Item 3 - Staff Report.35 University Avenue
PREPARED BY: Sean Mullin, AICP
Associate Planner
Reviewed by: Planning Manager and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 11/11/2020
ITEM NO: 3
DATE: November 6, 2020
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Requesting a Zoning Consistency Determination and Approval of a
Conditional Use Permit (U-20-009) for a Bank (Charles Schwab Community
Banking and Investment Services) on Property Zoned C-2:LHP:PD. Located at
35 University Avenue. APN 529-02-044. Property Owner: SRI Old Town LLC.
Applicant: Amber DeMaglio.
RECOMMENDATION:
Consider a zoning consistency determination and approval of a Conditional Use Permit (U-20-
009) for a bank (Charles Schwab Community Banking and Investment Services) on property
zoned C-2:LHP:PD, located at 35 University Avenue.
PROJECT DATA:
General Plan Designation: Central Business District
Zoning Designation: Central Business District with a Landmark and Historic
Preservation Overlay, C-2:LHP
Applicable Plans & Standards: General Plan and Commercial Design Guidelines
Parcel Size: 4.18 acres (182,080 square feet)
Surrounding Area:
Existing Land Use General Plan Zoning
North Commercial Central Business District C-2:LHP
East Commercial Central Business District C-2:LHP
South Commercial Central Business District C-2:LHP
West Parking Lot Central Business District C-2:LHP
PAGE 2 OF 6
SUBJECT: 35 University Avenue/U-20-009
DATE: November 6, 2020
CEQA:
The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation
of the California Environmental Quality Act, Section 15301: Existing Facilities. No significant
effect on the environment will occur since the project uses an existing structure with no
increase in floor area.
FINDINGS:
▪ The project is Categorically Exempt pursuant to the adopted Guidelines for the
Implementation of California Environmental Quality Act, Section 15301: Existing Facilities.
No significant effect on the environment will occur since the project uses an existing
structure with no increase in floor area.
▪ As required by Section 29.20.190 of the Town Code for granting approval of a Conditional
Use Permit application.
ACTION:
The decision of the Planning Commission is final unless appealed within ten days.
BACKGROUND:
Citing the evolving nature of the traditional banking industry, the applicant requests a zoning
consistency determination from the Planning Commission for a bank (Charles Schwab
Community Banking and Investment Services) and seeks approval of a CUP for the use.
PROJECT DESCRIPTION:
A. Location and Surrounding Neighborhood
The subject property is located on the west side of University Avenue (Exhibit 1) and is
developed with the Old Town Shopping Center commercial buildings. The subject vacant
5,337-square foot tenant space is located on the ground floor of the northern building
adjacent to the corner of University Avenue and Elm Street. The property abuts commercial
properties to the north, south, and east, and a parking lot to the west.
B. Project Summary
The applicant requests a zoning consistency determination from the Planning Commission
for a bank (Charles Schwab Community Banking and Investment Services) and seeks
approval of a CUP for the use.
PAGE 3 OF 6
SUBJECT: 35 University Avenue/U-20-009
DATE: November 6, 2020
PROJECT DESCRIPTION (continued):
When reviewing a CUP, the deciding body should consider the information in the applicant’s
submitted materials (Exhibits 4 through 7); however, the key consideration should be the
proposed use since the CUP runs with the land and the operational details can change from
owner to owner.
C. Zoning Compliance
The intent of the C-2 or Central Business District zone is to encourage the continuance of a
viable and predominantly pedestrian-oriented business district for the Town. The C-2 zone
allows for a wide variety of retail, service, entertainment, and administrative activities,
which are necessary to serve a large trading area. An office use is allowed in the C-2 zone,
but may not be located on the ground floor. A bank use is allowed in the C-2 zone with the
approval of a CUP and may be located on the ground floor.
If the Planning Commission determines that the proposed use is a bank, the use would be
allowed on the ground floor of the C-2 zone with approval of the CUP.
DISCUSSION:
A. Zoning Consistency Determination
The applicant requests a zoning consistency determination from the Planning Commission
for a bank (Charles Schwab Community Banking and Investment Services). Traditionally,
businesses that provide investment services have been considered office uses and may not
be located on the ground floor in the C-2 zone. The applicant has provided a Project
Description (Exhibit 4), Letter of Justification (Exhibit 5), and a letter speaking to zoning
consistency (Exhibit 6), all of which describe the proposed use as a bank and cite the
evolving nature of traditional banking. The applicant requests that the Planning
Commission determine that the proposed use is a bank and seeks approval of the CUP for
the use to be located on the ground floor in the C-2 zone.
B. Conditional Use Permit Application
As discussed above, if the Planning Commission determines that the proposed use is a bank,
the applicant seeks approval of the CUP for the use. The applicant requests hours of
operation of 8:00 a.m. to 6:00 p.m., Monday through Friday; 8:00 a.m. to 4:00 p.m.,
Saturday; and closed, Sunday. The applicant has provided a Project Description (Exhibit 4),
Letter of Justification (Exhibit 5), and a letter speaking to zoning consistency (Exhibit 6), all
of which describe the operational details of the proposed use.
PAGE 4 OF 6
SUBJECT: 35 University Avenue/U-20-009
DATE: November 6, 2020
DISCUSSION (continued):
C. Traffic and Parking
The site was previously a retail use with a parking requirement of one space for every 300
square feet of floor area, or 18 spaces. A bank requires one space for every 250 square feet
of floor area, or 22 spaces. The site is part of the Old Town Shopping Center, which
provides parking through 215 spaces onsite and 464 spaces in the Parking Assessment
District (PAD). Based on an analysis of the existing uses in the Old Town Shopping Center,
the additional four spaces required for the proposed use would be accommodated through
the surplus spaces located onsite and in the PAD.
D. Conditional Use Permit Findings
If the determination is made that the proposed use is a bank, the Planning Commission
must make the following findings in order to grant approval of a CUP:
1. The proposed use of the property is essential or desirable to the public convenience or
welfare; and
2. The proposed use would not impair the integrity and character of the zone; and
3. The proposed use would not be detrimental to public health, safety, or general welfare;
and
4. The proposed use of the property is in harmony with the various elements or objectives
of the General Plan and the purposes of the Town Code.
With regards to the first finding, the use will relocate an existing banking and financial
service business to a new location in the Central Business District. With regards to the
second finding, the use will not impair the integrity of the zone because limitations will be
placed in the conditions of approval to preserve the character of the Central Business
District zone. With regards to the third finding, the use will not be detrimental to public
health, safety, or general welfare because the conditions of approval will address any
potential impacts. With regards to the final finding, the proposed use meets the objectives
of the General Plan and Town Code as discussed within this report.
E. General Plan
A bank use is consistent with the Central Business District General Plan land use designation
for the property with the approval of a CUP. A bank would support the mixture of
community-oriented commercial goods, services, and lodging unique to the Central
Business District and would maintain the small-town character of the downtown area.
The goals and policies of the 2020 General Plan applicable to this project include, but are
not limited to:
PAGE 5 OF 6
SUBJECT: 35 University Avenue/U-20-009
DATE: November 6, 2020
DISCUSSION (continued):
• 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.
• Policy LU-2.1 Minimize vehicle miles traveled for goods and services by allowing and
encouraging stores that provide these goods within walking distance of neighborhoods
in Los Gatos.
• Policy LU-9.2 Maintain a variety of commercial uses, including a strong Downtown
commercial area combined with Los Gatos Boulevard and strong neighborhood
commercial centers to meet the shopping needs of residents and to preserve the small-
town atmosphere.
F. CEQA Determination
The project is Categorically Exempt pursuant to the adopted Guidelines for the
Implementation of the California Environmental Quality Act, Section 15301: Existing
Facilities. No significant effect on the environment will occur since the project uses an
existing structure with no increase in floor area.
PUBLIC COMMENTS:
Written notice was sent to property owners and tenants within 300 feet of the subject
property. Public comments received before 11:00 a.m., Friday, November 6, 2020, are included
as Exhibit 8.
CONCLUSION:
A. Summary
The applicant requests a zoning consistency determination from the Planning Commission
for a bank (Charles Schwab Community Banking and Investment Services) and seeks
approval of the CUP for the use to be located on the ground floor in the C-2 zone.
No additional square footage is proposed; therefore, there will be no increase in traffic
impacts. The increased parking requirement will be accommodated with surplus spaces
available onsite and in the PAD. A bank use would be in conformance with the Town Code
and consistent with the General Plan.
B. Recommendation
Staff recommends that the Planning Commission review the application materials and
determine whether the proposed use is a bank. If the Commissions determines that the use
PAGE 6 OF 6
SUBJECT: 35 University Avenue/U-20-009
DATE: November 6, 2020
CONCLUSION (continued):
is a bank, based on the analysis above staff recommends approval of the CUP subject to the
recommended conditions of approval (Exhibit 3). If the Planning Commission finds merit
with the proposed project, it should:
1. Make the determination that the proposed use is consistent with a bank; and
2. Make the finding that the proposed project is categorically exempt, pursuant to Section
15301 of the California Environmental Quality Act as adopted by the Town (Exhibit 2);
and
3. Make the findings as required by Section 29.20.190 of the Town Code for g ranting
approval of a CUP (Exhibit 2); and
4. Approve CUP application U-20-009 with the conditions of approval attached in Exhibit 3.
C. Alternatives
Alternatively, the Commission can:
1. Continue the matter to a date certain with specific direction; or
2. Approve the application with additional and/or modified conditions; or
3. Deny the application.
EXHIBITS:
1. Location map
2. Required Findings for Conditional Use Permit
3. Recommended Conditions of Approval
4. Project Description
5. Letter of Justification
6. Zoning Consistency Determination Letter
7. Floor Plan
8. Photos
9. Public Comment received by 11:00 a.m., Friday, November 6, 2020