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Item 17 Staff Report Discussion of Policy Issues Regarding Personal Services in C-2 Zone and Consideration of Adopting a Proposed Urgency Ordinance to Establish a Temporary Prohibition on Personal Service Businesses Locating on the Ground Floor in the C-2DATE: TO: FROM: SUBJECT: MEETING DATE: 9/02/03 ITEM NO. COUNCIL AGENDA REPORT August 29, 2003 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER DISCUSSION OF POLICY ISSUES REGARDING PERSONAL SERVICES IN C-2 ZONE AND CONSIDERATION OF ADOPTING A PROPOSED URGENCY ORDINANCE TO ESTABLISH A TEMPORARY PROHIBITION ON PERSONAL SERVICE BUSINESSES LOCATING ON THE GROUND FLOOR IN THE C-2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE. RECOMMENDATION: A. That the Council discuss the issue of Personal Service Businesses in the C-2 zoning district and direct staff to study the issue and develop recommendations regarding potential changes to the C-2 zoning regulations, and; B. Should the Council find that allowing new Personal Service Businesses in the C-2 zone may negatively impact the land use mix in the Central Business District and be in conflict with the zoning ordinance that the Town is considering, then the Council should: a. Determine if pending applications for Personal Service uses on the ground floor should continued to be processed for approval or if they should fall under the temporary prohibition (see item #1 on Page 2 of the urgency ordinance - Attachment 1) b. Direct the Clerk to read title c. Waive the reading c. Move to introduce and adopt the Urgency Ordinance (four votes necessary) d. Instruct the Clerk to publish the Urgency Ordinance within 15 days after adoption BACKGROUND: Government Code Section 65858 authorizes a municipality to adopt, as an urgency measure, an interim zoning ordinance (also referred to as an " cy or • inance") prohibiting certain uses which PREPARED BY: BUD N. LORTZ_ DIRECTOR OF COMMU Y Y DE / LOPMENT Reviewed by: 95 Assistant Town Manager _C Town Attorney Clerk Finance Community Development Revised: 8/29/03 2:19 pm Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: URGENCY ORDINANCE REGARDING PERSONAL SERVICE BUSINESSES August 29, 2003 may be in conflict with the general plan, specific plan or zoning ordinance which a jurisdiction is considering, without following the procedures otherwise required for the adoption of a zoning ordinance. Before adopting or extending an urgency ordinance, Council must make a finding that there is a current and immediate threat to the public health, safety or welfare, or that the approval of additional development applications would result in such a threat. Such an ordinance requires a four -fifths vote of the Town Council for adoption and is effective for 45 days. The urgency ordinance may be extended after notice and public hearing. Urgency ordinances are limited by statute to a maximum two-year period. As required by Government Code, ten days prior to the expiration of the ordinance, Council must issue a written report describing the measures taken to alleviate the condition that led to the adoption of the ordinance. DISCUSSION: The C-2 Central Business District Commercial Zoning District controls land uses in the Downtown area south of Highway 9 and along Main St. from Santa Cruz Ave. to the Civic Center. Santa Cruz Ave., University Ave. and Main St. are the primary commercial streets in the C-2 zone. Downtown Los Gatos is often recognized as one of the best "Downtowns" in Northern California. A unique combination of factors draw people to this conclusion. These factors include the following: • A rich history that dates back over 100 years • Historical and architecturally significant buildings • A beautiful location nestled at the base of the Santa Cruz Mountains • Attractive public improvements including Town Plaza Park • Good vehicular and pedestrian access • Public parking both on -street and in public and private parking lots • A unique mix of commercial uses including restaurants, retail establishments, personal service uses, financial institutions and office uses. The Town Council has been proactive in taking actions to enhance the Downtown and maintain its viability. This has included developing new parking, making streetscape improvements, improving Town Plaza Park, establishing a new banner program and many others. In addition, the Council has been proactive in its land use regulations for the area. The Council understands the delicate balance between different land uses in the Downtown, and has implemented zoning requirements to protect and enhance the area. For example, while some retail uses are allowed by right, most other uses require a Conditional Use Permit (CUP). Uses requiring a CUP include restaurants, banks, hotels or motels, sale of alcoholic beverages, theaters, and many others. Office uses are generally not allowed on the ground floor in the C-2 Zone. Last year, the Town Council approved an ordinance requiring that formula retail stores obtain a CUP. All these actions are intended to provide the Town Council a level of control over the unique mix of uses that make downtown Los Gatos so successful. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: URGENCY ORDINANCE REGARDING PERSONAL SERVICE BUSINESSES August 29, 2003 Personal service businesses are allowed in the C-2 zone without a CUP. The most common personal service businesses currently found in the downtown are hair and nail salons. They are allowed on ground floor spaces. In recent years, it seems there has been an increased number of salons that have located in spaces previously occupied by retail uses. A recent survey of business licenses identified approximately 40 salons, nail studios and barbers in ground floor spaces in the C-2 zoning district. In calendar year 2001, approximately 35 were present, and in 2002, the number increased to 37. Although additional data regarding Personal Service Businesses in the C-2 Central Business District was requested, staff has not been able to collect specific data in the short timeframe since this issue arose. If additional data is available by the time of the September 2nd Council meeting, staff will provide this data verbally. Staff is aware of two salons that have recently filed plans to locate in the C-2 zone in spaces not previously occupied by salons. Both locations are considered "prime" locations where retail uses are considered desirable. While salons have been an important part of the downtown mix for Los Gatos, a concern exists that an over concentration of salons will disrupt the retail continuity of the area. In addition, salons often have a higher parking demand than a typical retail store as a result of a high number of hair stylists and customers being located in what is often a relatively small space. Staff believes that it is prudent to study the issue of personal service businesses in the C-2 zone. The study could result in a recommendation to require a CUP for personal service uses in the C-2, restrict new personal service uses from locating on the ground floor similar to office uses, leaving the ordinance as it is currently written, or other alternatives. If the Council believes immediate action is needed, the adoption of the urgency ordinance would put a moratorium on new personal service uses in ground floor spaces while staff completes its study and recommendations to the Town Council. It is estimated that it would take a minimum of four to six months to complete the study and forward recommendations to the Planning Commission and Town Council. Staff is aware of two salons that have submitted tenant improvement plans and another one that is considering a space in the C-2. Staff has prepared the urgency ordinance so as to give the Council two alternatives in terms of dealing with the two salons with pending applications. Under Alternative One (Page 2 of the urgency ordinance), the proposed uses could not obtain permits to proceed until such time the urgency ordinance is lifted and possibly new requirements for the C-2 zone enacted. Under Alternative Two, the Council would allow applications that are pending (i.e., have already been filed with the Town) to proceed but not issue permits for any new applications received after August 29, 2003 until the urgency ordinance is lifted. Should Council direct staff to study the issue and develop recommendations, staff would recommend the following approach. Within 30 to 60 days staff would develop a scope of work and bring this back to Council for review and discussion prior to conducting research and developing recommendations. The scope may include such actions as reviewing the overall mix of land uses in the downtown and determining conformance with the General Plan, reviewing the type and location of various types of personal service uses, reviewing the number of permits granted for these types of uses over the past few years and similar research. Such research would form the basis for PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: URGENCY ORDINANCE REGARDING PERSONAL SERVICE BUSINESSES August 29, 2003 recommendations and the possibility of further regulating personal service uses in the C-2 zone. The priority and timing of this effort is discussed in a staff report appearing later on the Council agenda. CONCLUSION: Adoption of the urgency ordinance will provide a temporary prohibition on personal service uses on ground floor spaces in the C-2 zone. Such a temporary prohibition would allow staff time to develop a scope of work for review by Council and ultimately study the issue and potentially develop recommendations to regulate personal service uses in the C-2 zone. Two alternatives are presented regarding how to deal with applications that are currently pending. If Council decides not to adopt the urgency ordinance, staff can still proceed if so directed with a study of this issue which will take approximately four to six months. ENVIRONMENTAL ASSESSMENT: It has been determined that this project could not possibly have a significant effect on the environment therefore, the project is not subject to the California Environmental Quality Act (Section 15061(b)(3)). FISCAL IMPACT: Adoption of the urgency ordinance and preparing recommendations regarding potential changes to the C-2 zone for personal service uses will not have a direct fiscal impact on the Town. However, a continued loss of retail uses to personal service uses could result in reduced sales tax revenue to the Town. Attachments: 1. Draft Urgency Ordinance 2. C-2 Zoning Regulations N:1DEV\Marty\personalservicebusinesscouncilreportsept203.wpd ORDINANCE AN URGENCY INTERIM ORDINANCE OF THE TOWN OF LOS GATOS PROHIBITING THE APPROVAL OF APPLICATIONS FOR PERSONAL SERVICE BUSINESSES LOCATED ON THE GROUND FLOOR IN THE C2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE. WHEREAS, Government Code § 65858 allows a legislative body, without following the procedures otherwise required prior to the adoption of a zoning ordinance, to adopt, as a urgency measure, an interim ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan, or zoning proposal which the legislative body, planning commission or planning department is intending to study within a reasonable time; and WHEREAS, the zoning provisions of the Los Gatos Town Code does not provide a definition of "Personal Service Business" nor does it contain adequate procedures for investigating and addressing the impacts of a new Personal Service Businesses in the central business district; and WHEREAS, applications have been received by the Town for approval of two new Personal Service Businesses in the central business district, and inquiries have been made of Town staff in anticipation of a third such application; and WHEREAS, concerns have been raised in the community regarding potential detrimental impacts of additional Personal Service Businesses in the central business district, including but not limited to, location, parking, traffic circulation, and land use mix; and WHEREAS, concerns have also been expressed that decisions regarding applications for new Personal Service Businesses should consider the importance of a balanced mix of land uses throughout the central business district; and WHEREAS, the Town does not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of Page 1 of 5 Attachment 1 businesses located therein or the trend of applications for types of businesses, including Personal Service Businesses; and WHEREAS, absent comprehensive regulations and a current analysis ofthe central business district, the Town is unable to ensure informed, consistent, uniform and fair decisions on applications for new Personal Service Businesses in the central business district; and WHEREAS, the Town Council has directed the Town Department of Community Development to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district; and WHEREAS, approval of applications for new Personal Service Businesses during the time Town staff is studying the business environment and the value of imposing regulations on such businesses in the central business district could result in conflicts with any regulations that might ultimately be adopted. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: ALTERNATIVE 1 1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning applications for permits for Personal Service Businesses located on the ground floor in the C-2 central business district commercial zone, either currently pending or received prior to the termination of this Interim Ordinance, shall be approved by the Town. ALTERNATIVE 2 1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning applications for permits for Personal Service Businesses located on the ground floor in the C-2 central business district commercial zone received by the Town after August 29, 2003, shall be approved by the Town. 2. Findings. a. The Town of Los Gatos has long been recognized as having a unique downtown business environment with an unusual mix of business that distinguishes it from other retail areas and has contributed Page 2 of 5 to its long time vibrancy and financial success. b. The Town's General Plan contains numerous goals, policies and implementing strategies intended to preserve its unique retail environment. For example, the land use designation CBD for central business district (2.4.2) is described as "[encouraging] a mixture of community -oriented commercial goods, services and lodging, that is unique in its accommodation of small town style merchants and the maintenance of a small town feel and character." Elsewhere, concerning the historic downtown area, is a goal to maintain mixture of goods and services, identity, environment and commercial viability (LG.6.2) and a policy to "[e]ncourage the development and retention of small business and locally -owned stores and shops that are consistent with small town character and scale." (L.P.6.2) c. The Town does not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix ofbusinesses located therein, or the trend of applications for types of businesses, including personal service businesses. d. While the precise number of Personal Service Businesses in the central business district has yet to be determined, an initial review of Town business license information indicates that in calendar year 2001 approximately 35 locations in the central business district were used for Personal Services Business, that the number increased slightly to 37 locations in calendar year 2002, and that thus far in calendar year 2003 the number has increased to approximately 40 locations. These include hair salons, barber shops, nail salons and day spas. e. A nationwide economic recession has reduced demand for many retail goods resulting in retail business failures and increasing retail space vacancies in the central business district. f. Within the 30 to 60 day period preceding this ordinance, applications have been received by the Town seeking permits for two new Personal Service Businesses in the central business district and inquiries have been made of Town staff in anticipation of a third such application. Page 3 of 5 g. While the total number of Personal Service Businesses may vary upon completion of a more detailed survey, the preliminary information referred to herein, coupled with the pending and anticipated applications for more such businesses, suggests the existence of a large and rapidly increasing number of businesses in the central business district specializing in hair, nails and skin care and a trend of vacant retail spaces converting to Personal Service uses. h. An increase in the existing number of Personal Service Businesses in the central business district potentially threatens the Town's unique downtown retail environment in a number of ways, including, but not limited to, an over concentration of Personal Service Businesses that can take over existing retail spaces, reduce the attractiveness of the central business district to retail consumers and to new retail businesses alike, and ultimately limit the ability of the central business district to successfully compete with other business districts in the region. i. For the reasons stated herein, the issuance of building or zoning permits for new Personal Service Businesses located on the ground floor in the central business district commercial zone during the term of this Interim Ordinance poses a current and immediate threat to public health, safety and welfare. j. The Town Department of Community Development has been directed to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district. k. Approval of applications for building or zoning permits for Personal Service Businesses may be in conflict with the regulations to be analyzed and adopted by the Town and would undermine the purpose of studying such regulation, thereby reducing the quality of life within the community to the extent the overall public health, safety and welfare are detrimentally affected. 3. Term. This Interim Ordinance shall be effective immediately and shall remain in effect 45 days from the date of its adoption, or until the Town Council chooses to repeal this Ordinance, whichever is Page 4 of 5 earlier, unless extended pursuant to Government Code § 65858 . 4 Report. At least 10 days prior to expiration of this Interim Ordinance, the Town Council shall issue a written report pursuant to Government Code § 65858 (d) describing the measures taken to alleviate the conditions which have led to the adoption of this Interim Ordinance. 5. Severability. If any part of this Interim Ordinance is held to be invalid or inapplicable to any situation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Interim Ordinance or the applicability of this Interim Ordinance to other situations. 6. Posting. Within 15 days after its passage, the Town Clerk shall cause this Interim Ordinance to be published once in a newspaper of general circulation published and circulated in the Town and posted in at least three public places within the Town. This Interim Ordinance was passed and adopted at a regular meeting of the Town Council of the Town of Los Gatos on , 2003 and adopted by at least a four -fifths (4/5) vote of the Town Council as follows: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:1ATY\PSB Ordinance.wpd Page 5 of 5 ORDINANCE 2117 AN URGENCY INTERIM ORDINANCE OF THE TOWN OF LOS GATOS PROHIBITING THE APPROVAL OF APPLICATIONS FOR PERSONAL SERVICE BUSINESSES LOCATED ON THE GROUND FLOOR IN THE C2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE. WHEREAS, Government Code § 65858 allows a legislative body, without following the procedures otherwise required prior to the adoption of a zoning ordinance, to adopt, as a urgency measure, an interim ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan, or zoning proposal which the legislative body, planning commission or planning department is intending to study within a reasonable time; and WHEREAS, the zoning provisions of the Los Gatos Town Code does not provide a definition of "Personal Service Business" nor does it contain adequate procedures for investigating and addressing the impacts of a new Personal Service Businesses in the central business district; and WHEREAS, applications have been received by the Town for approval of two new Personal Service Businesses in the central business district, and inquiries have been made of Town staff in anticipation of a third such application; and WHEREAS, concerns have been raised in the community regarding potential detrimental impacts of additional Personal Service Businesses in the central business district, including but not limited to, location, parking, traffic circulation, and land use mix; and WHEREAS, concerns have also been expressed that decisions regarding applications for new Personal Service Businesses should consider the importance of a balanced mix of land uses throughout the central business district; and WHEREAS, the Town does not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of Page 1 of 5 businesses located therein or the trend of applications for types of businesses, including Personal Service Businesses; and WHEREAS, absent comprehensive regulations and a current analysis of the central business district, the Town is unable to ensure informed, consistent, uniform and fair decisions on applications for new Personal Service Businesses in the central business district; and WHEREAS, the Town Council has directed the Town Department of Community Development to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district; and WHEREAS, approval of applications for new Personal Service Businesses during the time Town staff is studying the business environment and the value of imposing regulations on such businesses in the central business district could result in conflicts with any regulations that might ultimately be adopted. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: 1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning applications for permits for Personal Service Businesses located on the ground floor in the C-2 central business district commercial zone received by the Town after August 29, 2003, or has executed a lease by or before August 29, 2003 for locations which Personal Service Businesses would operate, shall be approved by the Town. 2. Findings. a. The Town of Los Gatos has long been recognized as having a unique downtown business environment with an unusual mix of business that distinguishes it from other retail areas and has contributed to its long time vibrancy and financial success. b. The Town's General Plan contains numerous goals, policies and implementing strategies intended to preserve its unique retail environment. For example, the land use designation CBD for Page 2 of 5 central business district (2.4.2) is described as "[encouraging] a mixture of community -oriented commercial goods, services and lodging, that is unique in its accommodation of small town style merchants and the maintenance of a small town feel and character." Elsewhere, concerning the historic downtown area, is a goal to maintain mixture of goods and services, identity, environment and commercial viability (LG.6.2) and a policy to "[e]ncourage the development and retention of small business and locally -owned stores and shops that are consistent with small town character and scale." (L.P.6.2) c. The Town does not have complete and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of businesses located therein, or the trend of applications for types of businesses, including Personal Service Businesses. d. While the precise number of Personal Service Businesses in the central business district has yet to be determined, an initial review of Town business license information indicates that in calendar year 2001 approximately 35 locations in the central business district were used for Personal Services Business, that the number increased slightly to 37 locations in calendar year 2002, and that thus far in calendar year 2003 the number has increased to approximately 40 locations. These include hair salons, barber shops, nail salons and day spas. e. A nationwide economic recession has reduced demand for many retail goods resulting in retail business failures and increasing retail space vacancies in the central business district. f. Within the 30 to 60 day period preceding this ordinance, applications have been received by the Town seeking permits for two new Personal Service Businesses in the central business district and inquiries have been made of Town staff in anticipation of a third such application. g. While the total number of Personal Service Businesses may vary upon completion of a more detailed survey, the preliminary information referred to herein, coupled with the pending and Page 3 of 5 n anticipated applications for more such businesses, suggests the existence of a large and rapidly increasing number of businesses in the central business district specializing in hair, nails and skin care and a trend of vacant retail spaces converting to personal service uses. h. An increase in the existing number of Personal Service Businesses in the central business district potentially threatens the Town's unique downtown retail environment in a number of ways, including, but not limited to, an over concentration of Personal Service Businesses that can take over existing retail spaces, reduce the attractiveness of the central business district to retail consumers and to new retail businesses alike, and ultimately limit the ability of the central business district to successfully compete with other business districts in the region. i. For the reasons stated herein, the issuance of building or zoning permits for new Personal Service Businesses located on the ground floor in the central business district commercial zone during the term of this Interim Ordinance poses a current and immediate threat to public health, safety and welfare. j. The Town Department of Community Development has been directed to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district. k. Approval of applications for building or zoning permits for Personal Service Businesses may be in conflict with the regulations to be analyzed and adopted by the Town and would undermine the purpose of studying such regulation, thereby reducing the quality of life within the community to the extent the overall public health, safety and welfare are detrimentally affected. 3. Term. This Interim Ordinance shall be effective immediately and shall remain in effect 45 days from the date of its adoption, or until the Town Council chooses to repeal this Ordinance, whichever is earlier, unless extended pursuant to Government Code § 65858 . Page 4 of 5 4 Report. At least 10 days prior to expiration of this Interim Ordinance, the Town Council shall issue a written report pursuant to Government Code § 65858 (d) describing the measures taken to alleviate the conditions which have led to the adoption of this Interim Ordinance. 5. Severability. If any part of this Interim Ordinance is held to be invalid or inapplicable to any situation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Interim Ordinance or the applicability of this Interim Ordinance to other situations. 6. Posting. Within 15 days after its passage, the Town Clerk shall cause this Interim Ordinance to be published once in a newspaper of general circulation published and circulated in the Town and posted in at least three public places within the Town. This Interim Ordinance was passed and adopted at a regular meeting of the Town Council of the Town of Los Gatos on September 2, 2003, and adopted by at least a four -fifths (4/5) vote of the Town Council as follows: COUNCIL MEMBERS: AYES: Steve Glickman, Joe Pirzynski, Mike Wasserman, Mayor Sandy Decker NAYS: Diane McNutt ABSENT: None ABSTAIN: None SIGNED: /s/ Sandy Decker 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 Page 5 of 5 § 29.60.230 LOS GATOS TOWN CODE Sec. 29.60. = 0. Height. The maxi m height of any building in a C-1 or neighborhood co . ercial zone is thirty-five (35) fe (Ord. No. 1316, § 4. .080, 6-7-76; Ord. No. 1337, 11-1-76) Sec. 29.60.235. Lot are > coverage. Maximum building cover of a lot in a C-1 or ne': borhood commercial zone, including any type of accessory building, i fifty (50) percent . the lot area. (Ord. No. 1316, § 4.54.090, 6-7-76; d. No. 13 ' , 11-1-76) Sec. 29.60.240. Buildings located in : . arking assessment district. (a) The floor area ratio for al existing building located on a ngs or expansion of the gross floor area of an ing assessme ' t district shall not exceed sixty -hundredths. (b) In the event a bu :ing or buildings which : ceed a FAR of sixty -hundredths within the C-1 zone are destred involuntarily, reconstructio to the amount of the prior floor area shall be allowed, s .ject to all other provisions of this chapter. (Ord. No. 1316 = 4.54.100, 6-7-76; Ord. No. 1328, 8-2-76; Ord. No. 1724, 5-18-87) Secs. 2 ' . • 0.245-29.60.310. Reserved. DIVISION 4. C-2 OR CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE Sec. 29.60.315. Intent. The C-2 or central business district commercial zone is intended to encourage the continuance of a viable and predominantly pedestrian -oriented central business district for the Town and therefore the zone allows a wide variety of retail, service, entertainment and administrative activities which are necessary to serve a large trading area. (Ord. No. 1316, § 4.56.010, 6-7-76; Ord. No. 1363, 8-1-77) Sec. 29.60.320. Permitted uses. (a) Activities permitted in the C-2 or Central District Commercial Zone are those involving the conduct of commerce and general business and the sale of commodities necessary for the needs of residents and visitors of the Town, such as: (1) Retailing. (2) Personal service businesses. (3) Service businesses necessary for the conduct of households or businesses. (4) Office activities subject to subsection (c) below. (5) Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer. Supp. No. 17 2108 Attachment 2 ZONING REGULATIONS (6) Wholesaling without warehousing on the premises. (7) Single-family and two-family uses, in conjunction with the other uses permitted in this section. (b) Example of proper C-2 activities are apparel stores, launderettes or dry cleaning agencies, travel agencies, antique stores, telephone answering services, artist studios, sales offices for merchandise stored elsewhere, craft studios, auto parts sales and paint shops. Examples of activities which are not proper in the C-2 zone are vehicle sales or service, manufacturing, warehousing, laundry or drycleaning plants. (c) Office activities in the C-2 zone are subject to the following: (1) Office activities shall not be located on the ground floor along any street, alleyway, or public parking lot except: a. Lyndon Avenue; b. Pageant Way; c. Properties abutting Wood Road; d. The west side of Victory Lane; e. The south side of Los Gatos -Saratoga Road excluding: i. That portion of the property located at the southwest corner of Los Gatos -Saratoga Road and Santa Cruz Avenue described more precisely as located between a straight line extended northerly along the west side right-of-way line of Santa Cruz Avenue and one hundred forty (140) feet west of that extended line. ii. The south side of Los Gatos -Saratoga Road between Santa Cruz Avenue and University Avenue; and The east side of South Santa Cruz Avenue directly across the street from Wood Road. (2) f. g- The north and south side of West Main Street west of Victory Lane. Notwithstanding subsection (c)(1), office activities on ground floors described below shall be considered conforming and shall be allowed to continue so long as the office use is not discontinued for one hundred and eighty (180) consecutive days. If the office use is discontinued for such a period, then the office use shall not be resumed, and token use shall not toll or interrupt a period of discontinuance. a. Office activities existing on June 17, 1991; or b. Office activities in a building under construction on July 16, 1990, if the applicable architecture and site approval specifically stated that the building was approved for office activities. (Ord. No. 1316, § 4.56.020, 6-7-76; Ord. No. 1363, 8-1-77; Ord. No. 1546, 8-16-82; Ord. No. 1729, 6-15-87; Ord. No. 1859, § II, 6-17-91; Ord. No. 1899, § I, 5-4-92; Ord. No. 1975, § I, 5-2-94; Ord. No. 2016, § IV, 5-20-96; Ord. No. 2035, § I, 10-20-97) Supp. No. 21 2109 § 29.60.325 LOS GATOS TOWN CODE Sec. 29.60.325. Conditional uses. In addition to the activities authorized by section 29.60.320, the activities listed in the table in section 29,20.185 are allowed if a conditional use permit is issued. (Ord. No. 1316, § 4.56.030, 6-7-76; Ord. No. 1363, 8-1-77) Sec. 29.60.330. Area. There is no minimum lot area requirement in a C-2 or central business district commercial zone. (Ord. No. 1316, § 4.56.050, 6-7-76) Sec. 29.60.335. Yards. Minimum front, side and rear yards in a C-2 or central business district commercial zone shall be as follows: (1) Front or side abutting street 10 feet The deciding body may allow a reduction in the setback if it makes all of the following findings: a. The setback provides for adequate pedestrian circulation; b. The setback is compatible with the adjacent buildings and complements the buildings in the immediate vicinity; and c. The setback provides adequate clear sight vision for vehic- ular traffic. (2) Side None required (3) Rear None required (4) The following minimum yard requirements apply along those property lines of a lot in the C-2 zone which abut or are across the street from a lot in a residential zone: a. Front 15 feet b. Side abutting street 15 feet c. Side or rear 20 feet Plus one (1) foot for each foot of building height over twenty (20) feet. A six-foot high masonry wall is required along the property line. (Ord. No. 1316, § 4.56.060, 6-7-76; Ord. No. 1337, 11-1-76; Ord. No. 1363, 8-1-77; Ord. No. 1767, § I, 11-21-88) Sec. 29.60.337. Improvements within yards abutting a street. (a) Improvements may be permitted in any required front yard and any required side yard abutting a street in a C-2 or central business district commercial zone if the deciding body makes all of the following findings: (1) Pedestrian safety will not be impaired; (2) The streetscape would be enhanced as a result of the proposed improvements; Supp. No. 21 2110 ZONING REGULATIONS § 29.60.337 (3) The improvements are in character with the adjacent buildings; and (4) The improvements will not obstruct the clear sight vision of vehicular traffic. (b) The provisions of section 29.10.055, which states that any required yard abutting a street must be landscaped, and section 29.50.035, which prohibits fencing in any required yard abutting a street, shall not apply in the C-2 zone. (Ord. No. 1316, § 4.56.065; Ord. No. 1767, § II, 11-21-88) Supp. No. 21 2110.1 ZONING REGULATIONS § 29.60.420 Sec. 29.60.340. Height. The maximum height of any building in a C-2 or central business district commercial zone is forty-five (45) feet. (Ord. No. 1316, § 4.56.070, 6-7-76; Ord. No. 1337, 11-1-76) Sec. 29.60.345. Maximum floor area ratio. (a) The floor area ratio for all new buildings in a C-2 or central business district commercial zone, or expansion of gross floor area of an existing building, shall not exceed sixty -hundredths. (b) In the event a building or buildings which exceed a FAR of sixty -hundredths within the C-2 zone are destroyed involuntarily, reconstruction to the amount of the prior floor area shall be allowed, subject to all other provisions of this chapter. (Ord. No. 1316, § 4.56.080, 6-7-76; Ord. No. 1606, 2-6-84) Secs. 29.60.350-29.60.410. Reserved. DIVISION 5. CH OR RESTRICTED HIGHWAY COMMERCIAL ZONE Sec. 29.60.4 ' 5. Intent. The CH or estricted highway commercial zone is intended for • evelopment of vehicular - oriented activitie and sales along highway frontages, intermi • :led with compatible retail, service and admini rative activities. (Ord. No. 1316, § 4.6% 010, 6-7-76; Ord. No. 1363, 8-1-77) Sec. 29.60.420. Permit d uses. (a) Activities allowed in e CH or restricted ighway commercial zone are those which do not unreasonably interfere wi nearby res a ential uses and which are in the following categories: (1) Retailing. (2) Personal service business an ' service businesses necessary for the conduct of households. (3) Office activities. (4) Limited manufauring activities when a ajority of sales are made on site to the ultimate cons . mer. (b) Examples .f proper CH activities are grocery s es, launderettes or dry-cleaning agencies, drug ores, barbershops, appliance repair shops, and offices. Examples of activities which are n• proper in the CH zone are palmists and soothsayers, manufacturing, wholesal- ing, or laundry or dry-cleaning plants. (Ord. No. 1316, § 4.60.020, 6-7-76; Ord. No. 1363, 8-1-77) Supp. No. 17 2111 August 31, 2003 TO: Town Of Los Gatos Attn: Town Clerk From: Angela Smith and Brian Hatfield (Capelli Salon) 4 ' RE: Discussion of policy issues regarding personal services in C 2 zone and consideration of adopting a proposed urgency ordinance to establish a temporary prohibition on personal service business locating on the grown floor in the C-2 Central Business District Commercial Zone. Hello, our names are Angela Smith and Brian Hatfield, partners in Capelli Salon. I, Brian Hatfield have been in business as Brian Hatfield Hair Designs in Los Gatos for 10 plus years. My ambition was to have a place of my own someday. We found the location at 14 East Main Street and thought it was perfect. Our clientele would just need to basically move down the street from where they are today. Our commercial broker and the building owners said we needed to talk with the city to be sure we could put a salon in this location. On June 24th we went down to the City Planners office and spoke with Jennifer Castillo, Asst Planner. She looked up the location and provided us with the C2 Zoning brochure showing that a salon was acceptable in this location. We asked her if there was some sort of form or something in writing we should obtain from her and she said no. We asked her for a card and simply noted the date and her confirmation of location on the card in her presence. 2 weeks later we signed a leased with the building owners for 3 years. Immediately on signing the lease we inquired about permits. The planning staff outlined what would be required for the work we needed to do. We worked out plans and the city accepted them finally on Aug 11 th to present to the board. We received a letter later this week asking us for additional information. Upon receipt of said letter we re -worked our plans and set a meeting with Mark Glendinning our assigned inspector to present them again. It was at this meeting that Tom Williams Assistant Director of Community Development advised that the city was putting a hold and not accepting any further permit drawings for salons. We advised Tom that we talked to the city before signing the lease in this location and started our work with the city back in July. He said he was sorry and that he suggested we attend the town council meeting set for September 2, 2003. We have signed a 3 year lease at this location because we were told we could have a salon there. We never would have signed this lease had the city informed us before hand. We have purchased all of our furniture and retail supplies that will be sold in the salon, of which most are non-refundable. We have started build out in anticipation of our initial inspection. We are simply trying to continue our business with a previously established clientele at a new location living the American dream of "owning a small business". We have followed all of the steps the city asked us to. We are asking you to simply let us proceed so that we can continue to support ourselves & provide our clients with the service and products they require. Thank you very much for your time. Best Regards, a iyir6L) Angela Smith and Brian Hatfield eTh carol From: Angie Smith fangsmith@cisco.com) Sent: Wednesday, August 27, 2003 2:38 PM To: carothamLdiverizon.net Cc: angsmith@cisco.com Subject: 14 E Main Street, Capelli Salon Hello Carol, 611 2 1-7)1 I hope things are well with you. We have been plugging right along trying to finalize our permits since the end of July. They were all ready to sign off finally last week when they realized we needed to find a way to spend an additional $200 for AID upgrades. This wasn't a problem so we drew up the plans again and had a meeting with the town on Monday this week. During our meeting with Mark Glendinning the city Building Inspector, the Asst Director of Community Development Mr. Tom Williams came up to say that there is something on the agenda Tuesday September 2nd at the Council meeting to put a "moratorium" on all salons in Los Gatos. He said that he would tell the staff in the office to not work further on our permits and that everything was on hold, This of course was a total shock to us. We asked Tom several questions. He basically said that if this agenda item becomes and Ordinance then we wouldn't get our permits issued and that any new salons would all be put on hold. We advised Tom that on June 24th this year we spoke with Jennifer Castillo one of the Asst Planners to indeed confirm we :could put a salon at 14 E Main street. She confirmed to us on that date and also provided us a copy of the C-2 zoning handout advising all was tine. We also advised Tom that we wouldn't have signed a lease at this location had we known. He told us that definitely things were on hold and that we shouldn't spend any more time and money on things until after this meeting. I contacted our Attorney yesterday regarding this. He basically said that first of all there wasn't an ordinance when we signed the lease so we are fine. He also said secondly that it doesn't sound "legal" to hold up permits just because something is on an agenda. He said we should show up at the Town Council meeting and when this item comes up we should raise our hand and plead our case. He also offered to come with us. He said if for some reason they pass this Ordinance or "moratorium" we have lots of legs to stand on, but we would need to just know that we would have to potentially fight with the city. He also pointed out that those members an the council are all business men and women and will most likely completely understand our predicament and grandfather us in since we started the process with them so long ago AND that the ordinance wasn't in tact when we started. Carol, I wanted to just tell you this story so you know. I know that you and your family have been around the city for years and my Brian has also been an independent business owner with a license in this town for 10 years so this is really dis-appointing. I just thought you should know our battles right now and that we are going to the Town Council Meeting Tuesday night to try and plead our case with hopes that we won't have to take legal action. Lastly, I just saw Lilianna and she asked that I run by painting the outside trim with you. She has picked out a very deep red almost similar to the numbers you have painted on the windows of each location. Would you or your family mind if this transpired? She has a sample that I am sure she would he glad to share with you. Sorry for such a long story. Just wanted you to know our progress to date. Kindest Regards, Angie Smith and Brian Hatfield 1 a uterkit v2z 3441/1- (no 877 : it R AWL (�� �lJlc3r1...w3a; rit r F► yi ._ 5fothw_ovn elmazg 3 5, t9_ .377 38 4ojr,462 Y D 5-4 _ 1vJgAvtau:ki 4146ti .L.61Lie.OrtiJ, ciata Or C7 ThR ?rRneh CR11ar 32 East Main Street Los Gatos CA 95030 September 2, 2003 TO: Mayor Sandy Decker Council Members Town Staff au-loneui-tca t hem 17 01 '2_ - D,5 FROM: Sallie Robbins-Druian Retail Business Owner I am here this evening because I am concerned about the continuing imbalance of businesses opening in the core downtown area. I am very concerned about the proliferation of "personal service" businesses that are changing the face and character of our historic town. And I am particularly concerned about how these businesses affect my business and those around me. The specific impact of hair and nail salons is a visual and logistical one. When you do a quick count and realize that there are more salons than retail and restaurants, it immediately comes to mind that we are becoming a "personal service town", not a charming destination, balanced with attractive shops, restaurants and other businesses. Businesses such as these, can place a huge demand and cost on town support, and can greatly impact neighboring merchants and restaurants. In general, independent contractor count is high, along with customer traffic and parking demand. I speak from experience, because we have been next door to a salon for six years. The stress on public and private parking can be overwhelming, and has directly affected our income and those of our neighbors. And now, we have a new salon opening less than 200 feet away from our business and neighboring salon. One that will have no specific parking of its own, and will most likely impact East Main Street, and private parking lots, particularly, Soda Works Plaza. Please remember that we are a street and a community of not only businesses, but apartment tenants as well. Besides the imbalance of this type of business and the parking issue, are the garbage, noise, and chemicals and that can be problematic without responsible ownership or close town scrutiny and regulation —including new and old building requirements that should include separate air duct systems, regulated garbage disposal, sound proofing and impervious shared -wall materials to keep odors from affecting neighboring businesses or apartment tenants. I ask that you place a moratorium on "personal service businesses" and consider for the future, that these businesses be required second floor occupancy only, in the core downtown. Also, now is the time to remove "personal service businesses" from the retail category, and place them into their own, requiring a conditional use permit. I also request with due respect —from Planning Department to Planning Commission to Town Council —to work closer together. I want to feel confident that when a new business makes an application for a permit, that you each are immediately aware and mindful of their application, contribution and impact on the existing businesses and citizens of Los Gatos. And in all fairness to the applicants, that they in turn, understand clearly from the town staff, that the process of filing, does not guarantee a permit, or the right to open for business until formally approved. Thank you. 10-8114-(4-vd