Item 4 - Staff Report.114 S. Santa Cruz Ave
PREPARED BY: JOCELYN SHOOPMAN
Associate Planner
Reviewed by: Planning Manager and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6874
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
STAFF REPORT
MEETING DATE: 01/09/2019 ITEM NO: 4
DATE: JANUARY 4, 2019 TO: PLANNING COMMISSION FROM: JOEL PAULSON, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONDITIONAL USE PERMIT APPLICATION U-18-020. PROJECT LOCATION:
114 S. SANTA CRUZ AVENUE. PROPERTY OWNER: 102 S. SANTA CRUZ, LP. APPLICANT: BRIAN EDWARDS. REQUESTING APPROVAL FOR A RESTAURANT WITH BEER AND WINE SERVICE (HAPA'S BREWING CO.) ON PROPERTY ZONED C-2. APN 510-45-061.
DEEMED COMPLETE: DECEMBER 12, 2018 FINAL DATE TO TAKE ACTION: JUNE 12, 2019
RECOMMENDATION:
Forward Conditional Use Permit (CUP) application U-18-020 to the Town Council with a
recommendation of approval.
PROJECT DATA:
General Plan Designation: Central Business District
Zoning Designation: Central Business District, C-2
Applicable Plans & Standards: General Plan
Parcel Size: 14,810 square feet
Surrounding Area:
Existing Land Use General Plan Zoning
North Commercial and Residential Central Business District and
Medium Density Residential
C-2 and R-1D:LHP
East Commercial Central Business District C-2
South Commercial Central Business District C-2 and C-2:PD
West Commercial and Residential Central Business District and
Medium Density Residential
C-2:PD and
R-1D:LHP
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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 is within an existing structure with no
increase in floor area.
FINDINGS:
As required, pursuant to the adopted Guidelines for the Implementation of the California
Environmental Quality Act, this project is Categorically Exempt, Section 15301: Existing
Facilities.
As required by Section 29.20.190 of the Town Code for granting a CUP.
ACTION:
Forward CUP application U-18-020 to the Town Council with a recommendation of approval.
BACKGROUND:
The approximately 14,810-square foot parcel is currently developed with an existing two-story
commercial building located at the corner of S. Santa Cruz Avenue and Broadway and a
one-story commercial building located at the rear of the property.
PROJECT DESCRIPTION:
A. Location and Surrounding Neighborhood
The subject site is located on the west side of S. Santa Cruz Avenue (Exhibit 1). The adjacent
properties to the east and south are developed with commercial buildings and are zoned
C-2 and C-2:PD, while the adjacent properties to the north and west are developed with
commercial buildings, multi-family, and single-family residential uses and are zoned C-2,
C-2:PD and R-1D:LHP.
B. Project Summary
The applicant is requesting approval of a CUP for a restaurant with beer and wine service
(Hapa's Brewing Co.).
When reviewing a CUP, the deciding body should consider the information in the applicant’s
business description; however, the key consideration should be the proposed use since the
business description can change from owner to owner.
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PROJECT DESCRIPTION (continued):
The CUP runs with the land, and the deciding body should review applications based on the
use as opposed to the applicant or the applicant’s business description.
C. Zoning Compliance
The proposed restaurant with beer and wine service is allowed with a CUP in the C-2 zone.
Section 29.20.755(2) requires the Town Council to consider Planning Commission
recommendations on CUPs for establishments serving alcoholic beverages, for on premise
consumption.
DISCUSSION:
A. Conditional Use Permit Application
The proposed business (Hapa’s Brewing Co.) would occupy an existing 1,793-square foot
one-story commercial building at the rear of the subject property. An existing two-story
commercial building is also located on the same parcel at the corner of S. Santa Cruz
Avenue and Broadway.
The applicant proposes to renovate the existing interior space and modify the existing
parking lot for creation of an outdoor seating area. The project would not impact the
exterior appearance of the commercial building. The applicant has provided a letter of
justification/business description (Exhibit 4) and development plans (Exhibit 7) describing
the operational details for the proposed use.
The applicant proposes to operate a taproom restaurant with rotating beers, wine, and food
service. Four parking spaces directly adjacent to the building are proposed to be removed
to accommodate an outdoor seating area.
Proposed hours of operation would be seven days a week, from 11:00 a.m. to 11:00 p.m.
All beers would be brewed off-site and delivered to the location Monday through Friday
between 8:00 a.m. and 4:00 p.m. The recommended conditions of approval in Exhibit 3
include the hours of operation and delivery hours.
Pursuant to the Late Night Entertainment Policy, entertainment may include, but shall not
be limited to, live musical performances, instrumental or vocal, dance acts, concerns, live
shows, amplified music or sound, dancing, DJ, karaoke, jam sessions, and/or other similar
activities. Entertainment activities that occur prior to 10:00 p.m. are permitted by right and
subject to the Noise Ordinance; however, entertainment occurring after 10:00 p.m. requires
issuance of a Late Night Entertainment Permit by the Town Manager (Exhibit 6).
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DISCUSSION (continued):
B. Parking and Traffic
The subject property contains a two-story and a one-story commercial building and has 24
parking spaces on-site and 41 parking spaces in the Parking Assessment District (PAD). Four
existing parking spaces are proposed to be removed to accommodate a new outdoor
seating area with one new parking space proposed adjacent to the property located at 110
S. Santa Cruz Avenue (Sheet A0.1, Exhibit 7). The proposed project with 21 parking spaces
on-site and 41 parking spaces in the PAD would result in a total of 62 parking spaces. The
tenants in the two-story commercial building utilize 35 of the 62 total spaces. With a gross
floor area of 1,793 square feet, the proposed use would require six parking spaces with an
excess of 21 parking spaces remaining for the property. The proposed use would comply
with the parking requirements for the property.
There would be no traffic impact or traffic impact fees required per the Town’s Traffic
Impact Policy as the subject site is located downtown and there is no proposed increase in
square footage.
C. Trees
The development plans were reviewed by the Town Arborist and a report was prepared
(Exhibit 5).
The tree inventory included in the arborist report for the project includes two protected
trees adjacent to the proposed new parking space. The arborist report and project plans
identify whether the trees included in the inventory would remain or be removed. Tree #1,
a 35-inch Coastal Redwood tree is proposed to be removed to accommodate the new
parking space. The arborist report states that Tree #1 is in extremely poor health with the
top of the tree dying back and is a candidate for removal. The proposed tree removal
would meet one or more of the required findings for tree removal under Section 29.10.0992
of the Town Code.
Tree #2, a 42-inch Valley Oak adjacent to the new parking space is proposed to remain with
recommendations for tree protection measures during the removal of Tree #1 and
construction of the new parking space as provided in the arborist report. Planting of
replacement trees and/or payment of in-lieu fees would be required prior to issuance of a
Certificate of Occupancy pursuant to Town Code. Arborist recommendations for tree
protection measures for Tree #2 have been included in the conditions of approval (Exhibit
3).
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DISCUSSION (continued):
D. Conditional Use Permit Findings
In order to grant approval of a CUP, the deciding body must make the following findings:
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, if approved as proposed, will introduce a new use
within an existing commercial building which provides a family friendly business and an
outdoor seating area in the downtown area adjacent to the Town Plaza to serve as a
destination location. With regards to the second finding, the use will not impair the
integrity of the zone because the use is a commercial use and is located in a commercial
zone. With regards to the third finding, the use will not be detrimental to public health
safety or general welfare because the conditions will address any potential impacts,
including the proposed hours of operation and delivery times. 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
The restaurant with beer and wine service is consistent with the Central Business District
General Plan land use designation for the property which envisions a mixture of retail,
office, and residential in a mixed-use setting, along with lodging, service, auto-related
businesses, non-manufacturing industrial uses, recreational uses, and restaurants.
The goals and policies of the 2020 General Plan applicable to this project include, but are
not limited to:
• 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.
• Goal LU-9 – To provide residents with adequate commercial and industrial services.
• Policy LU-9.2 – Maintain a variety of commercial uses, including a strong Downtown
commercial area combined with Los Gatos Boulevard and strong neighborhood
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DISCUSSION (continued):
• commercial centers to meet the shopping needs of residents and to preserve the small-
town atmosphere.
• Goal LU-10 – To preserve Downtown Los Gatos as the historic center of the Town, with
goods and services for local residents, while maintaining the existing Town identity,
environment, and commercial vitality.
F. CEQA Determination
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.
PUBLIC COMMENTS:
Written notice was sent to property owners and tenants within 300 feet of the subject
property. Exhibit 8 includes public comments received by 11:00 a.m., Friday, January 4, 2019.
CONCLUSION AND RECOMMENDATION:
A. Conclusion
The applicant is requesting approval of a CUP for a restaurant with beer and wine service
(Hapa's Brewing Co.). There would be no traffic impact and the site has adequate parking
to accommodate the proposed use. The proposed use would be in conformance with the
Town Code and is consistent with the General Plan.
B. Recommendation
Based on the analysis above, staff recommends approval of the application subject to the
recommended conditions of approval (Exhibit 3). If the Planning Commission finds merit
with the proposed project, it should:
1. Find 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
2. Make the findings as required by Section 29.20.190 of the Town Code for granting
approval of a CUP (Exhibit 2); and
3. Forward a recommendation to Town Council for approval of CUP application U-18-020
with the conditions contained in Exhibit 3.
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ALTERNATIVES:
Alternatively, if the Commission has concerns with the proposed project, it can:
1. Recommend that the Town Council approve the application with additional and/or
modified conditions of approval; or
2. Recommend that the Town Council deny the application; or
3. Continue the application with direction to a specific hearing date.
EXHIBITS:
1. Location Map
2. Required Findings (one page)
3. Recommended Conditions of Approval (five pages)
4. Letter of Justification/Business Description, received November 9, 2018 (two pages)
5. Arborist Report, received December 5, 2018 (four pages)
6. Late Night Entertainment Policy (two pages)
7. Development Plans, received December 12, 2018 (five sheets)
8. Public Comment received by 11:00 a.m., Friday, January 4, 2019
Distribution:
Brian Edwards, 460 Lincoln Avenue, Suite 90, San Jose, CA 95126
Kevin Mattos, 111 W. St. John Street, Suite 950, San Jose, CA 95113
102 S. Santa Cruz LP, 1777 Saratoga Avenue, Suite #210, San Jose, CA 95129
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