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2011091910 - Conditional Use Permit for 91, 101, and 109 W. Main StreetDATE: TO: FROM: SUBJECT: MEETING DATE: 09/19/2011 ITEM NO: COUNCIL AGENDA REPORT SEPTEMBER 1, 2011 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER 10 CONDITIONAL USE PERMIT APPLICATION U-11-006. PROJECT LOCATION: 91, 101, and 109 W. MAIN STREET. PROPERTY OWNER: SUE FARWELL. APPLICANT: LISA RHORER. REQUESTING APPROVAL TO OPERATE A RESTAURANT (PIZZA SIMPATICO) WITH INDOOR AND OUTDOOR SEATING, BEER AND WINE SERVICE, AND MODIFIED HOURS OF OPERATION IN A SPACE CURRENTLY OCCUPIED BY AN EXISTING DELICATESSEN, WINE BAR, AND SPECIALTY RETAIL USE (LOS GATOS GOURMET) ON PROPERTY ZONED C-2:LHP. APN 529-01-025. RECOMMENDATION: If the Town Council finds merit with the revised application, it should: 1. Make the required findings (Attachment 1) and approve Conditional Use Permit U-11-006 (motion required); and 2. Adopt a resolution approving a request to operate a retail marketplace, wine establishment, and cafe (Simpatico) with indoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP (Attachment 14) (motion required). ALTERNATIVES: Instead of the aforementioned actions, the Council may: • Approve the application subject to modified or additional conditions of approval (Attachment 14) (motion required); or PREPARED BY: Wendie R. Rooney, Director of Community Development 4., Reviewed by: Assistant Town Manage k Ql > Town Attorney Finance N:\DEV\TC REPORTS\2011\WMainl 09 2.docx Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 • Continue the project to a date certain with specific direction (motion required); or • Remand the project to the Planning Commission with specific direction (Attachment 3) (motion required); or • Deny the application (Attachment 4) (motion required). BACKGROUND: The project was first reviewed by Town Council on August 15, 2011. The Council continued the item to September 19, 2011, to allow staff and the applicant time to address the following concerns and direction raised at the August 15 meeting: 1. Meal service versus food service 2. Define community benefit 3. Remove the outdoor seating 4. Quantify the amount of proposed retail and defining the retail component as the primary focus; consider defining the project as a specialty food market with wine tasting and cafe 5. How to maintain the retail use given the mobility of the restaurant equipment DISCUSSION: The applicant submitted a revised letter of justification/proposed project description (Attachment 17), revised floor plan (Attachment 18), and interior renderings (Attachment 19). Below are the topics of concern/direction (bolded), the applicant's responses, and staff comments (in italics): 1. Meal service versus food service. The applicant proposes that food will always be available for the counter and table seating during all hours of operation (Attachment 17). The applicant describes the menu as small and to include soups, sandwiches, salads, Italian small plates, pizza, and dessert (Attachment 17). The existing Alcoholic Beverage Policy (ABP) requires meal service with alcoholic beverage service. The Town has more recently approved wine establishments that do not require meal service with alcoholic beverage service because the use is not a restaurant as defined in existing Town Code. The Town is currently considering modifications to the ABP, including a wine establishment definition and that food service must be available as opposed to requiring meal service for some types of alcoholic beverage serving uses. The applicant's proposal falls into a new use category and would be consistent with the proposed modifications to the ABP. Staff has included the food service requirement in the revised conditions. 2. Define community benefit. The applicant is offering up to $2,500 to be used towards the purchase a park bench or replacing the Town banners as the proposed community benefit (Attachment 17). The applicant is open to alternative uses of the community benefit offer (Attachment 17). Staff is concerned about the phrase "up to" and revised the recommended community benefit condition to require the full $2,500. The Town needs an estimated $12,000 to $14,000 to replace the downtown banners. The applicant's proposed contribution would be 18 to 21% of the funds needed to replace the PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 banners. The Town could track the contributions or the contributions could be placed into the Town Beautification CIP project. However, the proposed monetary community benefit, whether used for a park bench or a portion of banners, relative to the project's traffic impacts (18 ADT and 13 PM peak trips) is less than what Council has accepted in the past. 3. Remove the outdoor seating. The applicant removed the outdoor seating (Attachment 17 and 18). Staff removed the language regarding outdoor seating from the conditions of approval (see revised conditions below and in Attachment 16). 4. Quantify the amount of proposed retail and defining the retail component as the primary focus. The applicant proposes to dedicate 40% of the lease space square footage to retail, not including the vertical display cases adjacent to the seating areas (Attachment 17). The applicant's proposed dedication would result in 520 square feet of retail space. The revised floor plan (Attachment 18) shows approximately 40% of retail space in blue; vertical wine display is shown in green. Council should consider whether the revised 40% of retail space would create a use that is consistent with Ordinance 2021. Staff has revised the conditions to require a minimum of 520 square feet of retail space (see revised conditions below and in Attachment 16). The applicant has reduced the total number of seats from 44 to 35, through the elimination of six outdoor seats and three counter seats. Specifically, the applicant notes that two seats at the front counter were removed to emphasize the focus of the retail component. The applicant has also removed the term pizza from the business name to support the proposed business concept of a retail marketplace, wine establishment, and cafe. In addition, the applicant's revised letter (Attachment 17) redefines the proposal, Simpatico, as a retail marketplace, wine establishment, and cafe. Staff has modified the proposed resolution (Attachment 14; Attachment 15 contains the stricken and underlined revisions) and the proposed conditions of approval (Attachment 16) to reflect the clarification to the proposed use. The applicant has modified the proposal to deemphasize the restaurant component and emphasize the retail component. However, staff still believes the proposal would result in changing a retail use with an ancillary deli use to a restaurant use with ancillary retail. 5. How to maintain the retail use given the mobility of the restaurant equipment. The revised floor plan (Attachment 18) includes the pizza oven and stove top that are shown in the previous floor plan (Exhibit 13 of Attachment 13). The applicant's letter (Attachment 17) does not address the mobility of the restaurant equipment. Should the Council find merit to approve the project with the condition that any change to the business requires the additional restaurant equipment to be removed, staff has included an additional kitchen/cooking condition in the revised conditions section below for Council's consideration. This would also require an operational agreement signed by both the building operator and the property owner, as was recently done for the Gardino's restaurant expansion. Other alternatives for Council's consideration would be to further reduce the seating or to increase the square footage for retail to emphasize retail over restaurant. PAGE4 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 In addition, concerns have been raised regarding the open doorway between the existing establishment to remain and the adjacent proposed use with alcohol services. The existing business at 91 and 101 W. Main Street (Los Gatos Roasting) will not be covered by any alcohol beverage serving license or use permit. Alternatives for consideration include: A. Requiring a locked door or gate whenever 1. Either business is closed; 2. Alcohol is being served; or 3. Alcohol is being served without required meal service. B. Permanently sealing the doorway between the two businesses and requiring either 1. Conversion of the proposed split CUP to standalone separate CUPs by Council action; or 2. Submission, review and action on a new separate CUP for the proposed application, with or without payment of new or increased application fees. REVISED CONDITIONS: Staff revised the proposed conditions of approval to reflect the modified proposal and Council direction. Revised conditions are shown below (deletions are stricken; additions are underlined), included as Exhibit A in Attachment 14, and included in Attachment 16. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as received by the Town on June lAugust 30, 2011. Any changes or modifications to the approved plans shall be approved by the Community Development Director, the Development Review Committee, the Planning Commission, or Town Council, depending on the scope of the changes. USE: This approval is for a i �____ . __ it a wn e ' '`'" uue retail marketplace, wine establishment, and cafe in the space known as 109 W. Main Street. The use cannot expand into or operate in combination with 91-101 W. Main Street. Any new use or new owner must operate the business strictly consistent with the limitations specified in the approved conditions. Any increase in square footage or intensity of the non -retail uses will require a new or modified Conditional Use Permit. A change in ownership may require a new operational agreement. REQUIRED RETAIL SPACE: The use must maintain a minimum of 520 square feet of space dedicated to the retail component. The retail space shall be shown with dimensions on building permit plans prior to the issuance of permits or commencement of operation. OPERATIONAL AGREEMENT: Prior to the initiation of any operational changes permitted under this approval, the applicant shall enter into an operational agreement with the Town guaranteeing the performance of the business per the representations of the application and the applicant at the public hearings as well as the observance of the conditions of approval. Said agreement shall be subject to approval of the Chief of Police, the Director of Community PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 Development, and the Town Attorney, and will be signed by the applicant. Operators who are successors in interest to the business and CUP shall be required to meet with the Director and Chief and agree to all the terms of the Operational Agreement by executing a copy of the Agreement. The Operational Agreement shall be reviewed by the Director of Community Development Department and the Town Attorney, biannually for the first five years and annually thereafter, to ensure compliance with the Conditional Use Permit and operating covenants, including the required retail component. OPERATION HOURS: Maximum hours of operation shall be Sunday through Thursday,1-1:00 10:00 a.m. to 10:00 9:00 p.m.; and Friday and Saturday, :0910:00 a.m. to 11:00 p.m. NUMBER OF SEATS: The maximum number of seats, including up to 11 stools or counter seats, is 3511, inelunive oche i«door are outdoor s ating Outdoor seating is not allowed. ALCOHOLIC BEVERAGE SERVICE: Beer and wine service is permitted only with food service. Food is defined as a combination of items selected from a menu (breakfast, brunch, lunch, or dinner) and may include "small plates." "Small plates" may be charcuterie, tapas, bocas, dim sum, antipasti or mezze. Appetizers such as popcorn, nachos, pretzels, and potato skins, relish trays, etc. (hot or cold) ado not constitute food for the purpose of food service with alcoholic beverage service. No alcohol shall be displayed at, on, or behind the chef's table. Any expansion of alcohol service will require a new and separate Conditional Use Permit. 4e leave the outdoor patio Please note that specific findings for community benefit must be made (Attachment 1) and that the community benefit condition must be modified based on the community benefit accepted by Council. The following community benefit condition does not necessarily reflect the final community benefit accepted by the Town Council: COMMUNITY BENEFIT: The applicant has offered the following community benefit to offset traffic impacts created by the proposed project: upgrade the crosswalk on Main Street between 110 and 115 W. Main Street with crosswalk lights/flashing beacons. The crosswalk upgrades shay $2,500 to be used towards the purchase of Town banners, or other use deemed appropriate by the Town. The community benefit shall be submitted to the Town prior to final occupancy. The following conditions are included in the agenda report for Council's consideration but are not included in attachments: KITCHEN/COOKING EQUIPMENT: The additional kitchen/cooking equipment (i.e. pizza oven, six burner stove, saucer) shall be removed if the business approved by this permit changes ownership, occupancy, or ceases operation, and the commercial space known as 109 W. Main PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 Street shall covert back to a primarily retail use. OPERATIONAL AGREEMENT: Prior to the initiation of any operational changes permitted under this approval, the applicant and property owner shall enter into an operational agreement with the Town guaranteeing the performance of the business per the representations of the application and the applicant at the public hearings as well as the observance of the conditions of approval. Said agreement shall be subject to approval of the Chief of Police, the Director of Community Development, and the Town Attorney, and will be signed by the applicant and property owner. Operators who are successors in interest to the business and CUP shall be required to meet with the Director and Chief and agree to all the terms of the Operational Agreement by executing a copy of the Agreement. The Operational Agreement shall be reviewed by the Director of Community Development Department and the Town Attorney, biannually for the first five years and annually thereafter, to ensure compliance with the Conditional Use Permit and operating covenants, including the required retail component and provision to remove the additional kitchen/cooking equipment upon any change of business ownership or operation. PUBLIC COMMENTS: The Town received public comments contained in Attachments 7, 11, and 20. CONCLUSION: The applicant has submitted a letter of justification and revised plans in an effort to address the concerns raised by Council as discussed earlier in the report. The project would allow a restaurant with ancillary retail to occupy a space currently occupied by a specialty retail store with an ancillary restaurant use. The project would also allow the proposed restaurant to operate with indoor seating, wine and beer service, and expanded hours of operation. Staff believes the project conflicts with the Town's policy regarding additional restaurant use in the downtown because the project would displace a primarily retail use with a primarily restaurant use. ENVIRONMENTAL ASSESSMENT: The project is Categorically Exempt according to Section 15061 of the State Environmental Guidelines as adopted by the Town because the project consists of permitting an activity where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. FISCAL IMPACT: None. PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: 91, 101, and 109 W. Main Street/U-11-006 September 1, 2011 Attachments: Received with Council Agenda Report dated August 1, 2011 1. Required Findings 2. Resolution approving the Conditional Use Permit modification (with Exhibits A and B) 3. Resolution remanding the Conditional Use Permit modification to the Planning Commission 4. Resolution denying the Conditional Use Permit modification 5. Recommended Conditions of Approval for 109 W. Main Street 6. Recommended Conditions of Approval for 91 and 101 W. Main Street 7. Additional Public Comments (16 pages) 8. Interior Elevations (two pages) 9. Proposed Community benefit (two pages) 10. Excerpt of the Planning Commission verbatim meeting minutes ofJuly 13, 2011 11. Second Desk Item to the Planning Commission for the meeting ofJuly 13, 2011 12. Desk Item to the Planning Commission for the meeting of July 13, 2011 13. Report to the Planning Commission for the meeting of June 13, 2011 Received with this Council Agenda Report 14. Resolution approving the Conditional Use Permit modification (with Exhibits A and B) 15. Resolution approving the Conditional Use Permit modification with deletions stricken and additions underlined 16. Revised Recommended Conditions of Approval for 109 W. Main Street 17. Revised Letter of Justification/Proposed Project Description (three pages), received September 6, 2011 18. Revised Floor Plan (one page), received September 6, 2011 19. Interior Renderings (two pages), received September 12, 2011 20. Public Comment (two pages), received September 15, 2011 Distribution: cc: Lisa Rhorer, 917 Apricot Avenue, Unit A, Campbell, CA 95008 Sue Farwell, 113 Edelen Avenue, Los Gatos, CA 95030 WRR:JLS:ah RESOLUTION 2011- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS TO EXECUTE A RESOLUTION GRANTING APPROVAL OF A REQUEST TO OPERATE A RETAIL MARKETPLACE, WINE ESTABLISHMENT, AND CAFE (SIMPATICO) WITH INDOOR SEATING, BEER AND WINE SERVICE, AND MODIFIED HOURS OF OPERATION IN A SPACE CURRENTLY OCCUPIED BY AN EXISTING DELICATESSEN, WINE BAR, AND SPECIALTY RETAIL USE (LOS GATOS GOURMET) ON PROPERTY ZONED C-2•LHP APN: 529-01-025 CONDITIONAL USE PERMIT APPLICATION: U-11-006 PROPERTY LOCATION: 109 W. MAIN STREET PROPERTY OWNER. SUE FARWELL APPLICANT: LISA RHORER WHEREAS, this matter came before the Town Council for public hearing on August 15, 2011, and September 19, 2011, and was regularly noticed in conformance with State and Town law. WHEREAS, The applicant seeks approval for a Conditional Use Permit (CUP) modification to operate a retail marketplace, wine establishment, and cafe (Simpatico) with indoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP. The applicant is requesting 35 seats and hours of operation of Sunday through Thursday, 10:00 a.m. to 9:00 p.m.; and Friday and Saturday, 10:00 a.m. to 11:00 p.m. WHEREAS, On July 13, 2011, the Planning Commission considered the request for a Conditional Use Permit (CUP) to operate a restaurant (Pizza Simpatico) with indoor and outdoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP. The Planning Commission recommended approval of the request with modified and additional conditions of approval, finding that the proposal was desirable to the public; it will not impair the integrity of the zone; will not be detrimental to public health, safety, or welfare; and is in harmony with the elements and objectives of the General Plan. Attachment 14 WHEREAS, The Town's Alcohol Beverage Policy requires any new application for the service of alcoholic beverages to be approved by Council. Town Council reviews CUP requests for an application for alcohol service on a case -by -case basis to ensure that the request is appropriate for the specific use and its location. WHEREAS, The Town's Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic beverage service on a case -by -case basis when the proposal will not negatively impact residential neighbors, alcohol related incidents will not occur, and when the application will provide a positive impact to the commercial area. WHEREAS, Town Council received testimony and documentary evidence from the applicant and all interested persons who wished to testify or submit documents. Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Reports dated August 1, 2011, and September 1, 2011, along with any and all subsequent reports and materials prepared concerning this application. WHEREAS, Council finds as follows: A. Pursuant to Town Code section 29.20.190, the request for a CUP is desirable to the public convenience; will not impair the integrity and character of the zone; would not be detrimental to public health, safety or general welfare; and is in harmony with the various elements or objectives of the General Plan and the purposes of the Town Code. This fmding is based on the evidence presented in the Council Agenda Reports dated August 1, 2011, and September 1, 2011, and incorporates the findings made by the Planning Commission on July 13, 2011, regarding this application. B. The project is categorically exempt from environmental review pursuant to Section 15061 of the State Environmental Guidelines as adopted by the Town. C. The proposed use is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (section IV.B), as evidenced by the findings made by the Planning Commission on July 13, 2011. NOW, THEREFORE, BE IT RESOLVED: 1. The CUP application U-11-006 to operate a retail marketplace, wine establishment, and cafe (Simpatico) with indoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP is granted. 2. The Conditions of Approval attached hereto as Exhibits A and B are hereby adopted as the Conditions of Approval for modification of this permit. 3. The decision constitutes a fmal administrative decision pursuant to Code of Civil Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los Gatos. Any application for judicial relief from this decision must be sought within the time limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such shorter time as required by state and federal Law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 19th day of September, 2011, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA This Page Intentionally Left Blank CONDITIONS OF APPROVAL — September 19, 2011 For 109 W. Main Street 109 W. Main Street Conditional Use Permit U-11-006 Requesting approval to operate a retail marketplace, wine establishment, and cafe (Simpatico) with indoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP. APN 529-01-025. PROPERTY OWNER: Sue Fafwell APPLICANT: Lisa Rhorer TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as received by the Town on August 30, 2011. Any changes or modifications to the approved plans shall be approved by the Community Development Director, the Development Review Committee, the Planning Commission, or Town Council, depending on the scope of the changes. 2. EXPIRATION: The approval will expire two years from the approval date pursuant to Section 29.20.320 of the Town Code, unless the approval has been vested. 3. LAPSE FOR DISCONTINUANCE. If the activity for which the Conditional Use Permit has been granted is discontinued for a period of one (1) year, the approval lapses pursuant to Section 29.20.340 of the Zoning Ordinance. 4. USE: This approval is for a retail marketplace, wine establishment, and cafe in the space known as 109 W. Main Street. The use cannot expand into or operate in combination with 91-101 W. Main Street. Any new use or new owner must operate the business strictly consistent with the limitations specified in the approved conditions. Any increase in square footage or intensity of the non -retail uses will require a new or modified Conditional Use Permit. A change in ownership may require a new operational agreement. 5. REQUIRED RETAIL SPACE: The use must maintain a minimum of 520 square feet of space dedicated to the retail component. The retail space shall be shown with dimensions on building permit plans prior to the issuance of permits or commencement of operation. 6. OPERATIONAL AGREEMENT: Prior to the initiation of any operational changes permitted under this approval, the applicant shall enter into an operational agreement with the Town guaranteeing the performance of the business per the representations of the application and the applicant at the public hearings as well as the observance of the conditions of approval. Said agreement shall be subject to approval of the Chief of Police, the Director of Community Development, and the Town Attorney, and will be signed by the applicant. Operators who are successors in interest to the business and CUP shall be required to meet with the Director and Chief and agree to all the terms of the Operational Agreement by executing a copy of the Agreement. The Operational Agreement shall be reviewed by the Director of Community Development Department and the Town Attorney, biannually for the first five years and annually thereafter, to ensure compliance with the Conditional Use Permit and operating covenants, including the required retail component. 7. OPERATION HOURS: Maximum hours of operation shall be Sunday through Thursday, -Exhibit A Of Attachment 14 10:00 a.m. to 9:00 p.m.; and Friday and Saturday, 10:00 a.m. to 11:00 p.m. 8. NUMBER OF SEATS: The maximum number of seats, including up to 11 stools or counter seats, is 35. Outdoor seating is not allowed. 9. ALCOHOLIC BEVERAGE SERVICE: Beer and wine service is permitted only with food service. Food is defined as a combination of food items selected from a menu (breakfast, brunch, lunch, or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. (hot or cold) are not food. No alcohol shall be displayed at, on, or behind the chefs table. Any expansion of alcohol service will require a new and separate Conditional Use Permit. 10. WINE TASTING: Wine tasting is permitted. The maximum sample size for the wine tasting shall not .exceed one (1) ounce. Wine tasting sample sizes larger than one (1) ounce shall be permitted only with meal service. 11. EN 1'ERTAINMENT: Live entertainment and amplified music is prohibited. 12. DELIVERIES: Deliveries shall be limited to the hours of 9:00 a.m. to 7:00 p.m. 13. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts. 14. SIGN PERMIT: A Sign Permit from the Los Gatos Community Development Department must be obtained prior to any changes to existing signs or installation of new signs. 15. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy from the Los Gatos Community Development Department must be obtained prior to commencement of use. 16. BUSINESS LICENSE: A business license from the Town of Los Gatos Finance Department must be obtained prior to the commencement of any new or change of use. 17. EXTERIOR MODIFICATIONS: Prior to the issuance of building permits for exterior modifications, the applicant shall apply for and obtain an Architecture & Site permit. 18. COMMUNITY BENEFIT: The applicant has offered the following community benefit to offset traffic impacts created by the proposed project: $2,500 to be used towards the purchase of Town banners, or other use deemed appropriate by the Town. The community benefit shall be submitted to the Town prior to final occupancy. 19. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend; - indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval, and may be secured to the satisfaction of the Town Attorney. TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: Engineering Division 20. GENERAL. All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications. All work shall conform to the applicable Town ordinances. The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day. Dirt and debris shall not be washed into storm drainage facilities. The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued. The developer's representative in charge shall be at the job site during all working hours. Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 21. PLAN CHECK FEES. Plan check fees shall be deposited with the Town prior to plan review at the Engineering Division of the Parks and Public Works Department. 22. TRAFFIC IMPACT MITIGATION FEE (COMMERCIAL). The developer shall pay a fee proportional to the project's share of transportation improvement needed to serve cumulative development within the Town of Los Gatos. The fee amount will be based upon the Town Council resolution in effect at the time the building permit application is made. The fee shall be paid before the building permit is issued. The traffic impact mitigation fee for this project, using the current fee schedule and the preliminary plans is $1,080. The final fee shall be calculated from the final plans using the rate schedule in effect at the time of the building permit application, using a trip generation rate based on the application for 44 seats. 23. TRAFFIC IMPACT COMMUNITY BENEFIT. The developer is required to provide Community Benefit based on the Town Traffic Impact Policy. TO THE SATISFACTION OF THE CHIEF OF POLICE: 24. UNIFORMED SECURITY: Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 25. CONSULTATION AND TRAINING: At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department for on -going employee training on alcoholic beverage service to the general public. 26. TRAINING MANUAL: The restaurant operator shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association. 27. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated drivers. 28. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted in a visible location. N:\DEV \CONDITNS\2011 \Main 109.docx This Page Intentionally Left Blank CONDITIONS OF APPROVAL — September 19, 2011 For 91 and 101 W. Main Street 91 and 101 W. Main Street Conditional Use Permit U-11-006 Requesting approval to operate a coffee shop, espresso bar, and retail shop (Los Gatos Roasting Company) on property zoned C-2:LHP. APN 529-01-025. PROPERTY OWNER: Sue Farwell APPLICANT: Teri Hope TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below. Any changes or modifications to the approved plans shall be approved by the Community Development Director, the Development Review Committee, the Planning Commission, or Town Council, depending on the scope of the changes. 2. USE: The approved use is a coffee shop, espresso bar, and retail shop. 3. LAPSE FOR DISCONTINUANCE: If the activity for which the Conditional Use Permit has been granted is discontinued for a period of one (1) year the approval lapses pursuant to Section 29.20.340 of the Zoning Ordinance. 4. NUMBER OF SEATS: The maximum number of seats shall not exceed 52 indoor seats and 6 seats on the outdoor benches in front of 91 and 101 W. Main Street. No additional seats will be allowed outside of the coffee shop, espresso bar, and retail shop. 5. HOURS OF OPERATION: Maximum hours of operation for the restaurant shall be 6:00 a.m. to 10:00 p.m., seven days a week. 6. ALCOHOL SERVICE: Neither alcohol service or consumption is permitted at any time. 7. SECURABLE BARRIER: The applicant must maintain a securable barrier between 101 and 109 W. Main Street. The barrier must be secured during all special events noted as allowed below (see SPECIAL EVENTS condition). 8. LIVE ENTERTAINMENT: No live entertainment shall be provided except as permitted during special events in the condition below. 9. SPECIAL EVENTS: Condition Special Event Event Type 10a. Events for individuals under 21 A maximum of 12 events per year. Amplified music and open microphone. Adult supervision provided for each under 2levent. Amplified music shall not go past 9:30 PM, Sunday through Thursday. Amplified music shall not go past 10 PM Friday and Saturdays. Under 21 events shall not go past 11PM. Exhibit B of Attachment 14 Condition # Special Event Event Type 10b. Poetry/Music Weekend Evening Events A maximum of 10 events per year. One event per month scheduled on a weekend evening. Poetry and amplified music. Music shall end at 9:30 PM. 1 Oc. Community Meetings Weekly community meetings (including the Los Gatos Art Association Board, co- op nude figure drawing group, and wine appreciation lecture group) held within non -business hours. Music and food service not permitted. Events will not go past 10 PM. 10d. Los Gatos Roasting Company Annual Events Two Los Gatos Roasting Company events per year, by invitation only. Amplified music permitted. Music shall end at 9:30 PM. 10. WINDOW CURTAINS: Opaque window curtains must be placed in all storefront windows during nude figure drawing classes. N:\DEV \CONDITNS\2011 \Main91-101. docx RESOLUTION 2011- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS TO EXECUTE A RESOLUTION GRANTING APPROVAL OF A REQUEST TO OPERATE A -RETAIL MARKETPLACE, WINE ESTABLISHMENT, AND CAFE RESTAURANT (PIZZA SIMPATICO) WITH INDOOR AND OUTDOOR SEATING, BEER AND WINE SERVICE, AND MODIFIED HOURS OF OPERATION IN A SPACE CURRENTLY OCCUPIED BY AN EXISTING DELICATESSEN, WINE BAR, AND SPECIALTY RETAIL USE (LOS GATOS GOURMET) ON PROPERTY ZONED C- 2:LHP. APN: 529-01-025 CONDITIONAL USE PERMIT APPLICATION: U-11-006 PROPERTY LOCATION: 109 W. MAIN STREET PROPERTY OWNER: SUE FARWELL APPLICANT: LISA RHORER WHEREAS, this matter came before the Town Council for public hearing on August 15, 2011, and September 19, 2011, and was regularly noticed in conformance with State and Town law. WHEREAS, The applicant seeks approveal for a Conditional Use Permit (CUP) modification to operate a retail marketplace, wine establishment, and cafe restaurant (Pizza Simpatico) with indoor and—eutdeer seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP. The applicant is requesting-44- 35 seats and hours of operation of Sunday through Thursday,-1-1:00 10:00 a.m. to 1-0:00 9:00 p.m.; and Friday and Saturday, 4-40010:00 a.m. to 11:00 p.m. WHEREAS, On July 13, 2011, the Planning Commission considered the request for a Conditional Use Permit (CUP) to operate a restaurant (Pizza Simpatico) with indoor and outdoor seating, beer and wine service, and modified hours of operation in a space currently occupied by Attachment 15 an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:T.T-TP_ The Planning Commission recommended approval of the request with modified and additional conditions of approval, finding that the proposal was desirable to the public; it will not impair the integrity of the zone; will not be detrimental to public health, safety, or welfare; and is in harmony with the elements and objectives of the General Plan. WHEREAS, The Town's Alcohol Beverage Policy requires any new application for the service of alcoholic beverages to be approved by Council. Town Council reviews CUP requests for an application for alcohol service on a case -by -case basis to ensure that the request is appropriate for the specific use and its location. WHEREAS, The Town's Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic beverage service on a case -by -case basis when the proposal wiII not negatively impact residential neighbors, alcohol related incidents will not occur, and when the application will provide a positive impact to the commercial area. WHEREAS, Town Council received testimony and documentary evidence from the applicant and all interested persons who wished to testify or submit documents. Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Reports dated July 29August 1, 2011, and September 1, 2011, along with any and all subsequent reports and materials prepared concerning this application. WHEREAS, Council finds as follows: A. Pursuant to Town Code section 29.20.190, the request for a CUP is desirable to the public convenience; will not impair the integrity and character of the zone; would not be detrimental to public health, safety or general welfare; and is in harmony with the various elements or objectives of the General Plan and the purposes of the Town Code. This finding is paced nn the evidence presented in the Council Agenda Reports dated Jt1y 29 uonst 1, 2011, and September 1, 2011, and incorporates the findings made by the Planning Commission on July 13, 2011, regarding this application. B. The project is categorically exempt from environmental review pursuant to Section 15061 of the State Environmental Guidelines as adopted by the Town. C. The proposed use is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (section IV.B), as evidenced by the findings made by the Planning Commission on July 13, 2011. NOW, THEREFORE, BE IT RESOLVED: 1. The CUP application U-11-006 to operate a retail marketplace, wine establishment, and cafe restaurant (Pizza Simpatico) with indoor and outdoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gouiiuet) on property zoned C-2:LHP is granted. 2. The Conditions of Approval attached hereto as Exhibits A and B are hereby adopted as the Conditions of Approval for modification of this permit. 3. The decision constitutes a final administrative decision pursuant to Code of Civil Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los Gatos. Any application for judicial relief from this decision must be sought within the time limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such shorter time as required by state and federal Law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the -It 19th day of AugustSeptember, 2011, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA AI1EST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CONDITIONS OF APPROVAL — September 19, 2011 For 109 W. Main Street 109 W. Main Street Conditional Use Permit U-11-006 Requesting approval to operate a retail marketplace, wine establishment, and cafe (Simpatico) with indoor seating, beer and wine service, and modified hours of operation in a space currently occupied by an existing delicatessen, wine bar, and specialty retail use (Los Gatos Gourmet) on property zoned C-2:LHP. APN 529-01-025. PROPERTY OWNER: Sue Farwell APPLICANT: Lisa Rhorer TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as received by the Town on August 30, 2011. Any changes or modifications to the approved plans shall be approved by the Community Development Director, the Development Review Committee, the Planning Commission, or Town Council, depending on the scope of the changes. 2. EXPIRATION: The approval will expire two years from the approval date pursuant to Section 29.20.320 of the Town Code, unless the approval has been vested. 3. LAPSE FOR DISCONTINUANCE. If the activity for which the Conditional Use Peunit has been granted is discontinued for a period of one (1) year, the approval lapses pursuant to Section 29.20.340 of the Zoning Ordinance. 4. USE: This approval is for a retail marketplace, wine establishment, and cafe in the space known as 109 W. Main Street. The use cannot expand into or operate in combination with 91-101 W. Main Street. Any new use or new owner must operate the business strictly consistent with the limitations specified in the approved conditions. Any increase in square footage or intensity of the non -retail uses will require a new or modified Conditional Use Permit. A change in ownership may require a new operational agreement. 5. REQUIRED RETAIL SPACE: The use must maintain a minimum of 520 square feet of space dedicated to the retail component. The retail space shall be shown with dimensions on building permit plans prior to the issuance of permits or commencement of operation. 6. OPERATIONAL AGREEMENT: Prior to the initiation of any operational changes permitted under this approval, the applicant shall enter into an operational agreement with the Town guaranteeing the performance of the business per the representations of the application and the applicant at the public hearings as well as the observance of the conditions of approval. Said agreement shall be subject to approval of the Chief of Police, the Director of Community Development, and the Town Attorney, and will be signed by the applicant. Operators who are successors in interest to the business and CUP shall be required to meet with the Director and Chief and agree to all the terms of the Operational Agreement by executing a copy of the Agreement. The Operational Agreement shall be reviewed by the Director of Community Development Department and the Town Attorney, biannually for the first five years and annually thereafter, to ensure compliance with the Conditional Use Permit and operating covenants, including the required retail component. 7. OPERATION HOURS: Maximum hours of operation shall be Sunday through Thursday, Attachment 16 10:00 a.m. to 9:00 p.m.; and Friday and Saturday, 10:00 a.m. to 11:00 p.m. 8. NUMBER OF SEATS: The maximum number of seats, including up to 11 stools or counter seats, is 35. Outdoor seating is not allowed. 9. ALCOHOLIC BEVERAGE SERVICE: Beer and wine service is permitted only with food service. Food is defined as a combination of food items selected from a menu (breakfast, brunch, lunch, or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. (hot or cold) are not food. No alcohol shall be displayed at, on, or behind the chefs table. Any expansion of alcohol service will require a new and separate Conditional Use Permit. 10. WINE TASTING: Wine tasting is permitted. The maximum sample size for the wine tasting shall not exceed one (1) ounce. Wine tasting sample sizes larger than one (1) ounce shall be permitted only with meal service. 11. ENTERTAINMENT: Live entertainment and amplified music is prohibited. 12. DELIVERIES: Deliveries shall be limited to the hours o`f 9:00 a.m. to 7:00 p.m. 13. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts.. 14. SIGN PERMIT: A Sign Permit from the Los Gatos Community Development Department - must be obtained prior to any changes to existing signs or installation of new signs. 15. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy from the Los Gatos Community Development Department must be obtained prior to commencement of use. 16. BUSINESS LICENSE: A business license from the Town of Los Gatos Finance Department must be obtained prior to the commencement of any new or change of use. 17. EXTERIOR MODIFICATIONS: Prior to the issuance of building permits for exterior modifications, the applicant shall apply for and obtain an Architecture & Site peiniit. 18. COMMUNITY BENEFIT: The applicant has offered the following community benefit to offset traffic impacts created by the proposed project: $2,500 to be used towards the purchase of Town banners, or other use deemed appropriate by the Town. The community benefit shall be submitted to the Town prior to final occupancy. 19. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval, and may be secured to the satisfaction of the Town Attorney. TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: Engineering Division 20. GENERAL. All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications. All work shall conform to the applicable Town ordinances. The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day. Dirt and debris shall not be washed into storm drainage facilities. The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued. The developer's representative in charge shall be at the job site during all working hours. Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 21. PLAN CHECK FEES. Plan check fees shall be deposited with the Town prior to plan review at the Engineering Division of the Parks and Public Works Dept. lucent. 22. TRAFFIC IMPACT MITIGATION FEE (COMMERCIAL). The developer shall pay a fee proportional to the project's share of transportation improvement needed to serve cumulative development within the Town of Los Gatos. The fee amount will be based upon the Town Council resolution in effect at the time the building permit application is made. The fee shall be paid before the building permit is issued. The traffic impact mitigation fee for this project, using the current fee schedule and the preliminary plans is $1,080. The fmal fee shall be calculated from the final plans using the rate schedule in effect at the time of the building permit application, using a trip generation rate based on the application for 44 seats. 23. TRAFFIC IMPACT COMMUNITY BENEFIT. The developer is required to provide Community Benefit based on the Town Traffic Impact Policy. TO THE SATISFACTION OF THE CHIEF OF POLICE: 24. UNIFORMED SECURITY: Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 25. CONSULTATION AND TRAINING: At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department for on -going employee training on alcoholic beverage service to the general public. 26. TRAINING MANUAL: The restaurant operator shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association. 27. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated drivers. 28. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted in a visible location. N:\DEV \CONDITNS\2011 \Main 109, docx This Page Intentionally Left Blank September 5, 2011 Town of Los Gatos 110E. Main Street Los Gatos, CA 95031 Re: REVISED Letter of Justification/Proposed Project Description - Simpatico To Whom It May Concern: RECEIVE® ' 0 2011 TOWN OF LOS GATOS PLANNING DIVISION As required for the Conditional Use permit application, Simpatico is pleased to submit a revised Letter of Justification to the Town of Los Gatos. We propose to modify the existing use permit of the 109 W. Main St. space (currently Los Gatos Gourmet). Simpatico will be a retail marketplace, wine establishment and cafe located at 109 W. Main St. Los Gatos. The proposed hours of operation will be Sunday -Thursday 10:00 a.m. to 9:00 p.m., Friday - Saturday 10:00 a.m. to 11:00 p.m. Changes to the previous letter of justification: 1) Elimination of outdoor patio seating 2) Reduction of seating capacity from 44 to 31 with the option to add 4 seats to accommodate large parties when needed 3) Reduction of food counter seating from 6 to 4 4) Reduction of chef's circle seating from 8 to 7 5) Inclusion of a decorative locking iron gate to separate the Los Gatos Coffee Roasting Company and Simpatico. Signage will be applied to reinforce that no alcohol can be consumed in any adjacent space. We will strive to keep the gate open during daytime hours of operation and closed at night to secure the implementation of the alcohol policy. We are willing to work with the town to set rules for the separation of the two spaces 6) Dedication of 40% of square footage to retail not including vertical display cases incorporated into seating areas We intend to display our more expensive wine selections in the vertical retail area. Inventory for these will be kept down stairs. Note that the retail wine display wall in the tasting area is not what we consider to be "vertical retail". 7) Reduction of the proposed seating in the front area of the space to intensify the retail focus. This area alone, has more retail square footage than the current Los Gatos Gourmet space. 8) Completion of the design of the wine retail and tasting area. This is shown in the exhibits and demonstrates how we intend to accommodate the continuation of the popular wine tasting events held at the Los Gatos Gourmet. This has been accomplished while also allowing for ample wine retail display. 9) Removal of the word pizza from the name. The resulting name "Simpatico" better supports the concept of a retail marketplace, wine establishment and cafe by removing an implied bias to particular goods 1 Attachment 17 10) Proposal of the community benefit to be up to $2500 to be used towards the purchase of a park bench or to assist in replacing the town banners. The owners are open to alternative uses for the funds Trends Combining Retail and Food Sales Throughout the US, there is a trend in combining retail food and wine sales with dine in service. Several examples of this include. • Joan s Third in Los Angeles - http://www.joansonthird.com/marketplace.php • Brooklyn Fare in Brooklyn New York - www.brooklynfare.com • Fresh in Santa Rosa - http://www.freshbylisahemenway.com/ • Red Hills Market in Oregon - http://www.redhillsmarket.com/ • The Cheeseboard in Berkeley - http://cheeseboardcollective.coop/ From a business model perspective, this format makes great use of available square footage as well as encouraging customer traffic at all hours of the day. Simpatico - A Narrative Describing the Customer Experience Upon entering, customers are greeted by a wide variety of product displays that showcase items that can satisfy their gourmet needs. To their right is a cold case containing a variety of fresh gourmet food items. These include cheese, hand -sliced charcuterie and many made on premises pre -packaged "grab and go" options. In the same area, they can customize made to order sandwiches and pizza for take out. A variety of freshly baked focaccia will be available for sale as well. To add visual interest, patrons can see these items being prepared and baked in the brick oven on premises. To the customer's left (and also visible from the windows) there will be a variety of quality specialty items such as olive oils, vinegars, dried pasta, bread and pizza flour, canned San Marzano tomatoes, etc. Patrons can decide if they want to simply shop, dine or both. Should they decide to enjoy items on premise, they have several options. They can take a seat at the counter connected to the deli area upon immediate entry. This is a great option to enjoy a made -to -order lunch with many of the ingredients displayed. Alternatively, patrons have the option of cafe -style table seating where they can enjoy a meal with friends. The menu will be small and include soups, sandwiches, salads, Italian small plates, pizza and desserts. Beer and wine will be offered. The wine selection will include international and local wines that are priced in a manner to encourage patrons to purchase wines to take home that they sample at lunch or dinner (all menu wines will be sold for retail as well). No corkage fees will apply to wines purchased on premise. Food will always be available for both counter and table seating during all hours of operation. As the patron ventures further back into the space, there will be an extensive array of wines for sale. The space will be organized to support regular wine tasting events as currently held at Los Gatos Gourmet. To optimize the use of space, a display copy of each wine being sold will be arranged on several walls defining the back space. Additional wine inventory will be kept down stairs to maximize the use of the available space. 2 The brick oven circle will create a vibrant and active environment for patrons. The cook preparing food in this area will be utilizing food items that are sold for retail as well. In addition to being visually inviting, this element contributes to the following: 1) Enables patrons to observe items that are being baked for retail, prepared for take-out food orders or being prepared for dine -in customers 2) Invites families with children to have a place to enjoy an environment with entertaining activity while dinning in 3) Integrates a piece of equipment into the environment that would otherwise have to be enclosed 4) Utilizes the available space efficiently by allowing for seating without adding numerous tables that would be difficult to accommodate in the space 5) Wine will not be displayed in this area Summary Simpatico's owners, Lisa Rhorer and Pat Romano believe that this mortification to the previous CUP proposal demonstrates our incorporation of the council's feedback to intensify the retail component of the space. The Simpatico concept is new for Los Gatos, yet it fills the void left by the Oakville Grocery. Similar to the Los Gatos Gourmet, Simpatico will continue to serve the food sophisticate but with an expanded offering that will lead to a sustainable business. 3 This Page Intentionally Left Blank detail Prep table (e.) Restroom Refrigerators 2cornp. sink Dishwash Saucer B Burner Stove Pizza Oven - Food Prep Chefs Circle — no alcohol displayed Iron Gate, 78" high (e.) Ramp wi railing +9 ;"V”o Wine/Cheese/Dry Goods /® retail space 6� Wine (e.) Entry Door reed Prep Cafe Seating Stairs to basement Vintage View wine display Tables, 42"high for wine tasting Banquette seating Wall shelf & box display units — representative of wine offered for sale Lift top Retail Stock shelves Grab'n Go deli case 2 comp. sink Front window display S e m patca IVI arkctp1ace 'Seating: 31 Eat-litrtT 1 8 Tlzis Page Intentionally Left Blank fi F t riAnniuzsc3w 1 9 -Trri-rtirt! c A RECEIVED 14 September 2011 Dear Los Gatos Town Council Members, 1 5 2011 TOVVN OF LOS GATOS PLANNING DIVISION Thank you for taking the time to meet with me regarding the CUP application for Pizza Simpatico. As I was not able to meet with all of you, I am writing to provide some information regarding Los Gatos Gourmet and Pizza Simpatico's CUP application. I have been a business owner of Los Gatos Gourmet (LGG) for 5 years. Aside from being the first wine bar in Los Gatos, Los Gatos Gourmet has filled a niche for specialty grocery and deli items. In 5 years Los Gatos Gourmet has built a steady clientele and has become a beloved business in Town. Unfortunately, Los Gatos Gourmet faced an internal bleeding of finances by a former partner costing the business approximately $150,000. As you can imagine, such a large drain in this small company's resources greatly impacted its financial well being. Nonetheless, despite the financial drain and the immense back pedaling that had to be done to come out of a $150K hole, the viable little community business of Los Gatos Gourmet managed to pull through and to even make a profit in 2010. Come spring of 2011 Los Gatos Gourmet had resolved all issues connected to the former partner and with a verbal agreement from the landlord to renew our lease for 3 more years, was looking to the future, and zealously making plans to expand the business. Similarly to Pizza Simpatico, we also planned to expand to convert what has been the Los Coffee Roasting Company's office space in to store space and limited seating. Our hope was to offer Los Gatos a wider variety of specialty grocery and deli items such as those formerly offered by Oakville Grocery, to expand our deli selection to include more ready-made items for take-out, to increase our wine sales, and to keep the store open later in the day as we generally close in the early evening. Sadly, the verbal agreement to renew our lease was rescinded and we are thereby forced to face the dismal consequences of our doors closing. Pizza Simpatico has made the false claim to the council that Los Gatos Gourmet is not a viable business. Not only does Pizza Simpatico make false claims about the financial viability of Los Gatos Gourmet, but in a letter sent to the Town, this false information is stated as fact — I believe this is libelous, as is all other detailed information in their CUP application about Los Gatos Gourmet's sales. In the August 15th Town Council meeting, regarding Los Gatos Gourmet as not a financially viable business, Pizza Simpatico co-owner Pat Romano made the statement to the Town Council "it shows in the numbers". Mr. Romano's statement to the Council implies that he knows what the sales and profit numbers for Los Gatos Gourmet are. I believe that this and other statements made by Lisa Rhorer, in which they falsely represent Los Gatos Gourmet's finances are slanderous. Mr. Romano has no access to, or factual information regarding the "numbers" at Los Gatos Gourmet. I believe that the intention behind Pizza Simpatico's false statements are twofold: First, I believe Pizza Simpatico would like to invalidate or excuse the fact that in their pursuit of opening Pizza Simpatico at 109 W Main Street, they are ruthlessly displacing a viable and beloved community business. I believe Pizza Simpatico wants Los Gatos Gourmet's location precisely because it is a viable business. More importantly, I believe Pizza Simpatico wants the wine bar use permit that Los Gatos Gourmet worked so hard to obtain in 2006 for the 109 W Main Street location. Attachment 20 Second, I believe Pizza Simpatico is misleading the Town Council about the economic viability of the current business model of Los Gatos Gourmet to manipulate the council into believing that in order for the 109 W Main Street space to be profitable, it needs to expand into a restaurant. In this, I believe that Pizza Simpatico representatives slander Los Gatos Gourmet to pursue their own cause. In deciding whether the Town will approve Pizza Simpatico's current CUP application, I would like the Town Council to consider whether there are any laws in the Town Charter which disqualify a use permit application when it is based on false information. I would also like to inform the Council that the current business model that is Los Gatos Gourmet, despite immense financial setbacks, is economically viable and therefore the 109 W. Main Street space need not be converted to a restaurant or a wine bar resembling Enoteca La Storia in order to be financially viable. Andrew Letton Majority Shareholder, Los Gatos Gourmet