Formula Retail Business Definition - Staff Report & Exhibit 1TOWN OF LOS GATOS ITEM NO: 4
PLANNING COMMISSION STAFF REPORT
Meeting Date: January 13, 2016
PREPARED BY:
APPLICATION NO:
LOCATION:
APPLICANT:
APPLICATION
SUMMARY:
Monica Renn , Economic Vitality Manager
mre nn @ lo sgatosca .go v
Town Code Amendment Application A-15-004
Town Wide
Town of Los Gatos
Consider amendments to Section 29.10 .020 of Chapter 29 (Zoning
Regulations) of the Town Code regarding the definition of formula
retail business.
RECOMMENDATION: Forward to Town Council with a recommendation for adoption.
CEQA:
FINDINGS:
ACTION:
EXHIBITS:
BACKGROUND:
It has been determined that there is no possibility that this project will
have a significant impact on the environment; therefore, the project is
not subject to the California Environmental Quality Act [Section
15061 (b)(3)].
The Planning Commission must make a finding that the Code
amendments are consistent with the General Plan if the
recommendation is for adoption.
Recommendation to Town Council.
1. Draft Town Code Amendments
In September 2015 , the Town Council began discussing a variety of issues that relate to
businesses in Los Gatos at the request of the Town Council Policy Committee. One of the issues
identified was the Town 's regulations on formula retail businesses. The Town defines formula
retail businesses in Chapter 29 of the Town Code.
Staffbenchmarked other jurisdictions and provided a recommendation for definition
amendments for the Town Council to consider including the number and location of existing
business locations as well as qualifying factors to make identifying and processing formula
retailers clearer.
Planning Commission StaffReport-Page 2
Formula Retail Ordinance/ A -15-004
January 13 , 2016
At their October 6 , 2015 meeting, the Council continued their discussion on formula retail
businesses and recommended that the Planning Commission consider and make a
recommendation on the definition amendment presented by staff.
DISCUSSION:
Currently, the Town Code defines formula retail business in Section 29.1 0.020. The current
definition is:
Formula retail business means a retail business which, along with seven (7) or more
other business locations, is required by contractual or other arrangement to maintain any
of the following : standardized merchandise, services, decor, uniforms , architecture,
colors, signs or other similar features .
The proposed amendments include adding restaurants, limiting location constraints to the United
States, and providing greater detail and qualifying information to allow for clearer guidelines
regarding formula retailers . The proposed definition is:
Formula re tail business means a type of retail sales establishment or restaurant which, along
with seven or more other retail sales establishments located in the United States, maintains
two or more of the following features : a standardized array of merchandise or menu, a
standardized facade , a standardized decor and color scheme, standardized uniform apparel ,
standardized signage, a standardized layout, a trademark, or a servicemark.
1. Standardized means both identical and substantially the same.
2. Array of merchandise or menu means 50% or more of in-stock merchandise or menu
items.
3 . Fa9ade means the face or front of a building, including awnings , looking onto a street
or an open space.
4. Decor means the style of interior finishings , which may include but is not limited to ,
style of furniture, wall coverings or permanent fixtures.
5. Color Scheme means the selection of colors used throughout , such as on the
furnishings , permanent fixtures , and wallcoverings, or as used on the facade.
6. Uniform Apparel means the standardi zed items of clothing including but not limited
to standardized aprons, pants, shirts, smocks or dresses, hat, and pins (other than
name tags) as well as standardized colors of clothing.
7. Signage means a business sign pursuant to Section 29.10.135 of the Town Code.
8. Trademark means a word, phrase, symbol or design, or a combination of words ,
phrases, symbols or designs that identifies and distinguishes the source of the goods
from one party from those of others .
9. Servicemark means a word , phrase, symbol or design , or a combination of words,
phrases, symbols or designs that identifies and distinguishes the source of a service
from one party from those of others.
Planning Commission Staff Report -Page 3
Formula Retail Ordinance/ A-15-004
January 13 , 2016
CEQA DETERMINATION:
The project is exempt from environmental review pursuant to CEQA Guidelines under the
General Rule [Section 15061 (b) (3)] because it can be seen with certainty that the proposed
Town Code amendments will have no significant negative effect on the environment.
PUBLIC COMMENTS:
At this time, the Town has not received any public comment.
CONCLUSION AND RECOMMENDATION :
A. Conclusion
Based on their consistency with the General Plan, staff recommends that the Planning
Commission forward the draft Town Code amendments to the Town Council with a
recommendation for adoption as outlined below.
B. Recommendation
For the reasons discussed in this report, staff recommends that the Planning Commission forward
the draft Town Code amendments to the Town Council with a recommendation for adoption.
The Commission should also include any comments or recommended changes to the draft Town
Code amendments in taking the following actions:
1. Find that there is no possibility that this project will have a significant impact on the
environment; therefore the project is not subject to the California Environmental Quality
Act [Section 15061 (b) (3).].
2. Make the required finding that the Town Code (Zoning Regulations) Amendments are
consistent with the General Plan; and
3. Forward a recommendation to Town Council for adoption of the amendments to the
Town Code (Exhibit 1).
Alternatively, the Planning Commission may:
1. Forward a recommendation to the Town Council for adoption of the Town Code
amendments with modifications; or
2. Forward a recommendation to the Town Council for denial of the Town Code
amendments ; or
3. Continue the matter to a date certain with specific direction.
Planning Commission Staff Report -Page 4
Formula Retail Ordinance/ A -15-004
January 13 ,2016
Pr~~
Monica Renn
Economic Vitality Manager
N:\DEV\PC RE PO RTS\20 16\Fo nnula Retail Ordinance.docx
Approved by:
Joel Paulson, AICP
Interim Community Development Director
DRAFT AMENDMENTS TO SECTION 29.10.020 OF THE TOWN CODE
CURRENT FORMULA RETAIL BUSINESS DEFINITION
AND PROPOSED DEFINITION
CURRENT DEFINITION:
29.10.020 Definitions.
Fermule ret-t~il business means a retail business which , along with seyen (7) or more business
locations, is required by contractual or other arrangement to maintain any of the following:
standardized merchandise, services decor, uniforms, architecture, colors, signs or other similar
features.
PROPOSED DEFINITION:
29.10.020 Definitions.
Formula retail business means a type of retail sales establishment or restaurant which, along
with seven or more other retail sales establishments located in the United States, maintains two
or more of the following features: a standardized array of merchandise or menu, a standardized
facade, a standardized decor and color scheme, standardized uniform apparel, standardized
signage, a standardized layout, a trademark, or a servicemark.
1. Standardized means both identical and substantially the same.
2. Array of merchandise or menu means 50% or more of in-stock merchandise or menu
items .
3. Fa9ade means the face or front of a building, including awnings, looking onto a street or
an open space.
4 . Decor means the style of interior finishings, which may include but is not limited to, style
of furniture, wall coverings or permanent fixtures .
5. Color Scheme means the selection of colors used throughout, such as on the furnishings,
permanent fixtures, and wallcoverings, or as used on the facade.
6. Uniform Apparel means the standardized items of clothing including but not limited to
standardized aprons, pants, shirts, smocks or dresses, hat, and pins (other than name tags)
as well as standardized colors of clothing.
7. Signage means a business sign pursuant to Section 29.10.135 ofthe Town Code.
8 . Trademark means a word, phrase, symbol or design, or a combination of words, phrases,
symbols or designs that identifies and distinguishes the source of the goods from one
party from those of others.
9 . Servicemark means a word, phrase, symbol or design, or a combination of words,
phrases, symbols or designs that identifies and distinguishes the source of a service from
one party from those of others.
EXHIBIT 1
N:\DEV\PC REPORTS\2016\Formula Retail Ordinance Ex hibit l.Docx
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