15 Staff Report - Regarding the Definition of Formula Retail BusinessDATE:
TO:
COUNCIL AGENDA REPORT
August 4,2005
MAYORANDTOWNCOUNC~
MEETING DATE:8/15/05
ITEM NO.l5
FROM:
SUBJECT:
TOWN MANAGERR\~~~~
INTRODUCTION OF AN ORDINANCE AMENDING TOWN CODE
SECTION 29.10.020 REGARDING THE DEFINITION OF FORMULA
RETA~BUSINESS.IT HAS BEEN DETERMINED THAT THIS PROJECT
COULD NOT HAVE A SIGNIFICANT IMPACT ON THE ENVIRONMENT;
THEREFORE,THE PROJECT IS NOT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (SECTION 15061 (b)(3».
APPLICATION:A-05-2.APPLICANT:TOWN OF LOS GATOS.
RECOMMENDATION:
1.Accept report in the form of meeting minutes from the Planning Commission regarding a Zoning
Code amendment (Attachment 3).
2.Open and hold the public hearing.
3.Close the public hearing.
4.Direct the Clerk Administrator to read the title of the ordinance (no motion required).
5.Move to waive the reading of the ordinance (motion required).
6.Introduce the ordinance to effectuate the Zoning Code amendment (motion required).
7.Direct the Clerk Administrator to publish the ordinance within 15 days after adoption (no motion
required).
BACKGROUND:
On November 4,2002,the Town Council approved a Zoning Code amendment requiring a
Conditional Use Permit (CUP)for all formula retail businesses in the Central Business District (C-2
zone)and for formula retail businesses in excess of 6,000 square feet in other commercial zones.
The following definition was included as part of the Zoning Code amendment:
(Continued on Page 2)
PREPARED BY:BUD N.LORTZ@'vl/tT
DIRECTOR OF COM:M1'JilTITY DEVELOPMENT
Reviewed by:Qs:lA~sistant Towy Manage~OWAttomey __Clerk Department·
_------'Fmance _V_ICommumty Development Revised:8/4/05 1:15 pm
Refonnatted:5/30/02
....\
PAGE 2
MAYORANDTOWNCOUNC~
RE:ZONING CODE AMENDMENT A-05-2
August 10,2005
F orrnula retail business means a retail business which,along with one (1)or more other business
locations,is required by contractual or other arrangement to maintain any of the following:
standardized merchandise,services,decor,uniforms,architecture,colors,signs or other similar
features.
The intent ofthe amendment was not to prohibit formula retail businesses.Rather,the CUP process
allows the Town to evaluate the consistency of the proposed business with Town policies.The
Town Code states that the Town may deny a CUP for a formula retail business if it is found to be
inconsistent with the General Plan or will detract from the diversity of businesses in the zoning
district.
In September 2004,the Town Council requested that the General Plan Committee (GPC)determine
if a modification should be made to the definition of formula retail business.Specifically,the GPC
was asked to review whether the definition of formula retail business should be modified to allow
businesses that have a limited number of stores to be approved without obtaining a CUP.
Over the past several months the General Plan Committee (GPC)reviewed the current definition of
formula retail business and determined that a modification would be appropriate to allow small
retailers with several locations to locate in the Town without obtaining a CUP.
DISCUSSION:
Two potential options were discussed.The fIrst option would modify the definition offormula retail
businesses and make a distinction between regional and national retailers.It was determined that
this option raised legal concerns and was not discussed further.The second option would modify
the definition of formula retail businesses by raising the number of stores for which the requirement
for a CUP is triggered.
The GPC received input from the Economic Vitality Manager regarding interactions with property
owners and brokers.Staff relayed input that has been provided by property owners and brokers
regarding the current formula retail business definition.Although no applications for formula retail
businesses have been denied,some property owners and brokers expressed that they generally will
avoid businesses that trigger the requirement for a CUP.When multiple businesses are vying for a
single space,the broker and/or property owner will generally choose a tenant that does not require
a CUP because of the processing time and uncertainty involved in obtaining a CUP.Many
businesses which have a successful business model and have an appropriate look and feel for the
Town are passed over for other businesses which will not trigger the requirement for a CUP.
As part of their review,the GPC reviewed various examples of formula retail businesses within the
Town that had between two and eleven existing locations:
•Twig - 2
•Domus -2
PAGE 3
MAYORANDTOWNCOUNC~
RE:ZONING CODE AMENDMENT A-05-2
August 10,2005
•Peabody Art Gallery - 3
•Sports Gallery - 3
•Traditions - 4
•Harvest Home - 4
•Petroglyph - 4
•Benefit - 5
•Black Sea Gallery -11.
Additionally,the GPC reviewed other examples of formula retail businesses with up to six existing
locations that are not currently located within the Town,but appear to be a good fit for the Town:
•Trina Turk -2
•Ambiance - 3
•Margaret O'Leary -6.
The GPC discussed this issue at length and was comfortable with the stores listed above that had
fewer than seven locations.Therefore,they determined that modifying the definition of formula
retail from one to seven stores was appropriate.The GPC commented that the objectives of the
proposed amendment are to allow small boutique stores without a CUP,encourage businesses that
have an appropriate character for the Town,and to allow small retailers to obtain approval without
having to go through the CUP process.
The GPC recommended that the following Town Code amendment be approved by the Council:
Section 29.10.020.Definitions.
Formula retail business means a retail business which,along with one (1)seven (7)or more
other business locations,is required by contractual or other arrangement to maintain any of the
following:standardized merchandise,services,decor,uniforms,architecture,colors,signs or
other similar features.
GENERAL PLAN
The proposed Zoning Code amendment is consistent with the following General Plan designation,
goal,and policy:
•Land Use Designation CBD (2.4.2)-Encourages 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.
•L.G.6.2 -To preserve downtownLos Gatos as the historic center of the Town with goods and
services for local residents while maintaining the existing Town identity,environment and
commercial viability.
PAGE 4
MAYORANDTOWNCOUNC~
RE:ZONING CODE AMENDMENT A-05-2
August 10,2005
•L.P.6.2 -Encourage the development and retention of small businesses and locally-owned
stores and shops that are consistent with small town character and scale.
PLANNING COMMISSION RECOMMENDATION:
The Planning Commission considered this item on July 13,2005.The Commission recommended
approval of the Zoning Code Amendment.A copy of the Planning Commission verbatim minutes
for the above referenced meeting date is included as Attachment 2.The Planning Commission
decision to recommend approval of the Zoning Code Amendment was based on the conclusion by
the Commission that the proposed amendment is consistent with the General Plan and will allow
smaller boutique type stores to be approved without having to obtain a CUP.
ENVIRONMENTAL ASSESSMENT:
It has been determined that this project could not have a significant impact on the environment,
therefore,the project is not subject to the California Environmental Quality Act (Section 15061
(b)(3)),no further action is required.
FISCAL lMPACT:None.
Attachments:
1.Draft Ordinance (2 Pages),Sections 29.10.020.
2.Planning Commission Minutes from their meeting on July 13,2005.
3.Report to the Planning Commission,dated July 5,2005 for the meeting of July 13,2005.
Distribution:
Randal Tsuda,Assistant Director of Community Development
Danielle Surdin,Economic Vitality Manager
Los Gatos Chamber of Commerce,Attn:Ronee Nassi,349 N.Santa Cruz Avenue,Los Gatos,CA
95030
Greg Stowers,Stowers Associates Architects Inc.,15495 Los Gatos Blvd,Los Gatos,CA 95032
BNL:JP:mdc:
N:\DEV\CNCLRPTS\2005\A-05-02.wpd
ORDINANCE
AN ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING THE ZONING ORDINANCE OF THE TOWN CODE REGARDING
SECTION 29.10.020.
WHEREAS,the Town of Los Gatos has long been recognized as having a unique retail
environment with an unusual mix of retail businesses in terms of type,ownership and appearance,
that distinguishes it from other retail areas and has contributed to its long time vibrancy and financial
success.
WHEREAS,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 the 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,"while
descriptions of the Mixed Use,Neighborhood and Service Commercial districts emphasizes
maintaining and servicing the needs of the small town residential scale and natural environments of
adjacent residential neighborhoods.Elsewhere,concerning the historic downtown area,is a goal to
maintain mixture of goods and services,identity,environment and commercial viability (L.G.6.2)
and a policy to "[e]ncourage the development and retention of small businesses and locally-owned
stores and ships that are consistent with small town character and scale"(L.P.6.2).
WHEREAS,Council adopted a definition for formula retail businesses on November 4,
2002.
WHEREAS,Council's intent in adopting the existing definition of formula retail business
1
Attachment 1
was to ensure the exercise of greater control over the location of new formula retail businesses in the
Town in order to meet the goals,policies and implementing strategies of the Town's General Plan
and avoid the transition of the Town's unique retail environment into one that is homogenous with
retail areas in other communities.
WHEREAS,the Town Council requested that the General Plan Committee (GPC)determine
whether the definition of formula retail business should be modified to allow businesses that have
a limited number of stores to be approved without obtaining a CUP.
WHEREAS,the GPC and Planning Commission recommended a modification to the
definition offormularetail business to allow small retailers to locate in the Town without obtaining
a Conditional Use Permit (CUP).
WHEREAS,Council's intent in adopting this ordinance is to continue to ensure the exercise
of greater control over the location of new formula retail businesses in the Town in order to meet the
goals,policies and implementing strategies of the Town's General Plan and avoid the transition of
the Town's unique retail environment into one that is homogenous with retail areas in other
communities.
WHEREAS,Council determined that the proposed Zoning Code Amendment is consistent
with the General Plan and specifically with the land use designation CBD for the Central Business
District (2.4.2),Goal L.G.6.2,and Policy L.P.6.2.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
Town Code Chapter 29 is amended to read as follows:
2
Section 29.10.020.Definitions.
Formula retail business means a retail business which,along with one (1)seven (7)or
more other business locations,is required by contractual or other arrangement to maintain any of
the following:standardized merchandise,services,decor,uniforms,architecture,colors,signs or
other similar features.
SECTION II
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on ,2005,and adopted by the following vote as an ordinance of the Town of Los Gatos
at a meeting of the Town Council of the Town of Los Gatos on
effective 30 days after it is adopted.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
,2005.This ordinance becomes
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS,CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR
TOWN OF LOS GATOS
LOS GATOS,CALIFORNIA
N:\DEV\ORDS\A-05-2.wpd
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Los Gatos Planning
Commissioners:
A P PEA RAN C E S:
Phil Micciche,Chair
Michael Burke
Michael Kane
Tom O'Donnell
Lee Quintana
Joanne Talesfore
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PRO C E E 0 I N G S:
COMMISSIONER BURKE:Next item is Item *4,which
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Assistant Director of
Community Development:
Town Attorney:
Transcribed by:
Randy Tsuda
,Daniel Siegel
vicki L.Blandin
5500 Van Fleet Avenue
Richmond CA 94804
(510)526-6049
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is Zoning Code Amendment A-OS-02,which is considering
amending the Town Code regarding formula stores.
This item brings up an interesting issue of
potential conflict of interest.As I have a residence and
Commissioner Quintana has a residence within SOO'of the
area this will be effective on,we have both decided to
play it safe and recuse ourselves even though it would not
affect directly any of the property we own.So will be
recusing myself and I will turn you over the capable hands
and gavel of Chairman Micciche.
CHAIR MICCICHE:Thank you.
RANDY TSUDA:I'll just make few brief
introductory remarks.
CHAIR MICCICHE:Go ahead.
RANDY TSUDA:This item that's before you tonight
is a consideration of amendments to the Town Code regarding
the definition of formula retail stores.As the Commission
is aware,currently the Town Code defines a store that has
more than one location is defined as a formula retail store.
LOS GATOS PLANNING COMMISSION 7/13/2005
Item *4,Zoning Code Amendment A-05-02
1
LOS GATOS PLANNING COMMISSION 7/13/200S
Item *4,Zoning Code Amendment A-OS-02
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The request for reconsideration or study of this
2 item was actually initiated at the request of former Council
CHAIR MICCICHE:There were three members of this
2 Commission who were on the General Plan Committee.
3 member Decker,and based on that request the Council
directed that the General Plan Committee study the issue and
3 COMMISSIONER TALESFORE:
commissioners.
(Inaudible)ask my fellow
5 make a recommendation.5 CHAIR MICCICHE:And as we studied the various
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The General Plan Committee did take a look at
this,received input from the economic vitality manager,
considered this item at several hearings,and included in
the Staff Report is a brief summary of examples of formula
retail stores that are within town and gives the number of
total locations that exist.
Based on that information and based on some
examples provided by the economic vitality manager,the
General Plan Committee is recommending that the definition
of formula retail be changed from one to seven locations,
and that's really the essence of the change.That change
would occur in section 29.10.020,which is the definition
section.So the recommendation is to change the definition
of formula retail.
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stores,and the types of stores,~nd how many they had and
so forth,the number seven appeared to be the most correct
number to use.
COMMISSIONER TALESFORE:Because?
CHAIR MICCICHE:Well Tom was very strong on that.
COMMISSIONER O'DONNELL:I wasn't strong on the
number seven.The number seven has no magic to it.We tossed
around numbers of ,five and seven and six,and I think the
predominant view of the group was that seven would be okay.
There was no magic to it.I mean if somebody had said,"Is
there some immutable reason why you did that?"No.It was a
weighing of what were we trying to address and I think we
were trying to address sort of chains,and it was really a
question of what are chains?So there isn't any magic to
19 CHAIR MICCICHE:Do we have any questions of 19 seven.
20 Staff?Commissioner Talesfore.
21 COMMISSIONER TALESFORE:I have two questions.
22 The first question is can you speak about why
seven?Why from one to seven?Why not five or six?
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COMMISSIONER TALESFORE:So as a follow-up.We're
having a discussion,right?Freely talking?
CHAIR MICCICHE:Yeah,sure.We're going to bring
the public in too.
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RANDY TSUDA:It actually may be more appropriate
to ask your ...
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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COMMISSIONER TALESFORE:That's fine.
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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because we were on the committee.
COMMISSIONER O'DONNELL:But you can also ask us,
2 right now,of the applicant.
CHAIR MICCICHE:You can ask questions of Staff COMMISSIONER TALESFORE:Okay.
CHAIR MICCICHE:I think one of the turning
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3 points,they had research data on the types of stores and
how many they had in the general northern California area.
Like I said,there wasn't magic to it,but the number seven
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seems to home in very accurately.
COMMISSIONER TALESFORE:I hate to ask this.Do
You can ask us,because we wereCHAIRMICCICHE:
COMMISSIONER TALESFORE:You're part of the
part of that.
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application.okay.
So you when you made this decision of you picked
you have an example of what store might have had seven?
CHAIR MICCICHE:We had a whole research data.
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seven because it's less than ten but more than five,
whatever the reason was,did you do any kind of research as
far as what small retail boutique-type stores?
CHAIR MICCICHE:That's what we were given.
COMMISSIONER O'DONNELL:Yeah,we had the economic
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COMMISSIONER TALESFORE:You don't remember one?
COMMISSIONER O'DONNELL:There are some examples
listed.
CHAIR MICCICHE:There are some examples.
COMMISSIONER TALESFORE:I see those and I was
14 advisor,the lady,I can't think of her title,but she first going to ask about that as my second question.
of the ways the General Plan Committee got to the number is
they took a look at these numbers that are in the Staff
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spoke to us about what had been going on in the community
and economic vitality and that kind of thing.So we had that
evidence.
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RANDY TSUDA:If I may just chime in on this.One
18 And then the committee was a fairly good-sized 18 Report--Petrog1yph has four,Harvest Home has four,Benefit
19 committee,having the City Council members,the Planning 19 has five--and the committee was comfortable with those
seven.
could have been five.I don't think it could have gone above
various examples.And as I say,it could have been six,it
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Commission.
COMMISSIONER TALESFORE:
COMMISSIONER O'DONNELL:
Oh,I know that.I know.
And everybody discussed
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stores and with their numbers.
So they knew that five was a number that they had
comfort with,and there seemed to be a breakpoint in the
sizes of chains.Once you got beyond five there seemed to be
a gap until you got up to 15 or 17 as I recall,and so they
chose the number seven.
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,zoning Code Amendment A-05-02
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LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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1 COMMISSIONER TALESFORE:Thank you for the 1 COMMISSIONER O'DONNELL:Yes.We've had a couple
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2 information.I appreciate that.
And then my second question is the three stores
that are written here in the report under B,Discussion,
2 of applicants who have come before us that had one other
location I think it was,and it was almost like why are we
doing this?The sense was we really aren't trying to control
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page two,Trina Turk,Ambiance,and Margaret o'Leary,can I
just ask are those stores that are maybe thinking about
coming to town?
RANDY TSVDA:No,these are merely examples of
other chains.
CHAIR MICCICHE:There was no influence here.
RANDY TSUPA:Yeah.Is there one in particular
you're interested in?
COMMISSIONER TALESFORE:Well no,I didn't know
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somebody that has two or three stores,and the sense was
that one was just an in reasonable number.
So that became well what's a reasonable number?
It's been correctly characterized that we said well five is
certainly a reasonable number,and then well where's the
breakpoint?Well it turned 'out the breakpoint was way up
there,fourteen,sixteen,whatever.And so the idea was well
seven is not even close to that.
CHAIR MICCICHE:There's no science to it.
13 that there were.How about all three of them?Be great.13 COMMISSIONER O'DONNELL:Yeah,I don't have any
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Those are all my questions.I have a comment later.
CHAIR MICCICHE:Okay,I'm going to open up to the
strong feeling about seven versus five,but I do feel that
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1616public.Do we have any cards on this?Anybody like to speak
17 on this subj ect?Seeing none,are there any additional
16 questions you'd like to ask of Staff?
COMMISSIONER KANE:I have a question.It seems
CHAIR MICCICHE:We have readily approved a
17 fourth,like Traditions for instance and so forth,and the
16 thought was each time what are they even doing here?Why are
19 they going through this expensive process?
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COMMISSIONER KANE:Did we deny any of them?20 extreme to go from one to seven.But on the other hand,if
there were actual case problems that one was unmanageable
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COMMISSIONER KANE:
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and seven would be more ideal in looking back on those
cases,is there such a history?Has one failed us?Has the
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CHAIR MICCICHE:
That's what I mean by failure.
What we believe was happening in
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existing language failed us?
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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town was that because stores found out there was a process
to it that meant coming befo~e this terrible planning
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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Commission here,that a lot of them back off and didn't even COMMISSIONER O'DONNELL:They didn't have it
Yeah.That was the history behind
COMMISSIONER O'DONNELL:It was (inaudible)
CHAIR MICCICHE:
it.
initially as let's start with that.
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CHAIR MICCICHE:Yeah,it was arbitrary.
point of this thing is we don't want the town to be turned
into a mall.
in making people just go through a process to go through a
process.The idea is what is the point of this thing?The
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COMMISSIONER O'DONNELL:Well and we don't believe
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CHAIR MICCICHE:Right.
and all the same stores,but if some guy's got three or
four,or a woman's got three or four stores in the Bay Area,
that's really not what most of us thought this was designed
to attack or to deal with.
NO,it's a concern that if
CHAIR MICCICHE:Okay.
COMMISSIONER KANE:No.
COMMISSIONER KANE:
COMMISSIONER O'DONNELL:But if your concern is
is there some other concern?
people had to go through a filtering process to preserve the
town as was intended by the provision,then that's why they
five versus seven,four versus seven,I understand that.So
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Well you just said three orCOMMISSIONERKANE:
COMMISSIONER O'DONNELL:So if you go into Texas
and you see all the same stores,and you go into Connecticut
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15 four.I was just wondering about the extreme swing from one 15 came before us.The only reason they came before us was to
16 to seven.If one was a failure,how did they decide seven 16 discourage the kind of retail that we didn't want and so
17 made sense?17 they put in stringent language.If you say well gee,Mom and
18 CHAIR MICCICHE:Let me say it again.It wasn't an 18 Pop shouldn't come before us,you take the language out,
what are they even doing here?Why do they have to be here?
extreme.We readily passed three,four,and five when they
came before the Planning Commission.Again,the thought is
CHAIR MICCICHE:So one was the number that was
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that.
COMMISSIONER KANE:I heard that.I understan9
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then you may end up with what you didn't want that the
drafters of the original language had foreseen.
That's my concern.There's nothing wrong with
coming before us.
CHAIR MICCICHE:I don't believe that was the
case,Mike.
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Item #4,Zoning Code Amendment A-OS-02
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LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-OS-02
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COMMISSIONER KANE:When you say why are they
2 before us,I know why they're before us.The language was
3 written to preserve the town.Is seven going to be
detrimental?I wasn't there on GPC,I defer to that.I'm
The other thing I wanted to mention,I don't know
2 if this can be somehow put into this or maybe it's in there
3 somehow,but our experience in this category with these
smaller quality kinds of stores is that which is the benefit
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sure it was covered and I'm sure McDonald's has more than
seven stores.I'd mention it,but I woulfrwithdraw the
concern of a trial period to see if seven was excessive in
case Burger Chef cuts itself down to six stores.
I wanted to express my concern,but I'm okay with
seven.
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of course is limited amount of space which we will
appreciate,but also which gets·into.our downtown area.But
the experience has been that they have been willing to
modify design standards,they have actually (inaudible,some
of them have been willing to modify their standard design
standards to fit into our town,such as Talbots,such as
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CHAIR MICCICHE:Okay,good.All right,seeing no
10 Smith &-Hawkin,such as Traditions.But all three of those
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other I'm going to close the public hearing and ask for a
motion of recommendation from someone.Any comment on a
motion?Yeah,go ahead.
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stores have I think been examples of smaller chains being
able to modify that national brand look to adapt to our
design standards,and I'd like to encourage that.I don't
14 COMMISSIONER TALESFORE:I was glad to see this 14 know if you can write that in there.
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COMMISSIONER TALESFORE:Is it?
change becaUse the way that our retail is going today,it's
16 a good thing if you're successful and you have one or more
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CHAIR MICCICHE:It's taken care of another way.
17 stores,but still only having somewhere between one and 17 CHAIR MICCICHE:Sure.The DRC still has to
18 seven rea11yq1,1alifies you as unique,and then for us to 18 (inaudible).
19 have the opportunity to have those stores (inaudible)out of 19 COMMISSIONER TALESFORE:So anyway,I'm very happy
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town ...
CHAIR MICCICHE:Easily,easily.Yeah.
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with changing this.
CHAIR MICCICHE:Okay,then I will call the
22 COMMISSIONER TALESFORE:...is to me.a real draw,22
motion.All in favor?Against?Four-zero .
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and as soon as I saw those stores there I was getting
excited.
LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-0Z
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LOS GATOS PLANNING COMMISSION 7/13/2005
Item #4,Zoning Code Amendment A-05-02
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REPORT TO:
FROM:
LOCATION:
FINDlNGS:
ACTION:
ENVIRONMENTAL
ASSESSMENT:
EXHIBITS:
RECOMMENDATION
SUMMARY:
A.BACKGROUND:
Date:---:J:..::;u'""-ly<-:S::;..:,'--=2=O:..::;O.;:;;..S--
For Agenda Of:---"J~u=.;IY,----=-=13::..>.,-=2~0:..:::.0~S_
Agenda Item:~4"--_
The Planning Commission
Director of Community Development
Zoning Code Amendment A-05-02
Consider amending the Town Code regarding formula retail stores.Ithas
been determined that this project could not have a significant impact on
the environment,therefore,the project is not suqiect to the California
Environmental Quality Act (Section 15061 (b)(3».
APPLICANT:Town of Los Gatos
The Planning Commission must make a finding that the amendment is
consistent with the General Plan if the recommendation is for adoption.
Recommendation to the Town Council.
It has been determined that this project could not possibly have a
significant impact on the environment,therefore,the project is not subject
to the California Environmental Quality Act (Section lS061 (b)(3)).
A.Findings
B.Draft Ordinance,Section 29.10.020
Recommend amendment of Town Code Section 29.10.020 to the Town
Council for adoption.
On November 4,2002,the Town Council approved a Zoning Code amendment requiring a
Conditional Use Permit (CUP)for all formula retail businesses in the Central Business District (C-2
zone)and for businesses in excess of 6,000 square feet in other commercial zones within the Town.
The following definition was included as part of the Zoning Code amendment:
Formula retail business means a retail business which,along with one (1)or more other business
locations,is required by contractual or other arrangement to maintain any of the following:
standardized merchandise,services,decor,uniforms,architecture,colors,signs or other similar
features.
The Town Council requested that the General Plan Committee (GPC)determine if a modification
should be made to the definition of formula retail business.Specifically,the Committee was asked
to review whether the definition of formula retail business should be changed to allow businesses
that have a limited number of stores.
Attachment 3
The Planning Comlllission -Page 2
Zoning Code Amendment A -05-2
July 13,2005
B.DISCUSSION:
Staff has worked with the GPC to consider possible modifications to the definition of formula retail
businesses.Two potential options were discussed.The first option would modify the definition of
formula retail businesses and make a distinction between regional and national retailers.It was
deterlllined that this option raised legal concerns.The second option would modify the definition
of formula retail businesses by raising the number of stores for which the requirement for a CUP is
triggered.
The GPC received input from the Etonolllic Vitality Manager Danielle Surdin regarding her
interactions with property owners and brokers.Staff relayed input that has been provided by
property owners and brokers regarding the current formula retail business definition.Even though
no applications for formula retail businesses have been denied,some property owners and brokers
expressed that they generally will avoid businesses that trigger the requirement for a CUP.When
multiple businesses are vying for a single space,the broker and/or property owner will generally
chose a tenant that does not require a CUP because of the processing time and uncertainty involved
to obtain a CUP.Many businesses which have both a successful business model and have ':l.Il
appropriate look and feel for the Town are passed over for other businesses whichwill not trigger
the requirement for a CUP.
As part of their review,the GPC reviewed various examples of formula retail businesses within the
Town that had between two and eleven existing locations:
•Twig -2
•Domus-2
•Peabody Art Gallery -3
•Sports Gallery - 3
•Traditions -4
•Harvest Home -4
•Petroglyph - 4
•Benefit - 5
•Black Sea Gallery -11).
Additionally,the GPC reviewed other examples offormula retail businesses with up to six existing
locations that are not currently located within the Town,but appear to be good fit for the Town:
•Trina Turk - 2
•Ambiance - 3
•Margaret O'Leary -6.
The Planning Commission -Page 3
Zoning Code Amendment A-05-2
July 13,2005
The GPC discussed this issue at length and determined that modifying the definition of formula retail
from one to seven stores was appropriate.They determined that there are many small boutique stores
that have multiple locations,would be a good fit for the Town,and should not be subject to the CUP
requirement.
The GPC commented that the objectives of the proposed amendment are to allow small boutique
type stores without a CUP,encourage businesses that have an appropriate look and feel for the
Town,and to allow small formula retail business owners to obtain approval without having to go
through the CUP process.
The GPC recommends that the following Town Code amendment should be forwarded to the Town
Council:
Section 29.10.020.Definitions.
Formula retail business means a retail business which,along with one (1)seven (7)or more
other business locations,is required by contractual or other arrangement to maintain any of the
following:standardized merchandise,services,decor,uniforms,architecture,colors,signs or
other similar features.
C.GENERAL PLAN
The proposed Zoning Code amendment is consistent with the following General Plan designation,
goal,and policy:
•Land Use Designation CBD (2.4.2)-Encourages 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.
•L.G.6.2 -To preserve downtown Los Gatos as the historic center of the Town with goods
and services for local residents while maintaining the existing Town identity,environment
and commercial viability.
•L.P.6.2 -Encourage the development and retention of small businesses and locally-owned
stores and shops that are consistent with small town character and scale.
D.RECOMMENDATION:
Consider the proposed ordinance amendment and forward a recommendation to the Town Council.
If the Planning Commission determines that the Town Council should approve the proposed
ordinance amendment,the Commission should recommend the following:
The Planning Commission -Page 4
Zoning Code Amendment A-05-2
July 13,2005
a.That Council determine this project could not possibly have a significant impact on the
environment,therefore,the project is not subject to the CalifomiaEnvironmental Quality
Act (Section 15061 (b)(3));
b.That the Town Council find that the Ordinance amendment is consistent with the General
Plan (Exhibit A);and
c.That the Council adopt the Draft Ordinance (Exhibit B)amending the Town Code.
Bud N.Lortz,Director of Communit Development
Prepared by:Joel Paulson,Associate Planner
BNL:JP:mdc
cc:Danielle Surdin,Economic Vitality Manager
Los Gatos Chamber of Commerce,Attn:Ronee Nassi,349 N.Santa Cruz Avenue,Los
Gatos,CA 95030
Greg Stowers,Stowers Associates Architects Inc.,15495 Los Gatos Blvd,Los Gatos,CA
95032
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REQUIRED FINDINGS FOR:
Zoning Code Amendment A-05-2
Consider amending the Town Code regarding formula retail stores.It has been
determined that this project could not have a significant impact on the environment,
therefore,the project is not subject to the California Environmental Quality Act (Section
15061 (b)(3)).
APPLICANT:Town of Los Gatos
FINDINGS
Required consistency with the Town's General Plan:
•That the proposed Zoning Code Amendment is consistent with the General Plan and its
Elements.
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Exhibit A
ORDINANCE
AN ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING THE ZONING ORDINANCE OF THE TOWN CODE REGARDING
SECTION 29.10.020.
THE TOWN COUNCJL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
Town Code Chapter 29 is amended to read as follows:
Section 29.10.020.Definitions.
Formula retail business means a retail business which,along with one (1)
more other business locations,is required by contractual or other arrangement to maintain any of
..the following:standardized merchandise,services,decor,uniforms,architecture,colors,signs or
other similar features.
1
Exhibit B
SECTION II
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on ,2005,and adopted by the following vbte as an ordinance of the Town of Los Gatos
at a meeting of the Town Council of the Town of Los Gatos on effect 30 days after it is adopted.
COUNCIL :METvIBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
;
LOS!GATOS,CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR
TOWN OF LOS GATOS
LOS GATOS,CALIFORNIA
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