15 Staff Report - Regarding the Definition of Formula Retail BusinessMEETING DATE: 8/13/46
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INTROI)tXTION OF AN ORDINANCE AMENT)ING TOWN CODE
SUCTION, ?9.10.020 REGAR NIG TPIL DEFINITION OF FORM LA
RETAIL I3l;:SINESS. T H.~s BL,L- D TE\'%1 D 'FHA'I'T}fiSP OJEr-t
COULD NOT HAVI' A SIGN IC -NNY INIPACT CYNN THE ENVIRON-NIEN+T-
T'HE_Rl✓FORL. THL PW) VLCT IS NOT SL BJECT TO 'I "E C AI AFOIZ' IL
E_%.JR0N\-1E TAL QtT 1)" :ACT tSKTIOtr 5061 Cl?)(7)}.
_ ,'T.- CATIOC-- A-n>-1. APTLICANT': TOW-N,' OFTOS CATOS,
'RECO3BFENDAJ ION:"
1u ptreportainth' cto rriof ilicctirl<ant ziutc:sfrowtbeP,lannIn-
Code w-atltdzitezzt (Attac}unenC.---)
. Ujxm and hold the public bearki,,.
.Close the public hearing.
. jDircct the Clerk Administrator to read th ;,title of the ordi.naiice n7ot c} 'r quiz'ecl:t,
.Iovc to -,:m-1L-e the reading of the ordinancc (_motio requir€d)-
rntrrxluce. the ordinance to cffectuate, the Zoning Code am-ladznertt (motion required),
Direct il-Ze aerk.l~clY~aiztisnatt~x.tc+puhlis}t the ordinarlcL.Avithita 15 day, ; a t:r ad0t1tiQ (;zio UN-Mon,
zecluirc d$,
~CkCYRC?t i\-D'
Otl N vezzll~er ~ 2()02, `the, Toy n - ~~tTT1ci_ , appr~~t etif a Zt)ning .C cede ame-ndnz nt e~)tzii ng a€
onditionijTj-,.,c Pe11nit (Ct-P) for all fornxul.a retail businesses In the- Central'Busi i.ess District (C~2,
Z011e) and for formida retail businesscs in excess of 6,000 square feet in outer commercial zones.,
he t`c~Ilc~~~iu~ ele,finitiLn,«asgnc:lude:cl as paJL of the oning Cody awicndaxnt:
(Continued on Page.,.
T' fZt PAREQBY.- BI N. I;ORTZ
DJKLCI OR OF CONI NCI L. N ITY DES EWYNNIEN
Rtvie,c°ecl y:.J-5--J_~kssist~~nt' J,owil Mauage: _ ` .qtr ?rnez- Cl l:' part7rzzrr f
imance, 1:. C(ltntnum v DG`,°elopnjcnt ;aevisetlm Si4/0 ,(:-t5
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NMA OR ANT) T( NVN C:C)LrNC17
RE, ZON'T G CCtUE AME:v I}AEN T A-05-r'21
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F07?cularclailbusit~es~ore.rnsaretail business which,nJongwith one (1)orrnoreothe 'barsirres5,
locatiom,, is required by contractual or other m-ran4-gearrent to n-aintain any of the following:
stand<rrdized tnerc:hatadisc-., services, decor, uniforms, architecture, colors, signs or other similar
features.
The intent of the ante miment was noLto prohibit formula retail busi nesses. athc~rAhc, CUP processi
allows the Town to ev-ahlate the coDsisuaicy, of the proposed bushress with Town pofk e.s. The
Tovvn Code states that the Tovvta rnav deny a CUP for a formula retail business if it is found to be
ulcorlsistetit vv ith the Gerrera P1ra1 or ~uil,l detract frbTr klc diver-dry of businesses In, thr zoninfl,
district,
In Septe.mber (K7 4, the Twvn Council requested rai fire 'Ge-neral Plan C"onlsrtiuee (GPC) &4e ,rrrjiad
if a modificatiort should fie mode to the definition of formula retail business. Specifically. the G11C
was asked to revkN, whether the definition of forratila retail business should be modified to allow
T)us rtrsses that have a limited numbor of stores to be approved without obtaining a CUP.
Aver the pawt sev=oral mori hs the General Plan CmuniVee (GPC) reviewed. thecztrTcnt.6l ,fiintioa of
formmla :retail. bu~ine~s and determined that a modification would be apl-)ropziatc fp allov'--s n-k'L
retailerc with swear ocattons to locate iwfhe fo-wn without obtaining a C:LT.
`DISTUISS.10-
Two potential option` mE-e ffi ~clssel hi first option yy ou Id rraodifv the, definition of formula retai-
T,msinesses anti enure a dis,baction between regional and national retailers- It was deterxzrined that
this caption raised legal concerns and was not discussed further. Tbke second option would modify %
~lre definition of formula retail 1~usiuE SSe.s by raising the nurrzbc r of stores,.fox xhichthe requir-cm nt'
for a CUP is triggered.
the G$C zecc.ivcd iirput frciul the Ecrmomic Vitality N1dnager regardirt, intezactiOn-s with property'
ovvners and brokers. Staff relayed iirput tbat has, been provided by property owners and brokers
re ardim-, the current formula retail business definition. Althou'-11 uo applications for formula retail
businessees have been denied, sotne property owners azld brokers expressed that they generally will
avoid businesses that trigger the recluirement for a CUP. WVheir multiple b-usinesses are vv to fox a
single space, the broker and/or property- owner vvill generals- choose a tenant that does Tint regn1r
a (7tTP because of the proces~i,nl:' Mile and tincertaicrtv involved itt obtaining a CUP. Many
businesses whl, h have- a successfizX hasniess ruod4i acid have, an appropriate look and feel for the
ow'n tfe- Passed over for other businesses vvlrich wilt not trigger the requirement fi)ra CUP.
As part of their rev-icw, the Gl-j.C rov~i.-w d v-anou e,-xwnples of formula retail businesses vvithirt that
'Tow'n That had betNA ecu tvvo and ele-ve2l L;~isti~rg 1oc-atic+n~:e
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Peabody An Galler .
Sports Gallery -
'Traditions - =l
harvest Hon "
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.~d~tionallSr.`thc, GPC'rcvie«>ec~ t~Ther e~arizples of f~~rz1~_t11a retai~~rz~inc sses ~~ith up t~ sip e~istiz~o'
locations that are trot cuirrentl5- locate, witlriq the To-wm,, but 4 earto be -a good fit for the °Tnwfl:
Trina. Turk -
-Voibiance 3
Margaret: O Leary- r :
:,the GPC" discussed this issut- ai length and was con)(j3-c.j)1e «71th the. stores steel at)ovo~ that liad,
fewer than seven locations. Therefore, they detern hied that modifying, the definition of formula,
,retail front one to seven "tore" was appxopriate. The Cap(", eonimotitect that the objectives of the.
proposed zimendmeizt are to alluw small boutique stozts without u Ctj), encourayae businesses deaf
,auto an appropriate. i:harac-ter for the Town, and to allow sma]1~xetriilers tot ak~tairi approval without
ia- iii"? to ~,.o tlirouoh the CUP process. a
The Cil'C reccirzitzzencled that the following Tout Code arriendrzzent be, approved by. the-oCu
Section 29-10.020. TDefinit; otas
Y criwr ulo. retail bxrsmess mcatis a retai .~usmess w 1ic , zrlon- 'wit i -f sevext, f car°more
other Business locati< ns,_is required by conlractu l Or other r9raz3QIeMcnt tO mail twin ally of tare
fol owli standardized mn erchandise, ser~ _Fices, de.cbr',Inmforrtzs, architecture-, cnIors, si":tzs Paz'
other sitrWar feaitrres.
,FNFR Ply
~11e proposed Zorzzrag o o. artren rietzt is cuizsisti. zt tvit,. €t rt. ~~11vtv>ti~ .Gcatzc a ,Plaza d(,~sianation,
goal, and poliev;
;L.aricl Use Desi,.nat on ''BD, (2.4_2) Encourages a mixture oT ci mmixnityr wiente
Oritizaercial goads. szrvlce and lodging, that is unique tri its accoii-tmodatiozl. of sula l tov"n
style jaiercliants and the Tara imenaiice. of a small town feel and- character.
L.G.6.2 -To preserve downtowri Los, Gatos as the bistoric cerite.r, of the T, owia with ,foods aria
services for local r idcrit h.iJc. nia~it3inzrt tl c istit~ To«r~ is emit ~ envL'TOnmerit anct
~:omzziercial ~ial»lit~-., .
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A"_It A G=T ZONLNG ()RD ,,k' C.E Of ' IHI TC)'4AW, CODE 1*,GARDTN-G
SEC:TION,29.10.024,
WHEREAS, Sze Town of Los Gatos has ®lon, been reco niz d as havinly a umgtic retail
envirt~mpe,nt with an urtttsttal mix of retait businesses iia tem_tis of type, vwiiership and appearance.
that distin~tiTshest foist ether detail axeas auc}as contibutec in its long time vibrance azlc f in<trrc
, Ct S`6
l~~iFR~ ~S,°Y~~~ Tc~~=n~s C~e.~ieral elan ~,t~rrtaiz~snuzz~ert?zls vc~til`,~cilic~,sazlci mpleiiZentiz~~7
taC~ ics intended to preseivc, its nnique retail onvironmt.nt_ For example, the tand use dcsignatiol_
C_BD for the Central Bu,4ness Dli;tdct (?.4.2) is (lcscribed as "~cncoura, n-I a mixttire off,
4oznrtruniw-order d conimeyciarl c cods; ,,orvices area todi7izz that is unique in its ac c.o=nodation.
+f sr~1 1 to-,n style E rt?rcLhis, Lhid Lhe:inaiutertance of a small town feed,and. Character" " whiles
4cscription,, of the Jklixed lfse; ,jvcighborhood and Service Coma-icrciat -districts em.hasizG:s
z amtatzzrn , and the nce,ds of the shall town res)tier ti- scale trod naturl en0ronments of,
adj rcerit..rc sidemial rreiyh7bclrtmds. L]seww hec , concerning the historic t~t~ww niti~w n rt.tz, is a -oat to
maintain z-I1i`xtLlr,- oi'`mods and services, identA , envirmrimcmt and commercial v abIlity (L.G.6.2)
atul a pojlc: , to "[c]ocourag,e the dtvelopulent arrd reteritic n of srnzill. businesses and loe~r}1}-owwnecl
stores and ships that are consistezxt with small. towvji charactoL and scale' (T._P.6.21).
LIF REAS. Councl ajopted a_.defirutigm fbrS{ mina retaltT usinesses nzr N(5v& nbLr 4,
2002
WHERFA3 rwitzicil's rrt~ntizl a ~ptirr the ex.st rz, cleflin7mozi offoulluTa retail bil"Iness
I
At AjCbxentl
wvas to ell ~ Lire ~l~t. ~ ~er~ise of greater control of er the lc;cation Of nCW fol-MLIJa retail hLlSiIleSccI J' Then
otiu in i,zcle7.to meet t}ie oalc, policies and itnPTe?xie.nfing yfrtite pies of the Towv-s Goneral Flan
Vied avky,d the Minsitioti of the Tcm n's uniquo, retail en irotmitnt into one t4at is homogcnous with-,
cta'I,arL:a in other comzniiz11tes.
i JERLAL,S, the Town Council recltlcste; thxtthL,.Genera.l Ply} l C ommltec f cc)-p ' } dcterMil e
~ Lae.thc.rthe definition of foumila ret ii:( butt iIL > h0111tlIb M()d fie (T to.a-I olv I uSInbS~e,~ LfIat z" z-e
a liinited number of stares w bc approved without obta mn, a ctrp.
WPFRFNS, the OPT: and 21minin.g on~iTLissio t„~ ecc~n~nlei~ded a Modifi ation to Lho,
Je,Fj-t)iriott offomiula rwr iiT business fo Olov smaTloseta:ilers io Tocat.e Tn UwTown.w- out pbfainin
C OTIditional Use Permit (CuP).
NVHFRV AS. Council's intent in adopting this ordinance is to cont:ii~uz to rnsuzetl~e. e<~eTCi'se
'bf 6reater CODtMi. 11it; the IO- ation of ii formula retaiL buzsinesset iu the '!'o~~ ri in order to meet the
goals, policies and im.Dletnentinz strate-ies c?f he lwvia's General Ilan, and a~ oid the Iransiiion of`
t~ I ~ivn"s 'uni e. fetal-L olvironinent jnto, dine khat is honjo~,noes wiffi retail areas u oihec
XN IIERE.AS, C'oujici1 ° Wermi_ned that the proposed Zoning Codc-' Amc tdni enfls consistcui~
with the Gi neral flan and specifically with the land to u designation C_'BD for the Central BnsiIles5I
PJS47ict (2.=1:2), Goal L.G.6.2, ari.d Polk y 1-.?A2.,
THE IY)W-N, COUi CIL OF M TQI \ Of"f- 6; G:~ 0, DOES: `ORD--~N AS
T0UOWS.,
SCC Ia1Ti
Tows Code (71 after 79,is aroffiidcd to read as'ToTlows:
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REPORT TO--
a ROM.-
;LQC:,~Tlt~1~T:
P -
:For Agenda ~3f: TLtIy. 1,3, `'()t)~
AgendaIc ci: 4
heTllannlii (onirnission
Ijirector of Comm im-Ity Doveloapmem
ZoninL- Code Ameadmerif A105-02
consider arnendin Tthe Tour Code rearciM forswolaretail stores: jthas
`been determined that this project could net_havc a signif7cant impact on.
a N, cztvironmcnt, therefore, the projoct is not subject to the CaII )rnia
Environmental ()trality pct (Section 1.503 l (b)(3))Q.
tV,TT11CA_NN"I`, Town of Los Gatos
V'DD,GS: The Plan na Coinnzission zutlst make a finxiiii that the, anlendnient i
consistent Nt *th the Gzner it Flan if tyre: rc,ccy rntndatjon.is for adopt] on.
g
°~CT1:C), T:, kccotnlncr datii~L~ to the. Towtr Council. a
`ENV IROi -AffiNINT- ;It Etas hren dctormined that this project cotiid;taot possibly have. a
SISS~~'tl ti sinifjcanti~npacfc~ntheenvronrnerlt therefore:.theprU ctjsnotsubject
-16le Call foraitim iiv torirslcnta ,tju~lity Act.~5ectiori,15061 (b)(3)1.
IChl '.ITS: FIR&Tlts
~ draft ~rclinancc~;Su:tic+n~}-t)2(r
~21~<(":O VT~~-II~;I~D.A `qtr
ls'uNT1!L~_F,Y~ Pec-Ti end anlenalii c n Codc "section ?9.%02o to thv.
~`TounciS for adoption.
TAC, C'IR07', iT):
8
n Novera-rber 4, 2002, ~-Ie Tee°t l ('Qtmcd :ipprovcd a Zomil- Code ' inlcnL mpnt egiu1'1n a
C'orrdjtiollat Use permit (CUT) for atl l ormula retail busliiesses in the Com- ml Yusijzess Disu,jct (C-2
zone) and foi bu5inc sscs in ex cess of QX)A square. feet in tether comrnei Cial zones v, thITLthe 'I o%vri;
Up- #ollo~viag defijLinon was ITlcladpd as paTf"A the Zwittg Code wjim1mcm:
rtzr~-r u rr.i zil irxsin s. r =ls,a retail business which, -don -Ah one (1) or n ore ottaer t?usincss
,loc:Itiolls, is repir-ed bt cozltracwal or other ar an rsi,°tlt to ula.izitajn ar3 of the foll(y% ing,:
;standardized mercljar7dise, serviges, decor, urlif)rjns, arc;>zit cture, culors, s Its oy other snails.
;1:catt;res.
l;~ 7`ovva C.omizII .r gil :ste~1 that the Ci ticral.rlast Cc3nun~tt e (_C3I'Ci de.tcrna ~le ix d zrfodifii atrt n
shoo, Id be iYtade. to tr<, d-•f'ITIJioil of fc rmn?;~ r°ttril usjnEss. S~~ tiific:all.„ thU {:orrrlt?itte~. Y..t as isk c d
ti1~ ~l~;tLilltloII Of f()?''.`:3:.I~d I! I'Iiness :I aage, . tip a'IYo',4, b:L1sI21E.:r3.c',S
tlatAh~vc al.~litecl ~iLtrribe~., 01: sfores.
achme
The Plarzr_iinb Comf.Tiission -Ta-e'
Zoning {:'cede Amcndrrrunt~A- -2
duly 11, 2005
ISCUSSION:
Staff has worked -~v itlx the CrF'Cu to consider possible oiodiii_catioji1 fo the, defirtition of forltuZa retail
businesses. TWO potential options were discussed. The first option wouid modify the, definition d
forutula retail businesses and make a distiactiou bet,vi.on regional and national retailers. It was
detemiined thai this option raised legal concerns. The second option would modify the definition-
-Of Formula retail businesses by raising the nnmbenof stores foirwhich the, requirernont for a .UP is
triggered. s
The GPC received input from tlw Econu c Vitality M..anager Darilblic ~urdin re'aarding .her,
AtCraeti<)zrS with property owners and brokers. Staff relayed input that has been provided by'
property owners and brokers regarding the current formula retail business definition. Even- thougft
no applications for formula retail businesses have been denied, some property owners acid broLcrs,
xpr'essed that they generally Gvill avoid businesses that trigger the requireittont for a CUP. When,
,multiple businesses are dying for a single space the broker and/or property owner will generally
chose a tenant that does not req?z it . a CUP beeaaw of tltc processing tirzre, and uncertainty involved
Ito ahtain a CUP. Many businesses which have both a successful business model and have., dii
appropriate look and feel for the Town dre asscd over for other bw5 riesses which will rio , -iggt-r
the rcxfuirc.ment for a CM
xis part of their reviow, the GPC'z•eviewcd various examples o fon.xrulayetailbusinesses withi,ntbe
own that .hart between two and.,AeverLexisting tacaticns:
Pvig - 2
Dorms - 2
Peabody Art Ciallezy
Sports Gallery - 3
Traditions - 4
I-farvest Hon-te 4
g~
Petro-lyph - 4
Benefit - -5
Elao:f Sea G211cr'y -
Additionall~, the GPC'retiiewec other examples of :formula'retail Businesses with up to six e~ i~tizx~
locations that are- not currently located within the Town, but4ppear to, he good fit for the Town:
z t-1
~t Trina Turk . 7
Ambiwicc - 3
.
I
`lie'PlarumI Com issiou --PaV i
Zonirj T Cod- Anaendmcnt A-05-2
:lok 13. 100~
fc~rmtita z'etail
The C'PC discllsscd-this issue at lcno-h anti dcterlrunccl DUI rnocdff'ing the d fvoitlon of
front one to scvtll stares as appropriate. ncc-v deterMincA that thcre are nlany srricrll boutique stores
that have roultiple locations, would be a Brood fit iur~lle~o~i n And sliould not be subJec;t to the rl-T,
regr7ireni~nt. = e
*1he UPC, ,:crirrrtiaut .d t.hal the cihjoctives of tale proposed am ndzneirt ar(e to allow small boutiqu6
ft q)) - 4ionts without a CUP. encourage businesses that have an appropriate look and feel for the
Town, and to altow unall formula rexail i.xisil s owners to obtain approval w4h ut,baving to go
Vuouc:b [Ile C`CP Process. A a
The GPC iccolnmends that tlrc f~~lfowing T<rwl~C' mF~nr s ~nt sl~~ f~ar~~ aldeci to r To« n
rQuncit
a -Ortnlda retail business mea sga utA 1, usiness, s hick, t~~ng ~ it l;> seyen ~7~ or,morg
other business locations, is required by contracwal or other arrangcmem to maintain any of the
~oltowinq; stzmdardizecl6 merchandise, ~er~ ices, dc:Or, tur~ift_~ralas. ~arehit~ciiir~ ccators, si? Rs 0
other,similar `fcatures.
8 A .s
~ w
U. GENEPIAL PLAN
hi proposed Zouin Coate amend rent is call' st'ent with the foIlo winzx Genei Pl= desigtlmion'
lalid Use D~sigilation;CBD Uconiges =a mixture of corpiTiunity-oriented
c,onEneroial. gToods; serviCes and lodging, that is unique in its acconzrrrodition of srruill
to\vji style unczrchants and the mainteaarice of a sinall town feet wid character.
W .G.6.2 - To pre,-;t rve do-wn.to-v'n Los Gatos as the historic (aentcr of tine Town with goods
atrdse)-viccs forlocal residents while-maintaimn- alit existin`~TD-wii ideialty, environrneut.
and comraerc ial viab litv-
IM .P_G.2- Encourage; the developrncnt iricl retentiori of sma.l.l bush e:sses andlocatly-mvned,
stones and shops that, art consistent. Nvith small tcwii character and wale,:
RECOMMENDATION:
~Coii~2der Llle prt_)pOS~fi C~l"CitT3t~nC~, c~.n]~'•T~CIIi~t.rl~ anCl,~fJl"1'daP~l adr~..E17"tl~Crr.ilC't~3~rv'iH ,~1,}7t TC)ZVi~ CcktiIlC.i~~.
J-~ the Plar.rsing Con- ztrssiori dctermi cs that tic: Tt>wl L council shotiW approv- the ro.Posed
-orciznarce anrc'rrcizs ~iy zhe Cc,zrjrjAssiorr sll< r c tecorrzzl~ezrd fhe follbw ui~:
Tile Planning OInRUsMon -'f a{ c 4
I,onin - Code N ient- meat A-45--?
July' 13, 2005
~L. 'haC Com.icil cleterwitle thi'project cmM not pbss.My. IY vc.-asignific:anr impa'a Un the
ens trcment, themfore, the project is riot su bjc;ct to the Cal JfMni a E u vironmontal Quality
,.pct (Soction 15461 ~b)(3').);
Thal the Town Council find that the Ordinane.e aT-nezldri-icnt is cow istenl With the Crener
I'.laii (Exhibit A) and ~ ~
46 fiat the Council, adopt the Draft Ordinance. ( xhlbit F) armendin~l tile. l'own Cade,
a
_ d
tad N. Lort ; I)ireutox o orizzrjun ty Developmeii
repared by:, Joel Paulson, AssOclaw plarmer
'L:7P_rric
:'Dan el[e Serrdin,' et~t~oanic Vitality- Managor A
Los Gato Chamber of Conuneree, Attn: RoneE Iris-1. 349 N. Santa Cruz Avenue, IA
Gatos, CA, 95030
Greg stow,ersa Sto"vars. ssociates Architects In } 5495) "Los CratosBlvd,T-cis fjat.os, CA
954"3
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ORP'L -NC
n -N OxDEN 'NCF OF THE TONNIN OF LOS GkTOS,
AMENPR% THE ZONING 0 Dn-'X ICT-' OF T`iIT 'I0WIS C(U)E ; GA DING
S;F CI;tON 2910.020.
.
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If E7(31Y CNQL W IJ-, ` O N (;FSUS GAT0,lj DUES DRD II "AS
ION ,
SECT
~.'oclc: ~hapter'?`•J~,~rrnezl~zc~3fic~ 1-ead,as follc,t~-s:
Section 29.10.0-N. etinitions.
.
~-'v~rarc.lcc ietcci~ business means a r°tail business ul~ich, alo>>,~ th ~ixr~-~-1-i sci zn car
more,,iAlau business locations, 1;, 1-equirtd by, contrauLial or ether ai-rana. -lent to maintain any oP
the fo ovdii o:.starbdardizec mar rclrandise, services. decor., unifomis. architecture, c6lor,, suns crr
'.other similar feature's.,
8
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1
'ti3.:jj-
~d dance was intiod-aced at a replar inectin-S 6f thoTcivin Coon w]I
Gatos on 24015, and adopted liy the follownig vote as in ordinance o thy, oflos Gatos
a moetinc, of the'Town Council of the Town of Las Gatos cart effect 30 days af'ter.il is adopts-L
CC)UNWIT MBERS:
AYES:
NAYS.
ABSEN
ABSI ii I
a
SIGNED:
IIC)NNTN O~ IDS 'C
s F
OS UATQS, CAEIFOPNL,\,
L k
,AT FST-
l~L~~Z~~.
TOWN OF S G ATOS
L O.S 'C1ATOS, CAT,]F(-)R
I