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Attachment 9 - July 12, 2016 Special Planning Commission Meeting Verbatim Minutes LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A P P E A R A N C E S: Los Gatos Planning Commissioners: Mary Badame, Chair D. Michael Kane, Vice Chair Charles Erekson Melanie Hanssen Matthew Hudes Tom O’Donnell Town Manager: Laurel Prevetti Community Development Director: Joel Paulson Town Attorney: Robert Schultz Transcribed by: Vicki L. Blandin (510) 337-1558 LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S: CHAIR BADAME: I will move to our public hearing, which we’re all waiting for, which is Item 2, the North 40 Phase 1. Architecture and Site Application S-13-090, Vesting Tentative Map M-13-014, requesting approval for the construction of a new multi-use, multi-story development consisting of 320 residential units, which include 50 affordable senior units; approximately 66,000 square feet of commercial floor area, which includes a Market Hall; on- site and off-site improvements; and a Vesting Tentative Map. APNs: 424-07-024 through 027, 031 through 037, 070, 083 through 086, 090 and 100. May I have a show of hands from Commissioners who have visited the site? Are there disclosures from Commissioners? Commissioner Hudes. COMMISSIONER HUDES: I had incidental contact with Ms. Baker when I was doing a site visit. CHAIR BADAME: Thank you. Commissioner Hanssen. COMMISSIONER HANSSEN: I was with Commissioner Hudes when he had incidental contact with Ms. Baker, who led us through the site, but we did not discuss the merits of the project. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Thank you. Anyone else? Seeing no one, Mr. Paulson, we’re ready for the Staff Report. JOEL PAULSON: As you mentioned—and you went through a number of items from a detail perspective that I was going to go through—tonight we’re really here to continue discussions and deliberations on the Phase 1 applications. Previously, on March 30th, the Planning Commission received a very detailed Staff Report that went through a lot of the particular aspects of the development application, and then received a Staff Report verbally at the Planning Commission hearing on the 30th, but unfortunately given some challenges with the story pole installation the Commission could not take any action and did not go through full deliberations, and continued the matter to April 27th. Before the April 27th meeting the Council considered a modification to the previously approved exception for the story poles. Again, on April 19th that request was considered and denied, therefore the Planning Commission couldn’t consider the application on April 27th either. Following that information there was also a request with that denial that a study session be held, LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 which allowed an opportunity for both Planning Commission and Council, as well as the school boards, to get some additional information and ask questions, and allow members of the public to ask additional questions regarding the adopted Specific Plan, which is currently in place, the Certified Environmental Impact Report for that document, as well as the Housing Element. That occurred on June 15th. There are verbatim minutes in the packet, so anyone who is interested in reviewing that who wasn’t able to attend can look through that on the web site. Tonight’s written Staff Report really is a little bit of a continuation and deals with really four general topics relating to the development application. Given the lengthy history, the Town Attorney is here as well, as well as Public Works Staff, to address any questions as they relate to either the traffic components, any of the off- site or on-site improvements, as well as the issues and topics of by right development and State density bonus implications as they relate to housing, and what limitations there are. Generally, I will just state that the Commission should be looking at development applications in light of the adopted Specific Plan and the objective requirements of the adopted Specific Plan, as well as any objective LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 requirements of the Housing Element or the General Plan itself in relation to the Specific Plan. With that, as was stated by the Chair before, we have two applications before you this evening. One is an Architecture and Site Application for 320 residential units. As mentioned, there are 50 total affordable units; 49 of those are proposed to be senior affordable units, affordable to income levels of Very Low income and Extremely Low income, and then one manager’s unit will be Moderate income level. Additionally, there is a commercial component, as was previously stated, and it’s approximately 68,000 square feet for the commercial component that will be part of the Phase 1 application. Lastly, as was previously stated, there will be a number of on-site improvements as well as off-site improvements. The off-site improvements predominantly relate to wet and dry utilities as well as traffic impact improvements, so mitigation measures that are required to reduce the traffic impacts. Those were required by the Specific Plan EIR to reduce the traffic impact to a less than significant level. With that, Staff is available to answer questions, and we’re interested in receiving additional LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 public testimony this evening, and you’ll obviously have an opportunity to hear from the Applicant as well, and then following that, depending on the time of evening it may be when we conclude the public comments, then the Planning Commission will go into their deliberations. As mentioned before, there is an addendum and a Desk Item for this item tonight. The Desk Item that was originally sent out had an error in the tabulation that Staff missed, and so we have corrected that, and that correct version is also online. Lastly, again as a reminder, the Planning Commission will be forwarding a recommendation to the Town Council, and then the Town Council is the final deciding body on both of these applications, because Town Code requires a Vesting Tentative Map to be acted upon by the Town Council. Again, Staff is available for any interim questions. Otherwise, we’re prepared to go into public testimony. CHAIR BADAME: Thank you, Mr. Paulson. At this time are there questions of process or procedure from the Commissioners? Commissioner Hudes. COMMISSIONER HUDES: Thank you. My question is about story poles. I asked this question at the hearing on LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 March 30th, and I was told no. Is the project in compliance with the applicable public notice and story poles, and since what date did they become in compliance? JOEL PAULSON: I’d look maybe to the Town Attorney. At the time of March 30th they were not in compliance with the exception that was previously granted by the Council; that’s why the Commission couldn’t take action on the item. Subsequent to that, and I want to say May 4th is ringing a bell, but we’ll pull up an exact date the poles were put in place. Subsequent to that, the Town Council considered… Actually, I believe it was last week when they had a special meeting. The poles from the original exception interpretation were permitted to be removed beginning, I want to say, July 3rd. Prior to that the Council took an action to extend that timeframe to August 9th, and with the allowance of some of the poles along Los Gatos Boulevard were permitted to be removed, and those I believe began being removed on July 8th, so 16 or 18 poles were permitted to be removed along Los Gatos Boulevard. COMMISSIONER HUDES: Thanks, and that pretty much matches with the information that I have, but do we know how many poles have been removed? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 JOEL PAULSON: We can look to some past information. If we can’t get that for you this evening, we’ll definitely be prepared, should this go to a meeting tomorrow. Sixteen or eighteen is the number that’s sticking in my head, but I will try to pull up some information relating to that. COMMISSIONER HUDES: I just wanted to make sure that the public notice is in compliance, and there were questions about that. Thanks. CHAIR BADAME: Any further questions from Commissioners? Commissioner O'Donnell. COMMISSIONER O'DONNELL: This is more substantive, just to review before we launch off. We are required by the Housing Element to rezone 13.5 acres of the North 40, and on that 13.5 acres to have 20 units or more, is that correct? JOEL PAULSON: Correct. COMMISSIONER O'DONNELL: And that basically started with the State government’s essentially mandate. So somewhere on the North 40 we have to have at least 13.5 acres having a density of 20 units to the acre, and that is something we are required to do, is that correct? JOEL PAULSON: Pursuant to the current Housing Element, that’s correct. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER O'DONNELL: Thank you. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HUDES: In addition to that question, where are the 13.5 acres required? Are they required in the Phase 1 application area? JOEL PAULSON: I will start, and then the Town Attorney may weigh in. There is nothing that specifically states where those acres have to be in the Specific Plan or the Housing Element; it just has to be in the North 40 area, but there is no specificity as it relates to that. CHAIR BADAME: Commissioner Hanssen. COMMISSIONER HANSSEN: I had a follow up question about this, because it came up in one of the previous meetings. The requirements from Housing and Community Development to certify the Housing Element requires only the zoning of the 20 units per acre without having any material barriers to development, but is there any other certification of checking that they’re going to do to determine if the units are actually affordable? JOEL PAULSON: I guess there are interim stages where we do annual reports that go to HCD as to the progress that we’ve made in the prior year to meeting our Housing Element objectives, and then ultimately when the next cycle begins we’ll get a new regional housing needs LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 allocation, and then we will prepare a new Housing Element, and one component of that will be looking at the progress that we’ve made over the prior eight years as far as what was developed, and then they would be put into their individual categories when something is developed. COMMISSIONER HANSSEN: So hypothetically speaking, if 200 units were developed on the North 40 and they cost $1 million each, could that reset our housing allocation for the next cycle, because even though we zoned it for 20 units per acre, they wouldn’t count it? JOEL PAULSON: There’s no direct correlation. Those would go in the Above Moderate category as far as housing produced. COMMISSIONER HANSSEN: Okay. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: The Phase 1 before us includes what we’ll call Lark, I guess, plus what had been part of the Transition zone, is that right? JOEL PAULSON: Correct. COMMISSIONER O'DONNELL: But not all of the Transition zone? JOEL PAULSON: No, there still is a little bit of the Transition District that is left. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER O'DONNELL: Do you know approximately the acreage of that? JOEL PAULSON: I don’t have that information, so I wouldn’t be able to answer that. COMMISSIONER O'DONNELL: I’m just curious, because one word is “shift” some of the 20 units per acre. As I understand it, the north property you can only put residential above retail, right? JOEL PAULSON: That’s correct, residential above commercial. COMMISSIONER O'DONNELL: And there is a height limitation? JOEL PAULSON: Correct. COMMISSIONER O'DONNELL: Has anybody ever looked at the possibility of getting 20 units per acre above retail? JOEL PAULSON: The Applicant has provided some information that was prepared and presented in the addendum that talks about the difficulty related to that, but Staff has not done an analysis of trying to prepare a site plan to get to 20 units per acre. COMMISSIONER O'DONNELL: So the Applicant thinks it would be hard, but we’re not sure? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 JOEL PAULSON: The Applicant doesn’t think it’s feasible. I believe the units were in the 750 square foot range above commercial, given the restriction of the 35’ height limit in that area. COMMISSIONER O'DONNELL: Thank you very much. CHAIR BADAME: Any further questions from Commissioners? Seeing none, I will open the public testimony portion of the hearing and allow the Applicant and their team ten minutes to address the Commission. I don’t see speaker cards for you. I know you’ll fill one out; I know who you are. Please state your name and address for the record. DON CAPOBRES: My name is Don Capobres. We have a presentation that we need to queue up. Good evening, Madam Chair, members of the Planning Commission and residents in Council chambers and watching on video. I am Don Capobres, representing Grosvenor on the North 40 development team. Many of us have participated in years of policy debates on the North 40. The joint study session highlighted most of the outcomes of these policy decisions, and our legal council has submitted our position related to Town and State law. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 We are proud to have been part of the process to respond to the design that has comprehensively addressed the Town policy in many related discussions over the past eight years. We sat together during the crafting of the General Plan in 2009 and 2010. We were observers of Albright in 2011 and 2012. We sat through the Lexington School expansion hearings together. Multiple iterations of the Housing Element. We responded to three major economic studies conducted by the Town on impacts to the businesses downtown. This is all in addition to all the subcommittees, focus group sessions, and the North 40 Specific Plan Advisory Committee. For over eight years the public process surrounding the North 40 has been comprehensive, transparent, and open to all. Our proposal meshes all of these approved policies together. We now hear a single-family detached subdivision scattered throughout the entire planning area should be what is built. Had the policies pointed us in that direction, that is the proposal that you would have in front of you today. Had the policies pointed towards a light industrial complex, I imagine that is the proposal that would be in front of you today. But these are not the policies of a Specific Plan that was made by the Town leaders after decades of public process and input. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Wendi Baker and I would like to take our time here to focus on our proposal and what makes us different from any other application that may come through to develop any portion of the North 40, as with or without us the North 40 will be developed and multiple applicants can do it. Because we have been involved for over eight year we are in a unique position to go beyond the bare minimums required by these policies. To start, this application is a model for an agrarian neighborhood. The Historic Preservation Committee, in making its findings, said the Committee reviewed the agrarian feel of the proposed plans and determined that that agrarian history is effectively integrated in Phase 1. The concept of the model agrarian neighborhood permeates our design team’s thoughts. Its anchor is the open space program of our application. We have several critical success factors working with us on this front. First, urban farming is trending upwards. People are more interested in how their food is grown. Farm to table restaurants are no longer an anomaly, and so there will be demand for the community garden program. We are blessed with good weather and soil, and there is growing awareness and focus on public policy that facilities growing and selling of fruits and vegetables in community LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 gardens. Zach Lewis on our team has been instrumental in moving this legislation forward. With Zach’s help, the open space program will feature 39 community garden plots, one senior garden, one community demonstration garden, and 2.2 acres of orchards and vineyards, which include 544 fruit bearing trees and over 1,900 new trees that we’ll plant. Overall, we project we’ll be able to grow an estimated 14.5 tons of fruit and vegetables per year. This produce can be distributed to our seniors, restaurants, and the produce can find a way to be used or sold in the produce section of Market Hall. Market Hall is envisioned to be a specialty market that will focus on the daily needs of restaurants of the North 40 and surrounding neighborhoods. We hope it will feature the best the region has to offer in terms of produce, dairy, protein and baked goods. Picture a neighborhood, whether it is Blossom Manor, Aventino, Charter Oaks, or the Almond Grove where I live. Imagine community garden plots interlaced throughout your streets, a park the size of downtown’s town plaza, and other smaller parks connected by landscape paseos leading to a specialty market where some of the fruits and vegetables you just walked by may be sold. Without LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 question, our proposal is genuinely a model for an agrarian neighborhood. WENDI BAKER: What describes the look and feel of Los Gatos? We have been asked this many times in the past eight years. While this is not an objective measurement or policy, one approach to this question could be based on architectural form and the quality of design, which the Town’s own consulting architect uses as his basis for analysis. He states, “I feel that the applicant has adopted an approach to providing high quality design with the detail and diversity necessary to give the overall development the ‘look and feel’ of Los Gatos.” We’re happy to expand on this during questions and answers. We know to measure a town based exclusively on aesthetics would be an oversimplified approach. So what makes Los Gatos special, and how can we capture this as developers of the North 40? Los Gatos is about community. It’s about residents of this town coming together and putting on the Holiday Parade; or parents working together to fund raise for schools; or homeowners putting dog bowls along Jones Road or College Avenue for your thirsty best friends to get a cool drink on your way down from hiking Los Gatos Creek Trail; or the cyclists, LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Town Staff and Safe Routes to School working to get green bike lanes around the schools. To capture the community of Los Gatos we have gone beyond simply proposing a project that meets the objective policies within the Specific Plan or Housing Element. The North 40 will not only be a community, the North 40 will connect community. Don just spoke of how this agrarian neighborhood will bring people together. In the past 18 months the dialogue between your Town commissions and Town residents about bicycle safety and pedestrian opportunities has flourished. We will connect the North 40 not only inwardly and along the project boundary, but to the Los Gatos Creek Trail through the installation of our three-quarters of a mile of bicycle trails, coming together to connect the community by identifying the missing links and then working collaboratively to find a solution. That is what the community of Los Gatos is all about. And what about traffic? The traffic impact of the Town’s recent developments, including Albright, Laurel Mews, Palo Alto Medical Foundation and Lester Lane, you feel how these have added about 13% more cars to Lark and Los Gatos Boulevard since 2012. That 13% increase in cars results in a delay for everyone. We found a way for the North 40 to be part of the solution. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Instead of only constructing our required EIR mitigations that cost about $1 million, we will do ten times more, over $10 million more towards traffic improvements for overall community benefit. This will result in—even after the addition of the North 40—a 26% reduced delay at Lark and Los Gatos Boulevard. The Town is required to rezone for additional residential units, as are all Bay Area jurisdictions. The North 40 has been included in the Housing Element, but we’re proposing benefits that are far beyond what is required of us. Therefore, in addition to the one-time SB50 fees and the annual taxes being paid to the District, we have worked with the school districts, discussed facilities challenges, entered into a voluntary agreement based on their identified facility expansion needs, sat on LGUSD’s Reimagine 2022 Task Force, and are working closely with the District to find property for school facilities. Further, facilities are only one of the challenges. We have also engaged our regional partners to find a solution for the school traffic, which is an existing issue that impacts residents well outside of the boundary of the North 40. This town now has an opportunity to support a future school bus program that could be funded regionally, and this is the approach that community takes: LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 identifying a challenge and working together towards a solution. We’re not asking to only mitigate the bare minimum that’s required. We are neither proposing a Specific Plan amendment nor a Planned Development. If the Specific Plan and other governing documents stated that the Northern District was the primarily residential district, and the Lark District was to be primarily commercial, or that there should only be two-story, single-family, detached estate homes throughout the North 40, then our application would look significantly different. What the Specific Plan calls for is a diversity of residential housing type, which we have achieved through 19 different floor plans in three different styles of housing, plus an unprecedented Very Low income senior affordable program. We have spread these units out with 193 residential homes in the primarily residential Lark District, 127 homes in the Transition District, and a remaining 45 homes that can be proposed in a future application in the day-to-evening entertainment area Northern District. The Town of Los Gatos, its residents, elected and appointed officials, and Staff all have worked very hard over the last eight years to draft and then adopt a LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Specific Plan that encompasses the spirit of this great town. We’re now before you as a future part of your community. Not only do we conform to the required objective criteria in the Specific Plan and Housing Element, we proposed a model agrarian neighborhood that comprehensively addresses both Town policy and the many related discussions from the past eight years. We and our team are available for any questions now or after public comment. Thank you for your time. CHAIR BADAME: Thank you. Do Commissioners have questions of Mr. Capobres or Ms. Baker? Commissioner O'Donnell. COMMISSIONER O'DONNELL: I would first like to compliment you, because I’ve been involved in this process a long time and I think you’ve done an excellent job. Obviously, however, it’s a very difficult project and there are many who would just as soon the project did not go forward. Just so we all know, however, your position, I’m looking at the letter of your attorneys dated July 7th of this year. In particular I’m looking at page 7, which I think summarized your position. It’s very short. I’m going to read it to you to make sure that that is your position. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 You say, “The State law provisions discussed above require that the planning application may only be reviewed for conformance with existing objective Town policies which must be applied to facilitate development of 320 units. The Town may not reduce density, require project phasing, relocate units to other sites on the North 40, place units in other school districts, reduce height or impose any other requirement not already contained in the adopted development standards, nor can the planning application be denied based on subjective standards such as those contained in the Vision and Guiding Principles.” You conclude by saying, “In the event the Town denies the planning applications, or approves them with conditions that violate the legal framework described above, the applicants do intend to fully enforce their legal rights and remedies,” which I understand to be litigation. Is that correct? WENDI BAKER: We would prefer no litigation, but that is correct. COMMISSIONER O'DONNELL: I understand that, but that threat at the bottom of your letter I take to be a threat of litigation. WENDI BAKER: That is correct, and that is our letter on public record. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: No clapping. I don’t want to have to give another warning tonight, but please be considerate. Thank you. COMMISSIONER O'DONNELL: Thank you. CHAIR BADAME: Vice Chair Kane has a question. VICE CHAIR KANE: Ms. Baker, you said the improvements at Lark and Los Gatos Boulevard would improve delay times by 26%? WENDI BAKER: That’s correct. VICE CHAIR KANE: I’m embarrassed. Is that in here somewhere? WENDI BAKER: That was provided as supplemental documentation to Staff from the traffic engineers, and it is a 13% change in volume, but a 26% reduction in delay. And it is also in the EIR, to go back to the EIR, because these improvements were considered as part of the EIR, although not required, they are required community improvements for the Specific Plan. VICE CHAIR KANE: The 26% is in the EIR? I just don’t remember the number, because it’s impressive. Mr. Paulson, is Staff in accordance with that number? JOEL PAULSON: We’ll have to look through the Phase 1 and the EIR to confirm that, so we’ll get back to you with that information. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE CHAIR KANE: No, I’m meaning to be complimentary. If you can do that… WENDI BAKER: That’s correct. VICE CHAIR KANE: …far out, because that is the main concern of the whole project. WENDI BAKER: We would not want to spend $10.5 million on transportation improvements if there was not some sort of recognizable delay improvement. VICE CHAIR KANE: Well, good, that’s outstanding. Mr. Capobres, when we did our tour of the project, and also when you appeared before the Planning Commission with Commissioner O'Donnell and I, we talked about a memorial. We’ve got to preserve the agrarian history, but also there’s some other history to be preserved, and I haven’t seen that in any of the reports yet. Is that because its time has not yet come? Is it a Phase 2 issue? DON CAPOBRES: The project had to go through the Historic Preservation Committee. As we stated, the HPC recognized our treatment of agriculture. The historic issues really fall on another part of the North 40 related to the red barn, and potentially an adobe house on the second phase. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 As I stated on public record previously, we’ll work with the Yuki family. They’re an important Los Gatan family. We’d be very happy to celebrate their contribution to the Town. They’re also immensely private as well, and so we don’t have anything to legally compel them to do something, but we would be very happy to commemorate this family. VICE CHAIR KANE: I recall my interest in something generic in respecting their privacy. There are a number of families out there that were interred during World War Two, and that’s part of what I want to weave into the fabric of the history of all that property out there. Not just the immediate family; there are other families involved as well, and I’m sort of passionate about that, that that could be put on the old barn that we agreed to preserve and that the children can read and understand it. CHAIR BADAME: Vice Chair Kane, thank you for the comments. Commissioner Hudes. COMMISSIONER HUDES: I have a number of follow up questions on the letter of July 7th, since that’s been opened at this point. I took notice of the letter and the tone of the letter, and I have a number of questions about it. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Coming back to the point about the application being in compliance with design standards. Is it your position that the Planning Commission may recommend denial if the application is not in compliance with design standards? DON CAPOBRES: If we’re not in compliance with any of the objective standards, clearly. COMMISSIONER HUDES: Another question. The description on page 3 says, “The Housing Element also requires that at least 270 units be permitted at a density of at least 20 units per acre. Does the Housing Element specify that those 270 units, or the 13. 5 acres, be in the 24 acres that are in the Phase 1 application? DON CAPOBRES: Neither specifies where the 13.5 acres has to be, nor does it preclude where it can be. The fact that we have a proposal that meets the State’s requirements to qualify for affordable housing is kind of the issue and is the basis for our legal position. The conversation in the Housing Element Advisory Board over the last couple of years is pretty clear, and the decisions that were made on that board were very clear in terms of the by right nature of any of the properties that were included in the Housing Element. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HUDES: So basically you’re saying that it’s not limited to Phase 1? WENDI BAKER: I believe what we’re trying to clarify is much like residential units are not prohibited from the Northern District, nor are retail or commercial uses prohibited from the Lark District, it doesn’t require one or the other to be there. I believe what we’re trying to say is that it neither requires it all to be one place or the other; it is a subjective decision on where it goes, but it’s objective that it must occur within the North 40. COMMISSIONER HUDES: The other question I had dealt with language in the letter that really got my attention. On page 5 it says, “This history of animus toward children,” and it goes on from there, and then there was another page that wasn’t numbered, but it said, “Additional statements and policies regarding desire to exclude families with children,” and I wanted to ask if this is your recollection of the facts, because mine is very different? I served on the North 40 Advisory Committee, I served on the Housing Element Advisory Board, and I don’t believe that the deciding or recommending bodies that I’ve observed expressed animus toward children; quite the contrary. They expressed concern with school overcrowding LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and the welfare of children, and I found these assertions to be aberrant, and so I would like to see whether I’m remembering that differently than some of you who were there as well. DON CAPOBRES: Having been probably involved in the North 40 process longer than potentially anybody, I understand why only maybe 20 minutes was given consideration to single-family detached homes when the discussion regarding residential types were discussed at the Advisory Committee level. It was specifically because of concern that single-family detached home student generation numbers were higher than multi-family or higher density residential type. That was specifically discussed during the deliberations of the North 40 Specific Plan. There was language specifically in drafts of the North 40 Specific Plan without question that talked about designing units to avoid school age children. COMMISSIONER HUDES: Again, my recollection of that is that draft language that was cited was language that was removed from the Specific Plan before it was acted into law, that that language was proposed by RRM Consultants, who I believe were paid by the developer, and then that language was rejected by the Town Council and the Advisory Board. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 DON CAPOBRES: (To Ms. Baker) You want to take a shot? I’m happy to take it. WENDI BAKER: All right, so I think there’s a conflict in what you might feel is the letter’s intent, that this entire process that we’ve been a part of and that many people who have been in the room, there’s been a lot of discussion about impacts to schools and making sure that the units that are out there have the least impacts to schools as possible, and that was not just exclusive to RRM but to much of the conversation that occurred at the dais. Whether or not you personally contributed to that, I cannot say specifically. The letter is specific to not wanting to discriminate against families, so it’s a little bit of a different spin that you’re taking, which is that we’re trying to say that that’s not legal. However, the unmet needs discussion as a part of the Specific Plan was not only exclusively trying to target housing types—which is what we’re proposing—that are not typical within the Town, which is mostly a single-family detached. There’s a lot of discussion of is that being specific to a type that does not generate children, and I would imagine that might be a topic of conversation tonight and going forward as well. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HUDES: Okay, thank you. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: I just want to revisit that for one second. I’m looking at the summary, which is Exhibit 34, and it says that there will be 126 one-bedroom units, there will be 140 two-bedroom units, and there will be 54 three-bedroom units. Now, the suggestion that perhaps that configuration was somehow unfriendly to children surprises me. If you have a three-bedroom unit, is that unfriendly to children? WENDI BAKER: What I was specifically noting is the discussion that has taken place over the years on how we can design away from families, and that has been in there. Now, a three-bedroom unit, according to my focus group that we met with both before and after design, although they are single professionals they are interested in more than one bedroom and more than two bedrooms, because they might want work space, they might want a den, they might want guest space. So that type of unit, yes, can house children—and I don’t think that that’s a bad thing, I think that’s a great thing—but it could also appeal to a diversity of buyers. Probably if I were to come in in a traditional setting, even at a 20 units per acre setting, I would LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 probably be much heavier on two- and three-bedrooms than what I propose in this application. However, we do see the need for the young professional and we’re designing units smaller and so forth to hit different price points for that young professional to get into the market and that housing type. COMMISSIONER O'DONNELL: I want to be clear. It may sound like there’s some attack going on. I’m not trying to attack you. You people have done a very professional job and you have actually been a pleasure to work with, but I’m just trying to get to some serious questions, and it’s without suggesting that you’ve done anything that you didn’t tell us you would do. I’m thinking it through with you now, and I notice that two-and three-bedrooms will be more than half of the total units. Now, that’s fine, because nobody is trying to prevent children, but on the other hand one has to consider the impact on the schools. You’ve offered substantially more than you’re required to offer to the elementary school, and I personally appreciate that. I’m just trying to think this through with you, that’s all, so if there was any suggestion of otherwise, I’m not. I’m trying to get the facts; that’s all. CHAIR BADAME: Commissioner Hudes. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HUDES: The presentation that you gave was very helpful. It doesn’t exactly map to your justification letters, so I’m wondering if you can provide us a copy of that today, so that we could consider that as we deliberate? WENDI BAKER: Absolutely. COMMISSIONER HUDES: Thank you. CHAIR BADAME: Any further questions for the Applicant? Seeing none, thank you very much. I’m sorry, don’t go away. Commissioner O'Donnell. COMMISSIONER O'DONNELL: One question. I just want to be very clear on this in my own mind. If I read your lawyer’s letter correctly, and I may or may not, basically your position is we do not have the ability to change anything at the moment, now. WENDI BAKER: Our attorney’s letter specifically focuses on what we believe are the objective criteria of the Specific Plan, and we believe that things that are subjective… You can act on the objective if we do not meet them. COMMISSIONER O'DONNELL: Okay, my question doesn’t go to objective versus subjective. Objective could be where you put the homes. In other words, you’ve got Phase 2—what I call Phase 2—and you’ve got Phase 1. Those LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 are objective issues. I’m not talking about subjective; I’m merely saying your lawyer specifically says you can’t move it. Now, that’s objective. So your position, as I understand it—I can reread the paragraph if you like—is there is absolutely nothing we can do this evening. Is that your position? WENDI BAKER: That is our position. Staff has also found that we’re in conformance with the objective standards of the Specific Plan. COMMISSIONER O'DONNELL: Thank you. DON CAPOBRES: The point of the first part of the presentation was all of the years of policy that’s gone into the North 40, and observers and participants of that process, it would be amazing if not embarrassing for us not to get it right and provide to you an application that was in compliance with all the objective standards of the Specific Plan, because of how much participation we’ve had over the years. I’ve dealt with this over the last couple weeks of having to answer this question, but it shouldn’t be a surprise, because of our participation in the community dialogue, that we have come up with an application that is in conformance with all your policies; not just the Specific Plan, but the Housing Element and all the other LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 policies. What we would typically find in architecture and site type discussion is it is about architecture and not about whether or not housing is allowed, or what types of housing are allowed. That is already in the documents that have already been approved here. COMMISSIONER O'DONNELL: I understand the State requirement of right, so I’m not talking about that, but I am saying that there are roughly 40 acres here; we’re talking about 22 of those acres. A portion of the Transitional Phase is not in this plan, and then the north part of the property is not in this plan. Your lawyer, I think, takes the position we couldn’t move any of the housing that is otherwise scheduled for the first phase anywhere else; for example, on the balance of the property that is in the Transitional and not before us, nor in the North 40. Her letter says you can’t move the housing. Now, that’s a pretty strong statement that has nothing to do with subjectivity, and so I’m saying is that your position? DON CAPOBRES: It clearly is. We comply with open space requirements, we comply with setback requirements, we comply with height requirements, we comply with everything, and then exceed those in most cases. So if it is a land use that is allowed within a certain section of the North 40 LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and we comply with that, then we should be allowed to move forward with that. That would be true for any other applicant, and there are 14 property owners on the North 40 who come through. We don’t control all of the property on the North 40. We have the ability to move forward with this piece. We comply with all the objective standards. All the land uses are in compliance, so we should be allowed to move forward. COMMISSIONER O'DONNELL: What portion of the Transitional area… When you look at the map you see the Lark area, you see the Transitional area, but the Transitional area with the map on it excludes part of that Transitional area. How much is excluded, acreage-wise. DON CAPOBRES: We can get that for you. We’re over two-thirds of the Transition District as it is, and the reason why, and I can state this publicly now, is because the Yuki family has elderly members of their family living just to the north of the Transition District boundary. They literally counted kind of rows of trees to be able to protect their quality of life for the foreseeable future. It’s essentially a life estate, but there is some time that needs to pass before we are allowed to move forward with the North 40. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER O'DONNELL: I understand what you’re saying. Just to confirm it then, that portion of the Transitional area, which is not included in your plan, is because of the same reason the northerly portion is not essentially now here discussed, because of the Yuki’s, as far as I’m concerned, very reasonable request? I just want to make sure that’s part of that, is that right? DON CAPOBRES: That’s right, and there are other property owners on the site. As a matter of fact, if we were really trying to max things out, we might have just gone ahead and plant without having control, but we need to move forward, we need to control the property that we can make traffic improvements on, and so we did not max out the number of baseline units. That is why precisely there are 45 additional units available for development throughout the rest of the… And it does make sense that there is a tapering off of residential from the Lark District through the Transition District to the Northern District, because of how the Specific Plan was developed. COMMISSIONER O'DONNELL: But one thing that I do recall is there is a limitation on the northern portion that any housing must be above retail. That does not LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 however apply to that portion of the Transitional, which is not part of this project, is that right? DON CAPOBRES: Correct. COMMISSIONER O'DONNELL: Thank you. CHAIR BADAME: Are there further questions for the Applicant? Seeing none, thank you very much. DON CAPOBRES: Thank you. CHAIR BADAME: I will now invite comments from members of the public. I will be calling your names three at a time. Our first three speakers are Diane Dreher, Tom Picraux, and Peter Dominic. When you step up to the podium, please be sure to state your name and address clearly for the record. DIANE DREHER: Good evening, Diane Dreher, 223 Arroyo Grande Way, Los Gatos. My statement: I strongly recommend denial of the current North 40 plan. Los Gatos is a historic town, not a commercial industrialized complex. I find the developer’s plan dishonest and disrespectful. Dishonest because it violates the Town’s Specific Plan, substituting high-intersection development instead of the required “lower-intersection residential and limited retail offices uses,” crowding too many residential units in the Phase 1 space. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In addition, I find the vague promises about traffic reduction highly confusing, and I seriously doubt how that would happen. I find the developer’s plan disrespectful, because it threatened a lawsuit and proposes a dense set of industrial sized buildings instead of respecting the unique character of our town with a harmonious plan that would look and feel like Los Gatos. I urge you therefore to reject this proposed commercial industrialized complex at Lark and Los Gatos Boulevard and think more cooperatively and creatively about solutions. The current plan would drastically increase traffic and industrialized sprawl, impede vital access to Good Samaritan Hospital, and undermine the safety of our children, the character of our schools, and the quality of our lives. Thank you. CHAIR BADAME: Thank you, Ms. Dreher. Tom Picraux. TOM PICRAUX: Tom Picraux, 108 Panorama Way. I’m chair of the Los Gatos Community and Senior Services Commission, and I have a question regarding senior services. In particular, we’re very happy that there are 49 units for Very Low income senior housing, but my question LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is have there been provisions for the services that may be needed in particular by Very Low income seniors? For example, such things as their housing, healthcare, nutrition needs, case management. These are things that we’ve been concerned about, in fact struggling to enhance for meeting the needs of Los Gatos seniors now. Now my question has to do with has there been provisions for these to be met by the Eden Housing or by some other part of the development, or will this fall on the shoulders of the Town, and the adult recreation center service is what they have, and other services that we’re trying to provide for seniors? So the question is has provision been made for that, or not, and if it has, what type of provision has been made, or will it all be on the Town to develop those needs? Thank you. CHAIR BADAME: Thank you, sir. When the Applicant returns to the podium at the end of the public testimony, perhaps he can address your comments at that time. PETER DOMINIC: My name is Peter Dominic, and live on Blossom Hill Road. I would like to thank the Planning Commission for giving us this opportunity to speak, and I would like to thank the entire Town of Los Gatos for having patience with this ongoing process. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I support development in the North 40, but I believe the current application is invalid for the following objective reasons. First, the developer is inconsistent in their definition of the 49 units that they propose to build on top of the Market Hall building. In a letter from their lawyers dated March 10, 2016 they repeatedly refer to these units as a “senior housing development,” but they also ask in the same letter that they be considered Very Low income housing. The Density Bonus Code states that any proposal for Very Low income housing must meet the definition in Section 50105 of the Health and Safety Code, and Section 50105 states that Very Low income households means persons and families whose incomes do not exceed the qualifying limits for this Very Low income. The key words there are “persons” and “families.” If the units proposed by Grosvenor are truly Very Low income, then they must be eligible to persons and families based on income; however, these units will have an age restriction on them. If they are not eligible for all persons and families to be considered, then they do not meet the standards of Section 50105 and they must be considered some type of other unit. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Second, even if you still believe that 49 senior housing units that are called senior housing units that sit in a single building, because that’s required senior housing, are also Very Low income housing and should quality for the density bonus as such, then I would submit that the base number of units of 237 proposed by this project is not valid according to the law. The Density Bonus Law states that a city shall grant one density bonus when an Applicant for a housing development seeks and agrees to construct a housing development excluding any units permitted by the density bonus awarded. The 237 units proposed by this application include numerous units that would not be allowable unless we waive our design guidelines for building height, and we do not have to waive any standards until we grant that density bonus. I would propose the developer must submit a base number that would actually be feasible to construct, given our guidelines, and then we can consider a density bonus and any standard waivers. Finally, and apart from the two preceding issues, the fact that there are two developers actually working on this project under the banner of Grosvenor seems to (inaudible) the intention of the Density Bonus Law. Again, the Density Bonus Law states that a city shall grant one LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 density bonus and incentive when an applicant for housing development seeks and agrees to construct a housing development. In this project we have SummerHill that is building out Lark, and we have Eden Housing that will be building the senior housing unit, but because these two developers are paired under Grosvenor the units being built by Eden will benefit the development being built by SummerHill. I firmly believe this is a gross distortion of the intention the Density Bonus Law, which is supposed to provide developers with a way to recoup costs. In that final point that Grosvenor may only violate the spirit of the law and not the word of it, when it comes to my first two points I firmly believe this application is out of line. Thank you. CHAIR BADAME: Thank you, Mr. Dominic. No clapping. Thank you. Our next three speakers: Helen Cockrum, Anne Robinson and Barbara Dodson. Anne Robinson, why don’t you come up first? ANNE ROBINSON: Anne Robinson, 201 Charter Oaks Circle. I support the 270 housing units, 50 senior affordable housing units, and 66,000 square feet of commercial development. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 What I’m opposed to is locating the housing units in what Figure 15 of the North 40 EIR delineates as an area that is considered a high health risk area along the 17 freeway. According to the six sources I reviewed, which you should have received as a Desk Item, there are significant health issues associated with building residences within the designated are. Here are a few of them. Increased risk of children developing leukemia. Children are not only more likely to develop asthma and other respiratory diseases, but their lung development may also be stunted permanently. Fine and ultra fine particulate matter in the air is linked to cardiovascular disease, leading to premature heart attacks and strokes. Pregnant women are more likely to have premature and low birth weight babies, putting the children at risk for multiple lifelong chronic diseases. Pregnant mothers breathing higher rates of air pollution give birth to children who have higher rates of several types of rare childhood cancers. Women exposed to more traffic related air pollution have a higher rate of breast cancer. Chronic exposure to traffic air pollution increases the risk of lung cancer. Toxic air pollution is linked to a shorter lifespan for nearby residents. Five times more deaths are due to air pollution than traffic accidents. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I understand that other communities are doing this, but that does not make it right. Putting housing units along the 17 freeway within the designated area is irresponsible. Children don’t have a choice, but you do. Recommend to the Town Council that the developer move the housing units farther away from the freeway, at least 500’ or approximately 150 meters, like they’re required for schools. The proposed buildings are 30-57’ from the freeway. Put an office building in the designated area with fixed windows and filtered HVAC. I heard tonight that the developer does not see it feasible to put housing at 20 units per acre in the Northern District, but the Town has not researched this possibility. I was told the Town Council has the power to amend the Specific Plan. Could they increase the height limitation in the Northern District and make it feasible for the mandatory housing component? I just think we need to get this right, and the housing should not be allowed along the 17 freeway where this area is designated as a higher cancer risk area. Thank you. CHAIR BADAME: Thank you, Ms. Robinson. ANNE ROBINSON: And you should have in the Desk Item the sources I referred to. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Yes, we did receive it. Thank you very much. Barbara Dodson. BARBARA DODSON: Good evening, my name is Barbara Dodson; I live on Marchmont Drive. Please deny the proposal so a more fitting proposal can be brought forward that spreads out residential, provides housing more suitable for Millennials and seniors, and adds open space. I’m against high-density housing in the North 40, but it seems our Housing Element traps us into having 20 units per acre on 13.5 acres, so for now we’re stuck with density. But we’re not stuck with the developer’s approach. We can have 20 units per acre with much more open space. The Specific Plan calls for 320 residential units, but doesn’t say how big they units need to be. We’d get as much credit toward the 320 total with homes that are 1,000 square feet as with homes double that size. Let’s look at one of the developer’s six (inaudible), which is what I’ve got up there. We could have the six large units shown here, or we could reduce the height, eliminate three other row home units, divide each of the remaining three large homes into two one-story flats and end up with the same number of units, six. We could use LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the leftover acreage for green space instead of a three- story attached building. At up to roughly 2,000 square feet, we could have six flats at roughly 1,000 square feet and three attached buildings. Which would you prefer? Six tall massive row homes that block views and suit families much more than the supposed audience of Millennials and seniors, or six smaller flats that really suit the target audience? The proposal has 97 three-story row homes larger than 1,500 square feet, and 28 garden cluster homes larger than 1,700 square feet. This isn’t Millennial or senior housing. It is massive, boxy housing that doesn’t look and feel like Los Gatos. It is housing that could be built to really address the intended audience. I believe the original intent behind the 20 units per acre was to satisfy affordable housing requirements from RHNA, but in fact we’ll end up with very little RHNA credit. Los Gatos is supposed to build 619 affordable units by 2023. I believe the Town expected 310 of these units to be on the North 40, however, the developer has plans for only 50 affordable units; all other units will be market rate. I am afraid that because enough affordable units won’t be built on the North 40 the Town will need to find LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 roughly 11 acres elsewhere for the affordable housing. The overdevelopment will just go on and on. To me, the high density, high priced housing in this proposal is a complete lose-lose for our town. As I said, I’d rather not have high-density housing, but if we have to have it, we should at least try to reduce the space it takes up and fulfill our RHNA requirements for affordable housing. Thank you. CHAIR BADAME: Thank you, Ms. Dodson. Helen Cockrum. HELEN COCKRUM: Hello, I’m Helen Cockrum and I live at 159 Escobar Avenue in Los Gatos. First of all, thank you, everyone, for working so hard on all of this. I don’t have the expertise of some of these people that will describe exactly how many units are where and so forth, so my comments are a little bit just general. When the people that are going to develop that say that it resembles the Town of Los Gatos, it’s not in any way near the Town of Los Gatos. It doesn’t have old, interesting buildings, and it doesn’t fit in with Los Gatos. I assume eventually that’s going to be developed, but then I think that it should be much smaller, not so many units, and more traffic mitigation so that the traffic is really terrific on Los Gatos Boulevard. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I don't know if any of you travel up there. Almost any time of the day you try to get to 17 and 85, on or off, and take a left on the Boulevard, go up and go into 85, then the traffic is coming in from Good Samaritan Drive, and it’s very, very difficult. With this many more units planned, commercial and housing, families, children, cars, our town cannot handle it, and it will not be the town that it used to be. The Specific Plan actually sets forth certain things, which I don’t have time to talk about, but the Specific Plan is wrecked with what you’re trying to do here, as far as I can tell. Thank you. CHAIR BADAME: Thank you, Ms. Cockrum, for your comments. The next three speakers are JoAnn Disbrow, John Thatch, and Emily Bartolomei. Please remember to state your name and address for the record. JOANN DISBROW: I’m JoAnn Disbrow and I live at 16500 South Kennedy Road, and I have lived here for 33 years. I had not been quite as aware of what was happening until these meetings started to happen, and I think that’s a problem that a lot of us have. This is so much more than what we want or what we need, and I’m not sure, is it the money, the taxes they’ll pay? What is doing LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 this to this sleepy little town that is going to be impossible to drive through? Thank you. CHAIR BADAME: Thank you. Our next speaker is Emily Bartolomei. Hello, Emily. EMILY BARTOLOMEI: Hi. My name is Emily Bartolomei and I live at 131 La Cienega Court. I would like to say that I don’t like how this beautiful orchard is being cut down to build houses for people to live here, because more houses means more cars and more traffic, and more traffic means the longer the ambulance will take to reach the houses to serve the medical attention, and the more time that takes to reach, that person could either die or their health could decline, and I think that’s a problem if they are waiting so long because of the traffic; it shouldn’t happen that way. Thank you. CHAIR BADAME: Thank you, Emily. We really appreciate your comments. I just want you to know that we appreciate your participation this evening. Thank you so much, and Vice Chair Kane actually has a question for you. Not a statement, a question. VICE CHAIR KANE: Did you send us one of those picture drawings about the project? EMILY BARTOLOMEI: No. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE CHAIR KANE: Well, they were lovely, and thank you anyway. CHAIR BADAME: Thank you, Emily. All right, our next three speakers are Lucille Weidman, Tony Alarcon and Jak Van Nada. LUCILLE WEIDMAN: Lucille Weidman, 215 Carlester Drive, Los Gatos. Upon looking at the renderings of the conception of the drawings of the project, I felt, as so many have, that it’s not Los Gatos. What I wanted to show you, I have two minutes, is a 50-second slide presentation of what we, the residents of Los Gatos, feel and believe is the look and feel of Los Gatos. So with your permission. CHAIR BADAME: Yes. LUCILLE WEIDMAN: It will just play. CHAIR BADAME: All right, we’re having some troubles with the presentation. Is that Mr. Weidman coming to the rescue? Thank you. LUCILLE WEIDMAN: I knew I was going to get in trouble. CHAIR BADAME: We will be resetting the clock, so you don’t have to worry about your three minutes running out. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 LUCILLE WEIDMAN: I appreciate that. I’m a jinx any time it comes to anything technical. (Slide presentation is shown.) CHAIR BADAME: Thank you for the slide show. We very much appreciate it. LUCILLE WEIDMAN: I just wanted to emphasize what is Los Gatos, what is not Los Gatos, and with your consideration, please deny the application. Thank you. CHAIR BADAME: Thank you. Thank you. Tony Alarcon. TONY ALARCON: Hello, my name is Tony Alarcon, 229 Johnson Avenue. Many of you may have watched me speak before. Hello to the Planning Commission. Before I start, I’d like to thank my wife who let me come to speak tonight on my 19th wedding anniversary. She feels it’s important enough to our children for me to come speak tonight, and I appreciate the hundreds of hours that she’s let me put into this process. Mr. Capobres stated something, and I’d like to correct his misstatement. He has not been involved in the North 40 longer than anyone. R.J. Fisher, who was master of our Masonic Lodge across the street in 1954, and other stewards of our town have recognized this property and done LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 what we can to protect it, to control the feel and maintain the development of our town. I would like to accommodate the last speaker and acknowledge the film that she did. I think it truly represents what Los Gatos looks like. I’d also like to quote Mike Wasserman, because I, too, have been a developer, and Mike is probably one of the most respected politicians to come out of Los Gatos. I proposed to put a development on the Los Gatos Shopping Center, which is 30,000 square feet. I proposed to make it 45,000 square feet with a street between the buildings, and to put 32 senior units above it with some above age, and what he told me was, he said, “This is not Santana Row. That’s not the look and feel of Los Gatos. Do not even bring the plan forward.” And I think, Commission, that you need to consider that. I’m a littlie upset, because I’ve attended every single meeting on this North 40. I’ve been involved from the very beginning. I’ve seen it as a child when it was an orchard. And I’ve seen the developer get in bed with the Town in the Specific Plan. The developer should have been at arm’s length. They never were. I’ve attended the Los Gatos Community Alliance meetings, and it’s sad to say that we were sold a plan that LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I think was a lie, which will prove out post this development to be a lie. We were promised 273 RHNA unit credits for this development, because we had to do development with the State, and it’s my understanding that we’re only going to receive about 50 units. You can say that there’s been community involvement and we’ve gone through the process and we must now approve this project, but I don’t believe that’s true. I don’t think that we’ve been told the truth, and I think there is still time to modify the plan that’s been presented by Grosvenor to make it fit within our Specific Plan, because I do not believe that it complies, and that’s especially with the density bonus, as another speaker earlier pointed out. It’s for a specific builder, I know that best, having mapped 1,000 doors in the past as a developer, so please deny the current plan as it stands. Thank you. CHAIR BADAME: Mr. Alarcon, thank you, and Happy Anniversary to you and your wife. TONY ALARCON: Thank you. CHAIR BADAME: Nineteen years. Thank you. Mr. Van Nada. JAK VAN NADA: Good evening. I brought my teleprompter with me. My name is Jak Van Nada and I am here LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to support this project, the project’s developer, and the Specific Plan. A group of us started the Los Gatos Community Alliance about five years ago as we were watching the Town develop well past what we thought were sustainable development levels. As we learned about land use we came to understand that there are property rights of landowners. On a smaller scale, many of us exercise our property rights when we remodel our homes, and we can remodel them as long as they fit within the zoning restrictions of our neighborhood, and so can large landowners. With only three minutes I picked the following three major reasons we support this Specific Plan and the developer. Traffic will be mitigated beyond the level required by law. The developer will contribute an additional $10-12 million to improve traffic back to 2012 levels. They do not have to do this, but they have committed to do so. Schools are crowded, and yet Lexington School is underutilized even though it is a highly rated school. The North 40 developer is required to pay $976,000 to help defray the costs of any additional children. We know this is not enough. The developer knew this also and sat down LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with the school board, who, by working together, negotiated an additional payment to the schools of $6,369,000, or two contiguous acres of land. Those of you who want the housing to spread around the 44 acres should read and understand the costs of doing it, not to the developer, but to you, to me, and the school district. It’s substantial, and you can read about it on our website, lg-ca.com. My third concern was the density and intensity of the development. The Specific Plan calls for 30% of the land to be open space, which are about seven-and-a-quarter acres. Over four acres must be green, and one-and-a-half need to be open to the public. No other development has this percentage of space required, and no other developer has even 5% open space. Santana Row, which is over three times the density of the North 40, has less than 2%. Only one other developer donated money to the school, and it was Robson who donated $150,000 with houses that sold for at least double what the houses on the North 40 are predicted to sell for. Netflix got our own citizens to pass an initiative such that they wouldn’t even have to pay our increased traffic mitigation fees, much less donate another $10-12 million to make our traffic flow better. Is it any LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 wonder that the Lark/Winchester intersection is and will be a mess without your tax dollars to fix it? It’s for these reasons that I support this project and this developer. Thank you. CHAIR BADAME: Thank you, Mr. Van Nada. The next three speakers are Susan Buxton, Sandy Decker and Susan Kankel. SUSAN BUXTON: Good evening, my name is Susan Buxton and I’ve lived in Los Gatos for over 40 years. Like most residents who have lived here any length of time we knew the North 40 would be developed someday, and rightfully so. After attending multiple citizen meetings and presentations from the developers with my husband and our friends, we were pleased when the Council approved the Specific Plan. It stated on the very first page that the intent of the Specific Plan is to provide a comprehensive framework in which development can occur in a planned, logical fashion rather than a piecemeal approach. It then listed the Guiding Principles, and on the first page of Section 2 it stated, “The overarching goals are to ensure future development is compatible with surrounding areas, complements downtown Los Gatos, and contributes to the small town charm of Los Gatos.” LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It appears the developers chose not to follow these very important guidelines, and have presented instead an application that reflects the use of maximum building and land use specifications wherever possible. Using the maximum number, which the Specific Plan makes clear is a maximum, not a goal, the Applicant has presented us with a plan that includes the dense and massive placement of 270 housing units in the Lark District built in a grid pattern with narrow streets, blocking hillside views, and also that do not fulfill our need for affordable housing or provide RHNA credits. Except for the additional 50 Very Low income senior units to be built on top of a three-and-a-half story parking garage? The architectural style does not, “relate to the site, adjacent development, or Los Gatos community character.” While the Applicant may consider this consistent with the Specific Plan and the General Plan, including the Housing Element, the community is telling you it is not. It is not consistent with the stated purpose of the Specific Plan, the Vision Statement, the Guiding Principles, and the overarching goals. All of these were inspired by community input through Advisory Committee meetings, community workshops, Town Council, and Planning Commission study LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sessions, and should not be ignored, even if the Applicant chose to. “The Architecture and Site Application neither reflects, celebrates, complements, is respectful of or enriches the quality of life of all our residents.” All words from the Council Vision. The community looks to you to forward a recommendation for the denial of this application to the Town Council. Thank you. CHAIR BADAME: Thank you, Ms. Buxton. The next speaker is Sandy Decker. SANDY DECKER: Good evening, Planning Commissioners. I’m Sandy Decker; I live on Glen Ridge. The North 40 Vision Statement, as you all know, is the heart of the Specific Plan for the development of this 40-acre tract. It’s to ensure the protection of the uniqueness of Los Gatos. The development that you are reviewing tonight is diametrically opposed to the Vision Statement and Specific Plan for the North 40. May I read you the opening sentence of the Specific Plan? “The North 40 will reflect the special nature of our home town.” Does this reflect our home town? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 “It will celebrate our history.” What part of Los Gatos history does this bring to mind? “It will celebrate our cultural heritage.” If the cultural heritage refers to the agricultural heritage, this massive development will be responsible for the destruction of one of the last large-scale agricultural tracts of land in the entire area, and will leave us with some token spaces, one called a “garden retreat,” and a strip of grapevines behind a restaurant, and a large retail space bordered by parking. To buffer the dense residential units against the Lark side and from the noise and from toxins, the developer is providing three rows of trees, and he’s calling it “the orchard.” “The Vision Statement and Specific Plan will also celebrate our hillside views.” When it was announced the developer would be responsible for the photo evidence of compliance on this issue, I felt some independent evidence should be shown. What you have in front of you are four pictures of the obscuring of our hillside views from the three sides of the development we could get to. I will show them to the audience, but I’m afraid we tried this yesterday and the poles dim. However, you may be able to make out the fact that there is a tremendous loss of viewscape. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Now, these are the viewscapes that we are going to lose as a community as we drive by this, but picture the viewscapes you’re going to lose when you’re inside this massive structure. The last thing the Vision Statement directs this developer to celebrate is the small town character of Los Gatos. What about this is small town character? I’m sorry, I have to stop there, but please, please deny this project. CHAIR BADAME: Thank you, Ms. Decker, for your comments. Susan Kankel. SUSAN KANKEL: Susan Kankel, 99 Reservoir Road. I try not to think of myself as old, but here I am, a senior citizen and an old Los Gatan. I’ve lived here for over 65 years. As a teenager in the summer I went to my friend’s orchard on Shannon Road to pick prunes and to cut cots, as many kids did then. There were also pigs being raised. There were drying sheds, small barns, cottages and ranch houses on this and other properties around there. We were in the country. This is the agricultural background of this area of Los Gatos. The last reminder of this is the Yuki property, and this heritage is not being acknowledged in LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 this application, which is a requirement of the Specific Plan, C-3-2-4. The developer gives us one store and a couple of rows of trees, when what should be given is open space, not hardscape, and buildings with a rural feel, like the picture of 3-6 in the Specific Plan. This application gives us density and intersection, which sounds a lot like a city, not a town. It should be denied. Along with being an old Los Gatan, I am a senior citizen. When this proposal was first made public, move- down housing for seniors was included in a cluster like construction, cottage or garden clusters, like small villages. This has disappeared in the present application, thus ignoring the requirement of the Specific Plan to address one of the unmet needs of senior citizens. There are 5,236 seniors in Los Gatos who are over 65. Eighty-percent of these own their own homes, probably larger homes than they need; yet nothing was provided for them to move down. Perhaps these clusters of cottages could have been included in Phase 1 had the developer adhered to the Specific Plan to spread residential units across the entire 40 acres. Of the 5,236 seniors, 180 of them are subsidized in some fashion. This application offers 49 senior apartments for Very Low income seniors, and they’re over a store. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The lack of agricultural acknowledgement, the inability to address the unmet needs of senior citizens, and the refusal to spread residences across all 40 acres are absolute reasons to deny this application. CHAIR BADAME: Thank you, Ms. Kankel. We appreciate your comments. I’m going to have to ask you all, please do not clap. Thank you very much. All right, the next three speakers are Rod Teague, Lainey Richardson and Cindy Schneider. ROD TEAGUE: Thank you, Commissioners. My name is Rod Teague; I live on Johnson Avenue. First, I’d like to say that I’ve always embraced change. I’m from Los Gatos. I was in the real estate industry. I have a city and regional planning background from Cal Poly, and I understand healthy conforming development is a necessary component to any municipality. But, this current proposal is unprecedented and it’s been crafted and sold to this community using clever tactics. One of those tactics was State mandated low cost housing. This was the premise to approve this application. I attended some of the meetings with Los Gatos Community Alliance, and the developers and members of the Housing Element Advisory Board. Somehow there was an understanding LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that high-density zoning meant automatic RHNA credit. Unfortunately, that’s not correct. This is from HCD directly, which explains that, “Densities of housing for developments do not describe affordability for the purpose of crediting units against jurisdictions’ RHNA credits.” The community was told they were going to get 270 RHNA credits from the 619 allocated by the State. This is even used by Grosvenor on their FAQ page up for their website. In order to achieve this, we rezoned the North 40 at 20 units per acre and gave the developer a by right privilege. I now understand only 50 units may count towards RHNA. Again, 270 was a premise to drive this project. Speaking to the two RHNA authorities at HCD, which are Glen Campora and Jess Nigretti (phonetic), I understand the reality. The Town planned for 270 Low to Moderate income units, which you can see here, but under this application the developer will deliver 50. The rest of the units are market rate. When Los Gatos submits those potential 50 qualifiable RHNA units, HCD is going to say fine, but since you did not deliver 270 Low to Moderate as stated in the Housing Element, you now have to amend your Housing Element LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to reflect the locations where those 220 undelivered Low to Moderate units will be relocated. The premise for rezoning the North 40 high- density was bogus from the beginning. Approving this application achieves nothing, except for empowering the developer and their lawyers with a by right option so that they can bully this community into getting everything that they want. This application makes it impossible to execute the Specific Plan in a conforming and dignified manner. Thank you. CHAIR BADAME: Thank you. Mr. Teague. We are going to take a ten minutes break. We cannot have clapping. Lainey Richardson, you will be next. But I don’t want to have to give any more warnings in regard to the clapping. So we will take a ten-minute break. (INTERMISSION) CHAIR BADAME: Everyone please have a seat. Thank you. As a heads up, in regard to the clapping, it just slows down the process, and we’d like to hear from everyone tonight, and again as a heads up, we have about 20 speaker cards remaining. Some still might come through, so we will hear from everybody tonight, and that was my concern. So thank you everybody. We will fit everybody in tonight, so thank you. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Lainey Richardson is our next speaker. LAINEY RICHARDSON: Hi, Lainey Richardson, Golf Links Drive in Los Gatos. Thank you for your time and for listening to the concerns of your neighbors and constituents who live in the Town of Los Gatos. I am a 55 year resident of Los Gatos and I am requesting that you deny this application. I have many concerns with the current application and design for the North 40. My first concern is that the Vision Statement states that the North 40 will look and feel like Los Gatos. As you can see from the one-dimension rendition that I printed off the North 40 website, this project does not look like Los Gatos, it looks like the new Stanford Cancer Center on the corner of Los Gatos Boulevard and Good Samaritan Drive. This rendition looks and feels like a massive high-density apartment complex, not the town I grew up in. My second concern is that detached cottage clusters were promised, and I am unable to locate even one. I’ve handed you copies of two pages off of the North 40 website which show the types and location of the different housing models. Cottage clusters are not included in the rendition. Standalone, architecturally diverse, detached houses are what I am used to seeing in Los Gatos. The LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 developer stated they were included in their application, but I cannot find one. Another reason to deny this application. I realize that I cannot stop the development of this property, but I am very concerned that the developer has requested and applied for the maximum allowable units possible with the minimum amount of open space allotted. I would like to see a new application that includes the reduction of square footage for all units on the property, so as to meet the minimum required units, thereby opening up areas that might actually represent and feel like open space. By reducing the size of the units and incorporating more detached units, you have the power to create a new neighborhood in town that actually does reflect the look and feel of Los Gatos. Less and/or smaller units will reduce the traffic congestion, school overcrowding and water usage, which should be a priority for all of us who live in town. My last concern is your legacy. The developer will be long gone once this project is complete. They will not have to deal with traffic, school overcrowding to include potential busing of students up and down Highway 17, water shortages, et cetera. You could, however, be LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 remembered as the Commissioners who did not represent your neighbors and constituents’ concerns. Please deny this application. We can and should do a better job planning for the future generations of our town. CHAIR BADAME: Thank you, Ms. Richardson. CINDY SCHNEIDER: Good evening, Commissioners. My name is Cindy Schneider and I live on Matson Avenue in Los Gatos; I’ve lived here for 30 years. Thank you for your time this evening on what is undoubtedly the largest application and the most contentious our town has ever seen: forty-four acres of walnut orchards, the last largest piece of undeveloped land in our town, and one of the last in this valley. For many of the Town’s residents, and I know I speak for many in my oft-forgotten corner of Los Gatos, what we find most egregious about the application before you is how it came about, and the entitlement the developers apparently feel they have been given. Most residents believe the Commission, Staff, and Council not only represent them but are also stewards of our town, land, and all that is Los Gatos. However, I think it has been made clear by the collaboration from day one between the Staff and the Applicant that this perception and trust is unwarranted. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The Specific Plan, Housing Element, and the current application have been developed in parallel so much so that many residents believe the current North 40 application has already been approved, and that those story poles that were reluctantly installed in the first place are in fact a finished development. The letter from the developer’s attorney dated July 7th actually states how the Town should proceed with the application. While we appreciate the time and energy that all parties have taken, it is imperative that there be a separation of developer and Town, and that all recommendations be completely objective and based on information that is clear, concise, and that conforms to our Design Guidelines and the Specific Plan. When decisions have been made, and once the first walnut tree is bulldozed, let us be clear that if this application is approved the residents will be left with the adverse affects, including the destruction of open space, impact on roads, traffic, views, schools, and the sheer beauty of Los Gatos while the developers and Staff leave Los Gatos for their homes elsewhere, pocketbooks full. Thank you. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Thank you, Ms. Schneider. The next three speakers are Rhodie Firth, Ed Rathmann, and Alex Rivlin. RHODIE FIRTH: My name is Rhodie Firth. I’ve lived in Blossom Hill Manor for 50 years, and the only problem with what I have to say tonight is I’m repeating myself, because I said the same things at a Town Council meeting, but I want to be sure that you know after the man who represents the developer—and I’m sorry I don’t know his name—said his company has dealt with total transparency through this process. The community was invited about, I don't know, eight years ago, maybe, to a meeting by the developer to get feedback from the community, and so about 70 of us went to this meeting. These women from Grosvenor had huge pieces of paper pasted on the walls, and they said, “Please give us your ideas of what to do with the North 40.” So we gave them thousands of ideas of what to do, and they went through them and they wrote them all down, and they said, “As you leave, vote for the one you like the best.” There was not talk about buildings or businesses or any of that. And then she said, “Come back in a month and we’ll tell you what the results are of the feedback that you gave us.” So we went back in a month, and this is what we saw. They LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 obviously had it all planned before they had the community meeting, and I don’t call that transparency, so let’s not trust them. CHAIR BADAME: Thank you, Ms. Firth, for your comments. Mr. Rathmann. ED RATHMANN: Hi, my name is Ed Rathmann; I live on Blanchard Drive. If we take a step back and look at what is going on here, it’s pretty obvious that the vast majority of people here tonight, and I would say also the vast majority of Town residents, do not want this development to happen, yet somehow we’ve gotten to this point. You’ve been presented, through email and speakers tonight, with ample reason to deny this application. This proposal contradicts the spirit and the letter of the Specific Plan. Here’s another example of how this proposal does not conform to the Specific Plan. This proposal calls for 66,000 square feet of commercial space with potential for a total of 400,000 square feet. The Vision Statement of the Specific Plan says that the commercial part will be, “seamlessly woven into the fabric of our community.” How does this plan do that? And, “It will complement other Los Gatos business neighborhoods.” As the owner of two downtown businesses, I LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 can say with absolute certainty that this project will not help the downtown. The Vision Statement also says that the commercial component will, “address the Town’s unmet commercial needs.” I was at the original meeting four years ago when this Vision Statement was developed and approved. This section was put in as a protection for the downtown business community. If the Town does have unmet commercial needs, they are in the area of businesses like REI or Target, and not more restaurants, wine bars, and salons. That is a met need. The Town does not need 66,000 square feet of small retail, let alone 400,000 square feet. Frankly, if one wants to do serious damage to the economic vitality of the downtown, this plan will do it. Again, this proposal contradicts the Vision Statement of the Specific Plan. Please help the Council deny this application by voting it down. The Town will thank you, and future generations of Los Gatos residents who will still get to enjoy our downtown will thank you. CHAIR BADAME: And thank you, Mr. Rathmann, for your comments. Alex Rivlin. ALEX RIVLIN: Hello, my name is Alex Rivlin; I live on Carlton Avenue. I want to talk about two things. One is what happens after, and the second one is the cars. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 71 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Right now we’re looking at the pictures of the beautiful development, and typically developments fall into two categories: successful and temporary. When I look at some of the new developments, we talk about the Santana Row analogy a lot, and Santana Row is well and alive, but it is not as well and alive as it was when it opened. And if you look at another commercial development with a lot of restaurants on the corner of Story and McLaughlin, when that thing opened you couldn’t find parking there; it was all marble and crystal chandeliers, and nowhere to park. Today it’s probably 60%, so if you need some extra storefront space, probably it is available right there. I want you to think about what happens. Say, we start building units on day one and complete them three years later. Fast forward another five years, and think what will happen on that day. I’m not saying it won’t be successful. It may live very prosperously, like Union Square in San Francisco has been around 100+ years. But there are different options, and I want you to think about and look around at how fashion shifts from one neighborhood to the next, from Santana Row to Campbell, et cetera, and just keep it in mind that this development LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 will persist for many, many years and we need to think not on the day one when we move in and cut the ribbon, but on the day five years passed when the hype is gone. I have one minute left, and my second message is about the cars. So 300 units. There were a few conversations here about the traffic improvement, $10 million. Ten million dollars is a very remarkable amount of money, and it will probably significantly improve the intersection of Lark and Los Gatos Boulevard, which is great. But I live very close to there, and when I think about traffic, I think about what happens after that intersection when I get to the freeway, and 600 cars will need to get on those freeways, and you have the choice of two freeways here, 85 and 17. At the metering light, at five seconds per car, 600 cars will end up being 50 minutes of extra wait that I don’t enjoy today, but I will enjoy later, and that’s for me to get on the freeway. But the count argument is that we have two freeways, which is true, so that will be a 25 minutes wait. So if I am driving 17, you effectively put me 25 minutes behind towards Summit Road and then ask me to get to the same exact office where I am going right now without the 25 minute wait. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Well, that was my message, and I thank you. I have more details if you want, but it is really eating up a lot of to our experience of getting to the office and a lot of pollution. CHAIR BADAME: Sir, we… ALEX RIVLIN: Six hundred cars is two miles over a two-lane freeway if you have 10’ feet of it in the cars. I don’t drive 10’; I’m old enough to drive 15’ between the cars. That will be three miles of the cars. CHAIR BADAME: All right, sir. Sir, we did get your message. Thank you very much. Jeff Loughridge, Lisa Martinskis, and Sam Weidman. JEFF LOUGHRIDGE: Hi, my name is Jeff Loughridge; I live on Paseo Laura. I’ve never been a fan of what large groups or communities end up with for a solution to a problem. The North 40 project has been on the table for many years now, and it just seems like now, when many residents are just hearing it, our town has processes for how any development is approved. It’s not easy, it takes many detailed, boring meetings before any developer is allowed to break ground on a project. I have supported that process, and will continue to support those responsibly involved in that process. That includes the Town Staff, LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Attorney, and Manager. That includes the Planning Commissioners. That includes the Town Council members. Without this process, things would be even more chaotic in town. Throughout this process the one truth is that in order for it to work, it has to deal with facts. Facts help to determine the best solution. Misinformation causes much harm to the process and needs to be cleared up as quickly as possible. I urge this Commission and Staff do that as soon as possible, because I’ve heard a lot of misinformation tonight. The Town officials are not the bad guys here. It would be more appropriate to direct anger in the direction of our State capital. That’s where our high volume of high- density affordable housing requirements started. That’s where the SB50, which puts limitations on what towns and cities can do regarding developments and school impacts, started. That’s where transportation engineers have written our traffic requirements about what is mitigatable and at what level what is determined sufficient. That’s where the EIR as well as CEQA requirements came from. Whack a Mole is an arcade game in which players use a mallet to hit toy moles that appear at random back onto their holes. I’m using this reference to a situation LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in which we make attempts to solve a problem that are piecemeal or superficial, resulting only in moving the problem somewhere else in town. I was a member of the Los Gatos Housing Element Advisory Board. We worked long and hard at not only researching what we were dealing with, but also at finding a solution for our town that produced the most minimal impact. Contrary to what you heard earlier tonight, all 320 units of the North 40 count towards our Los Gatos required affordable housing number of 619 units, period. The qualification here was the units must be built at a density of 20 units per acre minimum. Unfortunately, any suggested changes that might affect that number will impact our town in some other way, and based on our work on the Housing Element Advisory Board, a much worse way by being relocated. Think Higgins Park on Blossom Hill, or Los Gatos Lodge on Highway 9, each at a minimum of 20 units per acre. What qualifies as traffic congestion, school impacts, and housing density are things that the State has pushed on us. Don’t blame our Town Council, Planning Commission, or Staff for something our State legislature passed. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I am here tonight to support this process and the development, and that is a part of it. My hope is that others will show their support in a positive, responsible manner. CHAIR BADAME: Thank you, Mr. Loughridge. LISA MARTINSKIS: Hello, my name is Lisa Martinskis and I live in 84 Highland Avenue. I was born and raised in this town, and I’ve seen it evolve over the 39 years I’ve been here. I went away to college, but came back here to live, because this town has a very special place in my heart. My father, Al Martinskis, who I’m sure you’ve heard from a lot, is a retired architect and he’d say that the current application is failing pretty miserably at upholding the Town’s quaint look and feel. He couldn’t be here tonight, but I’m speaking on his behalf as well as many of the Los Gatos residents who couldn’t be here, because we like to believe that our voices matter. I echo the opposition to this development, but especially so from a traffic and emergency vehicle standpoint. That little girl hit the nail on the head. As a resident of the foothills, I’m very worried that the traffic and population increase will impede safety vehicles in the case of a medical emergency or fire and end up in LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 77 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 disaster. As a member of this community, I have a vested interest in not only the safety and quality of life for myself and my family, but that of the rest of the current residents as well. I’d also like to add that in the 350-plus page application that I perused today that you have posted online, not one page references any sort of a traffic solution, and I, for one, find that very suspicious. Please deny this application. CHAIR BADAME: Thank you. SAM WEIDMAN: Sam Weidman, Carlester Drive. Last Friday I received the Staff Report basically relative to what’s going on tonight and this weekend, and one of the things I noticed on there is there is a question: Are there examples of developments at 20 units per acre in town, and how big are those units? I saw the list of five locations and decided to go out and take a look at those, just to find out for myself what 20 units per acre looks like. Aventino Apartments, Bay Tree, Riviera Terrace, Lora Drive Condominiums, and Oak Rim Way. I also found out some interesting information I’ll put out as we go along. This is Aventino, which is over behind the Netflix building, the old one. It’s essentially 46 units LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 per acre. That line I drew around the site is basically if you want the acreage, so it comes out to 7.55 acres. At 46 units per acre, that’s 347.3 units within a 7.5 acre location. This is basically what it looks like more at an angle. The interesting part is the buildings; they’re not all in straight lines like the Grosvenor area is going to look like. It does have quite a bit of open space in between buildings, et cetera, and green grass. Bay Tree Apartments; they are on Massol at the western end of Almendra. Kind of hard to see here. There’s a construction truck, part of the street repair. But what it is, it’s in the middle of—if you want the residential area—where we have the usual detached homes of eight per acre. This is the top view of it. Again, this takes up about 2.32 acres, or 48.72 units if it is a 21 per acre location. Again, it is amongst the residential areas, housing all around it; you can barely actually see it with all the trees now that have grown up around it. The Riviera Terrace; this is off University Avenue. It’s a large unit also. It’s designated RM:12-20, 3.33 acres, 119 units at 36 units per acre. That light colored portion in the middle of the building, right here, there is residential here, and there are other apartments over here. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Lora Drive, Wedgewood Manor. This was originally senior housing. It was originally designated as eight per acre, got changed into senior housing. I believe it’s now open to anybody as far as condominiums. And again, it’s in a residential area, as shown here. We also have Oak Rim Way and Oak Rim Court. Again, this was amongst… There’s also 600 Pennsylvania, which also has, again, a higher density amongst residential area, so it can be done, but also if you look at it as very big, very compressed. Thank you. CHAIR BADAME: Thank you. The next three speakers are Markene Smith, Jeanne Torre, and Kim O’Rourke. MARKENE SMITH: Hi, I’m Markene Smith; I live on Drake’s Bay Avenue near the North 40 and have family scattered all around town. I’m very opposed to the North 40 for public health and safety reasons. First of all, it’s been pointed out to the Commission and to all of us at several meetings that the proposed units that we see along Highway 17 as we’re turning onto Lark are, according to the Environmental Impact Report, high risk for cancer, leukemia, lung problems, asthma, all these things, and the developers who claim that we’re not for kids, the attorney was saying that LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 we’re against children, and actually, they’re putting children, pets, and everybody else at risk by putting just globs and globs and globs of houses right in the exact most cancerful region of the 40 acres, and right there, that to me is a clear reason to deny the application. Another big thing is the privatization, the private streets. This development is between two major freeways, 85 and 17, and let’s say the Waze app directs people through the development to get faster to Netflix or to 17 or to wherever, or from 17 to Samaritan Hospital? They’re going to cut through the private streets, and let’s say someone… Like these units look so cookie cutter, they look exactly like the unit that George Zimmerman was trying to defend on his private street when he shot Trayvon Martin, who he didn’t expect to be coming through his street and didn’t recognize as being in the neighborhood, but we’re asking the public to use private streets. That to me is a giant danger in a location such as this that is right on major thoroughfares. Not only that, but also the children, pets, and seniors have no safe pathway. Even after the proposed improvements on Lark and Los Gatos Boulevard they’ll have no safe path over Highway 17, and there is no place for children to play. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I was just going to close by saying that this also doesn’t satisfy any of the RHNA requirements, which is to cut down on pollution, and to put all the new developments near public transit to get the cars off the streets and cut down on greenhouse gases, so it would be near public transit, and we don’t have that yet. We have no Los Gatos light rail station. I think it should be denied until there is one. Thanks. CHAIR BADAME: Thank you. Jeanne Torre. JEANNE TORRE: Hello, I’m Jean Torre; I live on Willow Hill Court in the Charter Oaks neighborhood. I’m not universally opposed to development, or even to higher density development. I have been, however, and remain concerned by development without a clear plan for measures needed to address the demands that development will make on the infrastructure, especially on traffic, and I don’t see that here. For the North 40, there is no transit option for its residents, except for cars, to get to their likely work places, or even to businesses in other parts of Los Gatos. Other than Los Gatos Boulevard and Lark, the only plan I see is for a right turn only lane on Lark between the exit from the development and the northbound ramp to 17. There’s nothing that even addresses the bottleneck that will be the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 82 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 two lanes each way bridge over Highway 17 or the rest of Lark Avenue. We’ve seen the effect of the Albright development on Lark Avenue. Its mitigation was a free-flowing right turn lane from westbound lane to northbound University, yet it’s only half built and we’re regularly seeing westbound Lark traffic back up over the creek bridge. I look to the Town to ensure that plans are in place that addresses the whole impact to nearby roads, and not just the roads in the North 40 and bordering the North 40 properties, and to do that before development proceeds. Thank you. CHAIR BADAME: Thank you, Ms. Torre. Kim O’Rourke KIM O’ROURKE: I’m Kim O’Rourke and I live off of Rochin Terrace, and I wasn’t planning on coming. I was actually reading a book on the passenger pigeon today, and did you know that they lived for 300,000 million years, and the government and us humans within a decade-and-a-half allowed them to become completely extinct by slaughtering them? It reminded me of the North 40, because once we allow this huge development to take over that land, we can’t change it. It’s there. We can’t bring it back. We can LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 83 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 slow it down. We’ve heard a ton of statistics of why we shouldn’t have it. I recently was at a Council meeting for one of my friends that was developing a business in Campbell, and it was a similar circumstance where the Council wanted a lot more restrictions, and he didn’t get what he wanted. They said, “Prove yourself.” I look at the developer, and I say work with the Town, work with the people. That’s what they said to him: “Work with us.” And he, in the last year-and- a-half, worked with the town, worked with the people, and now he has a thriving, successful business that the people enjoy. So we’re asking the same. We’re asking you guys to think about slowing this down, thinking about it, because we’re not going to be able to change it, and for you, the developer, to start working with us. CHAIR BADAME: Thank you. The next three speakers are Chris Chapman, Joseph Gemignani, and Colin Heyne. CHRIS CHAPMAN: Hello, my name is Chris Chapman; I live at 201 Mistletoe Road in Los Gatos. What I’m concerned about is in the event the Town Council denies the application, based on the letter dated July 7th regarding the developer’s intent, or threat of litigation, I’m concerned that the Town may not have the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 84 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 financial resources to mount a legal battle. I’m worried that the Town will approve the development to avoid lengthy litigation, and that would have a long-term negative ramification on our town. CHAIR BADAME: Thank you. JOSEPH GEMIGNANI: I’m Joseph Gemignani, National Avenue, Los Gatos. Maybe in the future call me Joseph the Weatherman, because that’s my email address. I’m the weatherman. I kind of want to echo some of the things that that lady over there was saying. Getting some water, I accidently ran into one of the lead architects of the projects. This person seemed very friendly, open minded, and I hope this person is listening. I think that they’ll be willing to at least listen to our ideas and make some changes to this project; ask the person to make some changes. Back in 2011, actually in the summer—and I’ve got the results here if anybody wants to see it—the Town of Los Gatos asked us to do a survey, the people that live in Los Gatos, and I participated in the survey. I’ve got here the results of the survey that I’d like the architect to listen to. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 85 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It says here the people wanted traditional looking buildings, traditional for Los Gatos sense or California sense; I’m from Chicago, not that kind of traditional. Traditional Los Gatos California, and it also said they preferred like Mission style buildings, and finally they wanted a mix of buildings, which I did too, because it’s 40 acres. When you have a big project like that you don’t want it to look like a subset of a city. That’s a huge area. By having a mixture of styles, incorporate some Mission architecture, whatever, our old Los Gatos look. You can have that agrarian look if you want, too, I don’t mind that. Have a mixture, but take into consideration what the people said, otherwise, why do a survey? We did the survey, and it doesn’t reflect what we wanted. I mean what did we do the survey for? Suzanne Davis was the one that I guess handled the survey, and I know she’s not here anymore, but I do have the results of that here if anybody wants to see it. Again, the architect seemed pretty open minded. Have her revise the project, put in some Mission, go ahead and do your agrarian look. I think that modern is kind of way out of place; it reminds me of Illinois. It’s a big 40 acres. A mixture of buildings would look a lot better, so LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 86 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 when you’re driving you don’t say, “Here’s Grosvenorville.” You want to say this is part of Los Gatos. It’s a big park; you gotta have a mixture of styles. Thank you. CHAIR BADAME: Sir, if you’d like to submit the survey to Staff, they’ll be sure to distribute it to the Commissioners, probably by tomorrow. Thank you. COLIN HEYNE: Thank you, Commissioners. My name is Colin Heyne. I actually don’t live in Los Gatos. I’m here representing Silicon Valley Bicycle Coalition. Some of you may be familiar with us. We’re a nonprofit. We have a mission to create a healthy community, environment, and economy through bicycling in San Mateo and Santa Clara Counties. We have several members, 2,200 in all, across both counties and several in Los Gatos. The way we accomplish our mission, getting more people on bikes, is twofold. One, we have programs and services you may be familiar with: Bike to Work Day; more Safe Routes to School, where we teach children how to walk and bike safely. Two, we also work to create a built environment that makes it a safe and welcoming place to ride a bicycle. So we’re usually pretty enthusiastic when a developer contacts us and says we’ve got an opportunity to change the streetscape to make something safer for LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 87 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 bicyclists, and to contribute to a community that makes it possible to get around by bike rather than by car. That’s what happened with the North 40 development team about two years ago. They contacted us and they said, “What can we do to make this development better than average, above and beyond for bicycling and make it safe, to make bicycling a realistic transportation option for people who live here, work here, and come here to shop?” And we said bike parking is good, bike storage, safe places for people, maybe some repair stations. Pie in the sky? Connect to Los Gatos Creek Trail. Maybe get people safely across Highway 17. And they said, “How do we do that?” and we said, “Well, you’re going to have to spend some money. You’re probably going to have to contact a design firm that specializes in bicycling,” and they said, “Give us some names.” So this has continued over the last two years. We’ve checked in with the development teams several times. They bring us new options for improving bicycling in the area, we give them feedback, and every time they bring back an improved design. We’ve been really happy with our experience working with them, and we think this is a great opportunity to promote bicycling in Los Gatos and to give LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 88 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 people a healthy option, an alternative to driving a car. Thank you. CHAIR BADAME: Thank you, Mr. Heyne. The next three speakers are Jeffrey Aristide, Ken Cubbon, and Susan McElroy. JEFFREY ARISTIDE: Good evening, I’m Jeffrey Aristide at 102 Noble Court. I request that the Commission deny this proposal for the following reasons: It’s clear that there is going to be view blockage from these buildings, especially the tall ones. It’s definitely not the character of the Town. To me, that’s a modernistic style. Certainly the density is much too high, and one of the criteria was low intensity, which this doesn’t have; it’s just too large. It should be reworked and rescaled. Thank you. CHAIR BADAME: Thank you. Ken Cubbon. Last call for Ken. Susan McElroy. SUSAN McELROY: Good evening, I’m Susan McElroy; I’m the PR marketing rep for The Butter Paddle nonprofit gift store in Los Gatos, and our address is 33 North Santa Cruz Avenue. I’m happy to be here. This evening, to represent our gift store the best, I’m going to defer to a real special person that has LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 89 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a lot more experience with our store and our organization, and that’s Caryl Pozos. CARYL POZOS: Hi, I’ll make this short and to the point. I represent small retail in Los Gatos. Our store has been operating for almost 50 years. We moved from sleepy Saratoga six years ago to charming, vital Los Gatos. We like being there, but we are concerned about remaining healthy and vibrant and competing against big commercial ventures. I think I can drive ten minutes and I can be in Santana Row, I can be in Westfield Mall. Why do I need to just drive five minutes, and have more people in a very enclosed area? I noticed that there was a Specific Plan that was approved last June 2015 by the Town Council, and it says that it “would require every applicant for a new commercial use within the North 40 Specific Plan area to submit an economic market study to assess the proposal’s impact on downtown competitiveness.” They’ll submit it. What do we have to say? How do we know what they’re saying and what the grounds of your approval are? I am just concerned that both North 40 and downtown Los Gatos will not survive. We will not be a vibrant downtown any longer. It will go the way of Saratoga. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In sort of closing my thoughts, when did building more help to control overdevelopment and overcrowding and too much traffic? CHAIR BADAME: Ma’am? Your name was Caryl. I didn’t catch your last name, but I don’t have a speaker card for you, so if you could be sure to fill one out. And we do have a question from Vice Chair Kane. VICE CHAIR KANE: As a merchant downtown—and I meant to ask Mr. Rathmann this question—I’m wondering what possibility do you see in a reverse argument that this development might provide you with more business, more traffic? I see people taking the position that it’s going to hurt. I’m also thinking downtown is charming. Those folks may want to come and shop, like everybody else does. CARYL POZOS: Well, I don’t see somebody moving from North 40 and saying let’s just run over to downtown, and maybe we can’t find parking anyway. I just don’t see that happening. That’s all I can say. I don't know what would be the grounds to think that because they were there, that it would bring more business to us. CHAIR BADAME: Thank you. Don’t forget about that speaker card. The next three speakers are Michael Gordon, Tom Thimot, and Mahnaz Tankamani. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MICHAEL GORDON: Thank you. My name is Mike Gordon; I’m a 27 year resident of Los Gatos, currently raising three children in Los Gatos Union School District. I had some prepared remarks, but I want to just comment. I think it’s disingenuous of the developer to threaten litigation if we don’t follow strict guidelines as in blind men designing an elephant, and not have the capability to look at the project in total and decide what’s best for our community. I find that extremely disingenuous, and certainly not in the spirit of working with the community. Secondly, I think some of the so-called facts that have been indicated by the developer also strain credibility. Number one, to believe that with some modest amount of spending for traffic mitigation, I think they’re talking about $10 million or something along those lines, that you would see a 13% increase over 2012 traffic but would result in a 26% decrease in the time to navigate those same areas. I think that you can create studies to get the desired result any time you want, and I think that this is probably more in that category than not. I find it interesting that Staff is not really able to validate those particular facts, I think as was LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 stated earlier, at this point. So again, I find it interesting that those things have not been discussed already with Staff, but yet made part of their presentation in support of this project. Lastly, I think I’d like to talk about the school situation. When my daughter started at Van Meter—she’s now in the 12th grade at Los Gatos High School—Van Meter had roughly 310 students. At the present time Van Meter has over 625 students. Same area, same physical plan, and yet we have over double the number of students in that area. Anybody that believes that this development will not seriously impact our schools is kidding themselves. You can come up with all the statistics you want, you can talk about there are only going to be a certain number of kids coming out of that development. Life will out. There will be more impact to our schools than we anticipate. Secondly, the fact that they’re going to donate $10 million to our school district, that is a drop in the bucket. We just spent $14 million building a gym at the high school, so if that has any impact on our schools, we’re kidding ourselves. I just would like to say that I think this is an ill conceived project that does not take into account the impact it’s going to have on our community. Thank you. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 93 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Thank you. Tom. TOM THIMOT: Hi there, Tom Thimot, Johnson Avenue here in Los Gatos. Together with Rod Teague, co-founded Town Not City. Thank you very much for your service to the Town. I think you’ve all read the 600 or so letters that you just recently received, the thousands of letters. Hopefully you’ve taken a look at our Facebook page. This town does not want this application. You don’t have to count up the votes; it’s clear. The Town wants you to deny this application. Why do they want you to deny this application? The fact is as much as most of us would like to complain about the traffic, the EIR pretty much takes that argument away, and we’d love to complain about the schools, but SB50 doesn’t allow us to do that. So let’s talk about the facts of why this should not be allowed. First, the application must adhere to Los Gatos town character. That’s not Los Gatos town character; you’ve got 600 letters that tell you that. The second is the application must embrace hillside views. Stand anywhere and look up at those story poles and try to see the hills above them. Can’t. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 94 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Third, the application must be low-intensity housing in the Lark District. The nice report the Staff put together talks about high-intensity housing. The Specific Plan requires low-intensity housing in the Lark District. That’s not low-intensity. That’s high-intensity. You don’t need to be a judge or a jurist to understand that. So when you’re looking at this, please, stand firm in your negotiating position. This town, if you surveyed them, would tell you bring the litigation. Bring it on. We don’t want this project. We don’t want it the way it’s been designed. And in the chess game you kind of check mated yourself, because instead of offering this Commission the ability to say hey, we’re going to modify this and we’re going to modify that, you basically said take it or leave it. Take that, or leave it. Well, we want to leave it, and we’ve said that, and the Town has said that. You have the letters. You have our Facebook page with 50,000 comments hating this thing, and these are from people that are Los Gatos residents that you represent. So please, please, listen to those constituents, hear them out, and then stand firm. This isn’t Los Gatos town character. It is high-intensity and it does not LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 95 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 embrace hillside views. Those are objective things that a court and jury and a judge will defend. Fight it. Litigate. CHAIR BADAME: Thank you, Mr. Thimot, for your comments. Mahnaz Tankamani. Last call for Mahnaz. Angelia Doerner, Shawna Rodgers, and Peter Curtis, and we’ll be done. Not all the way, guys. Don’t get too anxious. We have a lot to talk about. Two more cards. ANGELIA DOERNER: Hello, Angelia Doerner, proud resident of the Almond Grove. Everybody has already discussed about Policy 01 as it relates to open views, protecting our views of the hillsides. Obviously our views are not protected, and obviously no one within this development will ever see a hillside review. I see no evidence that none of these pictures are even achievable in this plan, so as far as Policy 01 is concerned, it has failed. Let’s go to Policy 02; let’s talk about the landscaping buffer. It should provide an opportunity to incorporate sitting areas for passive recreation. The perimeter buffers are very narrow with abutting on-street parking. There is no opportunity that has been identified, therefore we cannot consider that policy fulfilled. Policy 02 failed. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Policy 03; provide an open space network. I’ll talk about parks and passive open space in a moment, but specifically 2.54, the Specific Plan provides incentives for consolidation of parking, minimizing at grade parking. There is no underground parking in any of these residential units. I’m just showing you an example here of a garden cluster, which I chose, as it is adjacent to the community park. Thirty-four percent of that mass is related to parking. I also have a question as it relates to the private space within that particular cluster. The developer has used an assumption that it’s 50/50 between hardscape and green space. This is very critical, because the green space in the Lark District is being used to offset inadequacies of green space in the Transition District, so we need to have this verified, and until this is verified it looks to me visually that there is an awful lot more hardscape in all of those private areas, all these garden clusters that what they’re getting credit for. So as far as I’m concerned, let me guess. Failed. Now, this is a picture of the community park enlargement plan, which is in the developer’s plans. What I have marked out here is all private areas related to those garden clusters. Very misleading, very deceiving, thinking LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that all of that is actually community park, so let’s get rid of that. What you’re looking at now is a length of 235’, 78 yards. The width is 85’ viewed about three linear areas. Visualize the total space as it compares to the football field on the right. Now, add all of these things. My goodness. Bocce court, fire pit lounge, café seating, grill, communal dining, community gardens, and people will still be able to relax in hammocks and enjoy this passive space, all in that area down there on the bottom as it relates to a football field. I don’t think so. Shadow impact, also troublesome. Please let me continue. CHAIR BADAME: Fifteen more seconds, and then you’re going to have some questions that might allow you to continue even longer. ANGELIA DOERNER: Let me go to the Grand Paseo, because this is very important. Section 2.31 of the Specific Plan, the Lark District, says, “Lower density residential is envisioned in this area.” It’s interesting that the developer, on page 12 of his plan, says, “Moving from the lower intensity Lark residential area.” You’re kidding me. He’s even calling that lower intensity? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 98 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 But also, the Grand Paseo is actually a tunnel going through three-story high buildings. It is only 12’ wide. CHAIR BADAME: Okay, I’ve got to stop you there, but we have questions for you. I’m going to start with Commissioner Hudes. COMMISSIONER HUDES: Thank you, and I’ve read all of your correspondence. It looks like you have some additional information in this presentation to what you previously emailed. Would you be willing to provide this presentation for us to consider in our deliberations? ANGELIA DOERNER: Absolutely. COMMISSIONER HUDES: You can send that to us? ANGELIA DOERNER: Sure. I believe I sent a copy of my slides to each of you, but I will give you the written information, and I think it’s really important for you to look at this, as it relates to most of our community parks in the area. This idea of community park in Grand Paseo is absolutely contradictory to what our community considered open green space, and if you look at no restrooms, no sports, which relates to adults and children, no playgrounds. We want playgrounds. Look at how many playgrounds we have throughout our town. We love children, LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 okay? And no real area where you could actually do a picnic of any kind. CHAIR BADAME: Was your question answered? COMMISSIONER HUDES: Yes, it was, thank you. CHAIR BADAME: Thank you. ANGELIA DOERNER: We have our Willoughby, but for new residents who we want to be Los Gatans, what will it be? Thank you. SHAWNA RODGERS: Hello, my name is Shawna; I live in the Blossom Hill Manor, and I’m here representing my family who live on Alpine Road and off of Summit Road. I went to St. Mary’s in downtown Los Gatos, as did my brother. I went to Archbishop Mitty and he went to Bellarmine. We went away to college. We moved back, because Los Gatos is this green, luscious place where we love being. I understand change is imminent with State regulations, and that new housing has to be developed, but I implore you to find a different way to do it. I work in Santana Row, I’m a fresh graduate, and people don’t need any more stuff. We have enough shops. We have enough product. I see people everyday that come in like, “You have anything new?” Like we’re a little bit dulled to this consumer lifestyle that’s being pushed in LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 many parts of the country, and our little town doesn’t need it. We need more trees, more parks, more places to raise our children. My brother and I are getting towards the child-bearing age, and I get really concerned thinking about do I want to raise my kids here? I know my family doesn’t want it, and I can’t speak for other people, and the last thing that I want to say is that when people speak, you can usually tell like what part of their body they’re speaking from and like whether they’re speaking from an honest place or speaking from a place of really wanting to do good, and humans have this like imbedded lie detector system. Like we can tell when someone is selling us something. We can tell when someone is lying; it’s fairly obvious. Lawyers, and you may have heard of the sophistry from ancient Greek times. There’s this thing that they can do where they can take words and confuse you and make you think a certain thing, and make you think that they’re coming from that honest, true, and genuine place, but only you can tell when someone is speaking from that place. So I just ask you, when you guys are making your deliberations, to consider who you’re trusting our town to. That’s all. Thank you for your time. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 101 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Ms. Rodgers, don’t go away. Vice Chair Kane has a question for you. VICE CHAIR KANE: Just one question. Would you like a job in Town government? SHAWNA RODGERS: I’ve thought about it. VICE CHAIR KANE: Very well done. Thank you. CHAIR BADAME: Yes. I second that. PETER CURTIS: I think I was last, yes? Peter Curtis. CHAIR BADAME: Peter Curtis, but we have speakers after you, but you were the last of the three that I called, so please precede. PETER CURTIS: Thank you for hearing me out. Getting this late in the meeting, and after many meetings, some of which I’ve attended, a lot of things have been said. I don't know that I have anything new to add, other than I think that the number of speakers here tonight in support of the project as it stands, and somewhat protesting against the way the project stands speaks very loudly. I believe I counted only two citizens in support of what we see on the wall there against it must be 30-35 people against, so I would urge you to consider that. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 102 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 There seems to be a lot of confusion over the RHNA aspect of this project. I haven’t heard definitively I think from either side what it is. I would really ask that the Council get this right and communicate it back to the citizens; it’s very concerning. Finally, like many people I think, it’s kind of anecdotal. One of the greatest fears in life for many people is speaking publicly. For me, that’s very true. I came here to be sort of a silent supporter of some of my friends who are not in support of this plan as it stands, but my fear of this town turning into another cookie cutter town with a cookie cutter looking development on the edge of town is greater, so hopefully that’s worth something. I overcame that. I’d like to see us all overcome this and get to a better solution. Thank you. CHAIR BADAME: You did a great job, Mr. Curtis, with your public speaking. We do have positions in Town government, you know. All right, our next three speakers are Ken Arendt, Bruce McCombs, and the last card goes to Roy Moses. KEN ARENDT: Good evening, my name is Ken Arendt. I recognize most of you. I’ve been in and around this town for over 40 years. This is not my first rodeo with the Planning Commission in town, and I have a lot of respect LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 103 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 for what you guys do and what you put up with, and I appreciate that. I did have some prepared comments this evening, but I’m going to have to change them a little bit based upon what we’ve heard this evening. I was going to do some sort of hard hitting recap and make it pretty obvious as to what’s going on, but you got all of that. We know that change is inevitable. It’s being driven by a British firm, ultimately. There are millions of dollars at stake in this project. They’re determined to see it through. We know what their agenda is; it’s money. But I think they made a huge mistake in coming here tonight, especially in the July 7th letter that was sent out. A lot of us came here with specific and objective, and they had some subjective comments and ideas, but I think with an underlying feeling like we know it’s going to be developed someday, but lets do it the right way. But they didn’t come here that way. I think that you guys in good conscience have no choice but to go ahead and deny the application as it stands. If you want to go ahead and tell them something, it’s to wake up, maybe get better advisors than they have, come back with something that the Town of Los Gatos and its LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 104 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 citizenry can support. Right now as it stands, we can’t do that. You can’t do that. Thank you. CHAIR BADAME: Thank you. Bruce McCombs. BRUCE McCOMBS: Good evening, my name is Bruce McCombs; I live at 16160 Kennedy Road in Los Gatos. My wife and I have lived here in Los Gatos all of our lives. In fact, we first met right across the street in the softball field of the Los Gatos High School many, many years ago. Like you and almost everyone in this room tonight, we love our town very much. There are a number of areas I’d like to address this evening, however, given the limited amount of time that we have, I’ll focus on those areas I believe are most important. The first is affordable housing. I agree that we need more affordable housing, and the obvious way to make that happen is by making the houses smaller. Smaller studio size units would be less expensive to purchase or rent and would satisfy the housing demand by young Millennials. Small one-bedroom apartment or units would be a much better fit for Millennials than the 1,500 to 2,000 square foot units being proposed in this application. This housing should be placed on the northern end of the 40 acres, where building size is less conspicuous, and where carpooling and company buses are close to Highway LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 105 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 85 for the transportation needs of the residents of the North 40 to travel to and from work. Seniors who are downsizing want a community experience with plenty of open space for walking, reading, entertaining our families, and especially for entertaining our grandchildren. The Town knows this. So does the developer. And yet it seems that we seniors have been completely forgotten. How is this possible? I’d also like you to know for the record that Los Gatos currently has a total of three senior housing facilities. They are The Meadows, The Terraces, and Los Gatos Commons. My wife and I recently looked into moving into The Terraces. We were told that the current wait to move in is between one and two years. And by the way, if that’s not an unmet need, I don't know what is. One to two years of wait. All these facilities feature much smaller units than the developer is proposing for the North 40. Each of these facilities provide plenty of true open space, along with community rooms where people can meet and talk and hold group meetings on topics of interest. This proposal doesn’t include any of these important features, and instead attempts to hide the only senior housing in the proposed development right above the marketplace. That’s LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 106 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 not right. We seniors don’t want to live above a bustling, busy, noisy market with constant noise from cars coming and going at all hours, along with delivery trucks, and of course the unmistakable and always very pleasant sound of commercial trash collection, which invariably occurs first thing in the morning. We seniors worked all of our adult lives. Now we’d simply like to retire here in our lovely Town of Los Gatos to enjoy some well earned, and much needed, peace and quiet. In conclusion, this is not the time for the Planning Commission to say this has gone on long enough, let’s get it over with. Instead, let’s not be intimidated into approving something we simply don’t want. I urge you to please stand together with the residents of our Town this evening and emphatically deny this application, and I, for one, believe that we will. Thank you. CHAIR BADAME: Thank you, Mr. McCombs. Roy Moses, and we will have one speaker after that, and that will be Shannon Susick, unless we get another card. ROY MOSES: Hi, Commission members. Nice to see you. My name is Roy Moses; I’ve lived on La Croix Court in Los Gatos for 47 years with my family. I’m just coming off a vacation, and I was kind of waiting this evening, because I wanted to see what was LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 107 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 going to be said, and everything has been said, and I was thinking, well, maybe I won’t get up here. But I did write some things, and it’s probably everything that has been said but in just a little different way, so I’m going to just give you these remarks. And thank you for all the work that you’re doing. You’re faced with an obvious challenge here, but I know with you and the citizenry, we can get through this together. I’m asking the Planning Commission to deny this project tonight and return it to the developer, along with a fresh copy of the Specific Plan. I ask that you require the developer to carefully read the Specific Plan from cover to cover, and then propose a project that meets the requirements of that plan in both letter and spirit. Land owners and developers, make your plans consistent with the Specific Plan for the Town of Los Gatos, which spells out what this town is and should remain, a Vision that is consistent with the core issues being raised here tonight. The Town of Los Gatos is a very precious piece of earth on our small planet, which does not deserve to have its landscape scarred. I want to see the whole North 40 developed to capture the essence of Los Gatos, like the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 108 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 southwest side of our town, which I believe is described in the Specific Plan and was shown here this evening on the screen. We do not want to change the essential character of this community by defacing it with large, obtrusive, high- density buildings with inadequate open space, limited ingress/egress to the 40 acres-plus, and lack of roadways that cannot currently handle the Los Gatos Boulevard traffic problems. With the addition of this small city being proposed within our town could come the future needs and burden on the citizens of Los Gatos through bonds and other forms of taxation to improve growth and maintain all the services that will be necessary to sustain this development, for example, building new schools. You’ve heard this before tonight. Water supply, added fire and police services, healthcare, and road maintenance, et cetera. Please reach back to your roots and look deep into our souls, especially if you live in and love this town, and do what is right by denying this North 40 Phase 1 as it exists. We are asking you just to do it right. We need to develop a comprehensive plan for all 40 acres of the North 40, and include within that the Phase 1 development of Yuki Farms’ 20 acres-plus, which will help LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 accomplish the goals of the Specific Plan. A piecemeal approach to developing the 40 acres will not accomplish those goals. We, the people of Los Gatos, expect you, the Planning Commission and Town Council, to deny the North 40 project. Let’s make this development something that all of us can be proud of, and one that we can all enjoy for many generations to come. Please, and thank you in advance for all the past, present and future due diligence and care in this regard. J.C. Penney was asked how he was so successful in developing his company over the years, and he said, “I ask questions of the heartbeat of our company, our employees…” CHAIR BADAME: Thank you, Mr. Moses. ROY MOSES: “…and they give me answers that contain all the best ideas, which I act upon to make our company great.” I believe this principle should be applied to running the Town of Los Gatos as well. Thank you very much. CHAIR BADAME: Thank you. Shannon Susick. SHANNON SUSICK: Hi. Shannon Susick, 16407 Shady View Lane. This is a massing, a mockup of the corner of Lark and Los Gatos Boulevard. It’s not an artistic LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 110 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 rendering with trees that are established and 40’ high, and plants, and kids on bicycles. I wanted to address the letter that was sent on July 7th, which I think will go down in infamy in this town. I mean, gosh, what a way to get people to a meeting. Threaten to sue. I’m going to be clear. I’m not a land use attorney, I don’t have a law degree, but what I do understand is the Vision and the intent of the North 40 Specific Plan and the mandates and objective criteria that is set forth. The Land Use Goals and Policies, page 202, Policy LU-1, Land Use Designation, here is your objective mandate for the rest of the plan: “The Specific Plan shall be implemented through the approval of development projects that are consistent with land uses and Council Vision as outlined in this chapter.” So if there are any subjective items, we can go back to that. The more I thought about the letter, and each time I reread it, the concept of being held hostage in my own town kept emerging in my mind. I can only imagine what it feels like to attempt to do your job. The letter submitted outlined how the Town should proceed with our review of the application, and concluded LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with threat of a lawsuit. While residents in the Town appreciate the attempt to be educated by the Applicant’s attorney, what we must, will, and shall do is follow the Specific Plan. I’m not going to read that, because of the time, but I wanted to thank you for your time and effort. We appreciate the calendar that we are mandated to comply with, but the application must be denied for these and all the other findings that you’ve heard. The Town of Los Gatos may be small in terms of population, and large in terms of untapped riches in land, but our true wealth and strength is our residents, the Commission, the Council, and the fact that we value our land. This application and proposed development is the largest the Town will ever see, and it is with the utmost respect that we request you consider not only the current residents, including all forms of life, but also future residents. Will it be a development that celebrates our history, heritage, and views, or will it be blight at the gateway to our town, and one that impacts us negatively forever? This is our town, but as Commissioners it will be your legacy. We’ve had these chambers full time and again LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with those that either don’t live here or underestimate the amazing civic pride and love of one another. We’re strong, and after the Applicant is long gone, we will still be proud Los Gatans. Let’s live that pride. Let’s plan with pride. Thank you. CHAIR BADAME: Thank you. All right, our last card of the evening goes to Paul Matulich. PAUL MATULICH: Hi, everyone, Planning. It’s been a while since I’ve appeared up here. I represent my own restaurant, Steamer’s, in Los Gatos, and the reason I’m up here to speak is something about the business aspect of it. I’m sure they’ve been said; I missed a lot of it because I just got done at the restaurant. I’ve been approached if I want space out there, but so far I’ve not paid any attention to it. I want to bring up a couple of names and see if anybody remembers a store called Roos Atkins? Remember downtown San Jose? This new thing was coming; it was called a shopping center. It was a strip center, it was called Stevens Creek, and it was going to be a new mall. I remember being in Roos Atkins listening to the gentlemen speaking about they were scared of what it would do to their city and the downtown area where it was a little LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 113 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 thriving community, and now downtown San Jose, it’s finally coming back, but it’s been 40, 50, 60 years. I’ve been a resident of Santa Clara Valley all my life and I’ve been in Los Gatos 50 years, and owned my business for 36. I’m sure you’ve heard what everybody said. I just don’t want to see what I saw happen to downtown San Jose happen to our town. We have empty space down by Santa Cruz Avenue that’s totally empty. We can’t keep that area full. To add more to this, what’s going to happen to your downtown area? We need to draw. Campbell has done a hell of a job on drawing parking, new businesses and everything. I think we should focus our concentration on our downtown. People that have been here have donated their time and their money and their efforts to building a strong downtown area, rather than something out there. I think housing would be great. I’m sure everything has been said, but it would nice to see affordable renting. It would be nice to see the kids that grew up in this town be able to come back and buy something in this town. My kids are out there and they’re making good money, they’ve got straight salaries. They can barely get anywhere in the Valley. It would be nice if they could come back to their home town where they grew up. They’re a LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 114 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 minority now, okay? They don’t need a one-bedroom studio. They’re having kids, they want to get homes, but the homes are over what, a million-something? Let’s put some homes out there for $800,000 for the kids who grew up here and want to support our town. We want to support the Town too with our business, but my business would be on very shaky ground if you allow something like Santana Row to go in. The same owners who own Santana Row own our center downtown and King’s Court, and I think if you gone over to Santana Row lately, Santana Row has now turned into a massive condominium development, more shops and services, but you never see any bags. Walk around there. I’m serious. Luxury Row has left and gone over to Westfield Mall. There are always bags from Macy’s and everything else; the rest is just walking around over there. So I just want to point those few business things out to you, all righty? That’s all I’ve got to say. I wasn’t very prepared, but felt I should come by on the way home. Thanks a lot. CHAIR BADAME: Thank you, Mr. Matulich, for coming by. Would anybody else like to speak to us tonight before I invite the Applicant back up? Seeing no one come forward, I will now invite the Applicant and their team LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 back to the podium for five minutes to add any further comments about their application. DON CAPOBRES: Madam Chair and members of the Planning Commission, again, I’m Don Capobres. I appreciate the time, and I do appreciate everyone coming out today. One of the hallmarks of our team since starting work on the General Plan has been literally working with the community, not shying away from conversations, and working hard to try to bring solutions. We’ve been operating with that has a guiding principle for the entire team, for the entire time that we’ve been working here. After eight years when policies have been approved, and we worked so hard to meet those policies and believe that we have complied with all these policies, it’s come to the point where you have to assert your rights. No one wants to litigate here. I’ve been here for a long time. I’ve never claimed to be a Los Gatan, but I’ve spent a lot of time here. We don’t want to go down that route, but at some point in time you have to assert your legal rights, because the policies are now in place, we believe we comply, and decisions have to be made on that front. This includes the Housing Element, and 20 units per acre is a minimum, minimum, that the State recognizes for a town like Los Gatos. We are now part of the Housing LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 116 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Element, and yeah, I’ve been at this for eight years, but I didn’t really jump into the Housing Element fray until restrictions started getting changed, and HCD started looking into the other sites that were in the Housing Element previously, and so we do know it’s complicated, because it’s not something that we were wired to understand from the very beginning. It’s taken a lot of effort for us to get to that point of educating ourselves, and I will say this about HCD: The term “credit” is problematic, and you should look at it and have Council look at it. The town is meeting its obligation by allowing housing to be built at 20 units per acre. HCD does not require units to be affordable, and whether all of our units are market rate or all of them were affordable, it complies with the Housing Element, so as long as they’re 20 units per acre. So they can be all market rate, they can be all below market rate; as long as they’re 20 units per acre, which is the minimum requirement, they comply with the Housing Element. WENDI BAKER: I want to just talk a little bit about what the Specific Plan requirements versus what our proposal is, because to think, again, that only having a conversation about the bare minimum would not be in the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 117 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 spirit of how hard we’ve been working over the course of the last eight years. For open space, the Specific Plan requires 30% open space, yet we’ve proposed 39% open space. For open space that’s publicly accessible, the Specific Plan requires 20%; we’re proposing 85%. For the two-story Lark District, only 15% of the homes need to be two-story. We have 29% of the homes as two-story, or two-story elements. The maximum number of units is 270 baseline. We’re proposing 237. With the density bonus it would be 365, and we’re proposing 320. The new commercial can be up to 435,000 square feet. This application has 66,000 square feet. There’s a 25’ residential setback on Lark and Los Gatos Boulevard. That’s 50’ deep in the Specific Plan, and we’re proposing it to go another 15’ beyond that and two- story of only 65’. The setback along Highway 17 is 30’. We’re proposing a 30’-63’ setback along the freeway. Finally, there’s been a lot of talk about housing sizes and reducing housing sizes. The Specific Plan calls out up to 700,000 square feet of residential square footage. We are proposing 446,000 square feet. We’re LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 118 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 253,000-plus shy. The remaining 45 units would have to be over 5,500 square feet each to even get to this number. Obviously, we’re nowhere near the maximums that we could propose on this development project, and we just wanted to let you know that we’re trying to move forward in this sort of fashion where we’re going above and beyond, because that’s what we believe is the right thing that we can do. CHAIR BADAME: You still have time remaining. WENDI BAKER: Six seconds. We’ll pass our time. CHAIR BADAME: All right, thank you. I see that Commissioner O'Donnell has his hand up, so he will be asking the first question. COMMISSIONER O'DONNELL: Obviously there has been some conversation about perhaps spreading the housing over a different area. It isn’t crystal clear to me that that makes much difference, but it’s been discussed, and obviously whether your lawyer thinks it’s possible or not, I think it’s possible. But it isn’t apparent to me whether you move…instead of putting it all where it’s proposed, you put some of it someplace else. It isn’t clear to me how that helps anything, and you obviously have reasons why you haven’t done that, and we’re going to be discussing whether it would help us to do that. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 119 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 But I wanted to give you an opportunity to tell me why you think it would, or you would obviously say would not, help. I’m giving you an opportunity to say look, even if you were to move some of this housing to a different location, for example, on the Transitional part that is not presently before us, or into the Northern part, either one or both, why would that not be helpful? DON CAPOBRES: It would not be helpful because it presumes that it wouldn’t be backfilled with another use. The Specific Plan requires 30% of open space, as Wendi just pointed out. We have exceeded that requirement by a good margin. And let’s be clear, we are for profit developers. If you remove uses from the Lark District and are already exceeding open space requirements, they would have to be replaced by something else, and we believe kind of in the spirit of the Specific Plan that the residential needed to be adjacent to residential. We spent a lot of time speaking to the Highland Oaks neighborhood that’s across the street from Lark. That is a continuation of residential into the Lark District, which is residential. If we were to backfill it with commercial, that would not be something I think at least some members of Highland Oaks would be interested in. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 120 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 That’s kind of a political statement, but the real planning and business statement of it is the North 40 development has already begun. It began with the office buildings that are along Los Gatos Boulevard, and the gas station. In looking at planning for the Lark District, you have visibility that’s impeded because you have office buildings that are taller than we can build, by the way, already on Los Gatos Boulevard, and to tuck commercial behind that we felt was infeasible from a business planning perspective. The assumption that you move units around I think is based on the fact that you would not backfill it with something, but we are compliant with the Specific Plan open space requirements, all the setback requirements. We would look to plan something else there. To pay for all these benefits obviously some revenue has to be generated, and that’s what we would look for, and those other uses don’t make sense in the Lark District from a pure planning perspective. WENDI BAKER: Let me address that just based off of traffic, and you can verify with your Staff if this is accurate. Again, if you start shifting things around you put more commercial uses into the Lark District, and LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 121 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 commercial is a much higher generating use. About 15,500 trips for the entire Specific Plan area were anticipated, and we have about 3,800 in this first phase, because residential is a much lower traffic generator. If you start moving commercial over into the Lark District or Transition District or add more of it, you will have much higher traffic volume in this first phase. While that’s okay, the idea is to try to get less use out of A Street, which will go into Lark, and what you’ll end up having is a lot more people accessing the commercial component through that A Street, and it just will bog down that area, which is right adjacent to residential right now, the Highland Oaks neighborhood. In our conversations with them, and they’re not here to speak for themselves, or perhaps that will be at a future time, but everything that we’re hearing is that there is a desire of residential-to-residential and not having more traffic flowing through that area of ingress and egress. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HUDES: Thank you. I have a number of questions, and I was trying to organize them maybe into the way that Chair Badame has suggested that we proceed with our deliberations. I have one about process, and then LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 122 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I have several about housing, some about views, some about traffic and environmental, some about open space, and some about look and feel. Although it seems like things are repeating, the fact is this Commission hasn’t gone through this thing in detail in a public hearing. We’ve taken a lot of comments, but we haven’t in my opinion asked a lot of questions of the developer about the development itself, and so with the indulgence of my fellow commissioners, I’d like to start some of that process of asking a few more questions. I want to go back to the letter of July 7th and the statements about working cooperatively with the Town. I can state from firsthand experience that both of you have been at many, many meetings and have listened and responded to concerns, and have done an effective job of listening. My question is what changes have been made since the plan and since that model that the Town came in and looked at? I can’t remember what that date was, but a few months ago, and the feedback from the 400 instances that I counted, what changes have been made to the development during that time period? WENDI BAKER: For clarification, are you speaking of when the community meeting occurred? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 123 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HUDES: Yeah, since the community input on the application started. I’m not talking on the plan, I’m talking about once the application was there, and you did that community input, many hours spent in that, many hours of listening to community input. What changes have been made to the development during that period of time? WENDI BAKER: This application was submitted before the Specific Plan was ever completed, in part because we wanted to… Not this application. Let me change that statement. Not this application, but an application. Part of the reason for doing that was to try to show folks what heights would look like, what densities would look like, where commercial might be, what the street network might be, and things have evolved quite substantially as the Specific Plan has evolved. For example, the move-down building that folks spoke about is not possible anymore due to the height restriction that was placed on us. The community meeting that happened in February- ish, the end of January, I think that was our fourth submittal of plan sets at that point. The majority of feedback that we got at this meeting was not suggestive as far as we feel like you should change your color palette or we feel that you should change your setbacks. It was LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 124 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 questions about traffic, questions about what our plan was. There was no significant change in the plan since that specific community meeting, because we had already been at that point 2.5 years into an application process, but there were questions and answers at that meeting. COMMISSIONER HUDES: While I appreciate that response, I respectfully disagree with the characterization that you’ve been taking community input since the application has really been exposed. I understand there’s been a lot of communication, but I haven’t seen it in terms of changes. I wanted to move to housing, if we could, because I think that’s an important area, and maybe start with the discussion about senior housing and how you determined that was the correct type of housing for seniors, the placement of it, as well as the size, I think about 550 square feet for each unit. DON CAPOBRES: Commissioner, I’ll take the first part of that question. We actually looked at potential locations for the senior housing program. First of all, at the very beginning no one made us do senior. We thought it was a good fit; it met the unmet needs. The question was where would it go? Ultimately, they’re probably in the most valuable spot in the project, and it was really working LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 125 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with Eden Housing, we basically had a blank slate, put a plan in front of them and had them work through the pros and con of locating their senior program within the site. I think it’s one of the most attractive places to be. I do disagree… Maybe I don’t disagree, but I do think seniors, and especially with the demographics that we have, do want to be in a more active environment than they previously might have. And I’m making a generality. The premise was to put them in the active area, put them in a product type that had elevators so they can go up and down, put them in a location that was close to goods and services, and that was the thought process behind the location. I’ll have Andrea Osgood from Eden Housing talk about square footage, or maybe expand upon the location decisions. ANDREA OSGOOD: My name is Andrea Osgood, Director of Development for Eden Housing. We’re a nonprofit affordable housing builder and owner/operator, and we also have a resident services arm that provides services to our seniors. We’ve been in the business nearly 50 years and we’ve built a lot of family housing, but also senior housing. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 126 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In fact, I go to work every day in our corporate headquarters, and there are 60 units of senior housing above, right across from a BART station. It’s actually one of our most popular senior developments. Seniors love to sit up on the balcony and watch life go by. The size of the units is very comparable to everything we build in our senior developments, typically between 550 to 650 square foot, one-bedroom units. They are affordable. The rent for these units will be based on income, but typically range from about $600 or $1,100 for this area. CHAIR BADAME: Ms. Osgood, I’m going to need you to complete a speaker card. ANDREA OSGOOD: Sure. CHAIR BADAME: And Vice Chair Kane has a question for you. VICE CHAIR KANE: I think this is a question for you. The affordable senior housing, I gathered from the report that each unit gets one-half of a parking space. ANDREA OSGOOD: Yes. VICE CHAIR KANE: So that means if it was a silly commercial they’d cut the car in half? That means that a couple living there would not have a parking space if they had a car; there would be no place to put it? Or are there LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 127 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 other visitor spots that are usually picked up by people who live there, which means they’re not visitor spots? ANDREA OSGOOD: The ratio is half a parking space per unit, and that is very typical of the ratio that we’ve built in all of our senior developments. We find that many of our residents, if they have a car when they move in, oftentimes once they move in decide they don’t want it anymore because of the expense, they’re getting older and they can’t drive, so that is actually a very common parking ratio that we find is successful. VICE CHAIR KANE: I understand that, and I defer to your experience. It just struck me as odd that you wouldn't get a parking place if you lived there and there would be no place to park. It’s not the center of public transportation. ANDREA OSGOOD: That’s true, but Eden actually develops in a lot of suburban communities. We just finished a successful senior projects in Lafayette and Orinda, and both of those locations are much more suburban and would feel similar to this location where many of us would think how do you live without a car? You have to remember, the seniors that we’re serving are a single person surviving on social security income. For a lot of them, they’re making choices between rent, medical payments, and food, and cars LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 128 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 are very expensive, so many of them just don’t have cars to begin with. VICE CHAIR KANE: And how old are they? ANDREA OSGOOD: Sixty-five. VICE CHAIR KANE: You can’t have my car. ANDREA OSGOOD: I don’t want your car. VICE CHAIR KANE: I also have concerns about tandem parking. Tell me that in your experience that works as well, especially if it’s two different couples. WENDI BAKER: Tandem parking is in the Specific Plan as a type of parking. We have to think about the viability of it from a marketability perspective as well, so you have to start thinking about will these really, truly be usable parking configurations? Remembering who our buyer is, this is a buyer who oftentimes--and we do this through a lot of our post-sale surveys, et cetera—has their keys on the hooks as they go through to the garage and they pick the keys for the car that is the furthest out. This is a very common way, especially if you’re looking at people who could be used to urban living that are currently living in San Francisco, but taking a bus down to Netflix. VICE CHAIR KANE: What I’m specifically trying to understand is if you’ve got four couples and they can only LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 129 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 have two cars, and they’re in an tandem spot, and Couple 1 wants to get out, and Couple 2 is playing Bocce ball, I don’t see how that works. WENDI BAKER: I understand what you’re saying. The tandem units, you would assume that there are two couples in each one of these units, for example. We don’t have just open parking lots of tandem spaces; these are all private garages for whoever lives exactly in those units. VICE CHAIR KANE: How does Couple 1 get out? WENDI BAKER: You oftentimes have a set of keys for both cars there too. I mean my husband and I both have… VICE CHAIR KANE: They can’t have my car either. WENDI BAKER: My husband has the set of keys, for example, for both of… We both have a set of keys for our… It’s becomes a lifestyle choice. VICE CHAIR KANE: It’s difficult; I’d have to see it. Thank you. CHAIR BADAME: I think there might be an insurance dilemma there, just saying. Commissioner Hudes has a question for you. COMMISSIONER HUDES: I wanted to come back to the senior housing. Could you walk us through the waivers? I assume that you are trying to be consistent with the BMP program, and so there are some waivers. Could you walk us LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 130 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 through the waivers that you’re requesting? I mean there are a number of things that are not compliant with the BMP program for affordable housing and seniors. ANDREA OSGOOD: I think the first waiver was the BMP program requires that the units be sprinkled throughout the development, so in order to do senior housing legally we have to provide that in one building to have an age restriction. That’s a Fair Housing law. In order to have the affordable targeted towards seniors, it needs to be in one location. From a practical matter though, too, it’s helpful for us to have one building so that we can more efficiently operate the building with our own property management staff, but we also have services, such as we have a community room, and we have community gardens where we have our resident services programs, so it helps create that atmosphere in that location. COMMISSIONER HUDES: You said it must be in one building? Is that a preference? ANDREA OSGOOD: In order to have age restriction for senior housing, it has to be a standalone building or a set of buildings. It can’t just be one unit here in this and one unit over here. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 131 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HUDES: Okay. But it could be more than one building? ANDREA OSGOOD: Technically. DON CAPOBRES: This issue was covered at the Conceptual Development Advisory Committee. I believe your Town Attorney weighed in on the proposal’s standing vis-à- vis the BMP program. Anyway, this is not a new issue. COMMISSIONER HUDES: Well, I think it’s the first time it’s come before this Commission. One of the other requirements is about “placing all senior living in a unit that is unique. It will be discernable.” How would it not be discernable? ANDREA OSGOOD: The easiest way for me to think about it being discernable is there is one lobby where you can go in, and there’s one office, if you were interested in applying; that would be a very discernable. The signage would indicate that this was a senior housing for that building. COMMISSIONER HUDES: So you’re asking for a waiver about that as well, because the BMP program requires, “There shall not be significant identifiable differences between the BMP and market rate units visible from the exterior.” LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 132 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ANDREA OSGOOD: But it has to be distinct for the senior, for you to have the age restriction placed on it. COMMISSIONER HUDES: So it will be discernable, therefore it will be something that needs a waiver from the BMP guideline. DON CAPOBRES: Just to be clear, we’re not asking for any waivers to your BMP program. Your BMP program does allow for some flexibility within it. The waivers we’re asking for are under the State Density Bonus Law. I believe one of them is on height related to the Eden Housing building, because of some roof pitches that were included in the architecture, and the second is an unlimited area where the penthouse elevator penetrates the 45’ height limitation. The second waiver we’re asking for is to be measured from finished grade versus existing grade. Both are being asked for through State Density Bonus Law. We’ve already walked through where we sit versus the Town’s BMP program. That conversation has, I believe, concluded that we are within the parameters allowed by the Town. COMMISSIONER HUDES: Maybe I could direct you to page 4 of the North 40 Proposed BMP Plan, revised October 21, 2015. Maybe I used the wrong term; maybe it’s not a waiver. What it says is, “The development team is LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 133 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 requesting modifications to the BMP program guidelines regarding the following specific requirements,” and it looks like some kind of an exception, because there’s justification cited for each of these. DON CAPOBRES: Commissioner Hudes, can you repeat the date of that letter? COMMISSIONER HUDES: I think it was part of a letter from October 21, 2015. DON CAPOBRES: Yup, I got it. Thank you. So thank you for the clarification. Under, again, the specific law, and I’d probably say Density Bonus Law as well, we would have been allowed to have asked for additional waivers, and one of them was to I guess provide some flexibility towards your BMP program. Subsequent to that letter it was determined that that a waiver was not required, because our program was allowed under the purview of the your BMP program, and I would confirm that with your legal council. COMMISSIONER HUDES: Okay, great. I’ll definitely follow up on that. I don’t have anything in there that says that. The other question in there that I wanted to follow up on had to do with rental as a permissible substitute for an ownership program. In other words, I LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 134 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 think that it says that in a development where there is individual ownership, then the below market also needs to be individual ownership. DON CAPOBRES: Right. Again, in that letter we were requesting it as a waiver under State Density Bonus Law. Subsequent to that letter being submitted that waiver was said to be not required, and that request has been removed. COMMISSIONER HUDES: So we’ll follow up then on that. I have other questions on housing, if we want to keep going. CHAIR BADAME: We can keep going. I did see Commissioner Hanssen have her hand up earlier. Did you want to jump in with a question before Commissioner Hudes continues? COMMISSIONER HANSSEN: Yes, I just had one question for Andrea. One of the residents had asked about the services. Actually, it was from our Community and Senior Services Commission, and I thought that was a very good question. When you’re designating it as senior housing, you might have people at various levels, and I realize this isn’t going to be going into full levels of service, but what kinds of service might be available? Especially since LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 135 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 they are low income and, as you said, often have to prioritize maybe medical bills versus car. ANDREA OSGOOD: As I mentioned before, Eden is not only a developer, but we also own every property we’ve ever developed, and we also have a management company and a services company. We would have onsite mangers, but we would also have resident services staff available to really help with more of the health and social needs of our residents. We find our goals in our senior developments is to help seniors live as independently as they can for as long as they can in our properties, so our services Staff really focus on that. One of the best things to do is to make sure that they’re engaged and they’re not isolated, so that they can identify issues earlier. But really, it’s helping deal with everyday things, like making sure they’re getting good nutrition, they’re getting exercise, so we have those kinds of programs. We have health and wellness programs as well. Because we’re right there, we have onsite property management, but also services. We can identify when somebody might need extra help and connect them if they need it with more extensive services that are available in the community, often at the county level, through in-home health services as well. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 136 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HANSSEN: And do you have a shuttle bus type of thing? Especially since a lot of these guys don’t have cars, and at least in Phase 1 there isn’t going to be a whole lot of personal services. ANDREA OSGOOD: We don’t operate shuttles, but we do help seniors connect with local para-transit or other kinds of options like that. COMMISSIONER HANSSEN: Just one last question on the senior housing. I understand why it’s rental. I just wanted to hear why they might not… Would they end up if they were able to buy the units, or would they always stay rental? ANDREA OSGOOD: We always do rental, and I think rental units particularly help serve seniors living on a much more fixed income who potentially don’t own a home now, maybe worked their whole life but were never able to reach that goal, and now may be faced with living on a fixed income, either social security or maybe a small pension, and so rent for those folks is unfortunately their only choice. COMMISSIONER HANSSEN: So it’s permanent rental? ANDREA OSGOOD: Permanent rental, yes. CHAIR BADAME: Vice Chair Kane, followed by Commissioner Hudes. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 137 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE CHAIR KANE: We’ve heard comments tonight about carcinogenic toxicity coming in from Highway 17 and the units and their proximity to Highway 17. We’ve also heard about schools not likely being built out there, because of the proximity of Highway 17 and Highway 85, and I think the other item that was on that list was gas stations, building schools too close to gas stations. Cottage clusters 21 and 24 are on the boundary of the gas station that’s called MKG Enterprise or something like that, but it’s the gas station on the southeast corner of the project. Has there been a concern about the proximity of those units to a gas station? You couldn’t put a high school there, why can you put units there? WENDI BAKER: Residential standards are different than school standards, and we should all appreciate that, because we want our schools obviously in the safest locations. Residential air quality standards were a measurement as a part of the Specific Plan EIR, and very specific mitigations were required for any unit impacted by any sort of particulates or impacts, and all that is a part of the EIR. There are certain mitigations that we must adhere to in certain limited areas. VICE CHAIR KANE: I’m willing to take your opinion that it’s in the EIR or otherwise substantiated LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that these two units are not at risk, given that they abut to a gas station. WENDI BAKER: That is accurate. Any units that are will have the proper mitigation measure applied, which include air filtration and mandatory air conditioning, for example. VICE CHAIR KANE: So you’re saying they will have these mitigations? WENDI BAKER: Those two units do not have mitigations. VICE CHAIR KANE: They’re fine as they are? WENDI BAKER: Correct. VICE CHAIR KANE: All right, thank you. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HUDES: I wanted to get back to the senior housing topic. We’ve talked about the low-income affordable housing. What about provisions for the move-down units for seniors? I know those were in the plans earlier; I believe they’re not today. Why were they eliminated, and are there other residential housing types that you think are appropriate for move-down seniors? DON CAPOBRES: Other than (inaudible) housing units, there’s nothing that precludes anyone from moving LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 139 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 into any of the other units. There are no age restrictions on any of the existing units in our plan. At one point in time, prior to the approval of the Specific Plan, we had proposed specifically designed move-down residential homes. Our goal was to create a multi-generational, multi-income, diverse neighborhood. To provide for a move-down program, which features more elevators and structured parking, we had worked under the an assumption, and it was a longstanding height offering of 55’ for additional open space. That was in the Draft Specific Plan for at least a couple years, I think. We had designed a move-down program, and this move-down program was stacked flats, so not multiple floors that require elevators. Our profile of that potential buyer said they still wanted multiple bedrooms, because of grandchildren or children visiting. They tended to drive the square footage over all of our applications higher, because they were still larger units; they tended to be 2,000 square foot and above. It was taken out because we needed a higher floor to ceiling height for that program. We requested up to 55’. Not requested, but that was our hope. Town Council, because of view impacts from the highway, did not allow that height LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 140 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 limitation for move forward, and it was it in the Draft Specific Plan, so they decreased the height to 35’ overall, 25’ on Los Gatos Boulevard, which is lower than what existing height is. They allowed some exceptions for affordable housing and for a potential hotel, if one were to be applied, but because that height was removed we weren’t able to move forward with our program for a move- down. WENDI BAKER: Obviously the for sale residential doesn’t prohibit, I guess, anyone purchasing the property. Not only are there eight market rate apartments that are above the retail as part of this application that our elevator served, but some of the for sale residential also— I think I mentioned this at the last Planning Commission meeting—actually operate as flats, so while you will park on the ground level and you’d have to walk up a flight of stairs, it’s then single level living once you get there. When you consider senior population, there will be a time when stairs may not be manageable, but for a large period of time one level of stairs might be manageable, so we intentionally designed some flats into our residential offering as well. CHAIR BADAME: Commissioner Hanssen. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 141 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER HANSSEN: I think one of the things that I feel the most troubled about it that this proposal is supposed to address the unmet housing needs of our town, and it’s a pretty well documented thing in our Housing Element and in many of our other documents that the average age in Los Gatos is 45 and it’s been going up, and that we heard in the beginning of the Housing Element that one in three residents of Los Gatos during our planning period for the Housing Element was going to be 65. Yet the seniors are kind of an afterthought in this thing. Most of the buildings in this proposal are two and three stories, and there are just a handful of units that are flats, as you said. I would have imagined if we were really trying to address the unmet needs of our town that we would have a great preponderance of the units being single story or flats that would address the unmet needs of our town. I don’t know why you guys went down this path, so I was hoping you could help me about what we can say to our residents that are looking for a place to leave their big single-family homes and move to. WENDI BAKER: I think Don just mentioned the move-down building was a part of our original application that had at one point 90, and then ultimately 88 on the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 142 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 subsequent application resubmittal. The height limits just made elevator access to those units extraordinarily challenging, to say the least, and then also when you want to move down from your big Victorian you probably don’t want 8’ high ceiling plates. So there’s one thing. We had to eliminate 90 of those units that specifically catered to that demographic. However, I have stated on public record before, Millennials are the largest and fastest growing, because they are what they are. They are the largest demographic in the United States, and just because… I mean you’ve just heard from several people that have just come back to Los Gatos. They might be interested in returning to Los Gatos if they had a place to go, but because so much of your housing stock is single-family residential, unmet need becomes a multi-family product, and so while that is one unmet need, the senior and move-down buyer is not the only unmet need. COMMISSIONER HANSSEN: What evidence do we have that the Millennials want to live in Los Gatos? Everything I’ve heard, they’d like to live in San Francisco. In fact, I was on a call with a planner for San Francisco, and they just can’t build enough housing for them. I know we have needs for seniors, and I understand Millennials are a big LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 143 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 market, but what evidence do we have that they want to live here in Los Gatos? Especially in a place where there aren’t a lot of services, at least in the early phase in the complex, so I would just like to understand that. WENDI BAKER: Well, I think SummerHill would not want to move forward with a development application that we felt like we could not find buyers for and design towards. We’ve done multiple focus groups, and the reason that we went into Netflix and we hosted a focus group was to talk exactly to these people. There are nine buses going back and forth from San Francisco to Netflix. To talk to exactly those people, the Millennials, and there was a requirement on age on who could attend this focus group, to talk to these folks and say would you live in Los Gatos? Because some people wouldn’t, and maybe some people raised their hands and said, “I would not live here. I would rather live in a city.” And then some people will say, “You know what? If you had this type of available housing stock in Los Gatos, I’d love to see it,” or, “If you had accessibility to some of the things that I enjoy, such as walkability or bikeability, or access to like a Market Hall,” that we’re doing. If we have that sort of interconnected neighborhood, then they would be very interested in coming down here. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 144 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 They wanted things that they could not get in San Francisco. San Francisco can be quite charming for a period of time, and then some people return back to the suburbs. In fact, although many Millennials want to live in the cities, the reality of being able to achieve that is not always available for people, and what we’ve found is that the vast majority of Millennials are actually flocking to the suburbs; not only the urban destinations, but also the suburbs. CHAIR BADAME: I’m going to tag onto that one real quick, Commissioner Hanssen, if you don’t mind. But what evidence do you have that Millennials want 1,900 square foot homes? I think of them living pared down lives that 500-800 square feet would do just fine. WENDI BAKER: Right, some Millennials will want that 900 square foot unit; that’s why we have it in here. If you’re going to draw from someone that’s in a city though and may be living in a 500-600 square foot unit, and you want to draw them down into a more suburban environment, they want certain things, and one of them is more space, more area for open space, bigger decks and so forth, that they might not have in the urban environments. The Millennial population, we have to remember, is not 23 to 25. We’re talking about a population that as LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 145 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 time goes on is an aging population, probably in the early 20s to about 37, so the purpose and intent of our residential stock was to have a diversity of housing types, one-, two-, and three-bedrooms, 900 to 1,900 square feet, to have this range, and to also offer some units that might be 1,500 square feet, but one-bedroom that offer big loft experiences, and again, some of that more urban feel that they might not be able to afford in San Francisco. CHAIR BADAME: I understand that, but I didn’t see very many units on the smaller end of the scale. They seemed to be on the maximum side of the square footage in the chart in the sixth chapter of the Specific Plan, but actually it’s just a hypothetical chart. WENDI BAKER: It is a hypothetical chart, but there is a maximum square footage that’s permitted, as I pointed out, and we are significantly under that maximum square footage permitted. In going to these focus groups, not all people are looking to live in a 500 square foot unit, or a 750 square foot unit, or a 1,000 square foot unit. People do want to have different choices. They do work from home oftentimes. They do want to get a roommate a lot of times, and that enables them to be able to have that flexibility to be able to afford their mortgage, and then once they’re LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 146 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 better established to move on to a different type of housing, or maybe not have the roommate with them anymore. One thing we heard loud and clear from all the focus groups that we did was we want flexibility and we want more space, and we heard three- and four-bedrooms. We do not have that as a part of this proposal. We’ve heard actually very clear, we really prefer not having a one- bedroom, but we knew that wasn’t what the Specific Plan’s vision was for this, and so we tried to have a large variety of one-, two-, and some three-bedrooms; 16% three- bedroom units. Sometimes the square footage might be for some of those grander spaces that they’re looking for, not exclusive to bedrooms. It might be very large bathrooms, because they might want a very large bathroom, for example. CHAIR BADAME: All right, thank you, Ms. Baker. Back to you Commissioner Hanssen. Were you done with your questions? Otherwise, I’ll move to Commissioner Hudes. Okay, Commissioner Hudes. COMMISSIONER HUDES: Continuing with housing. Some of the comments have been about the look and feel of Los Gatos and the concern about views and hillside views, and it seemed as though one of the possible solutions to that would be occasionally to use a cellar, and I know that LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 147 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was a question that was asked in the Staff Report. Why are there no cellars, and why isn’t that a viable solution? WENDI BAKER: Cellars are a really different thing to utilize in a townhome type product. In this case we have condos stacked flat, so you might have a garage and then two levels above you might have a flat, so to get a cellar in there when you have parking… Somebody did show that the garage does take up a portion of that first floor, so you don’t necessarily have your kitchen and your main living space on that first level with your garage; you’re really separating the units with a garage in between, because we don’t have underground parking in this sort of product type. It creates challenges with livability. It creates huge challenges with offhaul, and it will cut your density as well, because you’ll have to reconfigure your units unless you also are proposing cellars and the height. What I’ve heard is put in cellars instead of the extra level of height. You can’t get the units to work contiguously together to have… We did a large study on it as a response to this question, because we’ve heard it many times, and you end up on each residential unit, if it’s a five-unit building, you might loose one unit, for example, in there. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 148 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 But mostly it’s livability and offhaul. This type of offhaul was not studied in the Specific Plan EIR. COMMISSIONER HUDES: My concern is that this is a solution that could have been explored. It does cost money to do it, but this type of solution has been employed for 150 years in products like brownstones and townhomes and things like that, and it’s surprising that we have none of that. WENDI BAKER: That could be possible, particularly if you had a larger townhome unit. Some of the townhome units you might be looking at might be 2,000 square feet where you have the garage, again, and then you have large first story living areas where you walk right in from you garage into your kitchen, and so forth. That’s why you can find cellars as a more likely alternative in single-family, detached homes that are a little bit larger and they don’t have shared walls and all the constraints that…and building underneath of exclusively a garage. There are a lot of constraints. Some of the townhouses you might talk about might even have detached parking; that’s really common in some of these developments. So while it might be possible, I think that you run into a large list of constraints, and if it could be done with ease or even just for an additional cost, then I LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 149 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 think you’d see it much more frequently in the Bay Area, because land is very valuable. So there are a lot of different components that go along with this. COMMISSIONER HUDES: I have more questions, but I don’t want to dominate all the discussion here. CHAIR BADAME: I don’t see anybody else. Well, let’s let Commissioner Erekson have a shot at it, and then we’ll go back to you, Commissioner Hudes. COMMISSIONER EREKSON: I have just three or four questions for the two of you. The first one is a much more practical question. In the proposed Conditions of Approval that the Staff has put together for the project, Conditions of Approval 121 through 126 relate to management of the construction process in the event that the application moves forward as proposed. Have you reviewed those particular conditions yourselves, and do you have concerns about what are in the Conditions of Approval that relate to the management of the construction process? WENDI BAKER: I cannot remember exactly which one of those Conditions of Approval is specified. We have reviewed all the Conditions of Approval, and as far as construction process, I believe there are some items as far as noticing, and obviously pre-construction meetings, and LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 150 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sending out emails whenever there is activity going on onsite. Those are things we already do. We’re building up at Prospect Road, so these are things we already participate in, but if you wanted to specify. I don’t have them in front of me, but if you want to be specific as to what they are. COMMISSIONER EREKSON: Sure. Let me ask you a question about something that’s not in those six. There are time parameters on when construction can occur. Obviously, they’re pretty typical. I mean the kind of conditions without worrying about whether you can remember in a level of detail. They’re relatively typical of what the Town of Los Gatos would do, or relatively typical of other projects that you would have engaged in. One of the things that it does is talks about when one can do offhauling and some other kinds of activities that generate traffic on the adjacent streets. One of the limitations that is not in there would be to put a parameter on… I’ve not actually talked to Staff about this, so I wouldn’t know exactly how to phrase this, but we have particular issues at certain times in the summer—last weekend was a great example of that—where we have excessive traffic, not of our own making often, that comes through LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 151 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the middle of town and comes down Los Gatos Boulevard and so forth. So would you be open—and again, I don't know, I haven’t talked to Staff about how we would phrase this—with amending one of those that would preclude those particular times when we would anticipate having excessive traffic from the so-called diversion of traffic from 17? Is that a reasonable thing to add to that from your perspective? WENDI BAKER: It can be reasonable, and I’ll tell you there’s a pro and a con always, so we always will look to Staff for their expertise on when is the best time to do the construction, especially offsite construction, so that it’s not during, for example, the school AM or PM pickup hours or PM rush hour traffic. Then also there is obviously now the traffic that you’re referring to where there could be more limited construction hours around that, and that’s always something that we’ll turn to Staff for. The issue always is that the more that you restrict the hours of when you can do something, the longer the process takes. So as long as everybody is aware that there’s a cause and effect there, that’s something we can be agreeable to, yeah. COMMISSIONER EREKSON: Okay, thank you. Is it okay if I ask a couple more? LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 152 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: Of course, go ahead. COMMISSIONER EREKSON: I want to return to something that Commissioner O'Donnell brought up at the beginning about the relocation, and Don’s answer about if in fact one were to remove some of the housing from the Lark District that one would need to replace it with something else, and that doing housing there—and I actually agreed with his comment—that putting housing generally as it is now is the best planning, with one possible question that I have. Buildings 24 and 25 back up to residential buildings and they back up to Los Gatos Boulevard. Now, from a good planning standpoint here’s what I see happening long-term, if we’re out 25 years from now, or however long it takes to develop whatever is developed on the North 40. If I drive from Lark to Burton, or Good Samaritan, however you want to look at it, here’s what I would have if there is housing at that spot. I will have, starting at Burton, I would assume commercial, commercial, commercial, commercial, commercial, commercial, commercial, commercial, housing, commercial, with the only exception to commercial on Los Gatos Boulevard from that stretch being the housing that is backed up to it. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 153 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 That doesn’t seem to me to represent good long- term planning, so just from long-term planning I guess I would wonder why one wouldn’t put some non-residential use in that spot, and therefore along all of the Boulevard, and take the housing out of that? I also understand that would probably mean redoing that particular one, because there’s a turnaround street, but that’s a different design question. Do you have some response to that? WENDI BAKER: Sure, I can respond to that. It’s not the first time we’ve been asked that, so I think that hopefully I can give you a few reasons. Obviously the Specific Plan does not require commercial there, so we are able to propose residential there. Residential is not prohibited in that area. But without understanding why would we do that is really the question, and to be clear, none of our units back onto Los Gatos Boulevard; those are front doors along Los Gatos Boulevard, much like exists right now. There’s actually two residential right along there that front onto Los Gatos Boulevard. But even though residential exists right now, why wouldn’t we build commercial there? You have to look at what the requirements of the Specific Plan are. There’s a 30’ orchard setback along that area. There is another 20’ LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 154 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 beyond that, so 50’ that could be two-story, or 25’ for commercial, that’s probably not two-story. And constructing something that’s similar to what—so you’re talking about sort of the continuity—you have right next door is not feasible, both because of that orchard setback and the additional 20’ of two-story setback. Then going beyond that, we actually worked with Bill Hirschman to look at a land plan for that area of Los Gatos Boulevard and putting commercial there. That was one of our first stops when entered into this application and discussion, and at 45’, which is what he has next door, that was more feasible. Once the Specific Plan had certain restrictions of 25’ and the orchard and so forth, it became less feasible. Then the biggest issue became access to these units, and so we actually acquired one of the properties along there in order to have a secondary access opportunity onto Los Gatos Boulevard, maybe for commercial or maybe for a secondary access onto the Boulevard, for whatever it may be. When we sat down with Staff, the challenge was that along Lark is where the right-turn lane begins, and so you would actually have an ingress and egress for that property into the right-hand turn lane, and the conflict of movements… We were told pretty enthusiastically by Staff LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 155 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that that would cause too many points of conflict along the Boulevard. Right now as it is, after the Specific Plan is developed you would only be able to make a U-turn to get to those buildings. So then you go into the well, can you get access to that area along sort of that frontage road, if you want to call it, that’s along those existing commercial buildings? And you can’t achieve that because there’s an orchard setback, and so it’s not a straight shot, so you can’t get that frontage road to have a linear path anymore. But then also, that building next door has been condominiumized, and you would have to have all the people in there agree to grant you an easement to access your property through their private property. So it became a lot of different challenges, and they just started stacking on top of one another as far as developing that portion of property as commercial. COMMISSIONER EREKSON: Okay. WENDI BAKER: I do have one other thing; I’m sorry. The other thing that we have is a very strong pedestrian connection between all the park networks, if I can leave it at that. All the park networks, but in this one particular area there is a pedestrian paseo that goes in between the residential buildings, that then connects LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 156 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you to the Grand Paseo, that then connects you to the sidewalks, that then connects you to the community park, and so one solid building face of commercial, which it’s not that large of a piece of land right there, really does start separating you from the rest of the community, and then taking access through private secondary streets to get to their retail, that’s not going to be successful. I think I gave you a lot of reasons. We did look at it. COMMISSIONER EREKSON: Okay. I understand everything you said. WENDI BAKER: Okay, good. COMMISSIONER EREKSON: And followed everything. I apologize for this being a little bit of an unfair question, giving you a heads up, but I’m going to ask for a very specific answer to the question, but I’m okay with an order of the magnitude response to the question, if you know the difference between those. So can you give me an order of the magnitude, if not a specific answer, to what percentage of the open space is in the perimeter buffer zone, and what percentage of the green open space is in the perimeter buffer zone? Which will then help me understand what percentage is not in the perimeter buffer zone. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 157 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WENDI BAKER: Hold on a second. COMMISSIONER EREKSON: I don’t want to take a whole lot of time away from other Commissioners. DON CAPOBRES: Through the Chair, Paula Krugmeier, lead designer on the project, has the answer. I’d ask her to come up. CHAIR BADAME: Yes. PAULA KRUGMEIER: Madam Chair, my name is Paula Krugmeier, architect with BAR Architects, and have been involved in this project with the Applicants for about eight years. We did that calculation today, and the landscape architect shared a number with me that was slightly over 11% of the total open space that is on the three-side perimeter. So Los Gatos Boulevard, Lark, and then there is a very small strip along Highway 17. That was at 11.2%. WENDI BAKER: Then 14% of the overall open space for this application, so it’s a relatively small amount of the open space. That’s more the zone you’re looking for. COMMISSIONER EREKSON: Thank you. CHAIR BADAME: If we could have the architect fill out a speaker card. Thank you. Commissioner Hudes. COMMISSIONER HUDES: Thank you. For one last time, I want to drag myself back to housing and the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 158 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 affordable units. I want to come back to the waivers that have been requested, and I want to understand the necessity of those waivers, because I believe that those waivers are to be granted if necessary to achieve the density, and so if we could maybe understand those two waivers and why they’re a necessity. WENDI BAKER: We have a grading component, which is a measuring from finished grade, and then we also have an additional height for, as Don mentioned, the elevator and accessory components of the affordable building. So those are the two waivers that you're referring to. The site itself, the way that it would grade, the way to get utilities to work, it’s a very complex puzzle. We’re talking a lot about some of the things that you’re seeing above the ground, but there are a lot of things below the ground. Trying to get all those things to work, it ends up that you fill in the site as you go towards the north. It’s a cut-fill. Most of the cut occurs in the Lark area. Most of the fill occurs as you go towards the Transition area, and to try to design every building to existing grade, and also to attempt to get utilities to work in that fashion, just makes it infeasible, and I believe that those have been reviewed by Staff and the LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 159 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Conceptual Development Advisory Committee, and have been determined to be… COMMISSIONER HUDES: Two questions about that. One is that if you remember some of the Advisory Committee hearings and other meetings, the issue about building height was a very big issue in town right at that time. There were requests to have some exceeding 35’, and it was granted to 45’. However, I know a number of Committee members were very strong in their opinion that that should be measured from existing grade rather than the proposed grade, rather than from finished grade, for the reason that the site slopes away from Los Gatos Boulevard and that would mitigate against us granting a height that is not allowed elsewhere in town. I really want to make sure we’re getting a very compelling reason why the density could not be achieved without that, because actually we’ve got a stacking of these two waivers in that, I believe from looking at the site grading plan, the area where we have the most grading, I think it’s approaching 5’, is the spot where the 45’ building is also being asked for additional height, so it really is 53’, I think, plus 5’, so it’s 58’, if I’m not mistaken. So could you please make sure that we understand LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 160 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the compelling reason why the density couldn’t be achieved without that height and without that grade exception? WENDI BAKER: The compelling reason is we have to grade the site and consider utilities and drainage and so forth as a part of this design, and that’s not something that we got into deeply during the specific plan process. Once this was uncovered and essentially how this site will work from a grading perspective and stormwater perspective and so forth, then if you were to take that and you actually assumed that you could not have the sort of height, excuse me, measuring from finished grade instead of the existing grade. We calculated the number of units that we would then be reduced by in order to not be measured by the existing grade standards, and I believe we counted about 90-something units. I don’t have that with me, but we had submitted that at a previous meeting. Obviously that is a huge issue for meeting the 20 units per acre requirement of the Housing Element, so it became a density issue as much as it layered on top of a true utility reason. DON CAPOBRES: I was getting jealous I wasn’t getting any of the action. When you talked about most of the residential in the Lark District, since you are specifically referring to the Eden Housing Market Hall LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 161 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 building, I did want to step up. We do have our civil engineer here who has worked on the grading plans. Just to be clear, the 45’ height limitation is we’re asking for exceptions on the height for two specific areas that are a very small percentage of that building. One is for the elevator penthouse, and one area is where we actually have some sloped roofs to aid on the articulation of the building. If you wanted to just totally comply with the height, we would have probably just put a flat roof on that and just have the mechanical penthouse be there, but I don’t think that’s what folks were looking for. In the particular area where you’re talking about, where those height variations are, we’re looking at 3’ in terms of grade, and so it’s 48’ if you’re going to measure from, I guess, existing grade would be the total, but we are seeking these waivers, we are entitled to these waivers under State Density Bonus Law, but I just wanted to correct you; it’s not a 58’ difference. COMMISSIONER HUDES: Now, I understand that you’re entitled to the waivers, but it has to be tied back to the need to achieve the density, and I see the paragraph in the letter of March 10th that says that “It would physically preclude the development of 320 units,” and it also says, “We estimate that 97 units would be lost.” I LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 162 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 don’t see any calculations to back that up. Have you discussed this with Staff, and has Staff walked through this with you? DON CAPOBRES: We have had the conversation with Staff, has everything in the application, so I would answer in the affirmative, yes. Your issue then is even more pronounced on the Market Hall Eden building, because just even a little bit over that 45’ would essentially lop off an entire floor of Eden housing over Market Hall, which would exacerbate your issue in terms of feasibility without a question. COMMISSIONER HUDES: Okay, thank you. Those are my last two on housing. I have some questions about some other areas, if that’s okay. CHAIR BADAME: That would be okay, but I think that this would be an opportune time for me to poll the Commissioners for us to go past 11:30; we’re approaching 11:30. So should we continue past 11:30, I would need a motion. COMMISSIONER O'DONNELL: I don’t (inaudible) awake. CHAIR BADAME: Okay, Commissioner O'Donnell, is that a motion? COMMISSIONER O'DONNELL: It’s just a warning. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 163 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR BADAME: A warning. Okay, all right. Vice Chair Kane. VICE CHAIR KANE: I make a motion that we not go past 11:30, and request Commissioner Hudes to try to wrap it up by then, if you think you can. If you can’t, then I’ll support that. Do you need more than ten minutes? COMMISSIONER HUDES: Let me try. I mean I can’t commit. VICE CHAIR KANE: It would be best if we could wrap it up tonight. COMMISSIONER HUDES: It depends on the answers that I get. I want to talk about views. I want to talk about traffic; there were some figures that were put up there. I want to talk about look and feel as well, which were all topics that were laid out by the Chair in terms of things we’re going to deliberate about. CHAIR BADAME: I’m going to guess that’s going to take more than ten minutes. Vice Chair Kane, did you have a question? That would mean the public testimony for the Applicant would still be open tomorrow. VICE CHAIR KANE: And can conclude tomorrow. CHAIR BADAME: I would remind the public that the public comment period is closed, but we would just resume LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 164 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with the Applicant, and then we would deliberate afterwards. Vice Chair Kane. VICE CHAIR KANE: I make a motion we not go past 11:30, based on that information. COMMISSIONER O'DONNELL: I’ll second. CHAIR BADAME: All right, I will call the question. Commissioner Erekson, did you have your hand up, or did you just want to chime in? COMMISSIONER EREKSON: I want to ask a question of the Town Attorney before we vote. Is it correct that even though we will not be closing the public portion of the public hearing, that if we do this and we reopen the public portion of the public hearing tomorrow night, that in fact the only members of the public who could speak during the reopening the public portion of the public hearing are the Applicants and their representatives? ROBERT SCHULTZ: We are closing the public comment period for the public comment period, and the Applicant isn’t allowed to make any more statements and closing statements. We’re in the process of asking any questions of the Applicant, but he’s not allowed to make any more public comments or public statements, as is the public is not allowed also, because we’ve closed the public LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 165 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 hearing period. Technically the public hearing period closes after his five minutes of his rebuttal; that’s when it closed. CHAIR BADAME: All right, does that sound good to you, Commissioner Erekson? Go ahead. COMMISSIONER EREKSON: That’s fine, yeah. I just wanted to be sure that I understood what we were voting on. CHAIR BADAME: Very good. I will call the question. All in favor? Passes unanimously. Commissioner Hudes, you still have eight minutes. COMMISSIONER HUDES: Let me talk about views, because it’s not a very long topic. There are several areas where views are addressed. They are addressed of course in the Vision Statement, but they’re also addressed in I could see at least three other places within the application. You use the term “view corridors.” Could you explain what you mean by a view corridor? I understand a view. I can see something or not. What is a view corridor? DON CAPOBRES: Permission through the Chair. I’m going to have Paula Krugmeier… We spent a lot of time on view and embracing the view over the years, and so I believe you’ll probably hit your time deadline, Madam Chair, through our presentation here, but it is a very LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 166 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 important topic for us and I want to be able to present it properly, but Paula will be handling that. CHAIR BADAME: Well, if you think it’s going to go past eight minutes, maybe Commissioner Hudes can go to a question that would be quicker than that. COMMISSIONER HUDES: Yeah, I’m happy to, because there is a diagram that I sent yesterday. CHAIR BADAME: Okay, all right. DON CAPOBRES: I do think it will go… It’s an important topic… CHAIR BADAME: It is. DON CAPOBRES: …and I think one that’s probably better if you are going to come back tomorrow, that we should probably tackle with fresh eyes. CHAIR BADAME: Thank you. COMMISSIONER HUDES: So my last question, look and feel. DON CAPOBRES: Oh, boy. COMMISSIONER HUDES: I just would like a broad discussion about this, or perspective on this. Do you believe that look and feel is important, and do you believe you’ve addressed that in your application? DON CAPOBRES: Again, these two topics are probably the biggest issues that we’ve considered since, as LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 167 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you asked the question, since story poles went up, and since the community meeting went up, and the joint study session. The answer is yes; we do feel that we meet the look and feel aspect of it. We have, we think, a good presentation on that front. So the answer is yes. I don't know if that suffices. It doesn’t really show you how we can back that statement up. COMMISSIONER HUDES: Well, it doesn’t square with the attorney’s statement that the Commission and Council have no right to modify the application to better achieve the look and feel of Los Gatos, so maybe you could address how your statement ties back to the statement in this letter. DON CAPOBRES: So we will continue to assert our rights, given where the policies have been approved over time, but that doesn’t mean we can’t have a discussion on how we think we met those. I don't know, Wendi, if you want to add anything here. We have carefully thought through this. Even though we’re not required… WENDI BAKER: I think that it’s really advantageous… We have some visuals, which they’re not coming up. I know that you all as Planning Commissioners were able to get out onsite, but generally members of the public haven’t been able to get into the center of the site LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 168 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and so forth and see the story poles, and so we’ve taken a lot of time to put together imagery that shows look and feel or view corridors, not because we don’t believe that we satisfy it, but because this team has taken a really comprehensive approach to looking at those things and we want to share that from the inside of the side. COMMISSIONER HUDES: Maybe I should just accept the answer to my last question and save this for the more comprehensive discussion? CHAIR BADAME: Yeah, I think I would recommend that. COMMISSIONER HUDES: I definitely accept the answer to the last question. COMMISSIONER O'DONNELL: (Inaudible). WENDI BAKER: Oh, there it is (indicating visuals). I know it’s five minutes, so… CHAIR BADAME: All right, so we can continue with you tomorrow. You can have a seat now. Thank you. We will be absorbing the new testimony that we received this evening and looking forward to further discussion tomorrow night. Thank you all for your participation and being a part of the public process. That includes the Commissioners and Staff who dedicate their time to the community. LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 169 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mr. Paulson, do you have a report for us this evening? JOEL PAULSON: I do not. CHAIR BADAME: All right. Do Commissioners have a matter to bring to the attention of the Commission? Commissioner Hudes. COMMISSIONER HUDES: I have a concern, and that is that if we don’t finish tomorrow night it’s been proposed that there be a meeting on July 20th to continue the matter. I will not be available on July 20th. I’ve made that clear to Staff for several months now. So if that happens, I wonder if Staff might be willing to bring back some alternatives to July 20th, or just let me know and I’ll not vote. CHAIR BADAME: I would recommend that tomorrow night we work very late. This will be early for us tomorrow night, so we will burn the midnight oil if I get a motion as such, otherwise… Mr. Paulson. JOEL PAULSON: The other thing I would offer is that I will check evening dates for Council chamber availability for different dates, and then check and see who else may or may not be available. It may be just a scheduling error that we won’t be able to get everyone LOS GATOS PLANNING COMMISSION 7/12/2016 Item #2, North 40 Phase 1 170 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 there, but we can talk through that tomorrow and we’ll look for options. CHAIR BADAME: All right, this meeting… FEMALE: (Inaudible). CHAIR BADAME: I’m sorry; this meeting is adjourned. Public comment is closed.