
Proposed Project 67 10 0 373 450
Net Site-Level Impact from the
Proposed Project to the Housing
Element Sites Inventory
-117 -79 -92 +286 -14
Table A, Table B, and Table C on the following pages show that after project approval, the
remaining capacity of the Sites Inventory will become inadequate to accommodate the very
PAGE 13 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
low and moderate-income RHNA categories. The evaluation procedure for the creation of
the tables below were created using the HCD Technical Memorandum on No Net Loss.
Pursuant to No Net Loss law, 180 days from approval of a project, the Town must identify
and rezone available sites to accommodate the remaining RHNA for each income category.
The following table shows that the cumulative impact of the project on the capacity of the
Housing Element creates a negative surplus in the Very Low and Moderate income
categories. Therefore, the remaining capacity of the Housing Element is not adequate to
meet the Town’s remaining RHNA requirements. The No Net Loss findings cannot be made,
and the Town is required to identify additional site(s) to accommodate the remaining RHNA
should this project be approved.
No Net Loss Evaluation
Evaluation of the Proposed Project’s Impact on the Cumulative Housing Element Sites Inventory Surplus
Units by Income Category
Very Low Low Moderate Above
Moderate
Net Total
Housing Element Sites
Inventory Surplus 101 78 138 558 601
Net Site-Level Impact from the
Proposed Project to Housing
Element Assumed
Development Potential -117 -79 -92 286 -14
Remaining Housing Element
Sites Inventory Surplus with
Project Approval -16 33 -6 122 898
E. 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 15183 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 15183 of the CEQA Guidelines, no Subsequent
EIR would be required, the agency can approve the activity as being within the scope of
PAGE 14 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
the project covered by the programmatic EIR, and new environmental documentation
would not be required.
In accordance with Section 15183 of the CEQA Guidelines, an Initial Study Checklist
(Exhibit 21) was prepared to provide project-level consideration of potential new or
more severe significant impacts associated with the proposed project to 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 15183.
The Initial Study includes a number of project-level technical studies, including: an Air
Quality, Health Risk, and Greenhouse Gas Assessment; Noise Assessment; Arborist
Report; and Transportation Analysis (Exhibit 21). All technical reports were peer
reviewed by the Town or the Town’s consultants. The Initial Study 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
15183 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 Initial Study
is the appropriate environmental document for the proposed project, pursuant to CEQA
Guidelines Section 15183 and no additional environmental review is necessary.
PUBLIC COMMENTS:
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 in
anticipation of the October 29, 2025, Planning Commission meeting.
Staff conducted outreach through the following media and social media resources, for the
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, October 24, 2025, are included as Exhibit X.
PAGE 15 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
CONCLUSION:
A. Summary
The applicant is requesting approval of Architecture and Site and Subdivision applications to
construct a mixed-use residential development (450 units), a vesting tentative map, site
improvements requiring a grading permit, and removal of large protected trees under SB
330 on property zoned NF-SP:HEOZ, located at 14859, 14917, 14925, and 16392 Los Gatos
Boulevard; 16250, 16260, and 16270 Burton Road; and Assessor Parcel Number 424-07-116.
As detailed above, a preliminary application was submitted under SB 330. The project
qualifies for two concessions and unlimited waivers under SDBL. The application meets the
definition of a builder’s remedy project, but the applicant has requested that the project be
reviewed under the January 2023 Housing Element and the NF-SP zoning and has not cited
provisions of the HAA regarding the builder’s remedy that became effective January 1,
2025. The deviations from the Town’s standards included in the project are requested
exclusively through SDBL for which the applicant has provided justification (Exhibit 24).
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 and Subdivision applications by taking the following actions:
1. Make the finding that additional environmental review is not necessary pursuant to
CEQA Guidelines Sections 15183: Projects Consistent with a Community Plan, General
Plan, or Zoning since the proposed project’s environmental impacts were adequately
addressed in the 2040 General Plan EIR (Exhibit 22);
2. Make the finding that the project is consistent with the General Plan with the incentives,
concessions, waivers, and parking reductions requested pursuant to State Density Bonus
Law (Exhibit 22);
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
22);
4. Make the finding that the project meets the objective standards of Chapter 29 of the
Town Code (Zoning Regulations) with the concessions, waivers, and parking reductions
requested pursuant to State Density Bonus Law (Exhibit 22);
5. The project meets the objective standards of the North Forty Specific Plan with the
incentives, concessions, waivers, and parking reductions requested pursuant to State
Density Bonus Law (Exhibit 22);
6. The project meets the Town of Los Gatos Objective Design Standards for Qualifying
Multi-Family and Mixed-Use Residential Development with the waivers requested
pursuant to State Density Bonus Law (Exhibit 22);
PAGE 16 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
7. Make the affirmative findings as required by State Density Bonus Law for granting
concessions pursuant to California Government Code Section 65915 (d) and for granting
waivers pursuant to California Government Code Section 65915 (a)(2) (Exhibit 22);
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 22); 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 22);
10. Approve Architecture and Site Application S-23-031 and Subdivision Application M-23-
005 with the recommended conditions contained in Exhibit 23 and the development
plans in Exhibits 11 through 16.
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:
Previously Received with the April 30, 2025, Staff Report:
1. Location Map
2. Letter of Justification with Proposed Density Bonus Concessions, Waivers, and Parking
Reductions
3. Consulting Architect’s Report
4. Applicant’s Response to Consulting Architect’s Report
5. Final Arborist Report
6. Neighbor Outreach Summary
7. Visual Renderings
8. Objective Design Standards Checklist
9. Public Comments Received by 11:00 a.m., Friday, April 25, 2025
10. Transportation Analysis Report
11. Development Plans, Part 1
12. Development Plans, Part 2
13. Development Plans, Part 3
14. Development Plans, Parts 4 through 6
15. Development Plans, Parts 7 through 9
16. Development Plans, Parts 10 through 11
PAGE 17 OF 17
SUBJECT: 14859, 14917, 14925, and 16392 Los Gatos Boulevard; 16250, 16260, and 16270
Burton Road; and Assessor Parcel Number 424-07-116/S-23-031 and M-23-005
DATE: October 24, 2025
Previously Received with the April 30, 2025, Addendum Report:
17. Public Comments Received Between 11:01 a.m., Friday, April 25, 2025, and 11:00 a.m.,
Tuesday, April 29, 2025
18. Full Transportation Analysis Report
Previously Received with the April 30, 2025, Desk Item Report:
19. Public Comments Received Between 11:01 a.m., Tuesday, April 29, 2025, and 11:00 a.m.,
Wednesday, April 30, 2025
20. Additional Correspondence from the Applicant
Received with this Staff Report:
21. Final Initial Study – September 2025
(available online at https://www.losgatosca.gov/N40II_FinalInitialStudy)
22. Required Findings and Considerations
23. Recommended Conditions of Approval
24. Revised Letter of Justification with Proposed Density Bonus Concessions, Waivers, and
Parking Reductions
25. Revised Objective Design Standards Checklist
26. Public Comments Received Between 11:01 a.m., Wednesday, April 30, 2025, and 11:00
a.m., Friday, October 24, 2025
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