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1995-033-Deny A Request To Establish A Restaurant Within An Existing Building, To Have Outdoor Seating, And The Sale Of Beer And Wine In The C-2 ZoneRESOLUTION 1995 - 33 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS REPORTING DENIAL OF APPEAL OF PLANNING COMMISSION DECISION TO DENY A REQUEST TO ESTABLISH A RESTAURANT WITHIN AN EXISTING BUILDING, TO HAVE OUTDOOR SEATING, AND THE SALE OF BEER AND WINE IN THE C -2 ZONE; CONDITIONAL USE PERMIT APPLICATION U -94 -76 (PROPERTY LOCATED: 335 N. SANTA CRUZ AVENUE/ PROPERTY OWNER: DOROTHEA L. WOODS REVOCABLE TRUST/ APPLICANT: PETER COOPERSTEIN) WHEREAS: A. This matter came before the Council for public hearing on February 6, 1995, on an appeal by the applicant from a decision of the Planning Commission and was regularly noticed in conformance with State and Town law. B. The Council received testimony and documentary evidence from the applicant and all interested persons who wished to testify or submit documents. The Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet and documents attached to the Council Agenda Reports dated January 27 and February 6, 1995, concerning this application. C. Town of Los Gatos Town Code § 29.20.300 requires that any decision to reverse or modify a decision of the Planning Commission requires the vote of at least three Councilmembers. D. Councilmembers Attaway and Benjamin were opposed to reversing the Planning Commission decision for the following reasons: 1. The Town has been concerned about what the community looks like now and what it will look like tomorrow. That concern has led to the character and charm of the Town. 2. There has to be balance to avoid a restaurant row. The Town has seen what has happened to other communities where retail has gone away: while they are great at night, there are no daytime uses serving residents and the area has been given up to outsiders. 3. Selection for locations of restaurants has become very important. There are already 45 places serving food in the Downtown, while Los Gatos Boulevard needs more restaurants. 4. It is obvious that the proposed site for this application is questionable, and parking is the key issue. The Town has seen what impact a restaurant use can have on a neighborhood. Alcohol use can adversely affect the adjacent neighborhood, which is a sensitive part of Town. 5. In spite of the Traffic Study conclusions, practical experience demonstrates that people use Almendra as a shortcut and traffic backs up on Santa Cruz Avenue at 5 p.m. Turning left from Almendra onto Santa Cruz is often difficult. 6. The Traffic Study prepared by ESA examined the project's effect on nearby, key intersections of State Highway 9 and Santa Cruz & Main Street. The Study found that the project would generate approximately 448 more vehicle trips per day than the office use currently approved, or in other words, a sevenfold increase over the current use. 7. Under the Town's Traffic Policy (Resolution No. 1991 -174), the applicant is required to demonstrate that a project that generates more than 5 additional, peak -hour vehicle trips provides benefit under housing, economic, or General Plan provisions to the Town that outweighs the impact of the increased traffic. The approving body must make specific findings demonstrating the benefit of the project. 8. The Traffic Study shows that the peak hour effect of the project would be minimal on the key intersections. The intersection of Highway 9 and University Avenue has just recently improved to level of service D. However, the project is located only a few feet south of the central Santa Cruz Avenue and Highway 9 intersection. There is a great deal of traffic on North Santa Cruz in the evening hours, and turning movements from Santa Cruz into this project would seem to have a strong likelihood of backing traffic up north into the K intersection because Santa Cruz is so narrow in this area. 9. In addition, the only immediate on- street parking is on Almendra, which is llimited to permit parking in the evenings. Almendra was downzoned to protect its residential character. It would seem that during the day, restaurant patrons would look to park on Almendra, rather than across Santa Cruz in public parking. In addition, the parking in the evening might lead to people circling the residential block looking for parking; in turn, this might lead to requests to barricade Almendra in some way. The applicant and his experts have not satisfactorily resolved those questions in this proposal. Because the increase in vehicle trips over the current use is so immense, the Almendra neighborhood will undoubtedly suffer. 10. The community benefits alleged are increased sales tax from restaurant operations rather than office use (although an office use can generate significant sales tax); bringing another restaurant to the north end of Downtown (although there are at least 10 existing restaurants within 2 blocks of this location); and a quality operation for the location. This is not sufficient to offset the increased traffic of 480 trips per day, complications to the Santa Cruz/Highway 9 intersection and flow on Santa Cruz, and the impact on the residential neighborhood just 2 doors over. 11. The applicant offered to agree to conditions that would narrowly limit the use, such as types of cooking facilities and parking for employees off -site. However, as the Town learned from property - specific alcohol restrictions, government regulation to create and maintain such a constrained and specific use is neither equitable nor effective over time, and it is better to approve a more generic use. In addition, these types of conditions are difficult to enforce. 12. While economic concerns are important, increased sales tax receipts may just be offset by increased police service and vandalism costs. 13. This application is a close call, and the Council is pleased to see the creative solutions proposed by the applicant. 3 E. Councilmembers Blanton and Lubeck stated that they were in favor of reversing the Planning Commission decision for the following reasons: 1. The concerns about restaurant row, parking, and traffic were valid, particularly in the long run. 2. However, when considering where a restaurant of any size might go in the Downtown, this seemed to be a perfect location. 3. The on -site parking mitigated parking concerns and this parking would contribute to the well -being of neighboring uses that would have public parking freed up. 4. The Town wishes to reduce street -level office uses, and the current location needs to be removed from office use so that this end of the Downtown can be revitalized. 5. While the corner of Almendra and Santa Cruz poses a traffic problem, there are different solutions, such as leaving the driveway on Santa Cruz or requiring motorists to turn left from a driveway on Almendra. 6. The Commercial Plan and economic development efforts of the Town support this as being the right kind of use. 7. While it is a delicate balance, this project would benefit the Town, and the balance can be reached with stiff conditions that specify the use, such as requiring signage and prohibiting grills and fryers. F. The Town Council deadlocked on a vote of 2 to 2 on whether to approve or deny the appeal. 0 RESOLVED: 1. The appeal of the decision of the Planning Commission on Conditional Use Permit Application U -94 -76 is therefore denied for failure to gain 3 affirmative votes as required by the Town Code. This 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 or federal law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 6th day of March, 1995 by the following vote. COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Linda Lubeck NAYS: None ABSENT: None ABSTAIN: Mayor Patrick O'Laughlin SIGNED: MAYOR OF THE T0 4N OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA NA4SHAREWW30695.R16 5