Staff Report
PREPARED BY: JOCELYN SHOOPMAN
Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community
Development Department Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/19/2019
ITEM NO: 11
DATE: FEBRUARY 13, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: CONDITIONAL USE PERMIT APPLICATION U-18-020. PROJECT LOCATION:
114 S. SANTA CRUZ AVENUE. PROPERTY OWNER: 102 S. SANTA CRUZ, LP.
APPLICANT: BRIAN EDWARDS.
REQUESTING APPROVAL FOR A RESTAURANT WITH BEER AND WINE
SERVICE (HAPA'S BREWING CO.) ON PROPERTY ZONED C-2. APN 510-45-
061.
RECOMMENDATION:
Adopt a resolution (Attachment 4) approving a request for a Conditional Use Permit (CUP) for a
restaurant with beer and wine service (Hapa’s Brewing Co.).
BACKGROUND:
The applicant is requesting a CUP for a restaurant with beer and wine service at 114 S. Santa
Cruz Avenue. The approximately 14,810-square foot parcel is currently developed with an
existing two-story commercial building located at the corner of S. Santa Cruz Avenue and
Broadway, and a one-story commercial building located at the rear of the property. The
proposed restaurant would be located in the one-story, 1,793-square foot rear building. The
proposal includes an interior renovation and a modification of the parking lot to create an
outdoor seating area (see Attachment 1 for the Report to the Planning Commission and Exhibit
7 within Attachment 1 for the proposed development plans).
When reviewing a CUP, the deciding body should focus on the proposed explicit use defined in
the recommended conditions of approval as a “use” condition because the CUP runs with the
land. The applicant’s business plan is also important information to understand the proposed
operation; however, the business plan may change if the operator changes . When reviewing a
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SUBJECT: 114 S. SANTA CRUZ AVENUE / U-18-020
DATE: FEBRUARY 13, 2019
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BACKGROUND (continued):
CUP, staff does not take into consideration other potential locations for the proposed business.
The appropriateness of the location for the proposed business is considered by the property
and business owners.
On January 9, 2019, the Planning Commission held a public hearing and recommended approval
of the application with modified conditions of approval to: limit music to non-amplified
(acoustic) only; and prohibit the use of televisions or speakers in the outdoor patio (Attachment
4, Exhibit A, Conditions 8 and 9). In accordance with the Town Code, the Council is the final
deciding body for any new request for alcohol service.
DISCUSSION:
A. Project Summary
The applicant is requesting a CUP for a restaurant with beer and wine service. The applicant
has provided a project description and information detailing the proposed operations
(Attachment 1, Exhibit 4). The proposed hours of operation would be seven days a week,
from 11:00 a.m. to 11:00 p.m. All beers would be brewed off-site and delivered to the
location Monday through Friday between 8:00 a.m. and 4:00 p.m.
B. Planning Commission
On January 9, 2019, the Planning Commission held a public hearing and recommended
approval of the application with modified conditions of approval to: limit music to non-
amplified (acoustic) only and prohibit the use of televisions or speakers in the outdoor
patio. Attachment 3 contains the verbatim minutes for the Planning Commission meeting.
In accordance with the Late Night Entertainment Policy, activities that occur prior to 10:00
p.m. would be permitted by right and subject to the Noise Ordinance. The Planning
Commission discussed the sensitivity of the proposed use in proximity to the adjacent
single-family and multi-family homes with regard to potential noise concerns due to the
number of people permitted in the outdoor patio based on Fire Code occupancy. In
addition, the Planning Commission encouraged the applicant to conduct additional
outreach to the adjacent residential and commercial neighbors for further discussion prior
to the Town Council meeting. Based on the public testimony and comments from the
Planning Commissioners, the applicant has provided a response letter for the Town
Council’s consideration (Attachment 7).
Lastly, the topic of parking was discussed by the Planning Commission due to the applicant’s
request to remove four existing parking spaces to accommodate a new outdoor patio. The
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SUBJECT: 114 S. SANTA CRUZ AVENUE / U-18-020
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DISCUSSION (continued):
subject property contains a two-story and a one-story commercial building and has 24
parking spaces on-site and 41 parking spaces in the Parking Assessment District (PAD).
While four existing parking spaces are proposed to be removed, one new parking space is
proposed adjacent to the property located at 110 S. Santa Cruz Avenue (Attachment 1,
Exhibit 7, Sheet A0.1,). The proposed project with 21 parking spaces on-site and 41 parking
spaces in the PAD would result in a total of 62 parking spaces. The tenants
in the two-story commercial building utilize 35 of the 62 total spaces. With a gross floor
area of 1,793 square feet, the proposed use would require six parking spaces with an excess
of 21 parking space credits remaining for the property in the PAD. Therefore, the proposed
use complies with the parking requirements for the property.
CONCLUSION:
It is recommended that the Town Council adopt a Resolution (Attachment 4) approving the
request for a CUP for a restaurant with beer and wine service subject to the recommended
conditions of approval from the Planning Commission.
ALTERNATIVES:
Alternatively, the Council may:
1. Adopt a Resolution to approve the application subject to modified or additional conditions
of approval (Attachment 4, Exhibit A); or
2. Adopt a Resolution to remand the application to the Planning Commission with specific
direction (Attachment 5); or
3. Adopt a Resolution to deny the application (Attachment 6).
COORDINATION:
The evaluation of the application was coordinated with the Building Division, Economic Vi tality,
Police Department, and the Parks and Public Works Department.
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt pursuant to the adopted Guidelines for the implementation
of the California Environmental Quality Act, Section 15301: Existing Facilities. No significant
effect on the environment will occur since the project is within an existing structure with no
increase in floor area. A Notice of Exemption will not be filed.
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SUBJECT: 114 S. SANTA CRUZ AVENUE / U-18-020
DATE: FEBRUARY 13, 2019
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PUBLIC COMMENTS:
Public comments received by 11:00 a.m., Thursday, February 14, 2019, are included as
Attachment 8.
Attachments:
1. January 9, 2019 Planning Commission Staff Report, with Exhibits 1 - 8
2. January 9, 2019 Planning Commission Desk Item, with Exhibit 9
3. January 9, 2019 Planning Commission Verbatim Minutes, 47 pages
4. Draft Resolution to Approve Application, includes Exhibit A – Conditions of Approval
5. Draft Resolution to Remand Application to Planning Commission
6. Draft Resolution to Deny Application
7. Letter and Neighborhood Outreach from Applicant, received February, 8, 2019, 3 pages
8. Public Comments received by 11:00 a.m., Thursday, February 14, 2019
Distribution:
Brian Edwards, 460 Lincoln Avenue, Suite 90, San Jose, CA 95126
Kevin Mattos, 111 W. St. John Street, Suite 950, San Jose, CA 95113
102 S. Santa Cruz LP, 1777 Saratoga Avenue, Suite #210, San Jose, CA 95129