16 Staff Report - Zoning Code Amendment A-04-01
DATE: MEETING DATE: 5/3/04 ITEM NO. Ib COUNCIL AGENDA REPORT Apri129,2004 TO: FROM: DEBRA J.FIGONE, TOWN MANAGER SUBJECT: ZONING CODE AMENDMENT A-04-01
CONSIDER AMENDING THE TOWN CODE TO MODIFY THE PERSONAL SERVICE REGULATIONS FOR BUSINESSES IN THE C-2 ZONE. IT HAS BEEN DETERMINED THAT THIS PROJECT COULDNOT HAVEA SIGNIFICANTIMPACT ONTHEENVIRONi\1ENT
, THEREFORE, THE PROJECT IS NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. (Section 15061 (b) (3) )APPLICANT: TOWN OF LOS GATOS RECOMMENDATION: 1. Open and hold the public
hearing and receive public testimony; 2. Close the public hearing; 3. Make the required findings that the Zoning Code Amendment is consistent with the General Plan; 4. Direct the Clerk
to read the title ofthe ordinance; 5. Move to waive the reading of the ordinance; 6. Move to Introduce the Ordinance (Attachment 1) to effectuate Zoning Code Amendment A-04-1 7. Approve
this report as the written report required pursuant to Government Code section 65858. BACKGROUND: On September 2, 2003, the Town Council adopted an urgency interim ordinance establishing
a temporary prohibition on personal service businesses located on the ground floor in the C-2 (Central Business District-CBD) Commercial Zone. The Council found that allowing new personal
service businesses would cause an immediate threat to the public health, safety or welfare, or that the approval of additional development applications would result in such a threat.
(Continued on Page 2) PREPARED BY: DIRECTOR OF COMMUNITY DEVELOPMENT Reviewed by: Vb-;J Assistant Town Manager __Clerk
Finance ___Community Development Revised: 4/29/04 2:46 pm Refonnatted: 5/23/02
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ZONING CODE AMENDMENT A-04-01 April 29, 2004 The Council also found that the urgency ordinance was necessary because the zoning provisions do not
define "personal service business," nordo they contain adequate procedures for investigating and evaluating the impacts of new personal service businesses. DISCUSSION: Council directed
staff to establish a work plan to provide recommendations regarding the need to regulate personal service businesses in the C-2 zone. Staff researched other cities of similar sizes to
Los Gatos to compare how those communities define and regulate personal services. Staff also conducted a survey of the land use mix of the CBD zoning district and mapped the entire CBD.
Please refer to Attachment 2, Exhibit D. This map helped staff and the General Plan Committee (GPC) identify possible areas of over-concentration of personal service businesses and their
proximity to other types of businesses in the CBD. The map included as Attachment 2, Exhibit E identifies the location of personal service businesses. Staff presented the GPC with various
options for regulating personal service businesses in the C-2 zone. Alternatives included the following: 1) Requiring a Conditional Use Permit (CUP) for all new personal service businesses
in the C-2 zone 2) Requiring a CUP for all new personal service businesses with frontage on the ground floor on N. Santa Cruz, University Avenue and Main Street 3) Prohibiting any new
personal service businesses in the C-2 zone The committee discussed other options as well, such as excluding Village Lane. Ultimately the OPC regulating all new
personal service businesses on the ground floor in the C-2 with a CUP with some exceptions. These exceptions mirror the areas of the C-2 zone where office uses are prohibited on the
ground floor in the CBD. Please refer to Attachment 2, Exhibit H. Attachment 1 is the draft ordinance with recommended amendments of Town Code sections 29.10.020,29.20.185,29.20.190,
and 29.60.320. The draft ordinance includes new definitions for "personal service business" and "retail." It also reflects changes necessary to regulate personal service businesses in
specific areas, excluding areas where offices are allowed on the ground floor of the C-2 zone, with a CUP. General Plan Committee Recommendation: On March 4, 2004, the OPC recommended
regulating personal service businesses by requiring a CUP for ground floor spaces in the C-2 zone. Planning Commission Recommendation: This item was scheduled to be heard by the Planning
Commission on April 14, 2004. The matter had to be continued due to lack of a quorum resulting from conflicts of interest. The item was continued to April 20, 2004 where again there
was no quorum due to conflicts of interest. The Planning
·. ------------ -----------
.._----------------------------------_.. --------------------PAGE 3 MAYOR AND TOWN COUNCll.., SUBJECT: ZONING CODE AMENDMENT A-04-01 April 29, 2004 Commission
considered this item on April 28, 2004. The Commission recommended approval of Zoning Code AmendmentA-04-1. They also recommended the Council consider exempting Village Lane. A copy
of the Planning Commission action minutes for the April 28, 2004 meeting are included as Attachment 3. A compact disc recording of the meeting will also be included in the packet. Timeline:
Council directed staff to bring this matter to public hearing as quickly as possible to avoid the necessity of extending the moratorium on personal service businesses. The moratorium
will expire on August 1, 2004, unless extended by the Town Council. Extension of the Urgency Interim . Ordinance would occur through a separate report that would be provided to the Council.
Staff recommends the Council introduce the draft ordinance at the May 3rd meeting and consider adoption of the ordinance at the May 17th meeting. It should be noted that this is the
same date as the public hearing on the budget. We did not expect to schedule regular Town Council items;' however, given the sensitivity of the moratorium timeline, staff wanted to provide
this option to the Council. The next date would be June 7th• The ordinance will become effective 30 days after its adoption by Council. The Urgency Interim Ordinance will be repealed
effective the 31 st day' following the final adoption ofthe ordinance. If adoption ofthe ordinance does not occurby theJune 2pt meeting, the Urgency Interim Ordinance will need to be
extended due to the August 1st expiration date. Written Report: -The contents of this report are intended to satisfy the requirements of Government Code § 65858 (d) describing the measures
taken to alleviate the conditions' which led to the adoption of the Urgency Interim Ordinance. Staffrecommends the Council approve this report to satisfythe aforementioned requirement.
CONCLUSION: . Staff recommends introduction of the attached ordinance because it offers a reasonable level of control over personal service businesses in the Central Business District.
It should be noted that, like restaurant uses, the requirement for a CUP has merit because it allows the Town to consider the impact of each personal service business on a case-by-case
basis. If satisfied with the draft ordinance, Council should introduce it at the May 3rd meeting in order to avoid the possible extension of the urgency interim ordinance. If the Council
is inclined to exclude Village Lane, the following highlighted provision could be inserted into section 29.60.320 ( c) (1)
PAGE 4 SUBJECT: ZONlNG CODE AMENDMENT A-04-0l April 29, 2004 Personal service businesses may be allowed on the ground floor in the C-2 zone with
a conditional use permit. However, personal service businesses are considered a ermitted use in the areas described in Section2 a-f below, \ 51 and in the remainder of
the C-2 zone. ENVIRONMENTAL ASSESSMENT: It has been determined that this project is categorically exempt pursuant to Section 15308 ofthe State Environmental Guidelines as adopted by
the Town. Individual applications will be required to satisfy the provisions of the CalifomiaEnvironmental Quality Act. FISCAL IMPACT: None Attachments: 1. Draft Personal Service Business
Ordinance, (including redline/strikeout version) 2. Planning Commission Report and Desk Item of April 14, 2004 (exhibits D-F are available in the clerk's office) 3. Planning Commission
Meeting Action Minutes of April 28, 2004 BNL:JC cc: John Lochner, 150 Creffield Heights, Los Gatos, CA CA 95030 Shirley Henderson, 264 Los Gatos Boulevard, Los Gatos, CA 95030 N:\DEV\Jennifer\TC\A-04
-1.wpd
ORDINANCE AN-ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING ORDINANCE OF THE TOWN CODE ESTABLISHING PERSONAL SERVICE BUSINESS REGULATIONS IN SECTIONS 29.10.020, 29.20.185, 29.20.190
AND 29.60.320 WHEREAS, the Town of Los Gatos seeks to preserve its unique mix of businesses in the downtown that contribute to its economic success; and WHEREAS, the Town of Los Gatos
general plan contains numerous goals, policies and implementing strategies intended to preserve its unique retail environment; and wHEREAS, concerns have been raised in the community
regarding potential detrimental -impacts of additional Personal Service Businesses in the central business district including but not limited to, location, parking, traffic circulation,
and land use mix; and WHEREAS, the Town of Los Gatos zoning regulations do not provide a definition of "Personal Service Business" nor does it contain adequate ways to regulate potential
negative impacts associated with them; and -WHEREAS, an increase in the number ofPersonal Service Businesses potentially threatens the Town's unique retail environment by their ability
to displace retail businesses and may reduce the attractiveness ofthe Central Business District to retail consumers, and ultimately may limit the ability of the Central Business District
to successfully compete with other business districts in the region;· and WHEREAS, the Town Council directed the Community Development Department to develop regulations related to Personal
Service Businesses; and WHEREAS, the Town Council's intent in adopting this ordinance is to ensure the exercise of greater control over the location of new personal service businesses
in order to promote high standards of urban design and careful consideration of pedestrian circulation, compatibility with adjacent businesses, economic vitality and aesthetics. Attachment
1
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I Town Code Section 29.10.020 is amended to read as follows: Section 29.10.020 Definitions Personal service
business means uses that predominately sell personal convenience services directly to the public, including but not limited to, barbers, beauty salons and related services, cosmetologists,
electrolysis, facial and/or skin care, hair dressers and/or hair stylists, hair removal and/or replacement, manicurists, nail salons, pedicurists, pennanent make-up, skin and body care,
piercing, spas, tanning salons, tattooing, cleaners, dog grooming, tailors and other services of a similar nature. Personal service business does not include travel agencies, insurance
offices, law offices, architect offices, or any other type of office use. Retail use means providing on site sales directly to the consumer for consumer 'or household use, including
but not limited to the following: small markets/businesses which sell meat, vegetables, dairy products, baked goods, candy other food products, household cleaning and maintenance
products, cards, stationary, notions, books, cosmetics, specialty items, hobby materials, toys, householdpets and supplies, apparel,jewelry, fabrics, cameras, household electronic equipment,
CD music and movies, sporting equipment, kitchen utensils, home furnishings, home appliances, art supplies and framing, art work,' antiques, paint, wallpaper, carpet, floor covering,
office supplies, musical instruments, hardware, homeware, computers and related equipment/supplies, bicycles, automotive parts and accessories (excluding service and installation), and
flowers, plants and garden supplies (excluding nurseries). Retail sales that are incidental to the primary use will not satisfy this definition.
SECTION II Town Code Section 29.20.185 (1) IS amended to read as shown in Exhibit A attached hereto. SECTION ill Town Code section 29.20.190 (b) is amended to read as follows: (b) The
deciding body, on the basis of the evidence submitted at the hearing, may deny a conditional use permit for· a formula retail business or a personal service business if any of the following
fmdings are made: (1) The proposed use of the property is not in harmony with specific provisions or objectives ofthe general plan and the purposes ofthis chapter; . (2) The proposed
use will detract from the existing balance and diversity ofbusinesses in the commercial district in which the use is proposed to be located; (3) .The proposed use would create an over-concentration
ofsimilar types ofbusinesses, or; (4) The proposed use will detractfrom the existing land use mix and high urban design standards including uses that promote continuous pedestrian circulation
and economic vitality. SECTION IV Town Code sections 29.60.320 (a) (2) and ((a) (3) are deleted. SECTION V Town Code section 29.60.320 (b) is amended to read as follows: (b) Examples
of proper C-2 activities are apparel stores, antique. stores, artist studios, craft
studios, auto part sales and artist supply shops. Examples of activities which are not proper in the C-2 zone are vehicle sales or service, manufacturing, warehousing, laundry or dry
cleaning plants. SECTION VI Town Code section 29.60.320 ( c) is amended to read as follows: ( c ) Personal service businesses and office activities in the C-2 zone are subject to the
following: (1) Personal service businesses may be allowed on the ground floor in the C-2 zone with a conditional use permit. However, personal service businesses are considered a permitted
use in the areas described in Section 2 a-f below and in the remainder of the C-2 zone. (2) Office activities in the C-2 zone shall not be located on the ground floor along any street,
alleyway, or public parking lot except in the areas described below: (a) Lyndon Avenue; (b) Properties abutting Wood Road; (c) The west side of Victory Lane: (d) The south side of Los-Gatos-Saratoga
Road excluding: 1. That portion of the property located at the southwest comer of Los-Gatos Saratoga Road and Santa Cruz Avenue described more precisely as located between a straight
line extended northerly along the west side right-of-way line of Santa Cruz Avenue and one hundred forty (140) feet west of that extended line. 11. The south side ofLos Gatos-Saratoga
Road between Santa Cruz Avenue and University Avenue; and (e) The east side of South Santa Cruz Avenue directly across the street from Wood Road. . (f) The north and south side of West
Main Street west of Victory Lane.
(3) Notwithstanding subsection (c)(2), office activities on' ground floors described below shall be considered conforming and shall be allowed to continue so long as the office use is
not discontinued for one hundred and eighty (180) consecutive days. If the office use is discontinued for such a period, then the office use shall not be resumed, and token use shall
not toll or interrupt a period of discontinuance. a. Office activities existing on June 17, 1991; or b. Office activities in a building under construction on July 16, 1990, if the applicable
architecture and site approval specifically stated that the building was approved for office activities. SECTION VII Ordinance 2118 is repealed effective the 31 5t day following the
final approval ofthis ordinance by the Town Council. SECTIONvm This ordinance was introduced at a regular meeting ofthe Town Council ofthe Town ofLos Gatos and adopted by the following
vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town ofLos Gatos on ,2004. This ordinance takes effect 30 days after it is adopted. COUNCIL
MEMBERS: AYES:. NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOVVN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA
Exhibit "A" 29.20.185 RC HR R1 RD RM R-1D RMH 0 C-1 C-2 CH LM CM p. Personal Service Businesses X {as set forth in Section 29.60.320} N:\DEV\Jennifer\PC\Long
range planning\Personal Service Businesses\The Table.xls
DRAFT Sec. 29.10.020. Definitions. ***** ***** Sec. 29.20.185. Table of conditional uses. Town Code Section 29.20.185 (1) is amended to read as shown in Exhibit A attached hereto. Sec.
29.20.190. Findings and decision. Town code section 29.20.190 (b) is amended to read as follows: (b) The deciding body, on the basis ofthe evidence submitted at the hearing, may deny
a conditional use permit for a formula retail business or
if the following .
findings are made: (1) The proposed use of the property is not in harmony with specific provisions or objectives of the general plan and the purposes ofthis chapter; and (2) The proposed
use will detract from the existing balance and diversity of businesses in the commercial district in which the use is ro osed to be located.
Sec. 29.60.320. Permitted uses. ***** (2) Personal ser vice businesses. (3) Set vice businesses necessary for the conduct of households or businesses. ***** (b) Example ofproper C-2
activities are apparel stores, or dry cleaning agencies, travel agencies, antique stores, telephone answering services,_,sales offices for merchandise stored
elsewhere, craft studios, auto parts sales and artist supply paint shops. EXaII1ples of activities which are not proper in the C-2 zone are vehicle sales or service, manufacturing, warehousing,
laundry or dry cleaning plants. ***** (1) .Office activities shall not be located on the ground floor along any street, alleyway, or public parking lot except: Personal service businesses
maybe allowed onthe .ground floor in the C-2 zone with a conditional use permit in the areas as described by this section. In addition, office activities in the C-2 zone shall not be
located on the ground floor along any street, alleyway, or public parking lot except in the areas described below: a. Lyndon Avenue; b. Pageant \Vay, c. Properties abutting Wood Road;
d. The west side of Victory Lane; e. The south side of Los Gatos-Saratoga Road excluding: i. That portion ofthe property located at the southwest comer of Los Gatos-Saratoga Road and
Santa Cruz Avenue described more precisely as located between a straight line extended northerly along the west side right-of-way line of Santa Cruz Avenue and one hundred forty (140)
feet west ofthat extended line.
ii. The south side ofLos Gatos-Saratoga Road between Santa Cruz Avenue and University Avenue; and f. The east side of South Santa Cruz Avenue directly across the street from Wood Road.
g. The north and south side ofWest Main Street west ofVictory Lane.
Exhibit "A" 29.20.185 Table of Conditional Uses· RC HR R1 RD RM R-1D RMH 0 C-1 C-2 CH LM CM p. Personal Service Businesses X {as set forth in Section 29.60.320}
range planning\Personal Service Businesses\The Table.xls
REPORT TO: FROM: LOCATION: APPLICANT: FINDINGS: ACTION: ENVIRONMENTAL ASSESSMENT: EXHIBITS: RECOMMENDATION SUMMARY: A. BACKGROUND: ____-..:..A-';/;p=n,-,,-·1....:...7>....:,2=0=0-,--4
For Agenda Agenda Item: _ The Planning Commission Director of Community Development
Zoning Code Amendment A-04-01 Consider amending the Town Code to modify personal services regulations for businesses in the C-2 (Central Business District) zone. It has been determined
that this project could not have a significant impact on the environment, therefore, the project is not subject to the California Environmental Quality Act (Section 15061 (b)(3)). Town
ofLos Gatos The Planning Commission must make a finding that the amendment is consistent with the General Plan if the recommendation is for adoption. Recommendation to the Town Council.
It has been determined that this project could not possibly have· a significant impact on the environment, therefore, the project is not subject to the California Environmental Quality
Act (Section 15061 (b)(3)). A. Draft Ordinance (not included) B. Draft Ordinance (including redline/strikeout)ofSections 29.1 0.020, 29.20.185,29.60.210, and 29.60.320 (not included)
C. Urgency Interim Ordinance D. Downtown Land Use Mix Map E. Downtown Personal Service Businesses Map F. Service Industry Audit G. General Plan Committee Meeting Minutes H.· ,Personal
Service Business location map 1. . Ordinance 1899 Recommend amendment ofTown Code Sections 29.10.020,29.20.185, 29.20.190, and 29.60.320 to the Town Council for adoption. On September
2, 2003, the Town Council adopted an urgency interim ordinance establishing a temporary prohibition on personal service businesses located on the ground floor in the C-2 (Central Business
District) Commercial Zone (Exhibit C). The Council found that allowing new personal service businesses would cause an immediate threat to the public health, safety or welfare, or that
that the approval ofadditional development applications would result in such a threat. The Council also Attachment 2
The P1anrlil;lg Corrunisslon -Page 2 Zoning Ordinance Amendment A-04-1 April14,2004 found that the urgency ordinance was necessary because the zoning provisions do not define "personal
service business", nor do they contain adequate procedures for investigating and evaluating the impacts of new personal service businesses. The Council directed staff to conduct a study
of the existing personal service businesses in the Central Business District (CBD) zone and to make recommendations to the PlanningConpnission and Town Council regarding the necessity
and potential (OITIl of regulation of personal service businesses. On November l2, 2003, the General Plan Committee (GPC) recommended an in-house approach for the development ofthe personal
service regulations. Staffresearched other cities ofsimilar sizes to Los Gatos to compare how those communities define and regulate personal services. Staff also conducted a survey of
the land use mix of the CBD zoning district and mapped the entire CBD. Please refer to Exhibit D. This map helped the GPC identifypossible areas ofover-concentration of personal service
businesses and their proximity to other types ofbusinesses in the CBD. The map included as Exhibit E identifies the location ofpersonal service businesses. In addition, the finance department
recentlyperfonned an audit ofsalons and other personal service businesses inTown. The list is not comprehensive of all types of personal service businesses, ,but does indicate all beauty
related services in Town. The audit is attached as Exhibit F for your information. On March 4; 2004, the GPC recommended regulating personal service businesses by requiring a Conditional
Use Pe:pnit (CUP) for ground floor spaces in the CBD. Please refer to the GPC meeting minutes attached as Exhibit G. The map attached as Exhibit H delineates the areas where personal
service businesses may be allowed with a CUP. This map represents the same areas where office uses are prohibited on the ground floor in the CBD. B. DISCUSSION: Historically, the Town
has been proactive in, taking aytions enhance the CBD and protect its viability. The Planning Commission and Town Council have sought to protect the delicate balance between different
land uses in the CBD, and have implemented zoning requirements to protect and enhance it's vitality. Examples include the requirement for conditional use permits for uses such as restaurants,
banks, hotels, motels and theaters. Inresponse to an overwhelming amount ofground floor office spaces in the CBD, the Town Council adopted Ordinance 1899 (Exhibit 1) in 1992, prohibiting
new office activities in the ground floor. The intent of the ordinance was to preserve the very special mix of retail street fronting shops that make the pedestrian shopping experience
successful. Prohibiting ground floor office spaces in the CBD ensures a continuous pedestrian circulation pattern for businesses abutting the main pedestrian retail streets in the CBD.
Similarly, the Town recognized that fonnula businesses were beginning to threaten the Town's unique retail envir.onment by replacing small, locally owned businesses that have unique
characteristics. On June 14,2002, the Town Council adopted Ordinance 2107 requiring CUPs for formula retail businesses to ensure greater control of the location of these businesses in
the Town.
The Planning Commission -Page 3 Zoning Ordinance Amendment A-04-1 April 14, 2004 The adoption of the retail formula ordinance and the proposed personal service amendments are consistent
with the following issue, goal and policies ofthe General Plan. Issue 5: It is important to the economic vitality ofthe Town and to the general benefit of the residents that goods and
services are readily available to the citizens of Los Gatos. If a full range of goods and services are not provided sales tax "leakage" will occur, reducing the Town's fiscal stability.
L.G.5.2 To maintain a balanced, economically stable community within environmental goals. Policies: L.P.5.1 Maintain a variety ofcommercial uses (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. L.P.5.2 Encourage a mix of retail,
office and professional uses in commercial areas, except in the Central Business District where retail should be emphasized. L.P.5.9 Retail sales tax "leakage" should be kept to a minimum
by providing in town convenience and comparative shopping opportunities. PROPOSED TIMELINE: Council directed staff to bring this matter to public hearing as quickly as possible to avoid
the neces'sity of extending the temporary moratorium. The moratorium will expire on August 1, 2004, unless extended bythe Town Council. Both staffand the GPC recommend regulating new
Personal Service Businesses on the ground floor ofthe CBD with a CUP. Ifthe Planning Commission agrees with the proposed amendments in Exhibit A, it should forward the zoning code amendments
to the Town Council immediately so that it can be placed on the Town Council agenda ofMay 3, 2004. C. RECOMMENDATION: Consider the proposed ordinance amendments and forward a recommendation
to the Town Council. If the Planning Commission determines that the To.wn Council should approve the proposed _ ordinance amendments, the Commission should recommend the following: a.
That Council determine this project could not possibly have a significant impact on the environment, therefore, the proj ect is not subj ect to the California Environmental Quality Act
(Section 15061 (b)(3»); b. That the Town Council find that the Ordinance Amendments are consistent with the
The Planning Commission -Page 4 Zoning Ordinance Amendment A-04-1 April 14,2004 General Plan; and c. That the Council adopt the Draft Ordinance (Exhibit A) amending the Town Code. Bud
N. Lortz, Director of Community Development Prepared by: Jennifer Castillo, Planner BNL:JC:cb cc: John Lochner, 150 Creffield Heights, Los Gatos, CA 95030 N:\DEV\,1ennifer\PC\Long range
planning\Personal Service Elusinesses\Staffreport.wpd
ORDINANCE 2118 AN URGENCY INTERIM ORDINANCE EXTENDING MORATORIUM ON PERSONAL SERVICE BUSINESSES LOCATED ON THE GROUND FLOOR IN THE C2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE. WHEREAS,
Government Code§ 65858 allows a legislative body, without following the procedures otherwise required prior to the adoption of a zoning ordinance, to adopt, as a urgency measure, an
interim ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan, or zoning proposal which the legislative body, planning commission or
planning department is intending to' study within a reasonable time; and WHEREAS, the zoning provisions of the Los Gatos Town Code does not provide a definition of "Personal Service
Business" nor does it contain adequate' procedures for investigating and addressing the impacts of a new Personal Service Businesses in the central business district; and WHEREAS, applications
have been received by the Town for approval oftwo new Personal Service Businesses in the central central business district, and inquirieshave been made of Town staff in anticipation
of a third such application; and WHEREAS, concerns have been raised in the community regarding potential detrimental impacts of additional Personal Service Businesses in the central
business district, including but not limited to, location, parking, traffic circulation, and land use mix; and WHEREAS, concerns have also been expressed that decisions regarding applications
for new Personal Service Businesses should consider the importance of a balanced mix of land uses throughout the central business district; and WHEREAS, the Town does not have complete
and comprehensible information analyzing the current business environment of the central business district, describing the total number, type and mix of businesses located therein
or the trend of applications for types of businesses, including Personal Service Page I of 5 EXHIBIT C
Businesses; and WHEREAS, absent comprehensive regulations and a current analysis of the central business district, the Town is unable to ensure informed, consistent, uniform and fair
decisions on applications for new Personal Service Businesses in the central business district; and WHEREAS, the Town Council has directed the Town Department of Community Development
to evaluate and make recommendations to the Planning Commission and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central
business district; and WHEREAS, approval of applications for new Personal Service Businesses during the time Town staff is studying the business environment and the value of imposing
regulations on such businesses in the central business district could result in conflicts with any that might ultimately be adopted, and WHEREAS, since September
2, 2003 when the moratorium on personal service businesses was established, staff began a survey of of other city regulations and prepared a work plan for developing personal service
regulations. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: 1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning applications for permits
for Personal Service Businesses located on the ground floor in the C-2 central business district commercial zone received by the Town after August 29, 2003, or has executed a lease by
or before August 29,2003 for locations which Personal Service Businesses would operate, shall be approved by the Town. 2. Findings. a. The Town of Los Gatos has long been recognized
as having a unique downtown business environment with an unusual mix of business that distinguishes it from other retail areas and has contributed to its long time'vibrancy and financial
success. Page :2 of 5
b. The Town's General Plan contains numerous goals, policies and implementing strategies intended to pre_serve its unique retail environment. For example, the land use designation CBD
for central business district (2.4.2) is described as "[encouraging] a mixture of community-oriented commercial goods, services and lodging, that is unique in its accommodation of small
town style merchants and the maintenance of a small town feel and character." Elsewhere, concerning the historic downtown area, is a goal . . to maintain mixture of goods and services,
identity, environment and commercial viability (LG.6.2) and a policy to "[e]ncouragethe development and retention of small business and locally-owned stores and shops that are consistent
with small town character and scale." (L.P.6.2) c. The Town does not have complete and comprehensible information analyzing the current business environment of the central business district,
describing the total number, type and mix of businesses located therein, or the trend of applications for types of businesses, including Personal Service Businesses. d. While the precise
number of Personal Service Businesses in the central business district has yet to be determined, an initial review of Town business license information indicates that in calendar year
2001 approximately 35 locations in the central business district were used for Personal Services Business, that the number increased slightly to 37 locations in calendar year 2002, and
that thus far in calendar year 2003 the number has increased to approximately40 locations. These include hair salons, barber shops, nail salons and day spas. e. A nationwide economic
recession has reduced demand for many retail goods resulting in retail business failures and increasing retail space vacancies in the business district. f. Within· the
30 to 60 day period preceding this ordinance, applications have been received by the Town seeking permits for two new Personal Service Businesses in the central business district and
inquiries have been made of Town staff in anticipation of a third such application. Page 3 of 5
g. While the total number of Personal Service Businesses may vary upon completion of a more detailed survey,-the preliminary information referred to herein, coupled with the pending
and anticipated applications for more such businesses, suggests the existence of a large and rapidly increasing number of businesses in the central business district specializing in
hair, nails and skin care and a-trend of vacant retail spaces converting to personal service uses. h. An increase in the existing number of Personal Service Businesses in the central
business district potentially threatens the Town's unique downtown retail environment in a number of ways, including, but not limited to, an over concentration of Personal Service Businesses
that can take over existing retail spaces, may reduce the attractiveness of the central business district to retail consumers and to new retail businesses alike, and ultimately may limit
the ability of the central business district to successfully compete with other business districts in the region. L For the reasons stated herein, the issuance of building or zoning
permits for new Personal Service Businesses located on the ground floor in the central business district commercial zone during the term of this Interim Ordinance poses a current and
immediate threat to public health, safety and welfare. j. The Town Department of Community Development has been directed to evaluate and make recommendations to the Planning Commission
and the Town Council regarding the necessity and potential form of regulation of Personal Service Businesses in the central business district. k. Approval of applications for building
or zoning permits for Personal Service Businesses may be in conflict with the regulations to be analyzed and adopted by the Town and would undermine the purpose of studying such regulation,
thereby reducing the quality of life within the community to the extent the overall public health, safety and welfare are detrimentally affected. Page 4 of 5
3. Term. This Interim Ordinance shall expire August 1,2004, unless extended by Town Council pursuant to Government Code § 65858. 4 Report. At least 10 days prior to expiration of this
Interim Ordinance, the Town Council shall issue a written report pursuant to Government Code § 65858 (d) describing the measures taken to "alleviate the conditions which have led to
the adoption of this Interim Ordinance. 5. Severability. If any part of this Interim Ordinance is held to be invalid or inapplicable to any sItuatiOn by a court of competent jurisdiction,
such decision shall not affect the validity of the remaining portions of this Interim Ordinance or the applicability of this Interim Ordinance to other situations. 6. Posting. Within
15 days after its passage, the Town Clerk shall cause this Interim Ordinance to be published once in a newspaper of general circulation published and circulated in the Town and posted
in at least three public places within the Town.. This Interim Ordinance was passed and adopted at a regular meeting of the Town Council of the Town of Los Gatos on October 6, 2003,
and adopted by at least a four-fifths (4/5) vote of the Town Council as follows: COUNCIL MEMBERS: AYES: Steve Glickman, Joe Pirzynski, Mike Wasserman, Sandy Decker. NAYS: Diane McNutt
ABSENT: ABSTAIN: None None /. /MATHE TOWN OF LOS GATOS " {LOS GATOS, CALIFORNIA " ATTEST: CLERK OF THE TOWN OF LOS G LOS GATOS, CALIFORNIA Page
5 of 5
C-2 Zone Personal Service Business Color Key Each color corresponds to a type of Personal Service Business located in the C-2 Zone Color Type Beauty Salons Nail Salons Beauty Supplies
Barber Shops Massage Therapy-Tanning Salons Spas, Health Club Facilitis, Physical Fitness, Fitness & Sports Centers Pet Salons C-2 100 S Santa Cruz Avenue C-2 155 N SantaCruz Avenue
C-2 346 Village Lane C-2 332 N Santa Cruz Avenue C-2 7 N Santa Cruz Avenue C-2 44 Elm Street Name of Business (s) Aqua Hair Salon/Spa LG-Heather Spurrier @Bare Escentuals Beauty Town
Inc Beauz Cheveux Benefit Cosmetics LLC Biba Salon for Children Zone Business Address Breathe Healin Buzz Capelli Salon Capelli Salon-Samantha Bentson @Capelli Salon-Chriss Stur es@Capelli
Salon-Victoria Nunez @Chan es Hair Desi n Changes Hair Design-Obsession @Chez Aubre Complete Skin Care Christina's of Los Gatos De Wa nes Salon Durand Hairdressers Inc Durand -Kristina
Beauty Care Envy A Salon Envy Salon-Anabela Silva @Fantastic Sams g. C-2 C-2 C-2 C-2 C-2 C-2 C-C-2 C-2 C-2 C-2 3151/2 296 14 14 14 14 346 346 114 360 NEEEE Uhiversi Avenue Santa
Cruz Avenue Main Street Main Street Main Street Main Street Villa e Lane Villa e Lane Ro ce Street Village Lane Exhibit F
Business Address Name of Business (s) Zone C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 46 46 195 195 291 291 338 338 338 338 130 278 E Santa Cruz Avenue 'C .•e Elm Street Elm
Street Los Gatos-Sarato a Rd Los Gatos-Sarato a Rd Main Street Main Street Village Lane Village Lane Village Lane Villa e Lane Santa Cruz Avenue Santa Cruz Avenue Les Chattes Salon C-2
227 N Santa Cruz Avenue Les Chattes Salon-Diana Marsh @C-2 227 N Santa Cruz Avenue C-2 227 N Santa Cruz Avenue C-2 227 N Santa Cruz Avenue C-2 227 N Santa Cruz Avenue C-2 227 N Santa
Cruz Avenue C-2 227 N Santa Cruz Avenue C-2 227 N Santa Cruz Avenue C-2 227 N Santa Cruz Avenue Nimbus Nimbus Salon-Andrea Wurnitsch @
Name of Business (s) Zone Business Address No. Dir Street Nimbus Salon-Angela Mackenzie @C-2 65 W Main Street Nimbus Salon-Daniel Lee @C-2 65 W Main Street Nimbus Salon Faith Allen @C-2
65 W Main Street C-2 65 W Main Street Nimbus Salon-Sheri Jo Garrison @C-2 65 W Main Street Nimbus Salon-Suzanne Jennin s @C-2 65 W Main Street Nimbus Salon-Jasmine Lazaarino @C-2 65
W Main Street Nirvana C-2 224 N Santa Cruz Avenue Nuvoux The Salon C-2 468 N Santa Cruz Avenue Nuvoux The Salon-Rachelle L Gavert @C-2 468 N Santa Cruz Avenue Nuvoux The Salon-Roberta
Nespole @C-2 468 N Santa Cruz Avenue N n s Hair & Salon C-2 20 S Santa Cruz Avenue Obsession Make-Up & Hair C-2 343 Village Lane OMO 24 Hair Studio C-2 3591/2 Villa e Lane Portfolio
C-2 130 N Santa Cruz Avenue Priorities Salon C-2 151 N Santa Cruz Avenue Priorities Salon-Jill Portwood @C-2 151 N Santa Cruz Avenue Priorities Salon-Core MaGee @C-2 151 N Santa Cruz
Avenue Priorities Salon-Danielle Castaldo @C-2 151 N Santa Cruz Avenue Pure Path Salon The C-2 110 S Santa Cruz Avenue Rendezvous Hair Desi n C-2 527 N Santa Cruz Avenue Rendezvous -Robins
Nest Skin Care @C-2 527 N Santa Cruz Avenue Rendezvous-Carrie Reed @C-2 527 N Santa Cruz Avenue Rendezvous-Kimberl Davis@C-2 527 N Santa Cruz Avenue Rootz Rootz-Gina Marie F @Rootz-Mousa
@Raatz-Alicia Mancuso@Salon Soule Salon Soule -John Leon @Sirens Salon ,"><:FStrands of Los Gatos C-2 50 Universi Avenue Strands of LG-Milan Petruzelli @C-2
50 Universi Avenue Strands of LG-Eric@.. C-2 50 Universi Avenue Strands of LG-Karen Anderson @C-2 50 Universi Avenue Strands of LG-Lisa Bonenber er @C-2 50 Universi Avenue Strands of
LG-Lisa Yeg e @C-2 50 Universi Avenue Strands of LG-Maria Ramacciotti @C-2 50 University Avenue Strands of LG-Guadalupe Calderon @C-2 50 University Avenue Strands of LG-Deborah Buonfiglio
@C-2 50 University Avenue Strands of LG-Denise Johnston @C-2 50 University Avenue Strands of LG-Isaac Farfan @C-2 50 University Avenue Strands of LG-Maxine Duong @C-2 50 University Avenue
Strands of LG-Melissa Bell @C-2 50 University Avenue
Name of Business (s) Zone Business Address Strands of LG-Terry Ward@C-2 Strands of LG-Julie Evarkion C-2 Studio Joule C-2 Studio Joule-Dina Marie Cruz@C-2 Studio 360 C-2 Studio 360-Allison
Pupkin @C-2 Tan les Salon C-2 Tan les Salon-Christine Hooe @C-2 Tan les Salon-Kristin Zimmerman @C-2 Tan les Salon-Lisa Andrade @C-2 Tan les Salon-Ma Gomez @C-2 Tan les Salon-Tina Butaitis
@C-2 Tan les Salon-Rose Marie grapinet @C-2 Timeless Skin Spa C-2 Trends Salon C-2 Trends Salon-Lisa Macris @C-2 Trends Salon-Lucy Hu en Ngu en NC @C-2 Trends Salon-Ma ann Ruffo C-2
Trends Salon-Kell Christiansen C-2 Trends Salon-Tracy Stellwa C-2 No. 50 50 130 130 360 28 28 28 28 28 28 28 346 236 236 236 236 236 236 Dir NNEEEEEEENNNNNNN Street Universi Avenue Universit
Avenue Santa Cruz Avenue Santa Cruz Avenue SantaOruz Avenue •.••. Villa e Lane Village Lane Main Street Main Street Main Street Main Street Main Street Main Street Main Street Santa
Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Santa Cruz Avenue Santa Cruz Avenue Avenue Avenue Avenue Universi Avenue Village Lane Villa
e Lane
TOWN OF LOS GATOS 110 East Main Street, Los Gatos, CA 95030 (408) 354-6872 SUMMARY MINUTES OF A REGULAR MEETING OF THE GENERAL PLAN COMMITTEE OF THE TOVlN OF LOS GATOS, MARCH 10, 2004
HELD IN THE TOVlN COUNCIL CHAMBERS, CNIC CENTER, 110 EAST MAIN STREET, LOS GATOS, CALIFORNIA. The meeting was called to order at 5:35 pm by Chair Michael Burke. ATTENDANCE· Members present:,
Barry Bald(en, Michael Burke, Steve Glickman, Diane McNutt, Phil Micciche, Mark Sgarlato, Morris Trevithick, Mark Weiner Members absent: Josh Bacigalupi (excused) Staffpresent: Bud Lortz,
Director of Community Development; Jennifer Castillo, Planner VERBAL COMMUNICATIONS· None ITEMl PERSONAL SERVICE BUSINESSES Jennifer Castillo presented results of a community survey
and alternatives for the Committee to consider for regulation personal service businesses. Bud Lortz answered a question about a written policy regarding protection of retail. Restaurant
regulations include a finding by Council that existing restaurants should remain where they are and the number should stay about the same. New restaurants are looked at on a case by
case basis. Replacement of retail by other uses is discouraged. Office space on the ground floor was also prohibited for the same reason (protection of retail): He reviewed the areas
within the Central Business District where offices on the ground floor can remain and where they are not allowed. Diane McNutt asked about converting office to retail. It is allowed.
Mike Burke asked about changing zoning mles and grandfathering of existing uses and allowing nonconforming businesses to remain for specified time. Bud Lortz answered that amortization
periods set in 1976 allowed nonconforming businesses to remain for 20 years. The Town has taken a conservative approach to doing this. In recent years when dealing with restaurants and
offices in the Downtown, the Town has not taken that approach. A secondary approach of not allowing new businesses, or requiring a conditional use pennit (CUP) so proposals can be evaluated
has been used more recently. EXHIBIT G
General Plan Committee Regular Meeting ofMarch 10, 2004 Page 2 of5 Mike Burke asked if an office leaving can be occupied by a new office (yes). He asked if a personal service business
goes out, can a new one be prohibited. Bud Lortz explained business licenses and certificates 0 fuse and occupancy. Ifa personal service business is sold, the new owner may continue
to operate. Certificate of use and occupancy is a zoning approval and is used to regulate new businesses, not business licenses. Mike Burke asked if new PSB's are regulated by CUP, if
a new business will be required to get a CUP even if replacing a PSB that has left the building or space. Bud Lortz explained that if a business is sold, a CUP would not be required.
Ifa business closes and a new One wants to occupy the space, a CUP would be required so the operation can be evaluated and appropriate conditions attached. Can usually tum a use permit
around in 45-60 days. ' Diane McNutt commented that the maps are very helpful, but they need to be accurate. She requested that the discussion be structured. Mike Burke agreed. He said
there are two issues. One is how PSB's should be regulated, Moratorium, CUP or other, and what area should be covered by it. Diane McNutt commented that personal service businesses needto
be defined..Also need to review why there is concern about them. From Council's perspective, PSB's do not generate sales tax. If there are too many ofthem it interferes with the flow
ofretail as you go down the street. PSB's bring a lot of people into Town from all over the County, so that may result in money being spent 'elsewhere. PSB's also provide a service to
residents. ' Steve Glickman noted that a moratorium was put in place because there was a concern and time was needed to allow staffand this Committee to study the issue. Wehaven't come
to the conclusion that there is a problem, we just gave ourselves time and some breathing space. Mike Burke asked if there was consensus that there is an issue. Steve Glickman said there
are a couple of of issues. One is the. total number ofPSB's in the Downtown area. Steve Glickman said concentration is part ofthe issue. Mark Weiner asked ifthe issue is traffic impact
or is in perception and percentage ofbusiness type. Diane McNutt said in tenns oftraffic there is no data that says PSB's produce more, the same, or less traffic. Mike Burke said perhaps
it could be framed that the number ofPSB's in the Downtown has reached the point where they need to be regulated. Morris Trevithick s'aid ifthere isn't sufficient concentration to support
other buisnesses in Town,
General Plan Committee Regular Meeting ofMarch 10, 2004 Page 3 015 Barry Bakken said in Los Altos PSB's are required to be consistent with the village atmosphere. What is the mix we
are looking for that makes Los Gatos a special place. Steve Gliclanan said the concern was that the number ofPSB's may discourage people from visiting certain areas or a particular street.
He sees an issue with the Village Lane area and the south end of Downtown. PSB's attract people who come Downtown and spend money. He suggested focusing on the areas of high concentration.
Diane McNutt said in ternlS of Village Lane, from a marketing point of view, that is where they should be clustered. It is not a place where people naturally wander and might not support
retail. The little nooks and crannies that don't lend themselves to viable retail are where they should go. Mike Burke commented on compatibility versus concentration. The CUP maybe
an appropriateway to regulate. The number ofPSB's maybe detracting from a full service Downtown. Diane McNutt said her philosophy is the market will regulate PSB's and the situation
might correct itself. There is a natural limit to the amount ofbusiness that can be supported. Morris Trevithivk agreed with Diane's comments. Steve Glickman said if a number that is
appropriate from the Town can be determined, the l11,lmber beyond that requires some special processing. Diane McNutt commented that big spas are counted as one business but have a number
of components within them. Mark Weiner commented on percentage and competiveness of businesses and location/perception of visitors. Diane McNutt said little places blend in better whereas
a large businesses such as The Spa is very visible and make a statement. Mark Weiner suggested a focus on visibility and concentration. Areas such as Village Lane are ok given the location.
Steve Glickman supports establishing an appropriate number of businesses where special process kicks in. Mark Sgarlato said he tends to walk in areas where there are stores he can shop
in. Phil Micciche discussed percentages for various types ofbusinesses t? provide the best mix for the Downtown.
General Plan Committee Regular Meeting of March 10,2004 Page 4 of5 Mike Burke asked about costs of CUP's and staff time. Bud Lortz said a CUP is $3,500 and there is no distinction
between DRC or Planning Commission because they both require a public hearing and. public notice. He estimated that staff s·pends 20 hours on an application. This discussion is so analogous
to conversation we had for restaurants Bud Lortz responded to a comment from Morris Trevithick that he has received comments from business owners in the Downtown that hair salons can
pay more per square foot than retail. When rents are raised, PSB's are more able to pay the higher rent. Mike Burke said his opinion is the Council agreed to a moratorium because there
was a concern. He would rather be proactive than reactive and he doesn't think proactive is a moratorium. He would like to see controls in place proactively that saywe want to have some
input on where PSB's go and how they operate. Retailis so important to the Downtownthat Downtownthat we need to be .cautious. Diane McNutt asked if there is any way of generating fees
from PSB's. Bud Lortz said fees are typically collected one time. He ;doesn't see an ability to do it, but can consult the Town Attorney. A CUP allows the Town to review and regulate
a new business. Through that process we refine our approach and it helps staff to guide people through the process. Phil Micciche commented that the hair and nail salons seen to be the
biggest problem. Diane McNutt said she is not opposed to requiring a CUP on the main streets. Barry Bakken said it is a good idea to limitPSB's as it benefits the ones thatarehere. It
allows them to get the most from the services they provide and it maintains some stmcture to the Downtown fabric. Steve Glicknzan said we need to be sensitive to serving the needs of
the people who live here. He supported the moratorium because he thought there was a risk of impacting pedestrian traffic. Is there some method that can be used to determine the appropriate
number for the Downtown. Bud Lortz said that if the approach is to use the CUP, that allows evaluation of a business based on its locations and surrounding uses. Findings need to be
made and one could be added requiring that a business will not detract from the shopping/pedestrian experience. . Phil Micciche asked about the best method ofsetting up an ordinance.
BudLortz said that restaurant ordinance is probably the best model. Mike Burke said the $3,500 fee for a CUP is reasonable compared to the cost to gain approval and build a home in the
Town. Properly applied, good zoning laws positively affect people's property value.
General Plan Committee Regular Meeting ofMarch 10, 2004 Page 5 of5 In response to a question from Steve Gliclanan, BudLortz said that aCUP is required for a restaurant all over Town.
In addition, there is this uncodified language from the Council on restaurants in the Downtown. He noted that the moratorium extends to August 1 and that impacts new businesses· trying
to come into Town. Staffis trying to stay on track to beat that deadline. Mike Burke said the recommendation on the table is to follow the guideline ofthe restaurant policy. There was
Committee consensus. . . Mike Burke asked for comments on areas to be regulated. Bud Lortz noted that businesses on the second floor have not been a problem. He suggested using the map
that shows ground floor areas where a CUP is required for offices. There was Committee consensus on using the map. Mike Burke said the remaining item is developing a definition. BudLortz
said he is concemed about differentiating between types ofpersonal service businesses. The Los Altos example is good other than that aspect and can be used as a model. The Committee
agreed with this approach. ITEM 2: APPROVAL OF MINUTES ______ made a motion to approve the minutes of February 25,2004 as submitted. The motion was seconded by and passed unanimously.
ADJOURNMENT The meeting was adj ourned at 6:47pm by Chair Mike Burke. The next meetingofthe General Plan Committee is scheduled for Wednesday, March 24, 2004 at 5:00 pm. Prepared By:
SUZ31me Davis, Associate Planner N:IDEVIS UZANNElGENPLANIGPCI2004minuleslGPC-3-1 0-04.wpd
WHERE PERSONAL SERVICE BUSINESSES i\ "-! \ MAY BE ALLOWED WITH A CONDITIONAL USE :\f PERMIT (SEE SECTION 29.60320 (c)' FOR A FULL i \ DESCRIPTION OF LOCATIONS) , EXHIBIT R
Personal service businesses. Service businesses necessary for the conduct of households or businesses. .ORDINANCE 1899 AN ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING ORDINANCE
OF THE TOWN CODE PROHIBITING OFFICE USES ON THE GROUND FLOOR ALONG STREETS IN THE CENTRAL BUSINESS DISTRICT 'TIlE TOWN COUNCIL OF 'TIlE TOWN OF LOS GATOS DOES HEREBY ORDAIN: . SECTION
I Town Code Section 29.60.320 is hereby amended as follows: Sec. 29.60.320. Permitted uses. (a) Activities permitted in the C-2 or Central District Commercial Zone are those involving
the conduct of commerce and general business and the sale of commodities necessary for the needs of residents and visitors of the Town, such as: (1) Retailing. (2) (3) (4) Office activities,
provided they are not located on the ground floor along the street alleyway or public parking lot. Office activities may be allowed in a building that was under construction on July
16, 1990, providing the Architecture and Site Approval specifically stated that the building was approved for office activities. Existing office a.ctivities shall be considered conforming
and shall be allowed to continue in perpetuity. However, if an office use is discontinued for one hundred eighty (180) consecutive days, no office use shall be permitted to be resumed.
Token use does not toll or interrupt a period of discontinuance. (5) Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer. 1 EXHIBIT
I
(6) Wholesaling without warehousing on the premises. (7) Single-family and two-family uses, in conjunction with the other uses permitted in this Section. (b) Example of proper C-2 activities
are apparel·· stores, launderettes or dry cleaning agencies, travel agencies, antique stores, telephone answering services, artist studios, sales offices for merchandise stored elsewhere,
craft auto parts sales and paint shops. Examples of activities which are not proper in the C-2 zone are vehicle sales or service, manufacturing, warehousing, laundry
or dry-cleaning plants. SECTION IT This Ordinance takes effect 30 days after the date it is adopted. Within 15 days after this Ordinance· is adopted, the Town Clerk shall cause it to
be published once in a . newspaper of general circulation published and circulated in the Town. This Ordinance was introduced at a regular meeting of the Town' Council of the Town of
Los Gatos on April 20, 1992, and adopted by the following vote as an ordinance of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on May 4, 1992. COUNCIL
MEMBERS: AYES: Joanne Benjamin, Brent N. Ventura, Mayor Eric D. Carlson NAYS: Randy Attaway, Steven Blanton ABSENT: . None ABSTAIN: None SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS,
CALIFORNIA 2
REPORT TO: FROM: LOCATION: APPLICANT: EXHIBITS: REMARKS: Date: For Agenda Of: April 14, 2004 Agenda
Item: =-1 _ DESK ITEM The Planning Commission The Director of Community Development Zoning Code Amendment A-04-01 Consider amending the Tovm Code to modify personal services regulations
for businesses in the C-2 (Central Business District) zone. It has been determined that this project could not have a significant impact on the environment, therefore, the proj ect is
not subj ect to the California Environmental 'Quality Act (Section 15061 (b)(3)). Tovm ofLos Gatos A.-1. Previously Submitted J. C-2 Zone Personal Service Business Licenses K. Letter
from John Lockner, dated Aprilll, 2004 Attached as Exhibit J is an updated audit
ofbusiness licenses exclusively in the C-2-Central Business District. As indicated in the staffreport, the list is not comprehensive ofall types ofpersonal service businesses, but does
indicate all beauty related services. Attached as Exhibit K is a letter from a dovmtovm business owner asking the Planning Commission to consider excluding regulations of personal service
businesses from properties in the C-2 zoning district which do not front on to Main Street or North Santa Cruz. These attachments were received after the report was completed.. unity
Development Prepared by: Jennifer Castillo, Planner BNL:JC N:\DEV\Jennifer\PC\Long range planning\Personal Service Businesses\deskitem.wpd
C-2 Zone Personal Service Business Color Key Type Each color corresponds to a type of Personal Service Business located in the C-2 Zone Color White Beauty Salons • < ,.,":', �
�p,. G.·.·old·:;;t}';,..,MJ'7;;
Na1'1 SaIons .," .'.
.. ":::;;_ �
� Yellow Beauty Supplies 'Gre" Barber Shops Massage Therapy-Tanning Salons Spas, Health Club Facilities, Physical Fitness, Fitness &Sports Centers Pet Salons
N Santa Cruz Avenue N Santa Cruz Avenue Name of Business (s) ." Breathe Healing Skin/Bod /Treatment Buzz C-2 C-2 Zone·.·' 315 1/2 296 N Street Santa Cruz Avenue . Santa Cruz Avenue .
Santa Cruz Avenue Villa e Lane Elm Street Universit Avenue Santa Cruz Avenue Capelli Salon Capelli Salon-Samantha Bentson @Ca elli Salon-Chriss Stur es@Capelli Salon-Victoria Nunez @Changes
Hair Desi n Chan es Hair Desi n-Obsession @C-2 C-2 C-2 C-2 C-2 C-2 14 14 14 14 346 346 EEEE Main Street Main Street Main Street Main Street Villa e Lane Villa e Lane ... .. --T----...-----
Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Main Street Main Street . Villa e Lane NNEEN Giannis Salon C-2 634 N Santa Cruz Avenue Chez Aubre Complete Skin Care Fantastic Sams
Env Salon-Anabela Silva @Envy A Salon De Waynes Salon Durand -Kristina Beaut Care Durand Hairdressers Inc Christina's of Los Gatos cGuild, The-A Place For Hair C-2 46 Elm Street Guild,
The-A Place For Hair-Am Browser @C-2 46 Elm Street I Do Hair Couture of LG C-2 195 Los Gatos-Sarato a Rd I Do Hair Couture of LG-Leah.Graff@C-2 195 Los Gatos-Saratoga Rd ImruSalon C-2
291 E Main Street Imn.fSalon-Rae Ann Caparelli@C-2 291 E Main Street Kevin's Hair Studio. C-2 338 Villa e Lane Kevin's Hair Studio-Karen Muzzy @C-2 338 Villa e Lane Kevin's Hair Studio-Ludmila
@C-2 338 Villa e Lane Kevins Hair Studio Robert Urzua @C-2 338 Villa e Lane Kiss and Make Up C-2 130 N Santa Cruz Avenue La Jolie Boutique C':'2 278 N Santa Cruz Avenue Le Chic Salon
C-2 106 . Royce Street Le Chic Salon-Dee Bathish Attawar C-2 106 Ro ce Street Le Chic Salon-Salon-Designs By Carol C-2 106 Ro ce Street Le Chic Salon-Donna Madison @C-2 106 Ro ce Street
Le Chic Salon-Jenn sNail @C-2 106 Ro ce Street Les Chattes Salon C-2 227 Sahta Cruz Avenue Les Chattes Salon-Diana Marsh @C-2 227 Santa Cruz Avenue
Nimbus Nimbus Salon-Andrea Wurnitsch @Nimbus Salon-An ela Mackenzie @Nimbus Salon-Daniel Lee @Nimbus Salon Faith Allen @Vacant Nimbus Salon-Sheri Jo Garrison @Nimbus Salon-Suzanne Jennin
s @Nimbus Salon-Jasmine Lazaarino @Nirvana' Nuvoux The Salon Nuvoux The Salon-Rachelle L Gavert @Nuvoux The Salon-Roberta Nespole @N n s Hair & Salon Obsession Make-U & Hair OMO 24 Hair
Studio C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 224 65 65 65 65 65 65 65 65 224 468 468 468 20 343 359 1/2 WWWWWWWWNNNNS Santa Cruz Avenue Santa Cruz Avenue Santa
Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue L. Wood Road Wood Road Santa Cruz Avenue
Main Street Main street Main Street Main Street Main Street Main Street Main Street Main Street Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue Santa Cruz Avenue
Villa e Lane Villa e Lane
Portfolio C-2 University Avenue Santa Cruz Avenue University Avenue Santa Cruz Avenue Santa Cruz Avenue Village Lane University Avenue University Avenue Santa Cruz Avenue University
Avenue University Avenue University Avenue Santa,Cruz Avenue University Avenue University Avenue University Avenue University Avenue University Avenue University Avenue University Avenue
Village Lane University Avenue Santa Cruz Avenue Village Lane SantaCruz Avenue University Avenue Santa Cruz Avenue Santa Cruz Avenue Santa CruzAvenue Santa Cruz Avenue University Avenue
Village.Lane .. Santa Cruz Avenue UniversitvAvenue ,:0. .•:'. University
Avenue NNNNNNNNS ·N ,"C' N-50 50 50 50 9. 50 50 130 950 9950 50 130 50 50 110 326 50 50 326 527 151 50 527 1'51 527 J51 338 pft 50 527 ·151 C-2 C-2 C-2 C-2 C-2 C-2 C-2
C-2 C-2 C-2 C-2 C-2 C-2 C-2 C-2 Strands of LG-Isaac Farfan @Strands of LG-Julie Evarkion Studio J.oule Strands of LG-Maxine Duong @StrandsofLG-Terry Ward@Strands of LG-DeniseJohnston
@Strands of LG-Eric@Strands of LG-Deborah Buonfiglio @Strands of LG-Guadalupe Calderon @Strands of LG-Maria Ramacciotti @Priorities Salon-JiliPortWood @C..,2 Priorities Salon C-2 Strands
of LG-Milan Petruzelli @Rendezvous -Robins Nest Skin Gare@.... C-2 Strands of LG-Lisa Yegge @Priorities Salon-Danielle Castaldo @. C-2 Rootz-Gina Marie Fry @C-2 SJrands of LG-Karen Anderson
@Salon Soule C-2 @C-2 Priorities Salon-Corey MaGee @C-2 Rootz-AliciaMancuso@... C-2 Rendezvous Hair Design Rendezvous-KimberlvDavis @C-2 Salon Soule -John
Leon @C-2 Sirens Salon C-2 .. Strands of Los Gatos Strands
of LG-Lisa Bonenberger @Pure Path Salon The C-2 Rootz C-2 Rendezvous-C6ri1pleteSody Therapy.@}·,·. '., ·.iI 0..,2..,,:· . Strands of LG-Melissa Bell @. Rendezvous.:CarrieHeed @C-2
C-2 N . '. C-2 N C-2 C-2 C-2 E C-2 E C-2 E C-2 E C-2 E C-2 E C-2 E C-2 N C-2 N C-2 N C-2 N C-2 N C-2 N N Qr
.. JOHN B. LOCHNER 150 Creffield Heights Los Gatos, CA 95030 (408)354-7896 April 11, 2004 Los Gatos Planning Commission 110 E. Main Street Los Gatos, CA 95030 Re: Zoning
Code Amendment A-04-01 Restrictions on Personal Service Businesses in Business District C-2 Planning Commission Meeting ofApril 14, 2004, Item 1 Chainnan Jeanne Drexel and Fellow Commissioners:
I am the owner oftwo buildings located on Village Lane: one at 334-336, which has one PSB Unit out offive and the adjacent property at 338-348 Village Lane which has nine PSB Units out
of eleven. I write to strongly urge that any recommendation made by you to the Town Council regarding Zoning Code Amendment A-04-0 1 (Restrictions on PSB in District C-2) provide for
an exclusion or exception with respect to those properties within the C-2 District which do not face Main Street or North Santa Cruz Avenue, such as properties located on Village Lane.
While I recognize the interest ofthe Commission to maintain a business balance within the C-2 district and the desire to prevent an over-abundance ofPSB's within the business core facing
Main Street and North Santa Cruz Avenue, the reasons supporting special restrictions for PSB's on Main Street and N. Santa Cruz do not apply to other areas within the C-2 district that
do not have the benefit offacing Main Street and N. Santa Cruz. Those properties not facing Main Street and N. Santa Cruz (such as Village Lane) should be exempted from any proposed
PSB restrictions for several reasons. First, such properties are not as attractive to potential renters as those on Main Street or N. Santa Cruz Avenue and consequently do not generate
as much rent thereby forcing owners to look for a wide variety ofpotential renters, including PSB's, to make the properties viable. Retail establishments have little interest in renting
offof Main or N. Santa Cruz and office rentals in the C-2 zone are rare. Precluding these non-core outlying properties from renting to PSB's wil1/has resulted in a lowering of rental
income and corresponding depreciation in property value for no good reason. As an example, I recently had an vacant unit on Village Lane facing Parking Lot #1. Because ofthe temporary
moratorium on PSB's in this area, I had to tum away nine (9) prospective tenants, almost all ofthem Personal Service Businesses. While I was able to recently rent the space to an office
client after a five month vacancy and a loss in income ofover $8000, EXHIBIT K
I did so at a significantly reduced rate from that previously charged for the same space. I would note further that during the mOIlths that this space was marketed there was no interest
in the space indicated by any potential retail tenants. Retail tenants all indicated a desire to face Main Street or N. Santa Cruz, not their outlying areas. Second, the rationale provided
for limiting PSB's downtown do not apply to properties which don't face Main or N. Santa Cruz. Unlike businesses on Main and N. Santa Cruz, businesses in the outlyinging areas generate
little foot traffic and are generally destination businesses (people go straight there for a particular service). In these areas market mechanisms determine which businesses the community
wants. There is no need to interfere with this mechanism in the outlying areas since the type ofbusinesses in these isolated areas has no affect on the mix ofbusinesses on Main Street
and N. SaIitaCruz Avenue.Third, the goal ofincreasing a retail mix on Main ,Street and N. Santa Cruz would be enhanced by allowing other non-retail businesses (such as PSB) to thrive
in the outlying areas such as Village Lane. Obviously there is a strong demand for these type of non-retail businesses otherwIse there would be no need for the proposed amendment. These
businesses need to go somewhere. Why not direct them to the outlying regions of District C-2 by exempting these regions from any PSB restrictions. This would help to serve the goals
expressed by the proposed amendment. Fourth, the existence ()fIlOn-retail, PSB, businesses in the outlyingregions of District C-2, serve the important 'task ()f supporting the retail
and restaurant businesses located on Main Street and North Santa Cruz Avenue. The PSB's in the outlying regions ofDistrict C-2 serve as a magnet attraCting residents and nonresidents
alike to the downtown area. More often than not individuals served by a PSB in the downtown region proceed from these businesses to the nearby retail and/or restaurant areas for additional
shopping. By significantly limiting further PSB's in the outlying regions immediately adjacent to the downtown core, foot traffic in the downtown area will be greatly reduced thereby
causing a corresponding reduction in retail business on Main and North Santa Cruz contrary to the intended goal ofthe proposed amendment. Fifth, I would like to use 338-348 Village Lane
as an example to further enhance my argument. This property eleven units with 4,386 square feef ofrentable space. Presently, 3,435 square feet or 79 % is occupied by Personal Service
Businesses. They pay an average of$2.61 per square foot rental. Compa.re this to the $3.50 to $4:00 per square foot on Santa Cruz Avenue or Main Street and you can see why this area
is a.ttractive for this type ofbusiness. To impose a Conditional Use Perm.tt fee of$3,500 would be absolutely disastrous to the area. This would amount to three and one halfmonths rent
based on a 400 Square Foot Unit. The majority ofthe people renting for this type of businesses are women, many single who put in unbelievable hours to make a decent living.
This additional hardship may be just too much! ! Finally, I would note that the minutes ofthe General Plan Committee included as part ofthe Committee's recommendation to the Planning
Commission indicate clearly that several members ofthe Committee considered it appropriate, ifnot necessary, that any
proposed zoning amendment include an exemption for businesses in the C-2 outlying areas (including specifically Village Lane) for many ofthe same reasons discussed above. Thus, to the
extent that the Commission relies on the recommendation ofthe General Plan Committee in making any final recommendations to the Council, it is strongly urge that comments by members
ofthe Committee regarding exemptions for property which does not face Main Street or North Santa Cruz (including specifically Village Lane) be incorporated into any finai recommendation.
(1 would note that the proposed ordinance included in the Director of Community Development report provides for an exception allowing personal service businesses on the ground floor
in the C-2 zone subject to the conditions permit in various areas including Lyndon Avenue, Wood Road, Victory Lane,. etc.. (Sec. 29.60.320(b)(1) "Permitted uses") For reasons that remain
unknown, Village Lane was not included in the areas excepted. 1 urge the commission to include Village Lane in the excepted areas «Sec. 29.60.320(b)(1)) in any proposed ordinance recommended
to the Council for the reasons stated herein. 1think the commission for taking time to consider my thoughts on this matter. Very truly yours, JOHN B. LOCHNER cc: Town Council
TOWN OF LOS GATOS PLANNING COMMISSION MEETING ACTION MINUTES TOWN COUNCIL CHAMBERS 110 E. MAIN STREET WEDNESDAY, APRIL 28, 2004 --7:00 P.M. Please refer to compact disk #04-28-04 tohear
the entire proceedings ofthis meeting. This is partial action meeting minutes Zoning Code Amendment A-04-1 only. ROLLCALL: Present: Absent: Others: Jeanne Drexel, Chair; Phil
Micciche, Vice Chair; Joanne Talesfore, Morris Trevithick, Lee Quintana, Thomas O'Donnell Michael Burke Community Development Director Bud Lortz, Town Attorney Orry Korb, Associate Planner
Sandy Baily, Planner Jennifer Castillo and Associate Civil Engineer Fletcher Parsons VERBAL COMMUNICATION -None .CONSENT CALENDAR -None CONTINUED PUBLIC HEARING ITEM 2 Zoning Code Amendment
A-04-1 Consider amending the Town Code to modify the personal service businesses in the C-2 (Central Business District) zone. It has been determined that this project could not have
a significant impact on the environment, therefore, the proj ect is not subject to the California Environmental Quality Act (Section 15061 (b)(3)). APPLICANT: Town of Los Gatos (Continuedfrom
April 14 and April 20, 2004) PUBLIC TESTTh10NY: Tom Connelly representing John Lochner, Gabriela Oliveira and Brian Battisti. MOTION: Motion by Commissioner O'Donnell and seconded by
Commissioner Micciche to recommend approvaJ with a recommendation that Council consider exempting Vill9-ge Lane and Attachment 3
Planning Commission -April 28, 2004 Action Meeting Minutes Page 2 forward to the Town Council for final action. Motion carried 4-0 with 2 abstentions (Commissioners Quintana and Trevithick)
due to conflicts of interest and Commissioner'Burke abserit. Chair Drexel concluded the item at approximately 8:09 p.M. TOWN OF LOS GATOS PLANNING COMMISSION April 28, 2004 Jeanne Drexel,
Chair APPROVED AS TO FORM AND ATTEST: Bud N. Lortz Director of Community Development N:\DEV\ADMINSEC\PCACTIONMIN\PC4-28-04p.min.wpd