N40 Phase 1- Staff ReportTOWN OF LOS GATOS
PLANNING COMMISSION STAFF REPORT
Meeting Date: March 30, 2016
PREPARED BY: Marni F. Moseley, Associate Planner
mmoseley@losgatosca.gov
APPLICATION NO: Architecture and Site Application S-13-090
Vesting Tentative Map M-13-014
ITEM NO : 2
LOCATION: North 40 Specific Plan Phase 1 (southerly portion ofthe North
40 Specific Plan area , Lark Avenue to south ofNoddin Avenue)
APPLICANT: Grosvenor USA Limited
CONTACT PERSON: Don Capobres with Grosvenor and Wendi Baker with
Summerhill Homes
PROPERTY OWNERS: Thomas M. Yuki Trust Et. Al.Nuki Farms, Robert &
Georgianna Spinazze, Marianne Ezell , Grosvenor USA Limited,
Summerhill Homes , James F. Dagostino Trustee, Elizabeth K .
Dodson, William N. Fales , William Hirshman.
APPLICATION SUMMARY: Requesting approval for the con struction of a new multi-use,
multi-story development consisting of 320 residential units ,
which includes 50 affordable senior units; approximately 66,800
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.
RECOMMENDATION: Open the public hearing, take testimony, and continue to a date
certain.
PROJECT DATA: General Plan Designation: North 40 Specific Plan
Zoning Designation: North 40 Specific Plan
Applicable Plans & Standards: General Plan; North 40 Specific
Plan
Project Area: 20.7 acres
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North 40 Phase 1 /S-13 -090/M -13-0 14
March 30,2016
CEQA:
FINDINGS:
CONSIDERATIONS :
Surrounding Area:
Existing Land General Plan Zoning
Use
North Agriculture, North 40 Specific Plan North 40
Commercial, Specific
and Residential Plan
East Commercial Mixed Use Commercial CH,
and Residential R-1 :8
South Commercial, Mixed Use Commercial , CH,
Office and Low and Medium R-1:8,
Residential Density Residential andRD
West Highway 17 N I A N I A
An Environmental Impact Report (EIR) was prepared and
certified for the North 40 Specific Plan on January 5, 2015 . An
Initial Study has been prepared and concludes that the proposed
Phase 1 application is in compliance with the certified EIR.
• That the project is in compliance with the certified EIR for
the North 40 Specific Plan.
• That the proposed project is consistent with the General Plan.
• That the project is consistent with the North 40 Specific Plan.
• As required by Section 29.10 .09030(e) ofthe Town Code for
demolitions.
• As required by Table 2-6 of the North 40 Specific Plan for
reduction of non-residential setbacks.
• As required by Section 29.10.420 (a) of the Town Code if the
Planning Commission denies the Density Bonus request.
• As required by Government Code Section 65589.5 if the
Planning Commission denies the Development Standard
watvers.
• As required by Section 66474 of the Subdivision Map Act if
the Planning Commission denies the Vesting Tentative Map
application.
• As required by Section 29.20.150 ofthe Town Code for
granting approval of an Architecture and Site application.
Planning Commission Staff Report -Page 3
North 40 Phase 1/S-13-090/M-13-014
March 30, 2016
ACTION:
EXHIBITS:
Open the public hearing, take testimony, and continue to a date
certain.
Previously received under separate cover:
1. Proposed Development Plans, received March 18 ,2016 (242
pages)
Received with this Staff Report:
2. Location Map
3. Initial Study (79 pages)
4 . Findings and Considerations (three pages)
5. Conditions of Approval for Vesting Tentative Map (six
pages)
6 . Conditions of Approval for the Architecture and Site
Application (27 pages)
7. Letter of Justification (1 0 pages), received March 23, 2016
8. North 40 Narrative (seven pages), received February 8, 2016
9. Economic study letter (25 pages), received November 6,
2015
10. October 14 and November 11,2015 CDAC Minutes (seven
pages)
11. Response to CDAC comments (13 pages), received February
8,2016
12. January 27 , 2016 Historic Preservation Committee Minutes
(five pages)
13. Consulting Architect Report (six pages), received December
18 ,2015
14. Response to Consulting Architect Report (three pages),
received February 8, 2016
15. Consulting Architect memo (six pages), received March 21 ,
2016
16. Consulting Arborist report (33 pages), received October 14,
2013
17. State Density Bonus Law-Government Code Section 65915-
65918 (14 pages)
18. Density Bonus Ordinance and Program Guidelines -
Ordinance 2209 (21 pages)
19. Letter from Barbara Kautz, received March 10,2016 (16
pages)
20. Town 's BMP Program and Guidelines-Ordinance 2181 (19
pages)
21. Public comment received through 11:00 a.m., Thursday,
March 24 , 2016
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North 40 Phase 1/S-13-090/M-13-014
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BACKGROUND:
As defined by State law, municipalities may prepare and adopt a Specific Plan to help implement
the municipality's General Plan for a particular geographic subarea of the community. A Specific
Plan provides more detailed land use and development guidance within the project area than
occurs in the community's General Plan. Once a Specific Plan is adopted , development
applications for the area are reviewed by the municipality for consistency with the Specific Plan
as well as other governing land use documents in the community.
A draft Specific Plan for the North 40 Area was prepared in 1999, but was nev er adopted. In
201 0, the Town Council adopted the 2020 General Plan. The 2020 General Plan required the
preparation of a Specific Plan for the North 40 Area and included goals, policies, general
guidelines, and implementation strategies to inform the preparation of the Specific Plan.
The North 40 Specific Plan Advisory Committee (N40 AC) was established by the Town
Council on March 7, 2011. The goal ofthe N40 AC was to serve as an Advisory Committee to
the Town Council and the Planning Commission through coordination with staff and interaction
with the Community. The N40 AC consisted of nine members from the General Plan
Committee, and up to six members of the community from the General Plan Update Advisory
Committee. The N40 AC began meeting in March of2011 and concluded their work on October
15 , 2013.
An EIR for the Draft Specific Plan was prepared and circulated in early 2014. The Planning
Commission considered the Draft Specific Plan and EIR at two meetings in June and August of
2014 and a recommendation of approval with modifications was forwarded to the Town Council
on August 13 , 2014. The Town Council considered the Draft Specific P lan and EIR on eight
occasions between September 2014 a nd June 2015 . The Final EIR was certified on January 5,
2015 and the North 40 Specific Plan was adopted on June 17 , 2015, incorpora ting the
modifications approved by the Council based on its deliberations, con sideration of publ ic
testimony, Planning Commission recommendations, and all other information contained in the
record. ·
The adopted North 40 Specific Plan contains a Vision and Guiding Principles that provide
overarching guidance for development of the North 40 Specific Plan area, as follows:
Vision
The North 40 reflects the special nature of our hometown. It celebrates our history,
agricultural heritage, hillside views, and small town character. The North 40 is seamless ly
woven into the fabric of our community, complementing other Los Gatos residential and
business neighborhood s. It is respectful of precious community resources and offers unique
attributes that enrich the quality of life of all of our residents.
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North 40 Phase 1 /S-13 -090/M -13-014
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Guiding Principles to Achieve this Vision
• The North 40 will look and feel like Los Gatos.
• The North 40 will embrace hillside views, trees, and open space.
• The North 40 will address the Town's residential and/or commercial unmet needs.
• The North 40 will minimize or mitigate impacts on town infrastructure, schools, and
other community services.
The approval of the North 40 Specific Plan amended the zoning of the property to North 40
Specific Plan. The Specific Plan provides a maximum allowable development capacity for the
entire Specific Plan area of 270 residential units and 501,000 square feet of non-residential uses
(additional details are provided on pages 2-6 thru 2-10 of the Specific Plan). The proposed
Phase 1 Architecture and Site {A&S) application for approximately half of the Specific Plan area
includes the majority of the residential units allowed within the Specific Plan area (237 of the
270 permitted) plus a State Density Bonus of an additional 83 housing units and approximately
66 ,800 square feet of commercial space.
The Specific Plan requires that each A&S application for new development within the Specific
Plan Area comply with the process currently contained in Town Code. New multi-family and
non-residential developments require Planning Commission approval. Additionally, the
applicant is seeking a Vesting Tentative Map (VTM) for the subdivision of the area for the
residential and the commercial parcels. Town Code requires VTMs to be approved by Town
Council. As a result, the Planning Commission will provide a recommendation to the Town
Council for both the A&S and the VTM.
DISCUSSION ITEMS:
The Planning Commission is the recommending body to the Town Council for the Phase I
applications. In the consideration of its recommendation(s), the Planning Commission has
discretion to determine how the proposed North 40 development applications comply with
applicable Town policies, standards, and guidelines. Specific questions that the Planning
Commission should consider when reviewing the proposed applications include, but are not
limited to:
• Does the proposed development address the overall Vision and Guiding Principles set
forth in the Specific Plan?
• Does the proposed development reflect the agrarian feel discussed within the Specific
Plan?
• Does the open space provide for the open feel and uses of the property as directed in the
Specific Plan?
• Is the architectural style and detailing consistent with the Town and the direction
provided in the Specific Plan?
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Additionally, there are two other issues for Planning Commission consideration. These items are
discussed further within the Analysis section of the report and include:
• Tandem Parking: While permitted by the Specific Plan, Town Code does not provide
minimum dimensions .
• Tree Species : The applicant is requesting that additional trees be considered beyond those
provided in the Specific Plan.
PROJECT DESCRIPTION:
A. Location and Surrounding Area
The North 40 Specific Plan area is bounded by Highway 17 to the west, Los Gatos
Boulevard to the east , Lark A venue to the south and Highway 85 to the north. Phase 1 is
the southerly portion of the Specific Plan area and spans from Lark Avenue to just south of
Noddin Avenue (see Exhibit 2).
B. Architecture and Site Application
The proposed development included in the A&S application includes: 260 residential
condominiums/rowhomes , 10 rental apartments (including two live-work units), 50
affordable senior rental units , and 66,791 square feet of commercial floor area.
C. Vesting Tentative Map Application
The VTM proposes to subdivide the 20.7-acre Phase 1 project area into 113 lots, with up to
320 residential condominiums.
D. Off-Site Improvements
The Specific Plan and certified EIR require off-site improvements within the Town and
Caltrans right-of-ways. The applicant is proposing to build the required improvements
along Lark A venue for the full build out of the Specific Plan area , and interim
improvements for Phase 1 along Los Gatos Boulevard. Specific improvements are
discussed further in the Analysis section of the report. Full implementation of these
improvements will require continued coordination between the applicant, the Town, and
Cal trans.
ANALYSIS:
A. State Density Bonus
The State Density Bonus Law is one of several California statutes designed to implement
an important state policy to promote the construction of low-income housing and to remove
impediments to the same. When the Legislature adopted the State Density Bonus Law , it
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North 40 Phase 1/S-13-090/M-13-014
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declared that the housing shortage crisis must be addressed and that the State should rely on
local governments to provide the necessary increased housing stock and that local
di scretion and powers shall not be exercised in a manner to frustrate the purposes of the
State Density Bonus Law. The Density Bonus Law applies to all cities and towns. It
requires cities and towns to adopt an ordinance that specifies how local compliance with
the statute will be implemented.
The Town adopted a State mandated Density Bonus Ordinance in 2012 (Ordinance 2209,
Exhibit 18). The Ordinance was intended to comply with the State's Ordinance (Gov't
Code Section 65915-65918, Exhibit 17) and its requirements. If requested, the Ordinance
requires that unless specific findings (Exhibit 4) can be made to deny the Density Bonus,
the bonus and up to three concessions must be granted.
The proposed application includes 50 affordable senior rental units. 49 units are proposed
to be very low and extremely low income (defined as 30-50% of the median income of
Santa C lara County), and one manager unit would be moderate income (defined as 120% of
median income of Santa Clara County). The proposed number of VLI units is in excess of
11 percent of the base market rate units (237 units); therefore the application qualifies for
the requested Density Bonus of35 percent (83 units).
The State Density Bonus Law provides that an applicant may request a waiver or reduction
of d evelopment standards that would have th e effect of physically precluding the
construction of the project at the densities permitted under the statute. "Development
standard" means a site or construction condition, including, without limitation, local height,
setback , floor area ratio , on-site open space, and parking ratio requirement s that would
otherwise apply to residential development under local ordinances, ge neral plan elements,
specific plans, charters, or other local condition, law, policy, resolution, or regulation.
The waivers or reductions of development standards requested by the applicant are
discussed at length within the applicant 's Density Bonus Letter (Exhibit 19) provided by
Barbara Kautz, Partner with Goldfarb Lipman Attorneys. The applicant's Density Bonus
Letter provides supporting documentation explaining why certain development standards,
if applied, would preclude the applicant from being able to provide the necessary density.
The reques ted waivers and reductions in development standards are:
• Defi nition of height: The Specific Plan's definition of height aligns with that in
Town Code (29.1 0.020) and includes the measurement from existing or proposed
grade (whichever is lower) to the ridge directly above the grade. The applicant is
requesting an exception to the inclusion of existing grade due to the topographical
constraints in certain locations on the s ite . The proposed application would utilize
th e 35-foot maximum height as establi shed by the proposed/fini shed grade. The
proposed grade varies from the existing grade between zero to five feet depending
on the location.
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North 40 Phase 1 /S-13 -090/M -13-0 14
March 30,2016
• Maximum permitted height for the senior/mixed use market hall building: The
Specific Plan permits the mixed use/market hall building to be up to 45 feet in
height, and does not permit the standard exceptions to height provided within
Town Code. The proposed mixed use/market hall building includes several areas
that exceed 45 feet in height. The requested exception would allow the senior/
mixed use market hall building to have a maximum height of 51 feet.
In order for the Town to deny a waiver or reduction of a development standard, findings
must be made, based upon substantial evidence, that the waiver or reduction would have a
specific adverse impact upon public health and safety, or the physical environment, or on
any real property listed in the California Register of Historical Resources , and there is no
feasible method to satisfactorily mitigate or avoid the specific adverse impact without
rendering the development unaffordable to low income, very low income, and moderate
income households. The State Density Bonus law defines "specific adverse impact" as a
significant, quantifiable, direct, and unavoidable impact, based on objective, and identified,
written public health or safety standards, policies, or conditions as they existed on the date
that the application was deemed complete.
B. Below Market Price Housing Program (BMP)
The overall purpose of the Town 's BMP Ordinance and guidelines are to provide the Town
with a supply of affordable housing. The Town 's BMP Ordinance (Ordinance 2181,
Exhib it 20) requires that multi-family developments of more than 100 units provide a
number ofBMP units equal to 20 percent ofthe market rate units. The proposed
application includes 237 market rate units (the 83 units granted pursuant to the State
Density Bonus discussed above are not included), resulting in a minimum BMP
requirement of 47 units and 50 BMP units (21 percent) are proposed. The Town's BMP
Guidelines (Exhibit 20) require that affordable units be comparable in size, type , and finish
(i.e., materials) to the market rate units and that the location of the affordable units be
dispersed throughout the development to the extent feasible. The Characteristics of BMP
Units on page 4 of the BMP Guidelines discuss these requirements. The applicant is
proposing the following deviations from the BMP guidelines: aggregating all of the
affordable housing into a single affordable senior housing component, providing smaller
units than the market rate units, and offering rental units when the market rate units are for
sale units . The applicant has provided a response and justification to the proposed
deviations from these Guidelines (Exhibit 19). Exhibit 19 also contains a BMP Plan which
discusses the limitations of a senior restricted use based on State and Federal law .
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North 40 Phase 1/S-13-090/M-13-014
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C. Traffic
The EIR for the North 40 Specific Plan included a full Traffic Impact Analysis (TIA). The
TIA studied the impact ofthe full build out ofthe North 40 Specific Plan on the existing
roadways. The proposed application complies with the parameters analyzed in the EIR and
the Specific Plan. The applicant will be required to pay traffic mitigation fees based on the
proposed uses as well as provide the right-of-way improvements discussed below. As
stated within the traffic study (Appendix 0 of the Initial Study in Exhibit 3), the proposed
project would result in an increase of 3 ,819 average daily trips (AOT) and 155 new AM
and 360 new PM peak hour trips. These impacts were anticipated with the implementation
of the North 40 Specific Plan. The January 20, 2016 letter from Fehr & Peers provides
additional information in regards the applications compliance with the certified EIR
(Appendix 0 of Exhibit 3).
D. Parking
The Specific Plan provides off-street parking requirements for residential uses within the
Specific Plan area, and refers to the required parking for the downtown (Section 29.1 0 .150)
for commercial uses . The proposed uses and applicable parking requirements are provided
in the chart below . In addition to the off-street parking spaces provided within the private
residential garages, the four level parking garage, and the at grade parking lots, the
application provides 111 on-street parking spaces . All the streets within the development
are proposed to be private, and would remain accessible to the public. While the
application provides sufficient off-street s paces to meet the parking required pursuant to the
Specific Plan, the additional on-street spaces provide additional capacity for guests and
those using the open space and commercial businesses.
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North 40 Phase 1/S-13-090/M-13-014
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As shown in the table below, the project exceeds the parking requirements by 1 75 spaces.
Pro~osed Total
S~ecific P lan Parking Use S~aces
Proposed U ses ReQuirement Total ReQuired
Commercial:
Retail /Personal Service 1/300 gross square feet 45,531 Sq . Ft. 151.77
Restaurant 11300 (four seats) 14,631 Sq. Ft. 48.77
Bar/Tavern 1/300 (three seats) 2,916 Sq. Ft. 9.72
Community Meeting Room 11590 gross square feet 3,115 Sq. Ft. 5 .28
Total Commercial Parkin2 ReQuired 216 Spaces
Residential: Reside nt + G uest
S enior Affordable Units (.5/Units + .5 /Unit) = 1/Unit 50 Units 50
Single Bedroom Units (1 /U n it + .5/Unit) = 1.5 /Unit 77 Units 11 5.5
Two or More Bedroom Units (2 /Unit + .5 /Unit) = 2.5/Unit 193 Units 482.5
Total Residential Parkin2 Required 648 Soaces
T otal Project Parkin2 Required: 864 Soaces
Project Parkin2 Provided:
Off-Street Parking:
Multi-Story G arage 281
Parking Lots 173
Residential Garage 474
!New On-Street Spaces:
On-Street Parallel Spa ces 11 1
Total New Parkin!! Soaces 1.039 Spaces
The Specific Plan permits tandem parking for the r esidential units. The applicant is
proposing to provide the required parking for 87 of the two or more bedroom units in a
tandem garage. Town Code does not provide minimum dimensions for a tandem garage.
Town Code provides the following parking d imension requirements:
• Single-car garage : 11 feet by 20 feet
• Two-car garage : 20 feet by 20 feet
• Standard off-street parking space dimension: 8.5 feet by 18 feet (an additional foot
is required for each side where an encumbrance is located, up to a maximum of 10.5
feet by 18 feet).
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The applicant has provided justification for the proposed tandem garage dimensions ( 11
feet by 36 feet) based on other existing developments and the requirements of other
jurisdictions that permit tandem parking. However, the applicant is willing to provide a
minimum of 11 feet by 38 feet for all tandem garages. Staff has included the larger
dimension as a condition of approval (Condition 1 0 in Exhibit 6).
E. Open Space
The North 40 Specific Plan provides the minimum open space requirements for the
Specific Plan Area within Chapter 2, and further discusses the design and implementation
of open space throughout the Specific Plan Area in Chapter 3. The Specific Plan requires a
minimum of 30 percent open space to be provided in each development application for the
North 40. Of the 30 percent, a minimum of20 percent must be in the form of "green" open
space. The Specific Plan describes what falls into this category. The remaining open space
may consist ofhardscape, which is also defined within the Specific Plan. The proposed
application provides approximately 39 percent of the development area as open space with
a minimum of approximately 23 percent qualifying as "green" open space.
The applicant discusses the various types of open space and connectivity throughout the
Phase 1 development area in their letter of justification (Exhibit 7). Sheet 6.5 of the
proposed development plans details the open space provisions for the development. The
proposal includes approximately one acre of private open space, and approximately seven
acres of common open space. Of the common open space, the majority is passive
(including the multi-modal path, sidewalks, and paseos) and approximately ~ of an acre is
active with a community garden, barbeque area, dog park, and garden retreat.
This open space approach appears to meet the technical requirements and the design
criteria provided in section 3.2.2 of the Specific Plan; however, the Commission may wish
to comment on this in the context of the Vision and Guiding Principles. Both the
Transition District and the Lark District have a larger common outdoor space to encourage
public and private use. While these areas would be maintained by the Homeowners
Association and the commercial management for the retail areas, all open space, with the
exception of the private yards within the Garden Cluster units, would be open and
accessible to the public.
The Historic Preservation Committee (HPC) considered the applications integration of the
agrarian feel as discussed in the Specific Plan on January 27,2016 (Exhibit 12). The HPC
found that the application had met the direction of the Specific Plan.
F . On-Site Improvements
The applicant's letter of justification discusses the proposed on-site improvements at length
(Exhibit 7). These elements include a multi-use path that connects the residential and
commercial components of the development with Lark A venue and Los Gatos Boulevard .
The installation ofthe multi-modal along Lark Avenue and Los Gatos Boulevard is
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discussed in the off-site improvements section below. The proposed plans include a
network of wide landscaped sidewalks and paseos that connect pedestrians and bicyclist to
pocket amenities throughout the development (Sheet 11 of Exhibit 1 ).
G. Off-Site Improvements
The final off-site improvements will be designed and constructed to be consistent with the
conditions of approval ofthe A&S application . The Vesting Tentative Map's off-site
improvement plans are not part of the map and do not fully reflect the conditions of
approval as typically the off-site improvement plans are finalized through the ministerial
engineering improvement plans process with Parks and Public Works . Which occurs after
the approval of the planning applications. The proposed improvement plans are attached
for reference only on sheets 1.23 and 1.24 of the development plans (Exhibit 1 ). As is
typical, off-site improvement details will be finalized through the Parks and Public Works '
ministerial engineering improvement plan process that would occur following a decision on
the planning applications .
The off-site improvements along Lark A venue are proposed to be completed with the Phase
1 development, as well as a majority of the Los Gatos Boulevard (LGB) improvements.
The Los Gatos Boulevard improvements include interim/temporary installations (with the
exception of the west side curb, gutter and multi-use path) due to the necessary future right-
of-way dedications on the east side of LGB to complete the full build out plan for Los
Gatos Boulevard. The applicant is required to implement the following off-site
improvements as detailed in the Specific Plan and EIR. All of these items are included as
conditions of approval for the A&S application.
• Lark A venue: Los Gatos Boulevard to State Route 17 Northbound Ramps:
In the eastbound direction , Lark A venue will provide three through lanes and one
left tum lane at Highland Oaks Drive, and two left tum lanes, one shared
left/through lane, and one right tum lane at Los Gatos Boulevard.
In the westbound direction, widen Lark A venue to provide three westbound lanes
and one right tum deceleration lane at the new project driveway(' A ' Street), and
to provide four westbound lanes, two through and two right tum lanes, at State
Route 17 northbound ramps. The westbound lanes will taper from three lanes to
four lanes starting immediately west of' A' Street.
Provide a bike lane in the eastbound direction from State Route 17 northbound
ramps to Los Gatos Boulevard. A preserved 5-foot width will be provided in the
westbound direction from Los Gatos Boulevard to State Route 17 northbound
ramps.
Construct a pedestrian crosswalk across Lark A venue immediately east of State
Route 1 7 northbound ramps.
Construct a raised median island along Lark A venue from State Route 17
northbound ramps to Los Gatos Boulevard .
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• Lark A venue/State Route 17 Northbound Ramps Westbound :
Provide two through lanes and two 200-foot right tum lanes onto Northbound
State Route 17 freeway on-ramp.
Install a new signal to control the right tum movement for State Route 17 on-
ramp.
Install a pedestrian crosswalk crossing the east leg of intersection.
• Lark A venue at Highland Oaks Drive (un-signalized intersection):
Add a project driveway (South 'A ' Street) on Lark Avenue opposite Highland
Oaks Drive.
Provide left-in and right-in access and right-out access only.
Remove the left-tum lane from Lark A venue into Highland Oaks Drive.
Provide an emergency vehicle access turning left into Highland Oaks Drive.
Provide a left-tum lane from Lark Avenue into 'A ' Street.
Add a right-tum deceleration lane into 'A ' Street.
Pedestrian movements crossing Lark Avenue at Highland Oaks Drive/' A' Street
will be prohibited.
• Lark Avenue/Los Gatos Boulevard :
Eastbound: provide two dedicated left tum lanes , one shared through-left lane
and one right tum lane.
Northbound: provide three dedicated left tum lanes, one through lane and one
shared through/right lane .
• Los Gatos Boulevard :
Construct a continuous median island along Los Gatos Boulevard from Lark
Avenue to the north project limits (Phase 1) except at the new intersection of
Neighborhood Street, where left-turn/U-tum lanes will be provided .
Provide a new signalized intersection at Neighborhood Street.
• Los Gatos Boulevard at Neighborhood Street (signalized intersection):
Southbound Los Gatos Boulevard will provide one left tum lane, one through lane
and one shared through/right lane . The improvements will not include a right-tum
deceleration lane into Neighborhood Street.
Northbound Los Gatos Boulevard will provide one left tum lane, one through
lane, and one shared through/right lane.
Neighborhood Street will have two entry lanes and two exit lanes .
• Multi-Use Path:
Along Los Gatos Boulevard from north of the project limits to approximately 800
feet north of Lark A venue, continuing into and through the project site,
connecting to Lark A venue.
Along Lark Avenue from the northeast comer ofthe State Route 17 notihbound
on-ramp to the northwest comer of the Los Gatos Boulevard intersection.
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The connection to these intersections, i.e. Neighborhood Street/Los Gatos
Boulevard, Lark A venue/State Route 17 northbound on-ramp, Lark A venue/' A'
Street, and Lark A venue/Los Gatos Boulevard, will be constructed with enhanced
amenities, such as textured pavement and adequate waiting areas for pedestrians
and bicyclists, encouraging use of the multi-use path.
The location of the multi-use path is dependent on the off-site improvements,
such as future curb and sidewalk. The location of multi-use path along Lark
Avenue and Los Gatos Boulevard will be finalized prior to recordation ofthe
Final Map.
• Transit Stop : Per the Specific Plan, transit stops are to be located in central locations,
accessible to a majority of the Specific Plan area. Due to physical constraints pending
the full build-out of Los Gatos Boulevard, the transit stops will remain at their existing
locations. A bus pullout will not be constructed .
• Included in the conditions of approval is a requirement for the applicant to install a bike
lane across the State Route 17 overpass, continuing to the Los Gatos Creek trail
entrance at Charter Oaks. This will require continued coordination with Caltrans to
implement.
• Sound Wall: The location of the sound wall is dependent on the off-site improvements,
such as the future curb , sidewalk, and multi-use path. The sound wall location in the
Vesting Tentative Map will be finalized prior to recordation of the Final Map.
H . Site Utility Improvements & Storm Drain Improvements
Storm Drain
The construction of the California State Route 17 /85 interchange installed a 36 inch
diameter storm drain pipe beneath California State Route 17 to Oka Road for the future
North 40 development. The development will install new pipe from Oka Road to an
existing 42 inch storm drain outfall stub at Los Gatos Creek.
On-site, the development will connect to the existing 36 inch storm drain pipe and to the
Town storm's drain system on Los Gatos Boulevard, alleviating an existing Town storm
drain line that is undersized.
Included in the proposed improvements are a series ofbioretention facilities which will
serve as stormwater treatment measures and minimize stormwater runoff. Additionally, a
hydromodification storage vault will ensure that the development will not increase the
potential for negative impacts to Los Gatos Creek.
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Sanitary Sewer
A 10 inch diameter sanitary sewer pipe was installed beneath California State Route 17 ,
extending from the development site 's western boundary to just east ofOka Road. The
North 40 development will connect to the eastern stub to convey sewage from the
development through the site. At Oka Road, the development will install a short segment
of new pipe to connect to the existing sewer located within the Oka Road right-of-way.
Wat er
An existing 24 inch water transmission pipe bisects the development area in a north-south
alignment. The development will connect to this facility within the Lark A venue right-of-
way and re-route the pipe through the project site, connecting again on Los Gatos
Boulevard. The development will also connect to the existing domestic water lines within
both the Lark A venue and Los Gatos Boulevard rights-of-way and create a looped on-site
potable water system through its private streets and alleys.
Joint Trench
Existing dry utilities, such as gas and electric, fiber optic, telephone and cable, are present
within a joint trench located along the project 's Los Gatos Boulevard and Lark Avenue
frontages . The development proposes to connect to these existing facilities at both the Lark
A venue/' A ' Street intersection and at Phase 1 's northern development boundary along Los
Gatos Boulevard. From these points of connection, new joint trench with these utilities
will run along Los Gatos Boulevard and through the private on-site streets and alleys to
provide connections to the residences and commercial buildings.
Review of the proposed utilities and discussions with the associated utility companies
confirms that the utility upgrades and connections constructed with the Phase 1
development will address the capacity needs for the future phases.
I. Architectural Consultant Review
The Consulting Architect reviewed the proposed development plans and provided a report
(Exhibit 13) that details his recommended changes. His report also includes his
professional opinion in regards to appropriateness of the architecture, details, and materials.
The Consulting Architect found ; "this has the potential of being an outstanding example of
a large scale mixed use development constructed in a relatively compressed time period,
but with a texture and character of a neighborhood that has evolved over a much longer
time frame ... 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 f eel of Los
Gatos."
Planning Commission StaffReport-Page 16
North 40 Phase 1/S-13-090/M-13-014
March 30,2016
The Consulting Architect provided five recommendations for the applicant to address. The
applicant provided a response to the Consulting Architects comments (Exhibit 14) and
those changes have been incorporated into the final development plans (Exhibit 1 ). The
Consulting Architect concluded (Exhibit 15) that his comments had been addressed in the
revised development plans. The Commission may consider the comments of the
Consulting Architect to assist in its review of the proposed applications.
The applicant is proposing a trellis to extend approximately 12 feet into the required 30-
foot setback along Los Gatos Boulevard for building B2. This building is intended to be
restaurant space, and the trellis would provide a covered dining patio. The Specific Plan
permits setback reductions for non-residential buildings based on specific findings (Exhibit
4). The Specific Plan encourages the use of outdoor dining, and the allowance for the
trellis would assist in defining the dining area as well as providing a feel of separation from
Los Gatos Boulevard and the new intersection at Neighborhood Street.
J. Trees
There were two arborist reports prepared for the Specific Plan process, the first was
completed in 2011 (appendix Fin the EIR), and a second one in 2013 in preparation for
Phase 1 development. Ofthe 17 'Key Protected Trees' recommended to be saved within the
Specific Plan Area, eight are located in Phase 1. The 2013 report (Exhibit 16) downgraded
two ofthese eight trees to 'fair' (not worth preserving; trees 108 , and 134) and noted that
one of the trees had been removed from the site ( # 154) in 2011.
The 2013 arborist report (Exhibit 15) surveyed 96 trees on the property. This did not
include the orchard trees (walnuts that are less than 18 inches/protected size, which are
nearing the end of their viability). Of those 96 existing trees, 45 were classified as having
'excellent, good, or fair /good' preservation suitability. The existing (non-walnut) trees are
primarily either at the perimeter of the site, or in a cluster around the existing homes along
Bennett Way. The applicant informed the Town that they considered ways to preserve as
many trees as possible along the perimeter of the site and along Bennett Way; however,
due to necessary access improvements and site grading, the applicant determined that it
was infeasible to retain many of the trees . In Phase 1, the applicant is proposing to save 10
healthy trees . The applicant is proposing to continue to work with the Town's consulting
arborist in regards to protecting and retaining these existing trees throughout construction.
The application proposes to remove approximately 1,100 existing trees including the
orchard trees, and to plant over 1,900 trees on-site with the Phase 1 improvements .
K. Demolition
The HPC considered the proposed demolition on January 27, 2016 (Exhibit 12). The
Committee recommended approval of the demolitions proposed within Phase 1, with the
understanding that the applicant intends to comply with the direction of the Committee
regarding the Red Bam and the Adobe house located outside of the Phase 1 improvement
area.
Planning Commission StaffReport-Page 17
North 40 Phase 1/S-13-090 /M-13-014
March 30, 2016
L. Conceptual Development Advisory Committee
The Conceptual Development Advisory Committee (CDAC) considered the proposed
application on October 14,2015 and November 11 ,2015. The Committee discussed
implementation of the proposed project in relation to Town policies and Ordinances and the
North 40 Specific Plan (Exhibit 11 ). The Committee, as required by the Specific Plan
reviewed and discussed the applicant 's economic analysis report (Exhibit 9) and
acknowledged the report's findings that the proposed commercial development would not
have a negative impact on the downtown .
M. General Plan
The North 40 Specific Plan was found to be in compliance with the Town 's General Plan
and the Town's Housing Element. The goals and policies of the 2020 General Plan
applicable to this project include, but are not limited to:
• Policy LU-1 .8 -Commercial development of any type (office, retail, research and
development, etc.) shall be designed in keeping with the small-town character of Los
Gatos.
• Goal LU-12 -To ensure an appropriate mix ofland use types along Los Gatos
Boulev ard in order to maintain the economic vitality of the corridor and continue to
serve the needs of Town residents.
• Goal LU-13 -To promote appropriate and compatible development along Los Gatos
Boulevard that complements the whole Town and serves residents and families.
• Goal CD-1 -Preserve and enhance Los Gatos 's character through exceptional
community design.
N. CEQA Determination
The Town Council certified an EIR for the North 40 Specific Plan on January 5, 2015. An
Initial Study has been prepared to analyze the proposed uses and improvements associated
with the Phase 1 project (Exhibit 3). The Initial Study concludes that the proposed
development applications for Phase 1 comply with the environmental analysis completed
with the certified EIR, and therefore no additional environmental analysis is required for
the proposed applications . The recommended conditions of approval (Exhibit 6) include a
condition requiring implementation of the applicable mitigation measures from the adopted
Mitigation Monitoring and Reporting Program.
STORY POLES:
The applicant requested an exception to the Town's Story Pole Policy on February 16,2016.
The Town Council approved the applicant 's request with modifications to the necessary time
frame as well as requiring additional buildings to be poled. The applicant implemented the
proposed story pole plan with the exception of the buildings along Los Gatos Boulevard and the
remainder of building A-1 due to unanticipated conflicts with the required guy wires to support
Planning Commission StaffReport-Page 18
North 40 Phase 1/S-13-090/M-13 -014
March 30, 2016
the poles. The applicant is seeking a modification of the approved exception that is scheduled to
be considered by the Town Council on April 5, 2016. The applicant has not fulfilled the
requirements of the story pole exception and until the Town Council makes a determination on
the requested modification, the Planning Commission cannot take an action on the proposed
applications.
COORDINATION:
The information provided in this report and in the analysis of the applications was coordinated
with the Town Attorney 's Office, Town Manager's Office, Parks and Public W o rks Department,
Santa Clara County Fire Department, the Bicycle and Pedestrian Advisory Committee, Caltrans,
Valley Transportation Agency, and the Silicon Valley Bicycle Coalition .
PUBLIC COMMENTS:
All correspondence received prior to 11 :00 a.m. on March 24, 2016 is included with this report
(Exhibit 21) and additional comments received after this date and before 11 :01 a.m. on March
30, 2016 will be forwarded to the Commission consistent with Town policy. Additional public
comment is welcome prior to the continued discussion per Town policy.
In addition to the required public hearing notices, the Town has provided public notification and
outreach throughout the application review process. Staff has provided updates on the
application and links to the current application materials through the What 's New section of the
Town 's Website, Next-Door, the Town 's Facebook page, Twitter Feed, and through the email
list established during the North 40 Specific Plan process. Additionally, the Town held a
Community Open House in coordination with the applicant, which included the display of the
applicant's scale model ofthe proposal and other information. Beginning in March 2016, the
applicant held weekly coffee and questions in the Town Council Chambers Lobby. These efforts
have provided an opportunity for the community to view the scale model , plans and materials,
ask questions of the applicant and/or staff, and provide comments.
SUMMARY AND RECOMMENDATION :
A . Summary
In its deliberations on the applications, the Commission has the discretion to consider the
overall Vision and Guiding Principles of the North 40 Specific Plan as well as other
elements ofthe Specific Plan.
Based on the analysis provided above, the proposed applications meet the technical
requirements of the North 40 Specific Plan, the goals and policies of the General Plan, and
the Town's Housing Element. The proposed traffic impacts will be mitigated based on the
required traffic mitigation fees and implementation of the proposed right-of-way
improvements . The Commission should consider the recommended conditions of approval
Planning Commission StaffReport-Page 19
North 40 Phase 1/S-13-090/M-13-014
March 30,2016
to ensure the proposal meets the Specific Plan and other Town Codes, policies, and
guidelines. Other specific comments and direction are welcome as part of the
Commission's recommendation to the Town Council.
B. Recommendation
Due to the incomplete story pole installation, per the approved story pole exception granted
by Town Council, the Planning Commission cannot take an action at the March 30
meeting. Staff recommends that the Commission open the public hearing input from the
public and continue the applications to a date certain.
While the Commission cannot take an action at this time, once the required story pole
installation has been completed, based on the summary above, staff recommends the
Commission take the following actions to forward a recommendation for approval of the
Architecture and Site application and Vesting Tentative Map to the Town Council:
1. Make the required finding that the proposed project is in compliance with the
Certified EIR and that no further environmental analysis is required; and
2. Make the finding that the project complies with the General Plan (Exhibit 4); and
3. Make the finding that the project complies with the North 40 Specific Plan (Exhibit
4); and
4 . Make the required findings as required by Section 29.1 0 .09030( e) of the Town Code
for granting approval of demolitions (Exhibit 4); and
5. Make the finding that the project complies with the North 40 Specific Plan for
reduction of non-residential setbacks (Exhibit 4); and
6. Make the required considerations as required by Section 29.20.150 ofthe Town Code
for granting approval of an Architecture & Site application (Exhibit 4); and
7. Approve Architecture and Site Application S-13-090 and Vesting Tentative Map
application M-13-014 subject to the conditions contained in Exhibits 5 and 6 and the
development plans (Exhibit 1 ).
If the Commission has concerns with the application, it can:
1. Forward a recommendation for denial to the Town Council; or
2. Forward a recommendation for approval with modified conditions of approval to the
Town Council; or
3. Continue the matter to a date certain with specific direction.
repared by:
Mami Moseley, AICP
Associate Planner Community Development Director
Planning Commission Staff Report -Page 20
North 40 Phase 1/S-13-090/M-13-014
March 30, 2016
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cc: Grosvenor Americas, Don Capobres, 1 California St., Ste. 2500, San Francisco, CA 94111
Summerhill Homes, Wendi Baker, 3000 Executive Prkwy., Ste. 450, San Ramon , CA 94583
N:\DEV\PC REPORTS \2 0 16\No rth 40 3-30-16 (Friday-2 ).docx