12 Staff Report - 25 N. Santa Cruz Avenue~pW N pp
cos °AjoS COUNCIL AGENDA REPORT
DATE: March 1, 2006
TO:
MAYOR AND TOWN COUNCIL
FROM:
ORRY P. KORB, TOWN ATTORNEYO~
MEETING DATE: 03-06-2006
AGENDA ITEM: I a,
SUBJECT: ADOPT RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS UPHOLDING A DECISION OF THE PLANNING COMMISSION
DENYING AN APPLICATION TO OPERATE A FORMULA RETAIL STORE
(AMERICAN APPAREL) ON PROPERTY ZONED C-2. APN: 510-44-034.
PROPERTY LOCATION: 25 N. SANTA CRUZ AVENUE. PROPERTY
OWNER: SANTA CRUZ REAL,,LLC. APPLICANT/ APPELLANT: TACEE
WEBB. (Continued from February 21, 2006)
RECOMMENDATION:
Adopt resolution confirming Council's decision on. January 17, 2006.
DISCUSSION:
On January 17, 2006, Council denied an appeal of a Planning Commission decision denying an
application to operate a formula retail store (American Apparel) on properly zoned C-2, located
at 25 N. Santa Cruz Avenue. The attached resolution confirms that decision. Also attached are
two new letters concerning the application.
Attachment: 1. Proposed Resolution
2. Letter from Patricia A. Strasburger
3. Letter from Ed Rathmann
Distribution: Tacee Webb, 919 NW 23rd Avenue, Portland OR 97210
PREPARED BY: ORRY P. KORB, TOWN ATTORNEY
OPK:LMB/wp [NAATY\Report AA.wpd]
Reviewed by: - Town Manager S_ Assistant Town Manager Clerk
Finance Community Development
Rev: 3/1/06 2:58 pm
Reformatted: 7/19/99 File# 301-05
RESOLUTION 2006
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
UPHOLDING A DECISION OF THE PLANNING COMMISSION DENYING AN
APPLICATION TO OPERATE A FORMULA RETAIL STORE (AMERICAN APPAREL)
ON PROPERTY ZONED C-2.
APN: 510-44-034
PROPERTY LOCATION: 25 N. SANTA CRUZ AVENUE
PROPERTY OWNER: SANTA CRUZ REAL, LLC
APPLICANT/APPELLANT: TACEE WEBB
WHEREAS:
A. This matter came before the Town Council for public hearing on January 17, 2006
and was regularly noticed in conformance with State and Town law.
B. Council received testimony and documentary evidence from the appellant/applicant
and all interested persons who wished to testify or submit documents. Council considered all
testimony and materials submitted, including the record of the Planning Commission proceedings
and the packet of material contained in the Council Agenda Report dated January 12, 2006 and
Desk Items dated January 17, 2006, along with subsequent reports and materials prepared
concerning this application.
C. The applicant/appellant seeks approval of a conditional use permit to operate a
formula retail store (American Apparel) at 25 N. Santa Cruz Avenue, which is located in the
Central Business District ("CBD").
D. The Planning Commission considered this matter on November 9, 2005, and denied
the application on the basis that the proposal is not consistent with the General Plan regarding
small town character and support for locally-owned stores in the CBD, that the space was
previously occupied by a non-formula retailer, and that the addition of another apparel store
Attachment 1
would detract from the diversity and balance in the types of retail businesses in the CBD.
E. The applicant/appellant claims that the Planning Commission erred or abused its
discretion because the proposed use of the property is in harmony with the specific objectives in
the General Plan, and would help to maintain the existing balance and diversity of businesses in
the CBD.
F. The decision of the Planning Commission should be upheld.
G. Council finds the following:
(1) Rather then being a unified whole, the CBD consists of five (5) distinct sub-areas
distinguished by the policies and goals of the Town found in its General Plan, the requirements of
the Zoning Code, the Commercial Design Guidelines, and the Downtown Parking Management
Plan, as well as by existing traffic patterns, and urban design factors such as building placement,
continuity of building facades, street width, existing uses, and building heights. The sub-areas
are:
Sub-Area A: North Santa Cruz Avenue from Highway 9 to Royce Street,
characterized by buildings located at the front property line with no setback, having
the narrowest building to building cross-section across Santa Cruz Avenue in
relation to building height, and mainly featuring first floor retail uses.
Sub-Area B: North Santa Cruz Avenue from Main Street to Royce Street,
characterized by buildings that are set back from the front property line, several
parking lots with frontage on Santa Cruz Avenue, frequent breaks in the building
facades, larger building to building separation across Santa Cruz Avenue,
specifically applicable standards in the Commercial Design Guidelines, and a
comparatively greater number of personal service uses.
Sub-Area C: Retail uses on University Avenue, characterized by the combination
of the recently remodeled and new parts of the Old Town Shopping Center.
Sub-Area D: South Santa Cruz Avenue primarily south of Main Street,
characterized by higher automobile traffic volumes and lower pedestrian use as
compared to the remainder of the Santa Cruz Avenue due to its providing direct
access on to and off of Highway 17 and to the location of all businesses, with one
exception, on the west side of the street.
Sub-Area E: Main Street east of Santa Cruz Avenue that differs significantly from
North Santa Cruz Avenue due to its wider street cross-section, shorter street
blocks, the physical division resulting from the location of the Highway 17
overpass and the relatively high number of personal service businesses.
Evidence: Desk Item for January 17, 2006 Town Council meeting dated January 17,
2006, page 2; Attachment 13 to Staff Report for January 17, 2006 Town Council meeting; staff
comments by Bud Lortz, Director of Community Development, made at Town Council meeting
on January 17, 2006.
(2) Of the seventeen (17) formula retail businesses in the CBD, sixteen (16 )are
located in Sub-Area C or Sub-Area B. Only one formula retail store is located in Sub-Area A on
Santa Cruz Avenue immediately north of Nicholson Avenue. No formula retail stores are found
in Sub-Areas D and E. Of the seven (7) formula retail stores located in Sub-Area B, three (3) are
located on the same block surrounding the location proposed by the applicant/appellant in Sub-
Area B.
Evidence: Desk Item for January 17, 2006 Town Council dated January 17, 2006,
page 3; Attachment 13 to Staff Report for January 17, 2006 Town Council meeting; staff
comments by Bud Lortz, Director of Community Development, made at Town Council meeting
on January 17, 2006.
(3) While Council previously determined with the adoption of Ordinance No. 2107
that an over-concentration of formula retail in any one location would have negative impacts on
the Town, the record of this hearing establishes that in sub-areas where there are fewer retail
businesses, formula retail businesses can have the positive effect of increasing pedestrian traffic,
to the benefit on all businesses in the area.
Evidence: Ordinance No. 2107, Attachment 10 to Staff Report for January 17, 2006
Town Council meeting; Desk Item for January 17, 2006 Town Council meeting dated January 17,
2006, page 3; Attachment 13 to Staff Report for January 17, 2006 Town Council meeting; staff
comments by Bud Lortz, Director of Community Development, made at Town Council meeting
on January 17, 2006 (all establishing that the majority of formula retail businesses on Santa Cruz
Avenue are located south of Gray's Lane); testimony of Mike Johnson, commercial real estate
broker, before the Los Gatos Planning Commission on November 9, 2005, Attachment 2 to Staff
Report for January 17, 2006 Town Council meeting [25:19-25] (stating that Santa Cruz Avenue
north of Gray's Lane is "not a high traffic area."); Letters from Michael Jay Jones dated
November 4,.2005, and Pete Jillo dated November 1, 2005, both attached as Exhibit N to Desk
Item for November 9, 2005 Planning Commission meeting, Attachment 1 to Staff Report for
January 17, 2006 Town Council meeting, and from Sue Farwell dated January 17, 2006,
Attachment 12 to Staff Report for January 17, 2006 Town Council meeting (all stating that
American Apparel, a formula retail business, would increase the number and type of consumers in
the CBD).
(4) The location proposed by the applicant/appellant was not one previously occupied
by a formula retail store and approving the application would, thus, result in an increase in the
number of formula retail stores in Sub-Area B of the CBD.
Evidence: Staff Report for January 17, 2006 Town Council meeting, page 2; staff
comments by Bud Lortz, Director of Community Development, made at Town Council meeting
on January 17, 2006.
(5) Based on the evidence cited herein above, the addition of a new formula retail
business in Sub-Area B would result in an over-concentration of such businesses in that Sub-Area.
(6) Pursuant to Los Gatos Town Code section 29.20.190(b)(1), and based on the
evidence cited herein above, the proposed use of the property is not in harmony with specific
provisions or objectives of the General Plan and the purposes of this chapter (Chapter 29 of the
Town Code); to wit, General Plan goal L.G.1, to preserve, promote, and protect the existing small
town character and quality of life within the Town; General Plan policy L.P.1.3, to encourage
economic and social activity consistent with the small scale, small town atmosphere and image of
the Town; General Plan policy L.P.1.4, to preserve and promote existing commercial centers
consistent with the maintenance of a small scale, small town atmosphere and image; General Plan
policy L.P.5.1, to maintain a variety of commercial uses to meet the shopping needs of residents
and to preserve the small town atmosphere; and General Plan policy L.P.5.5, to encourage the
development and retention of locally owned stores and shops.
(7) Pursuant to Los Gatos Town Code section 29.20.190(b)(2), and based on the
evidence cited herein above, the proposed use will detract from the existing balance and diversity
of businesses in the commercial district in which the use is proposed to be located, specifically in
Sub-Area B where the proposed use would result in an over-concentration of formula retail
businesses;
(8) Pursuant to Los Gatos Town Code section 29.20.190(b)(3), and based on the
evidence cited herein above, the proposed use would create an over-concentration of similar types
of businesses, specifically in Sub-Area B where the proposed use would result in an over-
concentration of formula retail businesses.
(9) Pursuant to Los Gatos Town Code section 29.20.190(b)(4), and based on the
evidence cited herein above, the proposed use will detract from the existing land use mix and high
urban design standards including uses that promote continuous pedestrian circulation and
economic vitality, specifically in Sub-Area B where the proposed use would result in an over-
concentration of formula retail businesses.
RESOLVED:
The appeal of the decision of the Planning Commission is denied.
2. The decision constitutes a final administrative decision pursuant to Code of Civil
Procedure section 1094.6 as adopted by section 1. 10.085 of the Town Code of the Town of Los
Gatos. Any application for judicial relief from this decision must be sought within the time limits
and pursuant to the procedures established by Code of Civil Procedure section 1094,6, or such
shorter time as required by State and Federal Law.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California on the day of February 2006, by the following vote.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR
TOWN OF LOS GATOS, CALIFORNIA
t of * 9,Z6
Shp ern 1Y
Cm ~
J aAlLA +61-
46
TWO
Attachment 2
~ S ~c~~
~
-
Page 1 of 1
R
Jackie Rose American Apparel
..>....:Ka...u..~.e, n~. a,.....~.e;,v.a::>w:.e,:u.; e;.'. = 'i, ::"~~:z_~~`~S'~'~• *'E.,.`_"~,.~..»x~,~e_.__:...~s! ~v..,~:a .~:„~s~._,.,., ~a._i.r ~.~uy~r:
From: <emr518 @ aol.com>
6 ?"^v11JN OF i_^aGATGS
To: <jrose@losgatosca.gov> CLERK DEPARTMENT
Date: 3/1/2006 12:58 PM
Subject: American Apparel
CC: <Ferrand@aol.com>, <ImiIl315@aol.com>, <Jazzstandardsl @ aol_com>,
<glenn94941 @yahoo.com>, <Lorie @ willowstreet.eorn>,
<Linda@WILL0WSTREET_C0M>, <nancyreineking@prodigy.net>, <emr5l8@aol.com>
To Council and Staff,
J
My nacre is Ed Rathmann. As a resident and business owner of Los Gatos, ( I co-own Willow Street
and Main Street Burgers), I have a few thoughts on the American Apparel situation. I am in favor
of American Apparel opening downtown, but I see this also about encouraging new businesses
especially chain stores to open downtown.
I want to see a vibrant downtown. Right now I see more empty storefronts than I am. comfortable
with. We are going in the wrong direction. I think the high cost of leasing is a big factor in all the
vacancies. Mom and pop individual owners cannot survive with 53.00 to X4.00 rents. Chain
business have deep pockets and can pay that kind of rent. They stay open past 6:00 too. The sad
part is that there will always be the individual who will keep renting these spaces at these high
rate, living out there dream and probably mortgaging their house to secure the space. Two years
later they are out of business and some other dreamer will step into their shoes. The cycle will
repeat endlessly.
What is wrong with chain stores. Have you been to Santana Row? It is fun, alive, and full of
people. Los Gatos attracts people from all over the valley that want to walk our beautiful streets
and shop. People especially the younger people want brand name stores. Why is that a bad
thing?
The future of our downtown is on the line here. We need to attract business that can pay the rents
and survive and are also what people want. Give American Apparell a chance as well as other
chain stores that want to come downtown. Thank you for listening.
ED Rathamnn
17605 Blanchard Drive
408 313-0086
Attachment 3