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14 Staff Report - 35 N. Santa Cruz Avenue%N of MEETING DATE: 12/18/2006 ITEM NO: "°a s COUNCIL AGENDA REPORT ~g GASO SUBJECT: CONSIDER AN APPEAL OF A PLANNING COMMISSIONER DECISION DENYING A REQUEST TO OPERATE A RESTAURANT IN CONJUNCTION WITH RETAIL SALES (POWELL'S SWEET SHOPPE) ON PROPERTY ZONED C-2. APN 510-44-032. CONDITIONAL USE PERMIT U-07-4 PROPERTY LOCATION: 35 NO. SANTA CRUZ AVENUE PROPERTY OWNER: RITCHIE ASSET MGMT CO. APPLICANT/APPELLANT: KNOTT FAMILY RESTAURANT/NEIL KNOTT RECOMMENDATION: 1. Hold the public hearing and receive public testimony. 2. Close the public hearing. 3. Reverse the decision of the Planning Commission and: (1) make the required findings (Attachment 2), and (2) approve Conditional Use Permit U-07-4, subject to conditions (Attachment 3), on the basis that new information was provided that was not readily available for the Commission. Since this information is minor and has a minimal effect on the application, the matter does not need to be returned to the Commission. If the Town Council concurs that the Planning Commission's decision should be reversed or modified the Council needs to find one or more of the following: (1) where there was error or abuse of discretion on the part of the Planning Commission; or (2) the new information that was submitted to the Council during the appeal process that was not readily and reasonably available for submission to the Commission; or (3) an issue or policy over which the Commission did not have discretion to modify or address, but which is vested in the Council for modification or decision. (Continued to Page 2) PREPARED BY: BUD N. LORTZ DIRECTOR OF COMMUNIT DEVELOPMENT N:ADEV\CNCLRPTS\2006\35nsc.doc Reviewed by: ' Assistant Town Manager Town Attorney Clerk Administrator Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 35 N. SANTA CRUZ AVENUE December 11, 2006 If the predominant reason for modifying or reversing the decision of the Planning Commission is new information as defined in Subsection (2) above, it is the Town's policy that the application be returned to the Commission for review in light of the new information unless the new information has a minimal effect on the application. 4. Refer to the Town Attorney for preparation of the appropriate resolution. If the Town Council determines that the Planning Commission's decision should be upheld, Council should: 1. Uphold the decision of the Planning Commission and deny Conditional Use Permit U-07-4 2. Refer to the Town Attorney for preparation of the appropriate resolution. PROJECT SUMMARY: The applicant is requesting approval to sell ice cream/gelato in conjunction with an existing 1,898 square foot retail candy store. The store currently contains four seats within an area to watch television. No additional seats are proposed. The applicant operates from 10:00 AM to 11:00 PM seven days a week. The major portion of the business is retail and has been conditioned as such. Therefore, the approval of this use would not displace a retail establishment. PLANNING COMMISSION: The Planning Commission denied this application on October 11, 2006 (Attachment 5). The Planning Commission indicated that one of the main reasons for the denial was that the Commission was under the impression that the applicant knowingly sold gelato without discussing this portion of his business with Town staff and obtaining the required approvals. Subsequent to the hearing, staff became aware that the applicant did indeed discuss with Town staff the selling of gelato as part of his operation prior to opening his business. Staff, however, had understood that the gelato was prepackaged which would be considered a retail item. Therefore, there was a miscommunication between Town staff and the applicant. If the applicant had known that a Conditional Use Permit was required to sell the gelato, he would have applied for a Conditional Use Permit. The Commission was not aware that the applicant was diligent in trying to obtain the required approvals prior to opening his business. APPEAL: An appeal of the Plam-iing Commission's decision was received on October 20, 2006 (Attachment 1). The basis for the appeal is that the Commission erred or abused its discretion in that the findings could be made to approve the Conditional Use Permit, the application is consistent with the General Plan and that staff did not collect adequate information concerning the applicant's proposed business prior to issuing a business license. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 35 N. SANTA CRUZ AVENUE December 14, 2006 The applicant has submitted a petition in support of the project. The petition contains over 1,100 signatures, 95% of which are Los Gatos residents. Due to the length of the petition, it is not included with the report, but is available for view in the project file. CONCLUSION: Staff concurs with the appellant's basis for the appeal and as stated earlier in this report, there is new information that was not available for the Commission. The applicant attempted to obtain the required approvals prior to obtaining a business license and has not knowingly violated Town requirements. In addition, as discussed above, although the application is requesting approval of a restaurant, the major portion of the applicant's business is retail and the application has been conditioned as such. The tenant space encompasses 1,898 square feet. Only a small portion of the tenant's space (approximately 20 square feet for the refrigerated case) is for the restaurant portion of the business. This square footage has been incorporated in the Council's draft conditions of approval to regulate the amount of retail square footage. Therefore, the approval of this use would not displace a retail establishment which is consistent with Section I of Ordinance 2021 regarding new restaurants in the C-2 zone (Attachment 4). On August 1, 1996, a Planning Department policy was adopted describing restaurants and specialty businesses that offer food products (part of Attachment 1). Town Council accepted this policy as part of a report to Town Council regarding restaurant policies on September 20, 1999 (Attachment 11). Council may want to reevaluate Town policies restricting restaurants. If Council determines that these policies should be reevaluated, staff will place this item on a future Council agenda for discussion. ENVIRONMENTAL ASSESSMENT: The project is Categorically Exempt pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town. FISCAL IMPACT: None. Attachments: 1. Appeal filed on October 20, 2006. 2. Required findings. 3. Conditions of approval. 4. Ordinance 2021. 5. Verbatim minute excerpts from the Planning Commission meeting of October 11, 2006. 6. Report to the Planning Commission dated October 5, 2006 for the meeting of October 11, 2006 (Exhibits B and C deleted and incorporated as Attachments 2 and 3 of this report.) W, PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 35 N. SANTA CRUZ AVENUE December 14, 2006 7. Desk item report to the Planning Commission dated October 11, 2006 for the meeting of May 11, 2006 (Exhibit E deleted and incorporated as Attachment 3 of this report). 8. Emails in support of the project. 9. Emails opposed to the project. 10. Email not for or against project. 11. Town Council Report dated September 20, 1999 for the meeting of September 20, 1999 (Exhibits not included). 12. Letter from Timothy A. Lundell (three pages) received December 13, 2006. Distribution: Knott Family Partnership, Neil Knott, 17150 Scott Drive, Monte Sereno, CA 95030 Ritchie Asset Mgmt Co., 34 W. Santa Clara Street, San Jose, CA 95113 BNL:RT:SLB:mdc FILING FEES - $277.00 Residential $1,111.00 per Commercial, Multi- family or Tentative Map Appeal Town of Los Office of the To 110 E. Main St., Los APPEAL OF PLANNING CO p i i Clerk )s C 5 %Nc L'~- z 1 , l ~ t - 00 z~~~~~ECZ~pN I, the undersigned, do hereby appeal a decision of the Planning Commission as follows: (PLEASE TYPE OR PRINT NEATLY) DATE OF PLANNING COMMISSION DECISION: z0/1 .T C) PROJECT / APPLICATION NO: V " 07- ADDRESS LOCATION: 3 s A) - 'S r9 tUTA 0-k 00, , U E Pursuant to the Town Code, the Town Council may only grant an appeal of a Planning Commission decision in most matters if the Council finds that one of three (3) reasons exist for granting the appeal by a vote of at least three (3) Council members. Therefore, please specify how one of those reasons exist in the appeal: 1. The Planning Commission erred or abused its discretion because Cj a--r a c L9 El> OR 2. There is new information that was not reasonably available at the tune of the Planning Commission decision, which is N/A (please attach the new information if possible): OR The Planning Commission did not have discretion to modify or address the following policy or issue that is vested in the Town Council: - 6e IF MORE SPACE IS NEEDED, PLEASE ATTACH ADDITIONAL SHEETS. IMPORTANT: 1. Appellant is responsible for fees for transcription of minutes. A $500.00 deposit is required at the time of filing. 2. Appeal must be filed within ten (10) calendar days of Planning Commission Decision accompanied by the required filing fee. Deadline is 5:00 p.m. on the 10' day following the decision. If the 10th day is a Saturday, Sunday, or Town holiday, then it may be filed on the workday immediately following the 10`h day, usually a Monday. 3. The Town Clerk will set the hearing withing 56 days of the date of the Planning Commission Decision (Town Ordinance No. 1967) 4. An appeal regarding a Change of Zone application or a subdivision map only must be filed within the time limit specified in the Zoning or Subdivision Code, as applicable, which is different from other appeals. 5. Once filed, the appeal will be heard by the Town Council. 6. If the reason for granting an appeal is the receipt of new information, the application will usuall be returned to the Planning Commission for reconsideration. PRINT NAME: Jv'IL P. SIGNATURE: f DATE: to ADDRESS: M~ JflA"Ty4 PHONE: ? 3_; r CA OFFICIAL USE ONLY DATE OF PUBLIC HEARING:_ CONFIRMATION LETTER SENT: Date: / Pending Planning Department Confirmation TO APPLICANT & APPELLANT BY: 1 Z~(Q ilj DATE TO SEND PUBLICATION DATE OF PUBLICATION: °r ATTACHMENT 1 ter,! The Planning Commission erred or abused its discretion because: 1. The Planning Commission failed to find that each of the . following findings is supported by the Applicant's Conditional Use Permit application: (a) The proposed use of the property is desirable to the public convenience or welfare; (b) The proposed use will not impair the integrity and character of the zone; (c) The proposed use would not be detrimental to public health, safety or general welfare; and (d) The proposed use of the property is in harmony with the various elements or objectives of the general plan and the purposes of the zoning ordinance. 2. The Planning Commission failed to find that the proposed use was entirely consistent with the land use element of the Town's General Plan for the Central Business District, in that the use is retail, locally-owned, pedestrian-oriented, and consistent with the small-town and historical nature of the downtown area. 3. The Planning Commission failed to acknowledge error by staff in its implementation of Planning Department Policy* in failing to collect adequate information concerning the Applicant's proposed business so as to provide correct guidance to the Applicant during the Use & Occupancy Permit application phase. * See Planning Department Policy directive, dated August 1, 1996, entitled "Description of Restaurants and Specialty Retail Businesses That Offer Food Products". MEMEMEMEN i; : PLANNING DEPARTMENT POLICY TOWN OF LOS GATOS Subject: Description of Restaurants and Specialty Retail Businesses That Offer Food Products Page: Section Number: Approved: L L Effective Date: Revised Date: Lee E. Bowman, Planning Director August 1, 1996 PURPOSE To provide guidelines for determining whether a business serving food products is specialty retail or restaurant. POLICY It is best to obtain a written description of a proposed business from the applicant to provide a "paper trail" and avoid possible misunderstanding. If a proposed business is not described below staff shall obtain a written description of a proposed business from the applicant so the Planning Director may make the final determination. Specialty Retail - Specialty Retail include those businesses which offer pre-packaged foods (e.g. pre-made sandwiches, candy, donuts and other bakery items, frozen pizza to go, bagels without condiments, etc.). No seating for customers is allowed in any business where food products are sold. Restaurant - A definition of restaurant is contained in the Zoning Ordinance 29.10.020). Restaurants include those businesses offering food or drinks that are ordered by a customer and prepared while the customer waits (e.g. bagels with condiments, gourmet coffee shops (except sales of whole bean or ground coffee), sandwiches, ice cream, yogurt, pizza or Chinese to-go, health drinks, etc.). Any business that sells food products and offers seating for customers is considered a restaurant. WDEV\BUMPOLICY. REQUIRED FINDINGS 35 N. Santa Cruz Avenue Conditional Use Permit U-07-4 Requesting approval to operate a restaurant in conjunction with retail sales (Powelis Sweet Shoppe) on property zoned C-2. APN 510-44-032. PROPERTY OWNER: Ritchie Asset Mgmt Co APPLICANT: Knott Family Restaurant/Neil Knott FINDINGS ■ As required by Section 15301 of the State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. ■ As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit. (a) The deciding body, on the basis of the evidence submitted at the hearing, may grant a conditional use permit when specifically authorized by the provisions of the Town Code if it finds that: (1) The proposed uses of the property are essential or desirable to the public convenience or welfare; (2) The proposed uses will not impair the integrity and character of the zone; (3) The proposed uses would not be detrimental to public health, safety or general welfare; and (4) The proposed uses of the property are in harmony with the various elements or objectives of the General Plan and the purposes of the Town Code. ■ As required by Section IV.B of the Redevelopment Plan for the Central Los Gatos Redevelopment Project that it meets the use set forth in the Town's General Plan. N:\DEV\FINDINGS\35nsc.wpd ATTACHMENT 2 RECOMMENDED CONDITIONS OF APPROVAL FOR: 35 N. Santa Cruz Avenue Conditional Use Permit U-07-4 Requesting approval to operate a restaurant in conjunction with retail sales (Powells Sweet Shoppe) on property zoned C-2. APN 510-44-032. PROPERTY OWNER: Ritchie Asset Mgmt Co APPLICANT: Knott Family Restaurant/Neil Knott TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: (Planning Division) 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved. Any changes or modifications made to the approved plans shall be approved by the Director of Community Development, the Development Review Committee or the Planning Commission, depending on the scope of the change(s). 2. EXPIRATION: Zoning approval will expire two years from the approval date pursuant to Section 29.20.320 of the Town Code, unless the approval has been vested. 3. BUSINESS OPERATION. This approval is for the sale of frozen dessert products in conjunction with a specialty retail store. One frozen dessert case is permitted as shown on the approved floor plans which encompasses approximately 20 square feet of retail space. The dessert case shall not expand further into the retail space without approval of a modification of the Conditional Use Permit. 4. HOURS OF OPERATION. Maximum hours of operation shall be from 10 AM to I I PM seven days a week. 5. SEATS. The maximum number of seats shall not exceed four. No outside seating is permitted 6. RECYCLABLE MATERIALS. The restaurant shall utilize recycled products whenever such a product is available. 7. LITTER. Employees of the business shall monitor the public right of way adjacent to the business and pick up debris relating to the business. N:\DEV\CONDITNS\2006\35nsc.wpd Page I of 1 ATTACMENT 3 tee; 3 ":,9 ORDENAiNCE 2021 ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 29 TO PROVIDE A MORE COMPREHENSIVE REVIEW OF ADDITIONAL RESTAURANT USE IN THE DOWNTOWN AREA THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I The C-2 (Central Business District Commercial) zone of the Town of Los Gatos contains a mix of retail, restaurant, and associated uses that sustains the economic vitality and historic atmosphere of the area, and is an essential part of the community. However, too many restaurants concentrated in this one area would displace retail uses that are vital to continued success and to having businesses that attract Town residents throughout the day. This ordinance is intended to discourage the displacement of retail uses by restaurant uses by requiring the Planning Commission to conduct a careful review of all applications for new restaurant uses in the C-2 zone through the public hearing process. SECTION II Section 29.10.020 is amended to read as follows: Bar means a drinking place where alcoholic beverages and snacks are served; possibly with entertainment such as music, television screens, video games or pool tables. Restaurant, fast food means a restaurant with a large carry-out clientele, long hours of service, some open for breakfast but all open for lunch and dinner, and high turnover rates for eat-in customers. Restaurant, high turnover (sit-down) means a restaurant with turnover rates generally of less than one hour, is usually moderately priced and frequently belong to a restaurant chain, generally serve breakfast, lunch and dinner, and are sometimes open 24 hours a day. Restaurant, quality means a restaurant of high quality and with turnover rates usually of at ATTACME.NT 4 least one hour or longer, generally do not serve breakfast, may not serve lunch, but always serve dinner. SECTION III Subsection (16) of Section 29.20.745 is amended to read as follows: (16) Determine and issue zoning approval for minor restaurants that are located outside Downtown [the C-2 zone]. SECTION IV Subsection (8) of Section 29.20.750 is amended to read as follows: (8) Determines conditional use permit applications that are not assigned to the Development Review Committee. SECTION V This ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on August 5, 1996 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 of Los Gatos on September 16, 1996. This ordinance takes effect 30 days after it is adopted. COUNCIL MEMBERS: AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Randy Attaway. 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C C N C ro N u u O x O - a 27 a) ul -,i y 'O C vi O -O R O N Q) o G o x 0 rd v ro u a u n as a~ w O - N rtl co a) N N C ° N O 0 C X > u N A - A a) o) C 01 a ro u ro rd 0 L u 14 ~ (0 ro ri ro 0 U " u N ° v m G N u C 0 v "1 a 0 ~j X N n• b a v Ul O U) U u n (d O 0 ro O P N O a ro C 0 04 H a G C N U] a) L ro U U RS H r-{ a) 41 A O v m o a ro a C > aN a~ 0 a H 0 v U a ro u ro m TO Sr U' .a C H 3 3 a-~ 3 F U H a) ~r 3 C N C ro U O O - C Q) TS tT ro U a) O a) w 0 'O w O C u A ro v F 41 0 a FzC ° a N N a) u 0 F~ 0) C ° ro OW .k o X w o ro > w v o 3 m C aa)E) N u m o C v o a }4 o u 3 H u 7 x Q) w a 0) M N u i A o a x o a 3 ro ° u a u a H m ro u U a 10 N ro 3 0 ro -H'4 G •U N N .sC ?-1 ?i a) b W H WW ty) 0 - O A a) ro aJ o N a > 3 N 'Z, U z .C 1) C '0 o -u+ ro ro C c 3 v A u .u C W ~4 .u HH H H " q X H " ro ° a o (d -H ro ro (o m z m o m o 0 a) a) A o _ 3 >:1 u m .°n H q H a H u o a ci u > 3 ro o ro m J Q) ~4 Q) ° RC ro > A 'O C O N ,C a) t~ 'O m O ,i 1) rt O rc .u " U A H O Si a) O .,a U OU U U 'O m °J A 3 m 3 L m o v a 0 0) 3 d a of 3 4 N -H C C 0 a) N 0~ -a 0 m y > to a) U C ro > L m -r-I A L a ro C a) °U .U l4 Sa Z C .C H N >r a) ro L 10 U L ro U O l4 O O ~4 N N u ,-a u O C ro (0 N O O. u w C ro u) C b a) li a 0 a N 0 -.a (1) A C -H S H O C > A C 0 U) ~ NN U) C 'o A 3 > 3 > 3 ro w ro a N N N N 0 N ~ O ~ w O C U) U m H ttl L C u a) zz M a~ m ~ o U' H m O a N Date: October 5 2006 For Agenda Of: October 11, 2006 Agenda Item: 4 REPORT TO: The Planning Commission FROM: The Director of Community Development LOCATION: 35 N. Santa Cruz Avenue Conditional Use Permit U-07-4 Requesting approval to operate a restaurant in conjunction with retail sales (Powells Sweet Shoppe) on property zoned C-2. APN 510-44- 032. PROPERTY OWNER: Ritchie Asset Mgmt Co APPLICANT: Knott Family Restaurant/Neil Knott DEEMED COMPLETE: September 5, 2006 FINAL DATE TO TAKE ACTION BY: March 5, 2007 FINDINGS: ■ It has been determined that this project is Categorically Exempt pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town. ■ As required by Section 29.20.190 of the Town Code for the granting of a Conditional Use Permit. ■ As required by Section IV.B of the Redevelopment Plan for the Central Los Gatos Redevelopment Project that it meets the use set forth in the Town's General Plan. ACTION: The decision of the Planning Commission is final unless appealed within ten days. EXHIBITS: A. Letter of Justification (one page) received August 24, 2006. B. Required Findings. C. Recommended Conditions of Approval. D. Site plan (two sheets) received August 9, 2006. A. BACKGROUND: Powell's Sweet Shoppe obtained a business license in July of 2006 to operate an old fashioned candy store. Only three Powell's Sweet Shoppes existed at this time, and it was, therefore, not classified as a formula retail store (which is seven or more stores). B. REMARKS: 1. Use The applicant is requesting approval to sell ice cream and gelato in conjunction with anexisting 1,898 square foot retail candy store. The store currently contains four seats within ATTACEW ENT 6 The Planning Commission - Page 2 35 N. Santa Cruz Avenue/U-07-04 October 11, 2006 an area to watch television. No additional seats are proposed. The applicant operates from 10:00 AM to 11:00 PM seven days a week. The major portion of the business is retail and has been conditioned as such. Therefore, the approval of this use would not displace a retail establishment. 2. Parking and Traffic There will be no additional parking required or trips generated with approval of this application. 3. General Plan Compliance The project is consistent with the following goals and policies of the General Plan. Section 2.4.2. b states that the Central Business District is designated to encourage 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. Policy L. G. I states that a variety of commercial uses shall be maintained to meet the shopping needs of residents and to preserve the small Town atmosphere. Policy L.P. 6.5 states that different functions, land use patterns, and use mixes of the various commercial areas within the downtown should be recognized. Issue 5 of the Land Use Section states that it is important to the economic vitality of the Town Policy and to the general benefit of the residents, that goods and services are readily available to the citizens of Los Gatos. Goal L. G. 6.2 states that the downtown is to be preserved as the historic center of the Town with goods and services for local residents while maintaining the existing Town identity, enviromnent and commercial viability. C. RECOMMENDATION: Staff recommends approval of this CUP. If the Commission finds merit with the proposal, they should: 1. Make the make the required findings (Exhibit B), 2. Approve the application subject to conditions (Exhibit C). a; 'a it, I The Planning Commission - Page 3 35 N. Santa Cruz Avenue/U-07-04 October 11, 2006 If the Commission has concerns with the application, they may: 1. Continue the matter to a date certain with specific directions, 2. Approve the application with additional and/or modified conditions of approval, or 3. Deny the application. Pre , ared bf- Sandy L. Bpi y, Associate BNL: SLB:mdc q~j2 G- Approved by: Bud N. Lortz, Director of Community Development cc: Knott Family Partnership, Neil Knott, 17150 Scott Drive, Monte Sereno, CA 95030 Ritchie Asset Mgmt Co., 34 W. Santa Clara Street, San Jose, CA 95113 N:\DEV\REPORTS\2006\3 5nsc.wp d 35 North Santa Cruz .Ave ~i i f c m2 C/o 2 ~l / RC RECEIVED August 10, 2006 AUG 2 4 2006 TOWN OF LOS GATOS PLANNING [DIVISION To the Town of Los Gatos Community Development Department: Attached is our application package fora conditio~~al use permit. T ie ~u10 Family Limited Partnership is doing business as Powell's Sweet Shoppe of Los Gatos, located at 35 N. Santa Cruz Ave. Powell's is a retail store selling candy, toys, and gelato ice cream. We understand that the town considers ice cream in two ways - prepackaged and hand dipped. Our gelato is hand dipped and that is covered under the minor restaurant category. The gelato is served in a plastic cup with a plastic spoors For take out. There are no tables and chairs. All health department and building codes have been satisfied and passed. Thank you for your consideration. Respectfully, Neil Knott 10 Managing Partner ~ S O -j)!~~PJATE 70 r.T_ P C) - Exhibit A I I W- I O O -u Z rn 0 0 0 wzz ~O m Cl) C CO o m O Z D N. SANTA CRUZ AVE. (F) SIDEWALK VICTORY LANE E i'rQ ~ T A SITE PLAN Date: October 11, 2006 For Agenda Of. October 11. 2006 Agenda Item: 4 DESK ITEM REPORT TO: The Planning Commission FROM: The Director of Community Development LOCATION: 35 N. Santa Cruz Avenue Conditional Use Permit U-07-4 Requesting approval to operate a restaurant in conjunction with retail sales (Powells Sweet Shoppe) on property zoned C-2. APN 510-44- 032. PROPERTY OWNER: Ritchie Asset Mgmt Co APPLICANT: Knott Family Restaurant/Neil Knott EXHIBITS: A - D Previously Submitted E. Revised Conditions of approval. F. Email from David Stonesifer, received October 11, 2007. REMARKS: The report on this item erroneously contained draft conditions of approval. Exhibit E is the corrected recommended conditions of approval. A concerned property owner has submitted an email regarding this application (Exhibit F) reminder to the Commission, the application is for the ice cream sales. The existing retail business is not part of this application and it is a permitted Prepared Cy., andy-L. y, Associate P)a r BNL:SLB:mdc N: TEV\REPORTS\2006\35nsc.dsk.wpd As a ATTACHMENT 7 1 Bud N. Lortz, Director of Community Development - --a- - - Tandy Baily - Powells candy shoppe From: "David Stonesifer" <davidstonesifer ayahoo.com> To: <managerga,losgatosca.gov> Date: 10/10/2006 3:22:56 PM Subject: Powells candy shoppe Planning Commission Re: C.U.P. Powells U07-1 Dear Commissioners, I am a property owner across the street from Powells, which by the way I think is a neat operation. But it does not belong on this section of Santa Cruz Ave. It slipped in on a loop hole in our ordinances, but there is no reason it should slip through our general plan regulations for the CBD. It is in a staff determined HOT POT of clustered formula operations, of which it is one. It is not in Harmony with but Detracts from the existing Balance and Diversity of Business on the street. It discourages economic activity and atmosphere and image of this small town. It does not promote normal retail but promotes destination customers. My tenants are feeling the pinch of less walk in customers caused by increased CUPs of these type operations through the years. More restaurant (Ice Cream) sales will only aggravate the situation . I do not want to replace my tennants due to this as my only choice would be ones computable to restaurants, candy parlors, pizza houses, yogart and Ice cream emporiums etc.and that won't be easy except to find more nationals. Please adhere to the general plan and say no to this C.U.P. David Stonesifer 24 26 28 32 N. Santa Cruz Ave. 408 892 4436. RECEIVED OCT 1 1 2UUb TOWN OF LOS GATOS Exhibit F file://C:ADocuments and Settings\SBaily\Local Settings\Temp\GW}00003.HTM 10/11/2006 L (12/04/2006) Sandy Baily- Fwd: Sweet Shop - Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 11:56 AM Subject: Fwd: Sweet Shop Another one..... "Baines, Bido" <BIDO.Baines@tenethealth.com> 11/27/06 9:56 AM I am writing this email to show you my support for the sweet shop to continue serving Gelato at their store. I am a resident of Los Gatos (243 Thomas Drive, Los Gatos 95032) and would ask that you approve the permit so that they can continue serving Gelato. Thanks, Bido Baines (12/04/2006) Sandy Baily - Fwd: Powell's Page 1 From: Danielle Surdin To: Baily, Sandy Date: 12/04/2006 11:49 AM Subject: Fwd: Powell's Another Powell correspondence. <C2T2L2@aol.com> 12/03/06 7:42 PM To Whom It May Concern: Denying Powell's to serve gelato after they have been open for so long is cruel and unjust. Did you consider that the owner might not have opened his store if he knew he couldn't serve gelato? It's not Powell's fault that the Planning Department made a mistake. Please do the right thing, let Powell's continue to serve gelato. Thanks for hearing me out. Craig Lawson ATTACHMENT 8 (12/0 4/2006) Sandy Baily - Fwd: Powells Sweet Shop Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:32 AM Subject: Fwd: Powells Sweet Shop Oops, I do have several more emails coming your way.... <Alfamale1974@aol.com> 11/22/06 3:50 PM Hello, Powells should be allowed to continue to sell gelato by the scoop. It seems like the town is run by some guy named Larry Arzie, whoever that is. Why is it that every time this guy complains the Town staff jumps? If the Town made a mistake with the permit process for the gelato sales, they should admit it and move on. If this is not settled in favor of a much-liked store, this is likely to go the way of the solar panel debacle a few years back in which the Town rules and staff looked ridiculous. Mike Alexander Potter Court, Los Gatos (12/04/2006) Sandy Baily - Fwd: Powells Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:32 AM Subject: Fwd: Powells Mary Fran Lynch <maryfranlynch@yahoo.com> 11/22/06 3:42 PM Please allow Powell's to continue to serve gelato, escipecially since Fleur de Cacao only serves in the summer months and has ear;y closing hours. Thank you, Mary Fran Lynch (12/04/2006) Sandy Baily - Fwd' _ Page 1 ` From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:27 AM Subject: Fwd: One more.... Donald Calandri <drealandri@yahoo.com> 11/25/06 8:03 PM please continue to serve Gelato at the new candy store. don calandri 408.395.3727 Have a great moment today! Everyone is raving about the all-new Yahoo! Mail beta. (1 2/04/20(%) Sandy Bally - Fwd: Geiiato Page 1 From: Danielle Surdin To: Bally, Sandy Date: 11/27/2006 9:24 AM Subject: Fwd: Gellato <michelleswiml7@aol.com> 11/26/06 3:53 PM PLEASE KEEP SERVING GELLATO!!! IT IS S0000 DELICIOUS AND TASTES REALLY GOOD! THANK YOU FOR YOUR TIME. HAVE A NICE DAY. -michelle Check out the new AOL. Most comprehensive set of free safety and security tools, free access to millions of high-quality videos from across the web, free AOL Mail and more. (12/04/2006) Sandy Baily- Fwd: The more gelato, the better Page 1 From, Danielle Surdin To, Baily, Sandy Date: 11/27/2006 9:24 AM Subject: Fwd: The more gelato, the better > > > Scamporrino <scamporrino@mac.com> 11/24/06 6:13 PM > > > Dear city government, Please allow Powell's to continue selling gelato ready to eat in individual servings. If more than one pizza parlor or coffee shop can exist on Santa Cruz Ave., certainly more than one gelato store can do the same. If I want the delicious Snickelicious or Oreogasmic gelato, I know that I must go to Dolce Spazio (I've been a patron there for 20 years) and will continue to do so. Protectionism is not good for consumers or retailers, Dorne Scamporrino (12/04/2006) Sandy Baily - Fwd: please keep serving Gellato _ Page From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:24 AM Subject: Fwd: please keep serving Gellato <foreverarab13@ao1,com> 11/26/06 3:50 PM Hi my name is Evelyn. Today i tried Gellato with my friend and it was the best ice cream i have ever tasted. Please keep serving Gellato because i would like to have my friends try it too. They will definetly love it and I'm sure there is more people that have not yet to tried it. Thank you! -Evelyn Check out the new AOL. Most comprehensive set of free safety and security tools, free access to millions of high-quality videos from across the web, free AOL Mail and more. . t, (12/04/2006) Sandy Baily - Fwd: Powell's candy shoppe Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:24 AM Subject: Fwd: Powell's candy shoppe <Ch9245@aol.com> 11/23/06 1:32 PM To whom this is concerned: We would love to see this candy shoppe keep their permit to sell Gelato at their Los Gatos location. Thanks (12/04/2006) Sandy Bally - Fwd: Powels Candy Store gelato Page 11 From: Danielle Surdin To: Baily, Sandy Date: 11/27/2006 9:23 AM Subject: Fwd: Powels Candy Store gelato I have probably at least five or six more coming your way. Danielle > > > John Giddings <johngiddings@yahoo.com> 11/26/06 7:07 PM > > > Hello, I am a resident of Los Gatos and a patron of many downtown stores including Powels Candy Store. I can only say that Powells represents the best possible image of the Los Gatos shopping experience. I take pure delight from the specialty shops make Los Gatos unique and attractive. Gelato service is a natural, logical, and clever ingedient in Powels offering. If the original approval is revoked after the compaints of entrenched competing stores, I am afraid that the worst face will be put on Los Gatos: that new ideas are not welcome and that a merchats success depends more on political activism and legal technicalities than customer satisfaction. We're talking about GELATO, not alcohol, tobaco and firearms. Please don't undermine our children's (and children at heart!) favorite reason for shopping downtown. John Giddings 15101 Kennedy Road 358-7786 (12/04/2006) Sandy Baily - Fwd: Powell's Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/21/2006 1:56 PM Subject: Fwd: Powell's Hi Sandy - Another Powell's email, Hey, if I don't see you - I hope you have a great Turkey Day! Danielle "LosGatosBaby" <info@losgatosbaby.com> 11/21/06 11:14 AM Hi Danielle, Hope you're well! Hey we really like the gelato at Powell's and hope they can continue serving it! My kids love it and my customers love the store! Hopefully you can put my name on the petition for them to continue serving gelato for me! Best Regards, Belis Etem Los Gatos Baby F(12I 4/2006) Sandy Baily - Fwd: New candy store in Los Gatos From: Danielle Surdin To: Bally, Sandy Date: 11/27/2006 9:23 AM Subject: Fwd: New candy store in Los Gatos Powell's Sweet Shoppe correspondence.... Thanks Sandy... Jill MacAfee < d macafee@comcast. net> 11/26/06 8:43 PM We would like to see the new candy store in downtown Los Gatos be able to serve Gelato. Jill, David, Elizabeth and Scott MacAfee 309 Albert Drive - Page 1 a ~I (11/14/2006) Sandy Baily - Fwd: Powell's Page 11 From: Danielle Surdin To: Baily, Sandy Date: 11/06/2006 11:18 AM Subject: Fwd: Powell's Dear Janice, Thank you for your recent correspondence regarding Powell's Sweet Shoppe. I will be forwarding your email of support to our Town Council for the December 18th public hearing. Thanks for your input. Sincerely, Danielle Surdin Economic Vitality Manager Town of Los Gatos Jagjog <jagjog@yahoo.com> 11/06/06 10:36 AM I would like to see "Powell's Shop" continue to serve Gelato. As a resident of LG for over 40 years it is nice to see a shop that the whole family can enjoy. We went for a walk yesterday and choose to have Gelato at "Powell's" after visiting Dolce Spazio's and Fleur de Cocoa. The chocolate flavor at Dolce Spazio's has a liqueur in it and my children do not like that. We then went to Fleur de Cocoa and asked for gelato but we were told it is seasonal. The town of LG needs to stand behind there original decisions to allow Powell's a permit to operate in LG. The gelato is between 30-40% of their business and your denial of a permit after the fact is irresponsible to all shop owner. It sends a message that any screaming competitor can cry wolf and find a loop hole to stop any new competition. In my opinion the competition is upset that a new comer is so successful. Doesn't it mean a sucessful business generates more tax dollars for the town??? LG you need to do the right thing and allow "Powell's" to continue to serve gelato it really has a place in the retail mix of LG. Janice Gall 354-4507 Sponsored Link Get a free Motorola Razr! Today Only! Choose Cingular, Sprint, Verizon, Alltel, or T-Mobile. (12/0412006) Sandy Bally -Fwd: Gelato ~Page 1 From: Danielle Surdin To: Bally, Sandy Date: 11/20/2006 11:32 AM Subject: Fwd: Gelato HI Sandy, here is another email regarding Powell's Thanks! Danielle <BCMSEI2@aol.com> 11/18/06 7:54 PM To the Town of Los Gatos: The Planning Commission has allowed countless pizza places, nail salons, and hair salons in downtown Los Gatos for us to choose from. Therefore the same standard should be applied to Powell's Sweet Shoppe. We should be able to choose where to go for our gelato. The Roberts (Brian, Carol, Michael, Sara, and Emily) H Sandy Baily - Fwd: Powell's gelato Page 1 From: Danielle Surdin To: Bally, Sandy Date: 11/03/2006 2:15:24 PM Subject: Fwd: Powell's gelato <denisemagnuson@launchnet.com> 10/31/06 9:21 AM Dear Sir/Madam, As a resident of Los Gatos, I find it disturbing to allow all of this city time and money spent on such a minor matter, then threatened with consequences such that our city government is suggessting is absolutley absurd. In order to promote small business and encourage MORE small business in this town, you need to reconsider how you HELP the small business owner stay or become compliant with the city ordinances. It would take but a moment to help the Powell Candy store file the appropriate permits to serve their tasty gelato and move on! We need our city to control more important safety and appearance issues like the vagrants living behind the malls in vans and boxes on N. Santa Cruz ave, enforce traffic speed by creating speed reducer blocks, watch over building permits that are allowing so many variances--why have the ordinances in the first place when you'll "overlook them anyway! I mean, preventing serving gelato at a candy store in "old town"-small town Los Gatos.... really!!??? I want your job! Regards, Denise Magnuson Sandy Baily - Fwd: Powell's Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/03/2006 2:15:03 PM Subject: Fwd: Powell's Jane <janecarmel@yahoo.com> 10/31/06 3:47 PM Dear Ms. Surdin: One of downtown's most attractive stores is Powell's candy store. It's a reason in its own to shop downtown. It should be allowed to continue serve gelato at its counter. I strongly urge the Town of Los Gatos to allow Powell's to keep its permit to serve gelato. Thank you. Jane Dodge Sandy Baily - Fwd: Powell's Sweet Shoppe-Gelato/Permit Issue Page J From: Danielle Surdin To: Bally, Sandy Date: 11/03/2006 2:15:57 PM Subject: Fwd: Powell's Sweet Shoppe-Gelato/Permit Issue "William Jenkins" <keithjenkins@post.com> 10/29/06 9:11 PM Dear Planning Commision, et al, Please accept this letter as my support for Powell's Sweet Shoppe to receive the permit necessary for them to continue selling Gelato. Regardless of any descrepancies on the books that may be blocking the permit, I feel sure the benefits to the town of Los Gatos far outweigh the task of re-working the permit so that residents and visitors alike can enjoy all that a unique, destination-worthy establishment like Powell's is asking to offer. Thank you for your consideration, Keith Jenkins Boulder Creek, CA resident Search for products and services at: http://search. mail. com 'I, Sandy Baily - Fwd: Powells Sweet Shop Page 1 From: Danielle Surdin To: Bally, Sandy Date: 11/03/2006 2:15:36 PM Subject: Fwd: Powells Sweet Shop <cchidlow@att.net> 10/30/06 9:52 AM To Whom it May Concern: This past weekend, my family discovered Powells Sweet Shop while stopping by Fleur De Cocoa. We are residents of Saratoga and want to voice an opinion that we are in favor of the gelato sales at this establishment. They are selling by far the best ice cream in the south bay. Previously, we had our favorite ice cream spot in Carmel but this is far more convenient. It is also an integral part of the movie-like resemblance of their store. Regards, The Chidlows Sandy Baily - Fwd: powell petition page From: Danielle Surdin To: Baily, Sandy Date: 11/03/2006 2:16:26 PM Subject: Fwd: powell petition "Spazzy Jazzy" <reesespeanutbuttercups@gmail.com> 10/27/06 7:51 PM Town of Los Gatos- When Powell Street Candy opened, I walked past and thought to myself, 'finally, an original store with personality'. As a high school student, I have heard many of my fellow peers gushing about the delicious gelato in Powell's. "It's the BEST gelato!" they said, with a real fantasy-like ambiance, reminiscent of Willy Wonka, which charmingly plays in their store. I read in the Los Gatos paper last week that they were to lose their licence to sell gelato, because they did not have a restaurant licence, and the city of Los Gatos did not want another restaurant. However, I must say that this decision is idiotic and detrimental to the general attraction of Los Gatos; why refuse a restaurant licence to a truly quaint, original store with the best gelato when you allow other stores to carry mediocre ice cream? Where is the logic, the benefit in this decision? As the city of Los Gatos, your job is to represent the opinion of the majority of Los Gatos residents. Allow me to tell you with confidence that there are few who would advocate taking away the best gelato in town. So, if you do reject their appeal, know that this is not the wish of the majority. I hope you make your decision with the people of Los Gatos in mind, and stop acting with such rigidity and ridiculousness as to cause your fellow residents to roll their eyes at the stupidity of our city council. Please, don't be another stereotypical backwards council. Jazzy Fatemi, 15, Los Gatos Sandy Baily - Fwd: Powells From: Danielle Surdin To: Baily, Sandy Date: 11/03/2006 2:16:14 PM Subject: Fwd: Powells Robin Haney <rihaney@sbcglobal.net> 10/28/06 4:10 PM I am not a resident of Los Gatos, but I come quite frequently to your town to shop and dine. I do shop at Powels and 1 think it would be a shame to eliminate the gelato section of the store. An old fashion candy store had candy and also served ice cream and other soda fountain drinks, by serving gelato keeps with the ambiance of the shop. Please let them have the permit to do so. Thank You Robin Haney Page 1 Sandy Baily - Fwd: Support for Powells. Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/0312006 2:16:46 PM Subject: Fwd: Support for Powells. Last one... Bob Norris <fuzzface@ix.netcom.com> 10/21/06 4:02 PM We have been following Powell's sweet shop efforts to sell gelato, and wish to add our names to those supporting their continued sales. We are 45-year Los Gatos residents who feel that the decision to deny their permit to sell gelato should be reversed. Our understanding is that the permit to sell toys, candy, and gelato was initially approved only later to be disapproved because of a "misunderstanding" by the town. Under the circumstances the disapproval seems arbitrary but, upon reflection, not unexpected in light of past planning decisions. Somehow we cannot equate sale of gelato with "restaurant" usage. No other food is prepared or served on their premises, their "on sale" offering is certainly limited to gelato. We also support Powells as a popular new business in Los Gatos which seems to fit well into the character of the town. They obviously are well accepted by the number of gelato customers we see. If the reason for denying the permit is that there are too many gelato-providing establishments already, we suggest you might want to count the number of downtown food-service establishments by type that have been routinely accepted through the years. Again, please reverse your decision regarding Powell's gelato sales. Respectfully, Bob and Margaret Norris 16667 Shannon Road Los Gatos, CA 95032-4617 (408)356-5483 > > > <RandyRasc@aol.com> 11/02/06 7:24 AM > > > To the Town of Los Gatos: Powell's Sweet Shoppe is the best thing that's happened to Los Gatos in years. Please don't ruin it for us. Thank you. Sincerely, Randy Rasche i' i, i l ':Q!".`k'/fi E'utORCI.---+-~C31pEtlfil$L / Ctl Fi i„Ci'e C,lki. Lf illy F:,t October 23, 2006 Mayor Diane McNutt and Town Council Members Town of Los Gatos 110 East Main Street Los Gatos, California 95031 Re: Powell's Sweet Shoppe Dear Mayor and Council Members, I am writting this letter to oppose the Planning Commission's decision related to Powell's Sweet Shoppe's application to sell gelato in their store at 35 North Santa Cruz Avenue. People of this town are constantly arguing that we want small, unique, independant stores in our downtown and I believe that Powell's is exactly that. From kids trying to decide over the endless choices for their sugar fix to parents rediscovering their favorite candy bar, this store is a success with the residents and guests of the town and with the Los Gatos business commu- nity. Indeed, there are other stores in town that sell gelato, but downtown Los Gatos is not a mall and no one merchant has exclusive rights to sell a product. If this were true, there would be no Williams Sonoma or Sur La Table in town because they have a competing product line with Domus; and no Great Bear Coffee because the Town already had the Coffee Roasting Com- pany on Main Street. I also belive that the "misunderstanding" of the planning department over the applicant's plans for gelato sales is not the fault of the appliant nor was it a deliberate act to sneak something past the Town. From my understanding, gelato was talked about with planning staff, shown on the building permit plans and was reviewed and approved by the health department. If anything, this illustrates that the Town needs to continue to work on its procedures to help make the development process easier to understand and navigate. To deny Powell's application to sell gelato at this point in the process would be cruel to the applicant and detrimental to the future of the Los Gatos business community. The Town is constantly doing battle against the image that Los Gatos is a difficult place to do business and the decision of the Planning Commission to deny gelato sales only adds fuel to this fire. Please reverse the decision of the Planning Commission and allow Powell's Sweet Shoppe to continue to sell gelato. Very truly yours, STOWERS ASSOCIATES ARCHITECTS INC. Greg Stowers, AIA Y'j 7 1 ~E ~4n~c t nrl,, ~H •,ll tit c 1 f Ef{'C t J~ r, ~u~~ I i 1, t~) s 9?. A e t ~ tr "Mariellen Furia" <mfuria@lghs.net> 12/14/2006 10:44 AM It may be too late for my comments, however I want you to know that I completely support Powell's Candy Store! Let them serve Gelato ! ! Why is that a problem? Whenever I go to the store, most people are there buying candy. Is Dolce Spazio feeling threatened? They shouldn't. Their niche is safe in Los Gatos. And why does Larry Arzie have so much to say? Thanks for listening, Mariellen Furia Message Patsy Garcia - Powell's Sweet Shoppe Page 1 of 1 From: "Jim & Carol Burt" <lgburts@comcast.net> To: <dmenutt@losgatosca.gov> Date: 12/14/2006 3:37:23 PM Subject: Powell's Sweet Shoppe This is to let you know that we fully support Mr. Neil Knott's desire to sell fresh gelato at Powell's Sweet Shoppe. We've traveled throughout the world, including living in Italy for two years, and have never heard of the "pre-packaged" gelato that the planning commission thought he was going to sell. He should not be punished for someone else's misunderstanding. Sincerely, Carol and Jim Burt 16798 Potter Ct. Los Gatos, CA 95032 file://C:ADocuments and Settings\pgarcia\Local Settings\Temp\GW}00001.1-ITM 12/14/2006 { 10 0 0 10 Z7, (11/14/2006) Sandy Baily - Fwd: against powells's serving geiato Page 1 From: Danielle Surdin To: Baily, Sandy Date: 11/07/2006 10:35 AM Subject: Fwd: against powells's serving gelato "Linda Loew" <Iloew@comcast.net> 11/06/06 11:48 PM I feel that Powell's should not be allowed to sell gelato and they should stop now. Many businesses sell "cold treats" and followed the rules. Powell's ignorance is no excuse. As a homeowner, if I cut a tree down without permission, there are consequences to my ignorance. Powell's ice cream should stop and fines imposed. Linda Loew 139 Tait Ave Los Gatos ATTACHMENT 9 f! FROM :DAVID/JUSTO FAX NO. :4083547042 Nov. 21 2006 06:39PM PS yu>ie2 / L Una ~ / 71'°'4ikt~ AJ D EC[O~C NOV 2 ? 2006 TOWN OF LOS GATOS CLERK: DEPARTMENT FROM :DABID/JUSTO Town Council Town of Los Gatos. Dear Council members, FAX NO. :40e3547042 Nov. 21 2006 06:40PM P2 I am perplexed on how Powell's Sweet Shoppe arrived in Town without going through the FUC process. This is a franchise operation, and according to the Formula Retail Business ordinance they fit into the category of a formula business. They may have had at the time less than 7 stores but they fit into other categories of definition of a formula business. For one they have standard merchandise, services and signage and sell ice cream to go. Gelate, which they are now applying for a CUP to sell, is also part of the chains standard products, and sold at the parent store. From reading in the paper the applicant claims to have decided later to add Ice Cream. There is something like an end run going on here. Since they meet the criteria of a formula store and were not required to apply for a CUP,I am curious as to what happened. Did Staff err? Did the applicant not understand the ordinance in giving staff the correct information. Or are we now interpreting the ordinance differently? From what I can see it is not beyond reason to request Powell's not only to apply for a CUP to sell Ice Cream, but to apply for a CLIP to be in business where they are. I respectfully request that you review the documents that allowed another food oriented formula business onto the most densely used block of Santa Cruz Ave and come up with solutions to correct this in the future as well as the problem at hand. Larry dusto Arzie Aug.25"' 2006 f: k k w FROM :DAVID/JUSTO FAX NO. :4083547042 Nov. 21 2006 06:40PM P3 u Yshoo! Mail - davidstonesifer(@ ahoo•oom Message - Mark as Unread Date: Fri, 20 oet 2006 23:45:08 -0700 (PDT) From: "David Stoneslfer" <davldstoneslfer®yahoo.com? Add to Address Book q Add Mobile Alert subject: Re: Powell's Sweet Shoppe Tin: -Timothy Lundell" <tiundeil@earthlink. net> Dear Tim, Thank you for your clarification of the facts. I am aware of them and do not disagree that they could Dave happened as you claim. Z have spoken with a number of people who know the Knott's and believe they are respected and venerable in the community. I do not believe they intentionally manipulated or circumvented the rules. They are lucky to have a friend in you to speak for them. I have attempted in the past to have both the restaurant ordinance and the business license procedure reviewed, but we are not a pro-active town and it takes a lot of effort and it take something like this to get it done.Unfortunate as it is. Mistakes happen and in this case there is a perception that mistakes happened or, both sides. The planning commission denied the CUP based on guidelines, problems in the C.~I,D. the general plan and impute, not on accusations. Mr.Burke spoke on the need to get opened as soon as possible and that of not mentioning hand scooped Ice Cream in order to expedite matters. This was speculation, but what concern rite is the statement Mr.Knott made in the paper prior to his opening the he "decided to add Ice Cream/gelato at the last minute", The fart that he did riot allow his corporate office to file the applications which is part of their obligation wa' brought up by Mr-Burke as wel;l.. Mr.Knott is no novice, in that to my understandi.na he owns a franchise food operation already plus a coin-op franchise and must have realizod he needad the appropriate permits. Correct me if I am wrong about all this as it lends credence to conspiracy theorist. My QQncern is not that the Knot's attempted an end run,as I do not believe this, but that their franchise fell through a loop hole ire the formula operations ordinance of which we now need to corroct. One more CUP restaurant chain store franchise on this block may be the breaking point in keeping the existing anchor tenants on the block and forever changing the face of Santa Cruz Ave into a national. cha,,n store row. I complimented Powell's business plan at the Planning commission and honestly think it is a nice operation for Los Gatos but not on this block. I don't believe that. Council in an appeal, although sympathizing with your clients predicament, will at VrA~ 41,416-4 htto-//us,f326.mail.vahoo.com/vm/ShowLetter?MsgId=7108 15169645 14072 659 331... 10/20/2006 FROM :DRUID/JUSTO FRX NO. :4083547042 Iallou:Ivialla~jQV1L1bLlJlll~111~1iW~~ ivvvvaaa tiie moment have any choice but to deny as well. Again not because of accusations but of our regulations and general plan. Even if staff did err they first need to follow the general plan gui.dlines. Two wrongs do not right it. If you wish recourse I would suggest Powell's Corporate let your client down and should be pursued, but Mr.$urke offered up an excellent compromise in that you wait 6 months or more and re-apply. By then, things will cool down. In the interim I will be so presumptuous to suggest that Mr.Knott send a uniformed employe: up and down both sides of the b.1oak daily to pick up not only Powell's debris but all others, as well as scrape up fresh gum and candy globs that are being attributed to Powells. A 'trash container at his front door would be neighborly as well.Endearing oneself is often a great solution. I do not wish the Knott,$ ill but I can not support thirr effort. Rectifying a staff mi.st.akp at the sake of other business's is not a good idea. T truly believe that even if the Knott's were guided properly to begin with they would never have received a CUP for Ice Cream. Sincerely, Larry J'usLo Arzie Timothy Lundell <tlundell@ea,rthlink.net> wrote: Larry and David! I am writing to you because I am aware that each of you havewritten or appeared in opposition to the Conditional Use Permitapplication ofNeil Knott for Powell's Sweet Shoppe on N. Sant_aCruz,and, based on your comments, I believe there a.r..c facts of which you areunaware. I am an attorney who lives in town and will berepresentingNeil in his appeal of t_he denial of his application. Dav.i.d,I believe you know my wife, PenelopeO'Neill, who is also on the Arts Commission. I have been friends with Neil f.o.r, ?bout 1.5 years, and followed,from adistance, his plan for the Sweet Shoppe as a business to open with hi55on intown. Ne.ij.. does not have much experiencein local business or politics, though he has lived in Los Gatos andMonte Sereno for more than 49years. 71.11 of his guidance as to how toproceed with permits came from the Town planning and building st'affs,and theCounty Health Department. If you look athis file in the Planning Department, you Nov. 21 2006 06:41PM P4 E more than 40ye.ars, All of his guidance as to how toproceed with permits came from the Town planning and building staffs,and theCounty Health Department. If you look athis file in the Planning Department, you will see that the sale ofgelato wasnot only specifically mentioned in the staff notes from his http,//us,f326.maii,yahoo.corn/ym/ShowLetter?Msgld=7108_1.5169645 14072 659 331... 10/20/2006 Yahool Mail - davidstonesifer@yahoo.com Page 3 of3 initi.alinterviewin March for a Use and Occupancy Permit, it is prominently shown on h?sfloorplan, and is even mentioned in inter-staff memos between Randy TsudaandDanielle 5urdin. Neil provided all ofthe information which they requested of him, and had no reason tobelieve thathe was in any way deficient in the permitting process. Itis now the staff's position, apparently,fhat they assumed that he meant hewould be selling "pre-packaged" gelato (whatever that means), thoughthey readily admit that Neil neither said nor did anything whatsoeverto givethem that impression, I have redeatl.y been shown a Planning DepartmentPolicy,issued by Lee Bowman in 1336, which states as follows (with emphasisadded); "PURPOSE: Toprovide guideli.nesfor determining whether a lousiness serving food products is specialtyretail orrestaurant. POLICY; It is best to obtain a written description of a proposedbusiness fromthe applicant to provide a "paper trail" and avoid possiblemisunderstanding. If a proposed businessis not described below, staff shall obtain a written description ofa proposedbusiness from the applicant so the Planriin,g Director may make thefinaldeterminatiQn," (listing ofvari.ous kinds of foodproducts, none of which describe Powell's gelato sales)" S am very troubled by staff's failure to intercedeandadmit to the Planning Commission that it was their violation of thispolicy, and the misunderstandingbased on their "assumption", that has led to the current controversy. 'Ct is very hurtful and unfair to Neil to beportrayed,as he is in the local newspapers, as someone trying to cheat his waythroughthe system. As local citizens who t haverightfully earned a great deal, of respect for their opinions in Townissues, i may not chanoe vour 9 na unzarr co Nei. i. to beporcrayeO, a he is in the local newspapers, as someorie trying tc cheat his waythroughthe system. r :oral citizens who haverightfully earned a great deal. of respect for their opinions in Townifsues, T may not change your minds about Neil's gelato sales, but Ithought it would be important to provide to you the true facts behindthisissue. Tim L,undeil http://us.f326,mail,yahoo.com/ym/ShowLetter?Msgld=7108-i 5169645_14072_659_331... 10/20/2006 Dav Fr To: om: slraser~ oisgairssca..go~nes#er(~yahoa.com> sent: Tuesd y, October 10, 2006 122 PM Subject: Powells candy shoppe commission Re: C.U.P. Powell$ U07-1 Hear Commissioners, the operation 1 am a property owner across the strut from nr~eds any ahioop ho can Durk ordinances, but here i s o readoes to . 1t1T Ct/1Y A4 n~l IQt~fW S FROM :DRUID/JUSTO FAX NO. :4983547942 t Nov. 21 2006 95:43PM P1 David Stoneallter Prom: "David 8tonesifer" <davidstonesiferQyahoo.com} To: <msnager*Iasggtosca.gova Sent: Tuesday, October 10, 2006 3:22 PM Subject; Powells candy shoppe Commission Re, C.U.P. Powells U07-1 Dear Commissioners, I am a property owner across the street from Powells, which by the way I think is a neat operation. But it does not belong on this section of Santa Cruz Ave. it slipped In on a loop We in our ordinances, but there Is no reason it should slip through our general plan regulations for the CBD. It is in a staff determined HOT POT of clustered formula operations, of which it is one. It is not in Harmony with but Detracts from the existing Balance and Diversity of Business on the street It discourages economic activity and atmosphere and image of this small town. It does not promote normal retail but promotes destination customers. My tenants are feeling the pinch of less walk In customers caused by increased CUPS of these type opembons through the years. More restaurant (ice Cream) sales will only aggravate the situation . I do not want to replace my tennants due to this as my only choice would be ones computable to restaurants, candy parlors, pizza houses, yogart and Ice cream emporiums eto.and that won't be easy except to find more nationals. Please adhere to the general plan and say no to this C_U.P. David Stonesifer 24 26 26 32 N. Santa Cruz Ave. 408 892 4436. F: J f; f rr i a FROM :DAVID/JUSTO FAX NO. :40e3547042 Novv.I 21 2006 ,06: 44PM P2 HERE I AM AGAIN FIGHTING ANOTHER. RESTAURANT USE PERMIT. THIS ONE IN THE MIDDLE OF THE MOST HEAVILY CONCENTRATED LICQUOR AND RESTAURANT OPERATIONS IN THE TOWN. THIS BLOCK HAS 11 OF THEM ON ONE SIDE OF THE STREET ALONE. THREE ALREADY SELL ICE CREAM SO ALLOWING ANOTHER CUP FOR ICE CREAM IS NOT IN CONFORMANCE WITH THE GENERAL PLAN PROVISIONS. L.P.5.1 REQUIRS MAINTAINING A VARIETY OF COMMERCIAL USES TO KEEP THE DOWNTOWN STRONG. L.P.5.2 REQUIRES THE CENTRAL BUISNESS DISTRICT TO EMPHASIZE RETAIL, L.P.1 SPEAKS TO PRESERVATION AND CHARACTER.. ALL THREE OF THESE SECTIONS OF THE GENERAL PLAN ARE ENOUGH TO SAY NO. BUT THE APPLICANT IN MY MIND LEFT OFF HIS INTENTION TO SERVE FOOD IN HIS APPLICATION FOR. A BUSINESS LISCENSE TO AVOID THE CUP PROCESS AND NOW HE WANTS A SECOND BITE. I SUGGEST YOU LOOK AT HIS APPROACH TO DOING BUSINESS AND NOT BE SWAYED BY ANY HARDSHIP HE MAY INCURR AT HAVING TO REMOVE HIS ICE CREAM EQUIPMENT. HE SHOULD HAVE KNOWN THAT FOOD SERVICE REQUIRES A SPECIAL PERMIT. HE AS WELL HAS ADDED SEATING OUTSIDE ON THE PUBLIC SIDEWALK WHICH REQUIRES PERMISS ON.TIS M.O. SHOULD HELP YOU TO DENY HIS C.U.P. REQUEST AS WELL. I HOPE YOU RECOMMEND TO COUNCIL THAT WE NEED TO REVIEW OUR FORMULA OPERATIONS ORDINANCE. THE ADDITION OF THIS CHAIN STORE ONTO WHAT HAS BECOME A BOARDWALK AND CARNIVAL OF EATERIES OF WHICH THIS CANDY PARLOR IS NOTHING MORE THAN A FAST FOODS l' FROM :DAVID/JUSTO FAX NO. :4083547042 Nov. 21 2006 06:45PM P3 moo.,, ~h-- OPERATIONS IS UNACCEPTABLE. THEY SLIPPED THROUGH IN A LOOPHOLE AS THEY WERE ONLY THE 2ND FRANCHISE IN THE CHAIN. THERE IS NOTHING WRONG WITH THIS STORE BEING IN LOS GATOS,BUT NOT IN THE WORST HOT SPOT. THE VITALITY OF THIS BLOCK HINGES ON THE STABL,IZING FACTION OF ANCHOR RETAILERS ACROSS THE STREET FROM THIS EATERY RAW WITH IT'S UNKEMPT SIDEWALKS AND HIGH TRAFFIC CLIENT BASE. AND I POSE TO YOU THE QUESTION OF HOW MUCH LONGER DO YOU THINK THESE ANCHOR TENNANTS CAN SURVIVE WITH MORE CORRUPTION OF RETAIL WITHOUT BEING REPLACED BY A NATIONAL THAT IS COMPATIBLE TO THIS KIND OF NEIGHBOR. AND YOU KNOW WHAT? THERE WILL, BE NOTHING YOU CAN DO ABOUT IT AS 2 OF THEM HAVE CUPS ALREADY. BUT THERE IS SOMETHING YOU CAN DO ABOUT IT NOW, TO PROTECT RETENTION, AND ANDTHAT IS TO PLEASE NOT ISSUE ANY MORE RESTAURANT CUP'S ON THIS BLOCK. r FROM :DAVID/JUSTO FAX NO. :4083547042 Nov. 21 2006 06:45PM P4 I David Stonesiter From: "Junto Hernandez" <justohemandez(gearthlink.net, To: <manager@losgatosca.gov> Sent: Thursday, October 12, 2006 10:10 AM Subject; how embarrassing can it get? Att• Town Manager Town Council Planning Commission Last night was a wee bit of an embarrassment for all of us, if indeed what WKnox's claims are true. I know my face turned red with shame, and it looked like staff was squirming. He says he told staff that ice cream was being sold. He claims he even turned in a floor plan showing the Ice cream equipment. Apparently he left it off the application but put it on his floor plan not knowing they would not be crusschacked by different departments. Staff responded with Oh thats a different department, we only go by whats on the permit application. They also made some excuse about policy in that it wasn't important enough based on square footage sales to normally require a C.U.P.....(in the C.B.O. ? who are they kidding) I have pointed out in a couple of writing that our permit application is antiquated to say the least. I even suggested a however many page check list it takes to make sure staff is not coming to the wrong conclusion that an applicant is not eligible fora C.U.P hearing, Please change the process to avoid people continuing to say that we are like people say we are. Check list suggestion: 1. List the products you will be selling. 2. Is this a Franchise. If so how many franchises are being sold and how many exist. 3. Nil there be off sale food being sold. 4. Do you collect sales tax, If so, please provide a copy of your resale showing name and address of location. Please provide a copy after you first tax payment to the state showing what county and town you pay the tax rate for. Every possible question should be on this check list from the applicant, and it should be updated regularly by staff without councils approved, but not deleted, i pose # 4 from experience. i was recently chatting with an ex council member about our tax base and mention that when I recently took out a business license after three years of having a walk by storefront (we were never open, it was done just to not have the landowner with an empty facade) but our tax payments were in a different county for contractual reasons when we sold our business. In any event, our client base was in a large part from this county. I corrected this and sales taxes were later paid based on a Los Gatos address instead of San Francisco. So i venture to guess that a lot of companies that have clients in different counties and towns do not take the time to clearly identify where the client lives in order that the tax gets credited there. I.I. How can we verify that Any of the nationals or regional or franchise's break down the tax correctly. #4 would be a good start to finding this out but somehow we need to look at the sales tax declarations given to the state. i venture to guess we are loosing money here. The problem can be more prevalent in a smelt business with more than one store, as it is simpler to bulk the sales from one location. I.I. does Twig pay sates tax from S.iF. or do they break it down for L,G. and S.F.....When you have two loWions you often take the least route of resistance. The town of Santa Cruz for instance is really tough on this and even requires you to take out a business license if you have a phone number from there, i not talking about going this far but simple taking precaution to make sure things are as they are said to be by the applicant. I hope we do something about this or for sure you can be assured I will continue to be a pest. 10/25/2006 Lo' OPERATIONS IS UNACCEPTABLE. THEY SLIPPED THROUGH IN A LOOPHOLE AS THEY WERE ONLY THE 2ND FRANCHISE IN THE CHAIN. THERE IS NOTHING WRONG WITH THIS STORE BEING IN LOS GATOS,BUT NOT IN THE WORST HOT SPOT. THE VITALITY OF THIS BLOCK HINGES ON THE STABLIZING FACTION OF ANCHOR RETAILERS ACROSS THE STREET FROM THIS EATERY ROW WITH IT'S UNKEMPT SIDEWALKS AND HIGH TRAFFIC CLIENT BASE. AND I POSE TO YOU THE QUESTION OF HOW MUCH LONGER DO YOU THINK THESE ANCHOR. TENNANTS CAN SURVIVE WITH MORE CORRUPTION OF RETAIL WITHOUT BEING REPLACED BY A NATIONAL THAT IS COMPATIBLE TO THIS KIND OF NEIGHBOR. AND YOU KNOW WHAT? THERE WILL BE NOTHING YOU CAN DO ABOUT IT AS 2 OF THEM HAVE CUPS ALREADY. BUT THERE IS SOMETHING YOU CAN DO ABOUT IT NOW, TO PROTECT RETENTION, AND ANDTHAT IS TO PLEASE NOT ISSUE ANY MORE RESTAURANT CUP'S ON THIS BLOCK. Sd Wd9t7 : 90 900E TE 'SON EbO2 VSS80t7 : 'ON Xdd OlSnr/c I nua : W021d losommommmm- 1 3 w FROM :DAVID/JUSTO FAX NO. :4083547042 Dec. 03 2006 05:44PM P1 Town Council Re: Powell's Planning Commission Re:V'itorria's Dear Town Officials, a 0 4 2006 TOWN OF LOS, G AT0S CLERK DEPARTMENT I write to you both at the same time regarding the above two issues as they are intertwined along with personal services business's. There its no commuity benefit to increasing the square footage of Personal Service businesses. There is no community benefit to adding more square footage for restaurant usage in the C.B.R. Los Gatos has.a major parking problem and circulation problem. Both these destination type business's increase traffic and parking usages. With the expected re-opening of Chart House Restaurant there will be an incredible demand for more parking soon. It is my understanding that their existing parking lot will be developed for other purposes as they are not required to provide on site parking. We have had a rash of approvals of personal service take over into existing retail spaces and the same for intensifying or increasing food operatious, 'We lost around 2000 sq feet of retail to a wine tasting rvQm and deli both on main St. in the single most intensified' clustering of high uses in town. We allowed for an existing coffee house on Elm St to intensify usage by offering wine and tasting supposedly with meals. We allowed at croissant sandwich shop to turn into a full fledge restaurant and increase seating and hours and serve beer and wine. We lost another 2000 square feet of existing retail space to personal services. Two on Main St. and another next door on University. That's 4000 square feet this year alone of lost retail space. Now we have applications in for 500 feet for gelato and 2000 square feet for restaurant expansion again both in one of the most clustered food oriented blocks in Town. The repercussions of less retail space turned over to the higher paying renters serves only to dilute their viability increase rents for small retailers, increase destination circulation problems, bring in more employees of whom there's statistically more of them than we have parking places for, and decrease walk in traffic that has caused so many of our long term merchants to leave Town. The competition for spaces given over for food and personal service has already driven square foot 1 I FROM :DAVID/TUSTO FRX N0. :4083547042 Dec. 03 2006 05:45PM P2 rents well above the 3 dollar threshold that allows for a small business to be profitable enough to renew their less& Our general plan in regards to the C.B.D. clearly waists us to keep our small town character, preserve and protect our retail base. The over concentration of food oriented business does not do this. It does not encourage a further mix of retail uses. To approve any increase in food services can only further reduce retention of indepeadent retailing. These restaurant use CX.Ps , {Vittoria and Fowe)l's) along with previously approved personal service applications are not essential or desirable for the public convenience or welfare. They impair the integrity of the zone and are in disharmony with their neighbors, detracting from the existing balance and diversity of existing retail usages. I urge the planning commission to say no to Vitorria's application for the same reason they said no to Powell's, which was an appropriate decisioal based the general plans goals and policies. AND For the same reason I as well I urge the Town Council to say no to Powell's request to set aside planning's decision as they did not err in adhering to the general plan. I enclose a "lets talk" list from a fellow merchant that was handed out at a recent study klatch that pertains to a lot of what I have just said. Hopefully with our experienced Council in place for 2007 we can radial to what in my naiad is a disconnect between Planning, Staff, the community and Council and get on the same party line. Thank Larry FROM :DRUID/JUSTO FAX NO. :4083547042 Dec. 03 2006 05:46PM P3 1. Is there a future for small scale retail? The success of small scale retail will always be based on "specialty" retail. Many categories of specialty retail have been destroyed by the web and formula retailers. Hardgoods (fly fishing, mountaineering, golf, snow sports, electronics, appliances, plumbing fixtures, etc.) have been severely impacted by the web and big box retailers. Nigh value clothing is very challenging. No one except the "teen" big box retailers is showing any substantial yearly gains. 2. What's the tight retail mix for Los Gatos? What's right for Los Gatos is a moving target. At one time it was antiques, it was hand crafted (Old Town in the 80's) products, it was anything in the late 80's and 901s. "Baby Bomn~ers" drove the economy in the 80's190's. Now we have "Gmedy Geezers„ and a debt loaded new generation of consumer. Both generations are very price conscious and the new generation is very web savvy. Formula retail can satisfy the price issues better than specialty retail and they have more staying power (deeper pockets). Once we resort to formula retail we will loose the unique charm of our downtown mix for a long time. We will be pressured to build more parking to increase traffic and the intensification will turn the Downtown into a Mall environment (i.e. Palo Alto, Santa Cruz, etc.). The present mix is fine but specialty retail is not in any position now to be paying anything in excess of $3/sq.ft. At $3 they have to do $30k a month per 1000 sq.ft. 3. Do restaurants add or detract from a business district? I think we have the right mix and number of restaurants now. Too many more and we will dilute the potential of our existing restaurants and will cause the rents to increase to our specialty stores. 4. What should the role of the Town Administration be in regard to the CBDI The Town's general plan and the formula retail code are good things. We may need to make some unpopular decisions on what is "public benefit" from time to time. The negative comments I hear are usually made by businesses that have bad business plans and are grasping at straws to increase the worth of their use permit. Those businesses will retire no matter what the Town does to accommodate them and there will be a spooky use permit attached to the property. 5. Should the Town take a more active role in recruiting business? No. This is a dangerous no win role to get into. There are professionals who do recruiting and they are motivated to get it right by profiting from good effort. The Town would always be criticized for being motivated to increase tax revenue, 6. What does an effective Chamber look like? Chambers are motivated by volunteers and dues. Who pays the dues and volunteers gets the support. As a result Chambers eventually become focal points for networking, mixers, and fundraising to support the chamber staff. Retailers are usually a small part of most chambers. I believe that a BID administered by the chamber would bring in more retail volunteers because they are assessed and have to make the most of it. M; c *Otity Of thts assessment would have to be spent promoting the business community in the BID. The Council would have to give a deaf ear to the nvnorzry that will always be bitching about their small assessments not being voluntary assessments. r r I FROM :DAUID/JUSTO FAX NO. :4083547042 Dec. 03 2006 05:47PM P4 7. How do we attract the customer base to keep our merchants profitable? We need a create advertising campaign that focuses on the unique charm. of the Town. GOT CHARM? What Goes On In Los Gatos Is In Los Gatos! Beauty Is in The Eye Of The Beholder Behold Los Gatos. We need events during the day that focus on shopping and dinning. Sidewalk sales, Mothers `/Fathers' Day, Valentines Day, etc. Not big events that draw consumers away from shopping or dinning. 8. Flow do we deal with the commercial property/fair rent issue? Let the buyer beware. Los Gatos is a "low traffic" destination. We have limited parking (as it should be). Low traffic does not justify high rent. Modest rent is what attracts specialty retail with low turns and modest profits. If the landlords have high expectations they should invest in areas that have higher traffic. If landlords invest in Los Gatos they should expect what they get. If we allow more intensification in the Downtown we will no longer have a "Downtown" environment. We will have a large Strip Mall. Property owners that have to have $4 to $5/sq.ft. will have to realize they won't get unless the Town backs away from the formula retail ordinance. A retailer has to do $600k a year in 1000k sq.ft. to pay $5/sq.ft. Not in Los Gatos. 9. Can we get the Town to revise their application forms to tie the General Plan requirements to Retail selection. Carmel did this about 10 years ago. 1 don't know how they managed it, or if they still do. This goes back to the Town recruiting businesses. Arbitrary choices of who gets in and who doesn't should stay in the private sector. The Town should rely on public hearings that are rased on public benefit at that point in time. Public benefit will change with time and that is the beauty of public hearings. 10, Should we encourage the Town to create a Strategic Commercial Committee? This is interesting if it was handled as a commission with all the openness that comes with a commission. The commissioners would come from all segments of the community and could operate as a more specialized planning commission. This would reduce the load on the planning commission and could be staffed with commissioners that one might not want on the planning commission. r-- b f FROM :DAVID/JUSTO FAX NO. :40e3547042 Dec. 03 2006 05:47PM P5 Is there a future for small scale retail.? The success of small scale retail will always be based on "specialty" retail. Many categories of specialty retail have been destroyed by the web and formula retailers. flardgoods (fly fishing, mountaineering, golf, snow sports, electronics, appliances, plumbing fixtures, etc.) have been severely impacted by the web and big box retailers. High value clothing is very challenging. No one except the "teen" big box retailers is showing any substantial yearly.gains. 2. What's the right retail mix for Los Gatos? What's right for Los Gatos is a moving target. At one time it was antiques, it was hand crafted (Old Town in the 80's) products, it was anything in the late 80's and 90's. (4Baby Boomers drove the economy in the 80's/90's. Now we have "Greedy Geezers" and a debt loaded new generation of consumer. Both generations are very price conscious and the new generation is very web savvy. Formula retail can satisfy the price issues better than specialty retail and they have more staying power (deeper pockets). Once we resort to formula retail we will Goose the unique charm of our downtown mix for a long time. We will be pressured to build more parking to increase traffic and the intensification will turn the Downtown into a Mall environment (i.e. Palo Alto, Santa Cruz, etc.). The present raix is fine but specialty retail is not in any position now to be paying anything in excess of $3/sq.ft. At $3 they have to do $30k a month per 1000 sq.ft. 3. Do restaurants add or detract from a business district? I think we have the right mix and number of restaurants now. Too many more and we will dilute the potential of our existing restaurants and will cause the rents to increase to our specialty stores. 4. What should the role of the Town Administration be in regard to the CBD? The Town's general plan and the formula retail code are good things. We. may need to make some unpopular decisions on what is "public benefit" from time to time. The negative consents I hear are usually made by businesses that have bad business plans and are grasping at straws to increase the worth of their use permit. Those businesses will retire no matter what the Town does to accommodate them and there will be a spooky use permit attached to the property. 5. Should the Town take a more active role in recruiting business? No. This is a dangerous no win role to get into. There are professionals who do recruiting and they are motivated to get it right by profiting from good effort. The Town would always be criticized for being motivated to increase tax revenue. 6. What does an effective Chamber look like? Chambers are motivated by volunteers and dues. Who pays the dues and volunteers gets the support. As a result Chambers eventually become focal points for networking, mixers, and fundraising to support the chamber staff. Retailers are usually a small part of most chambers. I believe that a BID administered by the chamber would bring in more retail volunteers because they are assessed and have to make the most of it. Also, the majority of the assessment would have to be spent promoting the business community in the BID. The Council would have to give a deaf ear to the minority that will always be bitching about their small assessments not being voluntary assessments. r-- w FROM :DAUIDiJUSTO FAX NO. :408354042 Dec. 03 2006 05:48PM P6 f' 7. How do we attract the customer base to keep our merchants profitable? We need a creative advertising campaign that focuses on the unique charm of the Town. GOT CHARM? What Goes On In Los Gatos Is In Los Gatos! Beauty Is In The Eye Of The Beholder Behold Los Gatos. We need events during the day that focus on shopping and dinning. Sidewalk sales, Mothers'/Fathers' Day, Valentines Day, etc Not big events that draw consumers away from shopping or dinning. 8. How do we deal with the commercial property/fair rent issue? Let the buyer beware. Los Gatos is a "low traffic" destination. We have limited parking (as it should be). Low traffic does not justify high rent. Modest rent is what attracts specialty retail with low turns and modest profits. If the landlords have high expectations they should invest in areas that have higher traffic. If landlords invest in Los Gatos they should expect what they get. If we allow more intensification in the Downtown we will no longer have a "Downtown" environment. We will have a large Strip Mail. Property owners that have to have $4 to $S/sq.ft. will have to realize they won't get witless the Town backs away from the formula retail ordinance. A retailer has to do $600k a year in I000k sq.fi, to pay $5/sq.ft. Not in Los Gatos. 9. Can we get the Town to revise their application forms to tie the General Plan requirements to Retail selection. Carmel did this about 10 years ago. I don't know how they managed it, or if they still do. This goes hack to the Town recruiting businesses. Arbitrary choices of who gets in and who doesn't should stay in the private sector. The flown should rely on public hearings that are based on public benefit at that point in time. Public benefit will change with time and that is the beauty of public hearings. 10. Should we encourage the Town to create a Strategic Commercial Committee? This is interesting if it was handled as a commission with all the openness that comes with a commission. The commissioners would come from all segments of the community and could operate as a more specialized planning commission. This would reduce the load on the planning commission and could be staffed with commissioners that one might not want on the planning commission. Cy V CL0 0 1 2006 Town Council Town of Los Gatos V OR k TOP"IN COT TNTrT Re: Poweli's Sweet Shoppe Sloppy paperwork by the applicant is not grounds for approval of adding one more ice cream, yogurt or gelato bar of which there are too many within dripping distance of each other already. Had staff caught Mr.Knotts error of not including off sale scooped gelato in his application, they would have required him to apply for a C.U.P. and his chances of approval would be of dubious success. Mike Burke suggested that this mistake may have been Intentional at the planning commission hearing in order to expedite the stores opening. i don't really believe this. i think the permit process was beyond Mr.Knott's understanding and he should have let his corporate franchise headquarters do the paperwork as part of their professed support for their franchisee. We can not fault staff if it was not part of the written application. Just because it was noted on the plans to the building department does not mean that the director of community development erred. The building department is for construction code requirements. To make note of this on the plans means nothing to the application process. Mr. Knott is no novice in the business world with interests in a winery, bottled water franchises in Russia and other franchises in California. He should have relied on his corporate offices staff to file the paperwork properly. To portray this as being deceptive or incompetent by either party is not the issue. The issue is will we allow a new restaurant use permit of any consequence in an already overburdened block of similar uses to the detriment of nearby retail. The answer would have been no If the application was flied correctly 7 months ago and should be clearly no today. Thank you, i V David Stonesifer /jn 2`2- 0 Los Gatos 354 5352 Page 1 of 1 Patsy Garcia - Vittorias CUP and Powells CUP applications From: "David Stonesifer" <davidstonesifer@yahoo.com> To: <manager@losgatosca.gov> Date: 12%10/2006 10:43:24 AM Subject: Vittorias CUP and Powells CUP applications Planning Commission and Town Council Re: Vittorias Restaurant And Powells Sweet Shoppe Dear Planning Commissioner and Town Council These two applications to intensify usage of the historic town district seem to fly in the face of common sense. But then again I can understand why they think they will get approval. This year we seem to have done an about face in handing out C. UP's for increased usage of food and alcohol services. Cafe Rouge, Los Gatos Roasting Company, Restaurant James Randall, and of course The new wine tasting rooms. To my knowledge no measures were taken to alleviate any parking impact created when doing this. Excuse my lack of sophistication on this issue but when more, or any tables and chairs are allowed and food or wine is being served, don't we require that the property provide additional parking over and above the amount required when the space was retail or with less intensification? Did we require this of any of the above? We made the Opera House come up with off site parking. We asked for off site parking for the residences above Le Boulanger. Willow St. provides valet parking, so how can we now approve more food usage without providing more parking. Retail viability is at stake. The economy has finally rebounded and if and when retail customers return to town, parking will be worse than ever. There will be less retail spaces for shoppers to visit as they have been turned into high- density use operations and what is left will be so expensive that only nationals can pay the rent. Please consider carefully the dynamics of any further approval and further C. U.P. usages downtown that take away from our primary goal of a RETAIL district. Thank you, David Stonesifer Los Gatos Calif file://C:ADocuments and Settings\pgarcia\Local Settings\Temp\GW100002.HTM 12/1112006 i' FW: Feedback for mtg. 12.13 and 12.18 Marilyn Cosden - FW: Feedback for mtg. 12.13 and 12.18 From: Linda Dumell To: Date: 12/6/2006 10:30 AM Subject: FW: Feedback for mtg. 12.13 and 12.18 Please make sure my comments are delivered to both Planning Commission and the Town Council. Thank you. Linda Forwarded Message From: Linda Durnell <ld@lindadurnellgallery.com> Date: Wed, 06 Dec 2006 10:24:08 -0800 To: <Dfigone@losgatosca.gov> Conversation: Feedback for mtg. 12.13 and 12.18 Subject: Feedback for mtg. 12.13 and 12.18 Page 1 of 1 As the owner of a retail business in downtown Los Gatos and located across from both Powell's and Vittoria's I would like to share my perspective to the town council. I have seen the customer demographics change as the retail "mix" has changed, over the past two years. More and more people are coming into Los Gatos for meals, particularly dinner and most retail businesses close at 5:30 pm. I have questioned long standing customers of mine and they say that the traffic during lunch with all the restaurants here, is so bad, they typically choose to shop elsewhere during the day. Some have also mentioned that their favorite shops have closed and they have found new places to shop for those items. As Los Gatos loses the retail businesses, the town becomes less of a "destination" for shoppers. I have watched my sales slow with the lack of retail sales over the past two two years and I have been forced to change my business plan to sell to corporate businesses in Palo Alto and San Francisco. This necessary change is costly but necessary to survive. Other businesses may not have the ability to change their way of doing business or have the ability to market to new customers out of this area. I appreciate your willingness to listen to the business owners and I am confident your decisions will benefit our community. Best, Linda Linda Durnell Linda Durnell Gallery 24 N. Santa Crut A Ollie Less Gatos. CA 95030 408,354 ,9,184 End of Forwarded Message ATTACHMENT 10 file: //C: \Documents and Settings\mcosden.LOSGATOSCA\Local Settings\Temp\XPgrpwise\4576ABB... 12/6/2006 MEE'T'ING DATE: 9/20/99 *N 0 ITEM NO. J COUNCIL AGENDA REPORT lps~A~pS DATE: September 9, 1999 TO: MAYOR AND TO CO L FROM: TOWN MANAGER SUBJECT: ACCEPT REPORT ON THE TOWN'S RESTAURANT POLICIES RECOMMENDATION: Accept report on the Town's restaurant policies, BACKGROUND: Town Council, in a study session on February 22, 1999, requested that the Town's restaurant policy be amended to prohibit new restaurants in the Downtown. DISCUSSION: The Town's restaurant policy is actually a combination of zoning ordinance regulations, Town Council resolutions and Planning Department administrative policy. Los Gatos has a long history of regulating restaurants and the related service of alcoholic beverages. Even though the Town is more concerned about current regulations, the chronology begins with an ordinance adopted in 1910. December 19, 1910 Board of Trustees (Town Council) adopted Ordinance 146 which provided among other things that service of alcoholic beverages in quantities of less than a quart could only be with "bona fide meals" (Attachment 1). 1927- 1977 The Town's zoning ordinances at various times required special considerations and/or conditional use permits for certain types of restaurants in some zones, but not others. February 21, 1966 Town Council adopted Ordinance 867, a new zoning ordinance which for the first time required that all restaurant uses have parking at the ratio of one space for every three seats. July 6, 1970 Town Council adopted Ordinance 1006 enacting special reduced parking requirements in the Downtown. Restaurant parking was based on floor area the same as retail in the Downtown, but remained at one per three seats elsewhere. August 1, 1977 Town Council adopted Ordinance 1363, a major revision of the Zoning Ordinance 1316 that was adopted in 1976. For the first time all restaurants were required to obtain a conditional use permit is all zones where they were allowed (Attachment 2). PREPARED BY: PAUL L. CURTIST% - DIRECTOR OF COMMUNITY DEVELOPMENT Reviewed by: A_ Attorney Revised: 9/9/99 10:09 AM Reformatted: 7/14/99 ATTACHMENT 11 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: TOWN'S RESTAURANT POLICIES September 9, 1999 August 16, 1982 Town Council adopted Ordinance 1546 which implemented some of the recommendations of the Downtown Specific Plan. This ordinance set up special parking requirements in the Downtown (the total area subject to the Downtown Specific Plan, not just the C-2 zone), including restaurant parking based on seats rather than floor area (Attachment 3). June 3, 1985 Town Council adopted Resolution 1985-86 setting fees for various applications. This resolution established the distinction between Tier One and Tier Two restaurants and included the restaurant questionnaire which is still used today (Attachment 4). May 21, 1990 Town Council adopted Resolution 1990-110 concerning the sale of alcoholic beverages in the C-2 zone (Attachment 5). July 16, 1990 Town Council adopted Ordinance 1832 relating to traffic impacts. This ordinance included increases in traffic generation as a factor to be included in the review of A&S and CUP applications (Attachment 6). November 15, 1993 Town Council adopted Ordinance 1963 which among other things, defined minor restaurant and gave the Development Review Committee the authority to approve all CUP applications for minor restaurants (Attachment 7). February 22, 1994 Town Council adopted Resolution 1994-29 which (1) regulates the sale of alcoholic beverages throughout the Town and (2) replaces Resolution 1990-110 (Attachment 8). April 4, 1994 Town Council adopted Resolution 1994-55 amending traffic impact mitigation fees. The resolution also exempted certain food service businesses from the higher trip generation figures for restaurants as follows: "Walk-in, impulse businesses, such as juice bars, yogurt shops and donut shops, which do not serve meals, shall be considered Specialty Retail for purposes of traffic impacts only." (Attachment 9) May 2, 1994 Town Council adopted Ordinance 1976 which provides a procedure for limiting hours of operation for establishments serving alcoholic beverages and added violation of Alcoholic Beverage Policy as a finding to be considered in a public hearing to revoke or modify an establishment's conditional use permit (Attachment 10). June 6, 1994 Town Council adopted Resolution 1994-78 establishing standards for outdoor restaurant seating (Attachment 11). February 25, 1995 Town Council, in a study session, made the following requests concerning restaurants in the Downtown: 1. Formulate rule whereby restaurants have to go to conceptual review before application 2. Create policy statements discouraging restaurants 3. Find ways to identify what kinds of restaurants we want and where we want them November 6, 1995 These topics were discussed in a report that was reviewed at the Mayor's Meeting (Attachment 12). August 1, 1996 Planning Director signed Planning Department Policy describing restaurants and specialty businesses that offer food products (Attachment 13). The Council's February 22, 1999 request was similar to a request that came out of the November 6, 1995 Mayor's Meeting. This resulted in the adoption of Ordinance 2021. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: TOWN'S RESTAURANT POLICIES September 9, 1999 September 16, 1996 Town Council adopted Ordinance 2021 which included a non-codified section that stated that "too many restaurants concentrated in this one area (C-2 Zone) would displace retail uses that are vital to continued success and to having businesses that attract Town residents throughout the day. This ordinance is intended to discourage the displacement ofretail uses by requiring the Planning Commission to conduct a careful review of all applications for new restaurant uses in the C-2 zone through the public hearing process. " The ordinance also added definitions for Bar, Restaurant, fast food, Restaurant, high turnover (sit down) and Restaurant, quality. These definitions are used to determine the traffic generation calculations which in turn indicate whether an application or even a new restaurant operator represents an intensification of use and is thereby subject to a new or amended conditional use permit. The ordinance also returned the review of applications for minor restaurants in the C-2 zone to the Planning Commission (Attachment 14). Attachment 15 is the spread sheets listing data on existing restaurants that was reviewed at the November 1995 Mayor's Meeting. Attachment 16 is the updated spread sheets as of August 31, 1999. Attachment 17 is a summary of the changes from 1995 to 1999. The 1999 list includes 132 restaurants and bars. Sixteen restaurants are not currently open. The conditional use permits for seven of these have lapsed (Baskin-Robbins, Mediterranean Kitchen, Yogurt Fair, Rooh's Caf6 Salsa, Los Gatos Creperie, Daniel's Deli and O' Shea's Pub and Grill). One restaurant (Ogilvie's hotel restaurant) will replace two existing restaurants leaving a net decrease of one, but with a net increase of 42 seats. One is on property currently under application for reuse (Villa Felice). Two closed last year (Fresh Choice and Boston Market), and their conditional use permits will expire if they don't reopen by the end of the year (December 24 and December 31, 1999 respectively). Two more closed recently (Mabel's Lantern House and The Flames Coffee Shop), and their conditional use permits will expire if they don't reopen by May 26 and June 30, 2000 respectively. The remaining three (The Green Papaya, The Wine Cellar and Village House) are expected to open. Leaving a total of 119-121 viable restaurants and bars. Attachment 18 is a listing of all of the restaurant applications and their disposition since 1996. There have been 43 conditional use permit applications involving 39 restaurants. Twenty-three of the 39 restaurants are in the CBD (C-2 Zone). One (L.G. Pastaio) was denied by both the Planning Commission and Council, and two (Starbucks and Los Gatos Garden Inn) were withdrawn. Eight were applications for a conditional use permit to legalize a nonconforming restaurant, three in the CBD. Fifteen were for new restaurants, ten in the CBD. Seven were to add beer and wine licenses to existing restaurants, five in the CBD including one for Baker's Square which is pending. Three applications were to add outdoor dining, all in the CBD. The Planning Commission has approved two new fast food restaurants in the CBD since 1995, both as a result of an enforcement action on zoning violations. (1) Los Gatos Creperie, which has since closed and the CUP has lapsed, and (2) The Posh Bagel, which was a conversion from a bakery to a restaurant. The Planning Commission has approved three new high-tumover sitdown restaurants in the CBD since 1995 (Kelly's, Borders Books and Oakville Grocers). The Planning Commission denied the expansion and increased seating for Rock'n Tacos (high-turnover sitdown). The Council denied the expansion but approved the increased seating. The Planning Commission later approved outdoor seating for the restaurant. The Planning Commission has approved three new quality restaurants in the CBD (Tapestry, Wine Cellar and Village House). Two of these (Wine Cellar and Village House) were formerly restaurants with lapsed conditional use permits. An appeal was filed for the Village House and the Council upheld the Commission's decision. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: TOWN'S RESTAURANT POLICIES September 9, 1999 Outside of the CBD but still within Downtown as defined by the Downtown Specific Plan, the Planning Commission has approved one new high turnover sit-down restaurant (Laheh's [now Fat Cat Cafe}). This application was also the result of an enforcement action on a zoning violation. The Commission has also approved one new quality restaurant (Ogilvie's hotel restaurant) which replaces two existing quality restaurants (La Strada and Siam Thai Cuisine). The Commission denied one application for a new quality restaurant (Campo di Bocce), but the Council has reversed the Commission's action. Outside Downtown, the Development Review Committee approved two new fast food restaurants (Jamba Juice and Starbucks). The Planning Commission approved one new fast food restaurant (Boston Market). The Commission denied one new fast food restaurant (High Tech Burrito), but the Council approved the application on appeal. The Commission also denied converting a quality restaurant to a fast food restaurant (Carl's Junior), but the Council approved the application on appeal. CONCLUSION: With the latest code amendments, the Town has all of the power and authority to regulate new restaurants and control changes in existing restaurants, and as long as the Development Review Committee, the Planning Commission and the Council heed the non-codified section of Ordinance 2021, no further regulations are necessary. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: None Attachments: I. Ordinance 146 2. Section 114 of Ordinance 1363, Table of Conditional Uses 3. Ordinance 1546 4. Town Council Resolution 1985-86 5. Town Council Resolution 1990-110 6. Ordinance 1832 7. Ordinance 1963 8. Town Council Resolution 1994-29 9. Town Council Resolution 1994-55 10. Ordinance 1976 I]. Town Council Resolution 1994-78 12. Staff report for November 6, 1995 Mayor's Meeting re: Restaurants Alternatives Study 13. Planning Department Policy dated August 1, 1996; Subject: Description of Restaurants and Specialty Retail Businesses the Offer Food Products 14. Ordinance 2021 15. Spread sheets listing data on existing restaurants that was reviewed at the November 1995 Mayor's Meeting 16. Updated spread sheets as of August 31, 1999 17. Summary of the changes from 1995 to 1999 18. Restaurant Applications since 1996 Distribution: Planning Commission Development Review Committee N_\DEV\LEE\TCREST2. WPD l 3 W- LAW OFFICES LUNDELL & SPADAFORE A PROFESSIONAL ASSOCIATION TIMOTHY A. LUNDELL NEVILLE K. 5PADAFORE 1065 ASBURY STREET SAN JOSE, CALIFORNIA 95126 December 12, 2006 Honorable Mayor and Council Members Town of Los Gatos 110 E. Main Street Los Gatos, CA 95030 Re: Appeal of Planning Commission Action - Conditional Use Permit U-07-4 Appellant: Neil Knott dba Powell's Sweet Shoppe Dear Mr. Mayor and Members of the Town Council: ID ~408}'292-Ti717 FAX (408) 297-4345 TOWN OF LOS GATOs CLERK DEPARTMENT On behalf of my friend and client, Neil Knott, I wish to convey his sincere gratitude for the overwhelming outpouring of support shown by the residents of Los Gatos for Powell's Sweet Shoppe, and for Mr. Knott's appeal from the Planning Commission's denial of a conditional use permit for the sale of gelato at his store. As a retired 40-year resident of Los Gatos and Monte Sereno, Neil gave a great deal of thought to the kind of retail business that he could own and operate with his son, Brad, and that would also be a positive addition to the small-town retail environment that Los Gatos strives to attract to the Central Business District. Powell's Sweet Shoppe seemed to satisfy these criteria perfectly, and also to add an historical "retro" touch as a reincarnation of "Caldwell's Sweet Shop", which was located just two doors away on N. Santa Cruz in the early 20th Century. The community has embraced the new business, and many times each day customers express their delight at the wide selection of confections, many of which cannot be found in any other South Bay candy shop. It is not surprising, therefore, that nearly 1,100 people have signed a Petition to the Town Council, which states: "We, the undersigned Residents of the Town of Los Gatos, hereby petition the Town Council to REVERSE the decision of the Los Gatos Planning Commission denying the issuance of a permit for the sale of gelato by Powell's Sweet Shoppe. We believe that Powell's Sweet Shoppe (including its sale of gelato) is 1) desirable to the public convenience, 2) does not impair the integrity and character of the downtown retail district, 3) is not detrimental to public health, safety or general welfare, and 4) is in harmony with the other uses and retail character of downtown Los Gatos." ATTACHMENT 12 Honorable Mayor and Council Members Town of Los Gatos December 12, 2006 Page Two The Petition, of course, recites the community view that the sale of gelato at Powell's Sweet Shoppe satisfies all of the criteria established by Town Code §29.20.190(a) for the granting of a conditional use permit. Influenced perhaps by the erroneous perception that Mr. Knott somehow snuck gelato sales into his store without the necessary permit, and by the opposition of competing businesses, the Planning Commission failed to make these findings. The Commission also failed to take into account other important factors: 1) the relatively minor portion of the business for which a CUP is required; 2) misunderstanding by staff in the initial processing of Mr. Knott's Use and Occupancy Permit; 3) the "close call" on the Town-policy definition of "restaurant", as it applies to scoop-and-serve gelato in a retail store; and 4) the pedestrian-friendly and small-town character of Mr. Knott's retail business, both of which are encouraged by the General Plan for the CBD. Mr. Knott understands and accepts the Staff recommendation that his CUP be limited to the existing "restaurant" use, which is the sale of gelato only (not ice cream or frozen yogurt), as an adjunct to retail sales. Mr. Knott seeks nothing more than to operate the business that he proposed in the very first plans and application submitted to the Town. The community has spoken ...that Powell's Sweet Shoppe is a welcome addition to the Town's historic central business district. I strongly urge the Council to rectify the errors that resulted in the earlier denial of that opportunity. Sincerely, 7-1~ TIMOT A. LUNDELL TAL:sb Enclosure: Petition page ONE PAGE OF 109 PAGES OF PETITION SIGNATURES COLLECTED IN OCT/NOV, 2006 PETITION TO THE TOWN COUNCIL OF LOS GATOS - Powell's Sweet Shoppe - We, the undersigned Residents of the Town of Los Gatos, hereby petition the-Town Council-fto -REVERSE the decision of the Los Gatos Planning Commission denying the issuance of a permit for the sale of gelato by Powell's Sweet Shoppe. We believe that Powell's Sweet. Shoppe (including its sale of gelato) is i) desirable to the public convenience, 2) does not impair the integrity and character of the downtown retail district, 3) is not detrimental to public health, safety or general welfare, and 4) is in harmony with the other uses and retail character of downtown Los Gatos. NAME plc r l , ADDRESS 4Bte L4g>~ A- 0 CT C G_ 3Z [off ~ qq5 ~fz 6""4 . f ~ 5-j 71~ tS--& ' Lcz~ . Co 6"s 9TO 2- F-7 Ate.. Los- MOMMOMEMM ® z W',AY'l