Staff Report
PREPARED BY: SALLY ZARNOWITZ
Planning Manager
Reviewed by: 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: 02/21/2017
ITEM NO: 14
DATE: FEBRUARY 16, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: CONDITIONAL USE PERMIT APPLICATION U-16-005. PROJECT LOCATION:
140 S. SANTA CRUZ AVENUE. PROPERTY OWNER: MICHAEL MOHR – COO
METWEST PROPERTIES, LLC. APPLICANT: LG HOTEL LLC D.B.A. TOLL
HOUSE.
CONSIDER A REQUEST TO MODIFY AN EXISTING CONDITIONAL USE
PERMIT TO ALLOW ENTERTAINMENT BEFORE 10:00 P.M. ON PROPERTY
ZONED C-2:PD. APNS 510-45-064 AND -065.
RECOMMENDATION:
Adopt a resolution approving a request to modify an existing Conditional Use Permit to allow
entertainment before 10:00 p.m. (U-16-005).
BACKGROUND:
The applicant is requesting a modification to the existing Conditional Use Permit (CUP) for the
restaurant (Verge) at the hotel (Toll House) (Attachment 1, Exhibit 4). The existing CUP allows
the restaurant to offer outdoor dining until 10:00 p.m. on the patio, overlooking the hotel’s
central outdoor courtyard. The applicant is requesting the following:
The removal of the condition in the existing CUP, which prohibits music, entertainment,
or amplified sound in the courtyard; and
The addition of a condition stating that entertainment before 10:00 p.m. in
conformance with the Town Policy Regulating Late Night Entertainment is allowed.
On September 14, 2016, the Planning Commission considered the application , and received
public comment (Attachment 3 includes verbatim minutes). At that meeting the Planning
PAGE 2 OF 5
SUBJECT: 140 S. SANTA CRUZ AVENUE / U-16-005
FEBRUARY 16, 2017
S:\COUNCIL REPORTS\2017\02-21-17\S Santa Cruz 140\Staff Report Final.docx 2/16/2017 1:33 PM
BACKGROUND (Continued):
Commission continued the matter and directed the applicant to provide a noise assessment for
the proposed outdoor entertainment. On November 9, 2016, the Commission considered the
application, public comment (Attachment 6 includes verbatim minutes), and noise assessment
(Attachment 4, Exhibit 10), and continued the item to January 11, 2017, directing the neighbors
and the applicant to meet further to try to come to an agreement.
On January 11, 2017 the Commission considered the application, received public comment
(Attachment 9 includes verbatim minutes), and recommended approval of the application
subject to draft conditions with modifications as discussed in more detail in this report. The
Council is the final deciding body for the request to modify the existing CUP because the
Council was the deciding body for the existing CUP.
DISCUSSION:
A. Project Summary
The restaurant is open seven days a week, with outdoor dining allowed until 10:00 p.m.
consistent with the existing CUP (Attachment 1, Exhibit 4). The applicant provided a letter of
justification (Attachment 1, Exhibit 5) describing the proposal, which includes entertainment
and amplified sound in the courtyard, and is requesting modifications to the existing CUP to
remove the condition prohibiting music, entertainment, or amplified sound in the courtyard
(Attachment 1, Exhibit 4, Condition 7).
B. Entertainment Policy
The adopted Late Night Entertainment Policy allows entertainment that complies with the
noise ordinance by right before 10:00 p.m., and allows for late night entertainment after 10:00
p.m. with the approval of a separate Late Night Entertainment permit (Attachment 1, Exhibit 7).
The Policy is consistent with the Town Council’s Strategic Priority to strengthen economic
vitality and provide businesses with greater opportunities for customer attraction and
retention.
Those establishments with existing CUPs that do not have conditions specifically allowing
entertainment fall into three categories: those with a CUP that is silent on entertainment; those
with a CUP that states they must comply with the Town’s provisions on entertainment; and
those with a CUP that denies the ability to have entertainment and/or amplified sound. For the
first two categories of CUPs, the businesses are able to provide entertainment before 10:00
p.m. in compliance with the Policy. Businesses with a CUP that denies the ability to have live
PAGE 3 OF 5
SUBJECT: 140 S. SANTA CRUZ AVENUE / U-16-005
FEBRUARY 16, 2017
S:\COUNCIL REPORTS\2017\02-21-17\S Santa Cruz 140\Staff Report Final.docx 2/16/2017 1:33 PM
DISCUSSION (Continued):
entertainment and/or amplified sound, such as the subject property, are required to submit
applications for a modification to their existing CUP.
The Policy specifically states that an application to amend an existing CUP for the express
purpose of adding permitted entertainment will not open the remainder of the CUP to
amendment or alteration unless specifically requested by the applicant. In this case, the
applicant is not requesting any amendment beyond removal of the condition prohibiting
entertainment on the courtyard and an additional condition allowing entertainment before
10:00 p.m. in conformance with the Town Policy Regulating Late Night Entertainment.
C. Planning Commission
On January 11, 2017 the Commission considered the application, received public comment
(Attachment 9 includes verbatim minutes), and recommended approval of the application
subject to draft conditions with the following modifications:
Limit the requested entertainment to Fridays, Saturdays, and Sundays;
Require maintenance of a noise meter log; and
Require Planning Commission review of the noise meter log one year from approval
An updated set of conditions that includes the Planning Commission’s recommendation s is
contained with the proposed resolution to approve the subject application (Attachment 10,
Exhibit A).
The Planning Commission also suggested that the Council clarify Condition 3 and
Condition 5 of the existing CUP (Attachment 1, Exhibit 4) regarding outdoor seating. These
conditions are not as clear as they could be. Staff has consistently interpreted that these
conditions apply to the raised patio area associated with the restaurant. If the Town Council
agrees with staff and would like to further clarify these conditions, then staff suggests the
following modifications:
3. Outdoor restaurant seating in the raised patio area shall not exceed 36.
5. The outdoor restaurant seating in the raised patio area shall not be used for banquet,
reception or conference purposes.
CONCLUSION:
The Planning Commission recommended approval of the CUP application subject to the
modified conditions of approval discussed above.
PAGE 4 OF 5
SUBJECT: 140 S. SANTA CRUZ AVENUE / U-16-005
FEBRUARY 16, 2017
S:\COUNCIL REPORTS\2017\02-21-17\S Santa Cruz 140\Staff Report Final.docx 2/16/2017 1:33 PM
CONCLUSION (Continued):
It is recommended that the Town Council adopt a resolution approving the request to modify
an existing CUP to allow entertainment before 10:00 p.m. (U-16-005) subject to the
recommended conditions of approval included in Attachment 10, Exhibit A.
ALTERNATIVES:
Alternatively, the Council may:
1. Adopt a Resolution to approve the application subject to modified or additional conditions
of approval (Attachment 10, Exhibit A); or
2. Adopt a Resolution to remand the application to the Planning Commission with specific
direction (Attachment 11); or
3. Adopt a Resolution to deny the Conditional Use Permit application (Attachment 12).
COORDINATION:
The evaluation of the application was coordinated with the Building Division, Economic Vitality,
Parks and Public Works Department, and Police Department.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301: Existing
Facilities). A Notice of Exemption will not be filed.
Attachments:
1. September 14, 2016 Planning Commission Staff Report (with Exhibits 1-8)
2. September 14, 2016 Planning Commission Addendum (with Exhibit 9)
3. September 14, 2016 Planning Commission Verbatim Minutes (65 pages)
4. November 9, 2016 Planning Commission Staff Report (with Exhibits 10-13)
5. November 9, 2016 Planning Commission Addendum (with Exhibit 14)
6. November 9, 2016 Planning Commission Verbatim Minutes (86 pages)
7. January 11, 2017 Planning Commission Staff Report (with Exhibits 14-16)
8. January 11, 2017 Planning Commission Addendum (with Exhibits 17-18)
Note: Exhibit 17 was originally identified as Exhibit 14 and renumbered due to inadvertently
being omitted from the January 11, 2017 Staff Report.
9. January 11, 2017 Planning Commission Verbatim Minutes (66 pages)
10. Draft Resolution to Approve the project (includes Exhibit A – Conditions of Approval)
11. Draft Resolution to Remand the project to the Planning Commission
12. Draft Resolution to Deny the project
PAGE 5 OF 5
SUBJECT: 140 S. SANTA CRUZ AVENUE / U-16-005
FEBRUARY 16, 2017
S:\COUNCIL REPORTS\2017\02-21-17\S Santa Cruz 140\Staff Report Final.docx 2/16/2017 1:33 PM
13. Public Comments received by 11:00 a.m., Thursday, February 16, 2017
14. Communication from the Applicant (seven pages), received February 15, 2017
Distribution:
LG Hotel, LLC, D.B.A. Toll House, 140 S. Santa Cruz Avenue, Los Gatos, CA 95030
Michael Mohr, Coo MetWest Properties, LLC, 11100 Santa Monica Blvd., Ste. 1700, Los
Angeles, CA 90025