Staff Reportiowh o, MEETING DATE: 9/4/12
_. ITEM NO:
s
cos GA�o� COUNCIL AGENDA REPORT
DATE: AUGUST 23, 2012
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: CONDITIONAL USE PERMIT APPLICATION U -12 -007. PROJECT
LOCATION: 40 N. SANTA CRUZ AVENUE SUITE A. PROPERTY OWNER:
LOS GATOS INVESTMENTS LLC. APPLICANTS: STEPHEN SHELTON
AND JAMES MARINO
CONSIDER A REQUEST TO OPERATE A RESTAURANT WITH OUTDOOR
SEATING AND FULL ALCOHOL SERVICE ON PROPERTY ZONED C -2.
APN 529 -03 -050.
PLANNING COMMISSION RECOMMENDATION:
The Planning Commission recommended that the Town Council:
1. Deny the application (Attachment 2)
ALTERNATIVES:
Instead of the aforementioned action, the Council may:
i..
® Approve the application subject to the attached conditions (motion required); or
® Approve the application subject to modified or additional conditions of approval
s (motion required); or
® Continue the project to a date certain with specific direction (motion required)
BACKGROUND:
The subject site is located at the southeast corner of N. Santa Cruz Avenue and Elm Street, and
until last year had been part of the space occupied by Domus for nearly 40 years. Prior to
Domus' occupancy, this corner space had been a former location for Steamer's Grill now located
on University Avenue. The property owner began modifications to split the building into five
PREPARED BY: Todd Capurso, Acting Director of Community Development
Reviewed by: &Assistant Town Manager Town Attorney Finance
N:\DEV \TC REPORTS\2012 \40 NSC- Suite A.docx Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: 40 N. Santa Cruz Avenue Suite A/U -12 -007
August 23, 2012
tenant spaces last year (2011). Three of the four other tenant spaces are either occupied or
undergoing tenant improvements for non - formula retail tenants.
DISCUSSION:
A. Project Summary
The applicant is requesting approval to operate a restaurant with full liquor service. A
Conditional Use Permit (CUP) is required to allow operation of a new restaurant as well as
any type of alcohol service. The proposal includes a maximum of 22 seats, with up to five of
those seats located in a proposed uncovered outdoor patio area (Exhibit 5 of Attachment 7).
The applicant is proposing operating hours from 11:30 a.m. until 11:00 p.m., Monday thru
Thursday; midnight on Friday and Saturday; and 10:00 p.m. on Sunday. Please note that the
hours of operation were listed in error in the draft conditions presented to the Planning
Commission. The hours listed within the staff report were accurate and the correct hours are
listed in attachment 4.
B. Planning Commission
On August 8, 2012, the Planning Commission considered the subject application (see
Attachment 7 for a thorough description of the project). See Attachment 6 for the
Commission's full discussion.
The Planning Commission recommended denial since the project conflicts with Ordinance
2021 regarding the conversion of retail space to restaurant or personal service uses.
PUBLIC COMMENTS:
The Town received comments from residents and business owners both in support of the project
as well as those opposed to the project (Included as Exhibits to Attachments 5, 6, and 7). The
Town has received additional letters in opposition to the proposal since the Planning
Commission hearing on August 8, 2012 (Attachment 9).
CONCLUSION:
While the majority of the former 8,600 sq..ft. Domus space is now or will soon be occupied by
non - formula retail tenants, the application would displace a potential retail user. The project
would allow indoor and outdoor seating and full liquor service. As conditioned, the project
would meet the Alcoholic Beverage Policy and the Standards for Outdoor Seating. But
according to adopted Ordinance 2021, the proposed use would displace a potential retail tenant
and its impact on the downtown should be strongly considered.
1010=1
MAYOR AND TOWN COUNCIL
SUBJECT: 40 N. Santa Cruz Avenue Suite A/U -12 -007
August 23, 2012
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt according to Section 15301 of CEQA as adopted by the
Town, which exempts permitting an existing facility involving negligible use beyond the existing
use. No significant effect on the environment will occur since the project uses an existing
structure with no increase in floor area.
FISCAL IMPACT:
None
Attachments:
1. Required Findings
2. Resolution denying the Conditional Use Permit
3. Resolution approving the Conditional Use Permit
4. Recommended Conditions of Approval
5. Report to the Planning Commission for the meeting of August 8, 2012
6. Addendum report to the Planning Commission for the meeting of August 8, 2012
7. Desk item report to the Planning Commission for the meeting of August 8, 2012
8. Excerpt of the Planning Commission verbatim meeting minutes of August 8, 2012
9, Public Comments received after August 8, 2012 Planning Commission
Distribution:
cc: Stephen Shelton 131 Olive Street, Los Gatos CA 95030
Los Gatos Investments LLC,18841 Blythswood Drive, Los Gatos CA 95030
TC:MM:ct
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REQUIRED FINDINGS FOR:
40 N. Santa Cruz Avenue, Suite A
Conditional Use Permit U -12 -007
Requesting approval to operate a restaurant with outdoor seating and full alcohol service
on property zoned C -2. APN 529 -03 -050.
PROPERTY OWNER: Los Gatos Investments, LLC
APPLICANT: Stephen Shelton and James Marino
FINDINGS
Required finding for CEQA:
m The project is Categorically Exempt pursuant to Section 15301 of the State Environmental
Guidelines as adopted by the Town.
Required findings for a Conditional Use Permit:
® As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit:
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; and
(2) The proposed uses will not impair the integrity and character of the zone; and
(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.
Required finding for the Redevelopment Plan for the Central Los Gatos Redevelopment
Project Area:
That the proposed project is consistent with the Redevelopment Plan for the Central Los
Gatos Redevelopment Project Area (Section IV.B) in that the subject property is designated
commercial and the proposed use falls under general commercial uses.
Required findings for the Town's Alcoholic Beverage Policy:
e As required by Chapter II, Section 6, of the Town Alcohol Beverage Policy for granting
alcohol service beyond the hours of 10 p.m.
ATTAC NT j
Page 2 of 2
40 N. Santa Cruz Avenue Suite A/U -12 -007
September 4, 2012
The deciding body shall make the following findings prior to approving an application for a
Conditional Use Permit to serve alcoholic beverages past 10 p.m.;
A. Late night service will not adversely impact adjacent residential neighborhoods.
B. The applicant, does not have a history of complaints and non - compliance with local
ordinances or the Alcoholic Beverage Policy.
C. The applicant has demonstrated a clear benefit to the community.
NADEVONDINGS\2012 \40 NSC- A.docx
RESOLUTION 2012-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
DENYING A REQUEST TO APPROVE, CONDITIONAL USE PERMIT APPLICATION
U -12 -007.
APN: 529 -07 -099
CONDITIONAL USE PERMIT APPLICATION: U -12 -007
PROPERTY LOCATION: 40 N. SANTA CRUZ AVENUE SUITE A
PROPERTY OWNER: LOS GATOS INVESTMENTS LLC.
APPLICANT: STEPHEN SHELTON AND JAMES MARINO
WHEREAS, This matter came before the Town Council for public hearing on September 4,
2012, and was regularly noticed in conformance with State and Town law.
WHEREAS, The applicant seeks approve for a Conditional Use Permit (CUP) to operate a
restaurant with outdoor seating and full liquor service on property zoned C -2. The applicant is
requesting 22 seats, with up to five of those seats located within an outdoor patio and hours of
operation of 11:30 a.m. until 11 :00 p.m., Monday thru Thursday; midnight on Friday and Saturday;
and 10 :00 p.m. on Sunday.
WHEREAS, On August 8, 2012, the Planning Commission considered the request for a
Conditional Use Permit (CUP) to operate a restaurant with outdoor seating and full liquor service on
property zoned C -2. The Planning Commission determined that the request was inconsistent with
Ordinance 2021 regarding conversion of a retail space and recommended denial.
WHEREAS, The Town's Alcohol Beverage Policy requires any new application for the
service of alcoholic beverages to be approved by Council. Town Council reviews CUP requests
for a new application for alcohol service on a case -by -case basis to ensure that the request is
appropriate for the specific use and its location.
ATTACHMENT 2
WHEREAS, The Town's Alcoholic Beverage Policy gives the hearing body discretion to
approve alcoholic beverage service on a case -by -case basis when the proposal will not negatively
impact residential neighbors, alcohol related incidents will not occur, and when the application
will provide a positive impact to the commercial area.
WHEREAS, Town Council received testimony and documentary evidence from the
applicant and all interested persons who wished to testify or submit documents. Town Council
considered all testimony and materials submitted, including the record of the Planning Commission
proceedings and the packet of material contained in the Council Agenda Report, along with any and all
subsequent reports and materials prepared concerning this application.
WHEREAS, Council finds as follows:
A. Pursuant to Town Code section 29.20.190, the request for a CUP is not
desirable to the public convenience; will impair the integrity and character of the zone; would be
detrimental to public health, safety or general welfare; and is not in harmony with the various
elements or objectives of the General Plan and the purposes of the Town Code. This finding is
based on the evidence presented in the Council Agenda Report dated August 23, 2012, regarding
this application.
B. The project conflicts with Ordinance 2021 in that it converts a retail space
into a restaurant.
RESOLVED:
1. The CUP application U -12 -007 to operate a restaurant with outdoor seating and full
liquor service on property zoned C -2 is denied.
2. The decision constitutes a final administrative decision pursuant to Code of Civil
Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los
Gatos. Any application for judicial relief from this decision must besought within the time limits
and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such
shorter time as required by State and Federal Law.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 4th day of September, 2012, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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RESOLUTION 2012-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
GRANTING A REQUEST TO APPROVE CONDITIONAL USE PERMIT
APPLICATION U -12 -007.
APN: 529 -03 -050
CONDITIONAL USE PERMIT APPLICATION: U -12 -007
PROPERTY LOCATION: 40 N. SANTA CRUZ AVENUE SUITE A
PROPERTY OWNER: LOS GATOS INVESTMENTS LLC.
APPLICANT: STEPHEN SHELTON AND JAMES MARINO
WHEREAS, This matter came before the Town Council for public hearing on September 4,
2012, and was regularly noticed in conformance with State and Town law.
WHEREAS, The applicant seeks approve for a Conditional Use Permit (CUP) to operate a
restaurant with outdoor seating and full liquor service on property zoned C -2. The applicant is
requesting 22 seats, with up to five of those seats located within an outdoor patio and hours of
operation of 11:30 a.m. until 11:00 p.m., Monday thru Thursday; midnight on Friday and Saturday;
and 10:00 p.m. on Sunday.
WHEREAS, On August 8, 2012, the Planning Commission considered the request for a
Conditional Use Permit (CUP) to operate a restaurant with outdoor seating and full liquor service on
property zoned C -2. The Planning Commission determined that the request was inconsistent with
Ordinance 2021 regarding conversion of a retail space and recommended denial.
WHEREAS, The Town's Alcohol Beverage Policy requires any new application for the
service of alcoholic beverages to be approved by Council. Town Council reviews CUP requests
for a new application for alcohol service on a case -by -case basis to ensure that the request is
appropriate for the specific use and its location.
A TA0 NT 3
WHEREAS, The Town's Alcoholic Beverage Policy gives the hearing body discretion to
approve alcoholic beverage service on a case -by -case basis when the proposal will not negatively
impact residential neighbors, alcohol related incidents will not occur, and when the application
will provide a positive impact to the commercial area.
WHEREAS, Town Council received testimony and documentary evidence from the
applicant and all interested- persons who wished to testify or submit documents. Town Council
considered all testimony and materials submitted, including the record of the Planning Commission
proceedings and the packet of material contained in the Council Agenda Report, along with any and all
subsequent reports and materials prepared concerning this application.
WHEREAS, Council finds as follows:
A. Pursuant to Town Code section 29.20.190, the request for a CUP is desirable to the
public convenience; will not impair the integrity and character of the zone; would not be
detrimental to public health, safety or general welfare; and is in harmony with the various elements
or objectives of the General Plan and the purposes of the Town Code. This finding is based on the
evidence presented in the Council Agenda Report dated August 23, 2012, regarding this
application.
B. The project does not conflict with Ordinance 2021 in that the majority of the
original retail space will be maintained.
C. The project is categorically exempt from environmental review pursuant to Section
15061 of the State Environmental Guidelines as adopted by the Town.
D. The proposed use is consistent with the Redevelopment Plan for the Central Los
Gatos Redevelopment Project Area (section IV.B).
NOW THEREFORE BE IT RESOLVED:
1. The CUP application U -12 -007 to operate a restaurant with outdoor seating and full
liquor service on property zoned C -2 is granted.
2 The Conditions of Approval attached hereto as Exhibit A are hereby adopted as the
Conditions of Approval for this permit.
3. The decision constitutes a final administrative decision pursuant to Code of Civil
Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los
Gatos. Any application for judicial relief from this decision must besought within the time limits
and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such
shorter time as required by state and federal Law.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California held on the 4th day of September 2012, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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CONDITIONS OF APPROVAL — August 8, 2012
40 N. Santa Cruz Avenue, Suite A
Conditional Use Permit U -12 -007
Requesting approval to operate a restaurant with outdoor seating and full alcohol service on
property zoned C -2. APN 529 -03 -050.
PROPERTY OWNER: Los Gatos Investments, LLC
APPLICANT: Stephen Shelton and James Marino
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, in substantial compliance with the approved plans. Any changes or
modifications made to the approved plans shall be approved by the Director of Community
Development, the Development Review Committee, the Planning Commission, or the Town
Council 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. APPROVED USE: The approved use is for a quality (sit -down) restaurant.
4. SEATS: The maximum number of seats shall not exceed 22. Up to five of the 22 seats may be
permitted within the outdoor patio.
5. OFFICE SPACE: The tenant space shall include 200 sq. ft. of office /storage space as shown on the
approved plans. If this space is not included in future lease agreements, seating will be limited to
19 seats.
6. ALCOHOLIC BEVERAGE SERVICE: The service of alcoholic beverages is permitted only with
meals. A meal is defined as a combination of food items selected from a menu (breakfast, brunch,
lunch, or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. (hot
or cold) are not meals.
7. HOURS OF OPERATION: Maximum hours of operation are 11:30 a.m. until 11:00 p.m.,
Monday thru Thursday; midnight on Friday and Saturday; and 10:00 p.m, on Sunday
8. ENTERTAINMENT: Live entertainment is not allowed.
9. OUTDOOR SEATING SEPARATION: Outdoor seating shall be completely enclosed by a
physical delineation or other means to manage public safety and welfare concerns to the
satisfaction of the Community Development Director and the Police Chief.
10. OUTDOOR FOOD AND ALCOHOLIC BEVERAGE SERVICE: A restaurant employee
must seat patrons in the outdoor seating area.
11. UTENSILS: All meals served on -site shall be on re- usable utensils.
12. TAKE -OUT CONTAINERS: Any take -out food shall be served in recyclable containers.
13. SIGN PERMIT: A Sign Permit from the Los Gatos Community Development Department must be
obtained prior to any changes to existing signs or installation of new signs.
14. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy from the Los
Gatos Community Development Department must be obtained prior to commencement of use.
15. BUSINESS LICENSE: A business license from the Town of Los Gatos Finance Department must
be obtained prior to the commencement of any new or change of use.
AT AcH NT 4
16. DELIVERIES: Deliveries shall occur at the rear of the building and be limited to the hours of 7
AM to 10 AM.
17. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall
only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts.
18. ENVIRONMENTAL HEALTH APPROVAL: The applicant shall submit plans to the County of
Santa Clara Department of Environmental Health for review prior to commencement of use. The
applicant shall provide a copy of the approval from the County of Santa Clara Department of
Environmental Health prior to commencement of use and /or issuance of building permits.
19. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any
applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold
harmless the Town and its officials in any action brought by a third party -to overturn, set aside, or
void the permit or entitlement. This requirement is a condition of approval of all such permits and
entitlements whether or not expressly set forth in the approval, and may be secured to the
satisfaction of the Town Attorney. .
jz
TO THE SATFISFATION OF THE DIRECTOR OF PARKS & PUBLIC WORKS:
Engineering Division
20. GREASE TRAPS: Meet all requirements of the Santa Clara County Health Department and West
Valley Sanitation District for the interception, separation or pretreatment of effluent.
TO THE SATISFACTION OF THE SANTA CLARA COUNTY FIRE DEPARTMENT:
21. OCCUPANCY AND EXITING: The applicant shall submit plans to evaluate the occupant load
and required exits to the Fire Department for review and approval prior to commencement of use
and /or issuance of building permits.
22. EXTINGUISHING SYSTEM: The Fire Department shall inspect the required UL 300 fixed
extinguishing system ,in the kitchen to ensure compliance with applicable regulations prior to
commencement of use .and /or issuance of building permits.
TO THE SATISFACTION :OF THE CHIEF OF POLICE:
23. UNIFORMED SECURITY: Uniformed' privately provided security guards may be required in or
around the premises by the Chief of Police if alcohol- related problems recur that are not resolved
by'th'eS licensed o wner. °`
24. CONSUETATION -AND TRAINING: At the discretion of the Chief of Police, periodic meetings
will be conducted with representatives from the Police Department for on -going employee training
0&alc611Jofie beverage service to the general public.
25. TRAINING MANUAL: The restaurant operator shall use 'an employee training manual that
addresses alcoholic beverage- service '66 isteht with the 'standards of the California Restaurant
Associator.
26. DESIGNATED 'DRIVER PROGRAM: The restaurant operator' shall actively promote a designated
driver program such as-complimentary non: alcoholic beverages for designated drivers.
27. POSTING1OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted
in a visible location.
NADEV \C0NDITNS \2012 \40 NSC- A.doex
` °w % TOWN OF LOS GATOS
PLANNING COMMISSION STAFF REPORT
`0S'cnz�s Meeting Date: August 8, 2012
PREPARED BY: Marni F. Moseley, Associate Planner
mmoseley@losgatosca.gov
APPLICATION NO: Conditional Use Permit U -12 -007
ITEM NO: 2
LOCATION: 40 N. Santa Cruz Avenue Suite A (Located at the southeast corner of
N. Santa Cruz Avenue and Elm Street)
APPLICANT: Stephen Shelton and James Marino
PROPERTY OWNER: Los Gatos Investments, LLC
CONTACT PERSON: Stephen Shelton
APPLICATION
SUMMARY: Requesting approval to operate a restaurant with full liquor service and
outdoor seating on property zoned C -2. APN: 529 -03 -050
DEEMED COMPLETE: July 12, 2012
FINAL DATE TO TAKE ACTION: January 12, 2013
RECOMMENDATION: Forward recommendation for denial to Town Council
PROJECT DATA: General Plan Designation: Central Business District
Zoning Designation: C -2, Central Business District
Applicable Plans & Standards: Town Alcohol Policy
Outdoor Seating Policy
Parcel Size: 8,918 Sq. Ft.
Surrounding Area:
CEQA: Categorically Exempt pursuant to Section 15061 of the State
Environmental Guidelines as adopted by the Town.
ATTACHWNT 5t
p;xisting.Land Use
_._.._._...._.._..........
General Plan
Zor
North
Commercial
._ ...... .... ... . .. . _......_........._.._...._...._._....__.._._............. ......... .... ......
CentraLBusiness District
._.._......_
C -2
East
__ ....................._
Commercial
._.............._......_.....................................-...........-.............._....................................................._......._...._................._..._.._...................._............
Central Business District
C -2
South
Commercial
_.._. ...................._...._.._......_.._........
..............................
Central Business District
C -2
West
Commercial
.........- .......- ...- .._.,._.. ._....._......................
Central Business District
_. -_..
C -2
CEQA: Categorically Exempt pursuant to Section 15061 of the State
Environmental Guidelines as adopted by the Town.
ATTACHWNT 5t
Plamling Commission Staff Report - Page 2
40 N. Santa Cruz\ U -12 -007
August 8, 2012
FINDINGS: ® As required by Section 15061 of the State Environmental Guidelines
as adopted by the Town that this project is Categorically Exempt.
M As required by Section 29.20.190 of the Town Code for granting a
Conditional Use Permit.
ra As required by the Town Alcohol Policy,
ACTION: Recommendation to the Town Council
EXHIBITS: 1. Location Map
2. Required Findings (two pages),
3. Proposed Conditions of Approval (two pages)
4. Letter of Justification (eight pages), received June 11, 2012
5. Development plans (four pages) received July 12, 2012
BACKGROUND:
The subject site is located at the southeast corner of N. Santa Cruz Avenue and Elm Street, and
until last year had been part of the space occupied by Domus for nearly 40 years. Prior to
Domus' occupancy, this corner space had been a former location for Steamer's Grill now located
on University Avenue. The property owner began modifications to split the building into five
tenant spaces last year in 2011. The property owner currently has lease agreements with non -
formula retail tenants for the four other suites.
PROJECT DESCRIPTION:
A. Conditional Use Permit
The applicant is requesting the approval to operate a restaurant with full liquor service. A
CUP is required to allow operation of a new restaurant as well as any type of alcohol
service. The proposal includes a maximum of 22 seats, with up to five of those seats
located in a proposed uncovered outdoor patio area (Exhibit 5). The applicant is proposing
operating hours from 11:30 a.m, until 11:00 p.m., Monday thru Thursday; midnight on
Friday and Saturday; and 10:00 p.m, on Sunday.
B. Location and Surrounding Neighborhood
The site is located at the southeast corner of N. Santa Cruz Avenue and Elm Street. The
property is surrounded by commercial properties zoned C -2. A Town parking lot is located
to the rear. This lease space is one of five spaces that were recently created when the
building was divided to create smaller more usable /leasable units,
',, . 1i 1
Planning Commission Staff Report - Page 3
40 N. Santa Cruz\ U -12 -007
August 8, 2012
C. Zoning Compliance
The designated zoning for the property is C -2 Central Business District. The C -2 zone
allows restaurant uses subject to the approval of a CUP. Outside dining and on premise
alcohol sales associated with a restaurant also require a CUP.
ANALYSIS:
A. Outdoor Seating
The applicant is proposing to place low, 24 inch planters around the existing patio space
between the front door and N. Santa Cruz Avenue. The space will not be covered, and the
patio will be seated and monitored by the restaurant hostess. The proposed patio furniture is
provided on the floor plan (Exhibit 5).
B. Alcohol Policy
The Town's Alcoholic Beverage Policy requires any new or changes to existing service of
alcoholic beverages to be approved by the Town Council. The request is consistent with the
Alcoholic Beverage Policy.
The applicant is proposing hours of operation from 11:30 a.m. until 11:00 p.m., Monday
' through Thursday; midnight Friday and Saturday; and 10:00 p,m. Sundays (Exhibit 4). The
Alcohol Policy restricts the hours of operation to 11:00 p.m. Sunday through Thursday, and
1 :00 a.m. Friday and Saturday. It also requires an additional finding that the applicant has
demonstrated a clear benefit to the community to approve alcohol service beyond 10 :00
p.m. (Exhibit 5). The applicant discusses their benefits to the community in a letter of
justification (Exhibit 4). The applicant's stated benefits include:
- The business will focus on green and sustainable foods and business practices,
- The business will be a Certified Green business (will provide tours if asked to
demonstrate this to the community) with a LEED certified interior,
- The menu will offer food that is not currently available in Los Gatos with weekly
variability,
- Will bring foot traffic to an area currently underutilized at night,
- Will draw media attention due to the green business element and draw new customers
to the downtown.
- Will provide lunch deliveries by bicycle or rickshaw
The applicant is proposing to install new bicycle racks outside the public right of way
along Elm Street.
The deciding body must review the application and determine if the proposal is providing a
benefit to the community. The proposed conditions of approval do not require the applicant
to comply with these provided justifications. If the Planning Commission finds it
Planning Commission Staff Report - Page 4
40 N. Santa Cruz\ U -12 -007
August 8, 2012
appropriate, additional conditions of approval should be recommended, The Planning
Commission's recommendation will be forwarded to the Town Council for final action.
The Police Department has reviewed the application, and has no comments or concerns.
C. Restaurant Use in the Downtown Area
In 1996, the Town Council adopted Ordinance 2021 that "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."
While the application would be displacing a potential retail user, the property owner has
secured non - formula retail users for approximately 80% of the former retail space, It
should also be noted that the proposed corner space would be the most appropriate location
for a restaurant due to the recessed frontage, if one were to be approved within the
building. The Commission should consider carefully the potential impact of the conversion
of this space on the downtown.
D. Traffic
The application is for a quality restaurant that will not be open until 11;30 a.m. As a result
there are no a.m. peak hour trips, and an increase of 1.6 p.m, peak hour trips. The change of
use will not increase the Average Daily Trips (ADT) for the tenant space.
E. Parking
Tenant Suite A has a total of 1,487 sq. ft., but will be leasing an additional 200 sq. ft. of
office and storage space within the building located behind Suite D. This is unusual in that
the spaces are not connected, but could be appropriate in that it is part of the gross sq. ft. of
the building in which parking is required and accounted for. The total gross sq. ft.
associated with the use would be 1,687 sq. ft. and would permit a maximum of 22 seats.
The applicant is proposing 22 seats with up to five of those seats located on the outdoor
patio. If a future tenant were to not lease the additional office space, then staff has included
a condition to reduce the allowed seating to 19 seats.
F. General Plan
The goals and policies of the 2020 General Plan listed below are applicable to this project.
Staff's comments regarding the goals and policies are italicized,
Policy LU -9.2 — Maintain a variety of commercial uses, including a strong Downtown
commercial area combined with Los Gatos Boulevard and strong neighborhood
commercial centers to meet the shopping needs of residents and to preserve the small-
Planning Commission Staff Report - Page 5
40 N. Santa Cruz\ U -12 -007
August 8, 2012
town atmosphere. The proposed use would displace a retail space in the Downtown
commercial area and, therefore, would be inconsistent with this policy.
Policy LU -9.3 - Encourage a mix of retail and office uses in commercial areas, except
in the Central Business District designation, where retail should be emphasized and
office should be limited to upper floors and other areas as defined by the Town Code.
The proposed use would displace a retail use with a restaurant where retail should be
emphasized.
Goal LU -10 - To preserve Downtown Los Gatos as the historic center of the Town with
goods and services for local residents while maintaining the existing Town identity,
environment and commercial vitality. The proposed use would provide a new
restaurant focused on local and sustainable food and operations.
Policy CD -10.2 — Encourage outdoor seating for restaurants /coffee shops when the
historic character and quality of the Downtown and adjacent neighborhoods can be
maintained. The proposed use would provide outdoor seating in a location that would
not impact the historic character of the Downtown or residences.
G. Environmental Review
The project is Categorically Exempt according to Section 15061 of CEQA as adopted by
the Town, which exempts permitting an activity where it can be seen with certainty that
there is no possibility that the activity may have a significant effect on the environment.
No significant effect on the environment will occur since the project uses an existing
structure with no increase in floor area.
H. Redevelopment Plan for the Central Los Gatos Redevelopment Project Area
The Redevelopment Plan contains a Redevelopment Land Use Map that designates
proposed land uses to be permitted in the Central Los Gatos Redevelopment Project Area.
The subject property is designated commercial and, per the Redevelopment Plan, shall be
used for the general commercial uses set forth and described in the Town's General Plan.
The proposed use falls under general commercial uses.
I. CUP Findings
In order to grant approval of a Conditional Use Permit, the hearing body must make the
following findings:
(1) The proposed uses of the property are essential or desirable to the public convenience
or welfare; and
(2) The proposed uses will not impair the integrity and character of the zone; and
(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.
Planning Commission Staff Report - Page 6
40 N. Santa Cruz\ U -12 -007
August 8, 2012
The proposed use is desirable to the public convenience and welfare in that it provides a
restaurant focusing on fresh, local, and sustainable foods, but may not be desirable in that it
displaces a potential retail use. The proposed use could impair the integrity of the zone in
that the C -2 (Central Business District) zone should emphasize retail uses. The proposed
use will not impact public health, safety or general welfare. The use may not comply with
the objectives of the General Plan and Town Code as discussed within this report.
If the Planning Commission finds meri t
recommendation for approval to the Town
made to support the application.
J. Public Comments
with the proposal and chooses to make a
Council, the required findings would have to be
At this time, the Town has not received any public comment.
CONCLUSION AND RECOMMENDATION:
A. Conclusion
While the former 8,600 sq. ft. Domus space is now occupied and /or leased by four non -
formula retail tenants that comprise 80% of the building, the application would displace a
potential retail user. The project would allow indoor and outdoor seating and full liquor
service. As conditioned, the project would meet the Alcoholic Beverage Policy and the
Standards for Outdoor Seating. But according to the adopted Ordinance by the Town
Council, the proposed use would displace a potential retail tenant and its impact on the
downtown should be strongly considered.
B. Recommendation
Staff recommends denial of the project because it conflicts with Ordinance 2021, If the
deciding body concurs with staff's recommendation, it should recommend denial of the
application to the Town Council.
If the deciding body finds merit with the proposed project and that it is in compliance with
Ordinance 2021 and that the applicant has provided sufficient benefit to approve hours
beyond 10:00 p.m., it should:
1. Find that the proposed project is categorically exempt, pursuant to Section 15061 of
the California Environmental Quality Act as adopted by the Town (Exhibit 2); and
2. Make the required findings as required by Section 29.20,190 of the Town Code for
granting approval of a Conditional Use Permit (Exhibit 2); and
Planning Commission Staff Report - Page 7
40 N. Santa Cruz\ U -12 -007
August 8, 2012
3. Make the required finding 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 (Exhibit 2); and
4. Make the required findings as required by the Town's Alcoholic Beverage Policy to
approve a Conditional Use Permit to serve alcoholic beverages after 10 :00 p,m.
(Exhibit 2); and
5. Recommend approval of the Conditional Use Permit application U -12 -007 to the
Town Council with the conditions contained in Exhibit 3.
It should be noted that the Commission must expand the findings noted in Exhibit 2 if the
Commission recommends approval of the proposal.
Alternatively, if the Commission has concerns with the application, it can recommend
approval of the application to the Town Council with additional and/or modified conditions
of approval.
Prep ed by:
Marni F. Moseley, AICP
Associate Planner
WRR: MM: cgt
Approved by: G/
Wendie R. Rooney
Director of Community Development
cc: Stephen Shelton 131 Olive Street, Los Gatos CA 95030
Los Gatos Investments LLC, 18841 Blythswood Drive, Los Gatos CA 95030
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REQUIRED FINDINGS FOR:
40 N. Santa Cruz Avenue Suite A
Conditional Use Permit U -12 -007
Requesting approval to operate a restaurant with outdoor seating and full alcohol service
on property zoned C -2. APN 529 -03 -050.
PROPERTY OWNER: Los Gatos Investments, LLC
APPLICANT: Stephen Shelton and James Marino
FINDINGS
Required finding for CEQA:
a The project is Categorically Exempt pursuant to Section 15061 of the State Environmental
Guidelines as adopted by the Tow.
Required findings for a Conditional Use Permit:
u As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit:
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 ode if it
finds that:
(1) The proposed uses of the property are essential or desirable to the public convenience or
welfare; and
(2) The proposed uses will not impair the integrity and character of the zone; and
(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.
Required finding for the Redevelopment Plan for the Central Los Gatos Redevelopment
Project Area:
u That the proposed project is consistent with the Redevelopment Plan for the Central Los
Gatos Redevelopment Project Area (Section IV.B) in that the subject property is designated
commercial and the proposed use falls under general commercial uses.
Required findings for the Town's Alcoholic Beverage Policy:
n As required by Chapter II, Section 6, of the Town Alcohol Beverage Policy for granting
alcohol service beyond the hours of 10 p.m.
EXHIBIT 2
Page 2 of 2
40 N. Santa Cruz Avenue Suite A/U -12 -007
August S, 2012
The deciding body shall make the following findings prior to approving an application for a
Conditional Use Permit to serve alcoholic beverages past 10 p.m,:
A. Late night service will not adversely impact adjacent residential neighborhoods.
B. The applicant does not have a history of complaints and non - compliance with local
ordinances or the Alcoholic Beverage Policy.
C. The applicant has demonstrated a clear benefit to the community.
N:\DEV \FINDINOW012 \40 NSC.A.docx
CONDITIONS OF APPROVAL —Aacg cost 8, 2012
40 N. Santa Cruz Avenue Suite A
Conditional Use Permit U -12 -007
Requesting approval to operate a restaurant with outdoor seating and full alcohol service
on property zoned C -2. APN 529 -03 -050.
PROPERTY OWNER: Los Gatos Investments, LLC
APPLICANT: Stephen Shelton and James Marino
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, in substantial compliance with the approved plans. Any changes
or modifications made to the approved plans shall be approved by the Director of
Community Development, the Development Review Committee, the Planning
Commission, or the Town Council 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. APPROVED USE: The approved use is for a quality (sit -down) restaurant.
4. SEATS: The maximum number of seats shall not exceed 22. Up to five of the 22 seats
may be permitted within the outdoor patio.
5. OFFICE SPACE: The tenant space shall include 200 sq. ft. of office /storage space as
shown on the approved plans. If this space is not included in future lease agreements,
seating will be limited to 19 seats.
6. ALCOHOLIC BEVERAGE SERVICE: The service of alcoholic beverages is permitted
only with meals. A meal is defined as a combination of food items selected from a menu
(breakfast, brunch, lunch, or dinner). Appetizers such as popcorn, nachos, pretzels, potato
skins, relish trays, etc. (hot or cold) are not meals.
7. HOURS OF OPERATION: Maximum hours of operation are 10:00 a.m. to 12:00 a.m.,
Sunday to Thursday; and 10:00 a.m. to 1:00 a.m., Friday, Saturday, holidays, and evenings
before holidays.
8. ENTERTAINMENT: Live entertainment is not allowed.
9. UTENSILS: All meals served on -site shall be on re- usable utensils.
10. TAKE -OUT CONTAINERS: Any take -out food shall be served in recyclable containers.
11. SIGN PERMIT: A Sign Permit from the Los Gatos Community Development Department
must be obtained prior to any changes to existing signs or installation of new signs.
12. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy from
the Los Gatos Community Development Department must be obtained prior to
commencement of use.
13. BUSINESS LICENSE: A business license from the Town of Los Gatos Finance
Department must be obtained prior to the commencement of any new or change of use.
14. DELIVERIES: Deliveries shall occur at the rear of the building and be limited to between
15. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business
shall only be emptied between 9 :00 a.m. and 9 :00 p.m. to limit the noise impacts.
extilBIT 3
16. ENVIRONMENTAL HEALTH APPROVAL: The applicant shall submit plans to the
County of Santa Clara Department of Environmental Health for review prior to
commencement of use. The applicant shall provide a copy of the approval from the County
of Santa Clara Department of Environmental Health prior to commencement of use and /or
issuance of building permits.
17. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires
that any applicant who receives a permit or entitlement from the Town shall defend,
indemnify, and hold harmless the Town and its officials in any action brought by a third
party to overturn, set aside, or void the permit or entitlement. This requirement is a
condition of approval of all such permits and entitlements whether or not expressly set
forth in the approval, and may be secured to the satisfaction of the Town Attorney.
TO THE SATFISFATION OF THE DIRECTOR OF PARKS & PUBLIC WORKS:
Engineering Division
18, GREASE TRAPS: Meet all requirements of the Santa Clara County Health Department
and West Valley Sanitation District for the interception, separation or pretreatment of
effluent.
TO THE SATISFACTION OF THE SANTA CLARA COUNTY FIRE DEPARTMENT:
19, OCCUPANCY AND EXITING: The applicant shall submit plans to evaluate the occupant
load and required exits to the Fire Department for review and approval prior to
commencement of use and /or issuance of building permits.
20. EXTINGUISHING SYSTEM: The Fire Department shall inspect the required UL 300
fixed extinguishing system in the kitchen to ensure compliance with applicable regulations
prior to commencement of use and /or issuance of building permits.
TO THE SATISFACTION OF THE CHIEF OF POLICE:
21. UNIFORMED SECURITY: Uniformed privately provided security guards may be required
in or around the premises by the Chief of Police if alcohol related problems recur that are
not resolved by the licensed owner.
22. CONSULTATION AND TRAINING: At the discretion of the Chief of Police, periodic
meetings will be conducted with representatives from the Police Department for on -going
employee training on alcoholic beverage service to the general public.
23, TRAINING MANUAL: The restaurant operator shall use an employee training manual that
addresses alcoholic beverage service consistent with the standards of the California
Restaurant Association,
24, DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a
designated driver program such as complimentary non - alcoholic beverages for designated
drivers.
25. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be
posted in a visible location.
N.\DEV\C0NDITNS \2012 \40 NSC- A.docx
Le-1/_inito-ry Hctc�e
Town of Los Gatos
110 E, Main Street
Los Gatos, CA 95031
RECEIVED
s11',1 1 12012
TOWN] OF LOS GA T OG
PLANNING DIVISION!
Re: Letter of Justification and Findings for Proposed Project — Lexington House
To Whom It May Concern:
We are excited to be submitting a Conditional Use Permit application for Lexington
House. The following is the Project Description and Letter of Justification and
Findings. We are proposing to modify the existing Use Permit for 40 N. Santa Cruz
Ave, Suite A (formerly a part of Domus). Lexington House proposes to offer fine
food service, fine wine and beer service, and fine artisanal spirit service, which
would require approval of a full liquor license.
Lexington House —The Concept
Lexington House is a gathering place reminiscent of gastropubs around the globe —
targeting a hip, mature, and sophisticated clientele. A restaurant where people and
quality will come together in every detail. There are three differentiators about
Lexington House, when compared to other establishments in and around Los Gatos:
1) The Community Setting
2) A New Experience
3) A Green Design
The Community Setting
Picture a place where all can come and enjoy what is great about fine, sophisticated,
fresh, seasonal food and drink —all at an approachable price, The setting will be
cozy and intimate — encouraging people to share a "space" and be a part of a
"community ".
Lexington House will focus on taking our guests through an experience that is
innovative, educational, and enlightening —yet familiar. We will take pride in
offering unstuffy and inviting service. Our professional servers will educate on the
purpose and history of food and drink. We are the heart and soul and have passion
for the craft of taking care of our guests.
A New Experience
Lexington House will be a fresh experience — providing couples, friends, and small
groups of people with a new and innovative place to celebrate a special occasion or
to just unwind after work. Fine, sustainably produced products will be
commonplace.
Lexington House understands that playing a role in supporting the local community,
economy, and sustainability movement is more than just opening our doors. We will
be a leader in supporting the economic and social aspects of the local arts and
schools, and the Town of Los Gatos sustainability movement through our actions
and business practices. We intend to draw neighboring business and residents —not
just the local ones that have grown tired of over - commercialized environments in
FEM 1MI T J,
L ogLngt-o w 14 rn,,�
over- extended shopping areas, Lexington House will be a destination for higher -end
clientele who have run out of interesting, refreshing, hip places to get together,
A Green Design
Lexington House is extremely passionate about the planet, food and service, It is our
sincere belief that one should be able to have fine food, grown sustainably by local
farmers in a'green' establishment as well.
Lexington House plans to be a Certified Green business, Our restaurant is designed
with green design guidelines, materials, and policies, We will compost, recycle and
reuse, recycle our grease, and institute solar power. The ultimate goal of Lexington
House in terms of design and construction is to have a LEED certified interior, We
plan to be the first LEED certified business of Los Gatos to go with the its first LEED
public building (the Library) and its first LEED residence (the Hogan /Pearson
residence on Foster Rd.)
The atmosphere and design will be warm and inviting —with modern influence that
ties into the current building design, Lexington House seeks to be unique while still
maintaining the Town of Los Gatos visual and design requirements and standards,
Hours of Operation:
Monday - Thursday: 11,30 am- 11,00 pm
Friday- Saturday: 11,30am- 12:00am
Sunday: 11:30am -10pm
Food Service will be available during all hours listed above.
Seating
Our square - footage is 1687 sq. ft, This total includes an office space not part of the
floor plan of Suite A. The location is highlighted on the entire site plan and is a part
of our lease agreement. We are requesting approval_ of twenty -two (22) seats for
inside and outside food and drink service, Requested seating includes required
handicap seating which is noted in the proposed plan.
The Need —The Demand
The residents of Los Gatos are yearning for a restaurant that offers a 'middle -
ground' that straddles sophisticated, unique offerings of food and drink, in a warm,
cultured, hip atmosphere, with approachable prices. The residents of Los Gatos are
hungry for new and exciting accessible food and drink; they don't want to drive to
San Francisco, San Jose, or Palo Alto to get it, Let us bring it to them! The Town of
Los Gatos and its residents are implementing many sustainable policies and
practices into their daily lives and culture— eating and drinking is a part of that
culture. Restaurants in general are some of the most unsustainable businesses; let
Lexington House fill that void of a truly green and sustainably operated restaurant.
The Food
Lexington House pays tribute to a style of cuisine that is missing in the Town of Los
Gatos, Lexington will be a gastro -pub style place, inspired by the rich restaurant
culture of Europe, New York and San Francisco, specializing in seasonal dishes of the
2
rre.wvrigto -Y, Hates
highest quality, We will offer a menu that changes weekly, ensuring something
fresh, seasonal and new all the time. We want to embrace the opportunity to keep
our residents here as customers, and attract new, non - resident customers who
desire a break from the usual, predictable faire of the South Bay, Our style of cuisine
will be Modern American with a focus on comfort, locally produced, seasonality and
innovation. David Murphy will convey the art of food, not only through vibrant
ingredients and techniques, but also via the plates and materials he uses, We point
to places such as Martin's West in Redwood City, Village Pub in Woodside, Manresa
here in Los Gatos as examples, The restaurant will stand for the commitment to local
purveyors who operate sustainable businesses, and whose food is grown and raised
sustainably, Lexington House will offer fresh, flavorful, technique- driven dishes with
a price -point accessible to the entire community.
The Drink
Our focus is the artisanal craft of all beverages and the pairing with food. Our
primary goal is to provide our guests with a superior libation experience that is as
fresh and as seasonal as our food. This is with the hope that our guests will not only
discover something new, but also be free to find comfort in their personal favorites,
We will strive to find producers that are local and believe in sustainable and organic
practices. And, whether it is a "hard to find" bottle or glass of boutique wine, an icy
cold, small -craft beer, or a classic, carefully prepared artisanal cocktail —each will be
selected or designed to pair with our food, inspire and invigorate the senses, and
keep patrons coming back for this fresh, new experience,
Economic Reasons: Retail vs. Restaurant
Considering today's economic climate, allowing Lexington House to operate at 40 N.
Santa Cruz Ave, is the best economic solution. We recognize that we are asking to go
into a "retail" spot. The landlord has created five small boutique spaces resulting in
the opportunity to have a more diverse combination of uses, still maintaining more
than 80% of the building as retail. More importantly, by providing a mix of shops,
Los Gatos ensures a healthy mix of foot traffic that just doesn't end at 5 pm when
retail hours end.
The Lexington House is looking to re- occupy the original restaurant space of
Steamer's Grillhouse, demonstrating that the original use of restaurant and retail is
a desirable mix. This still allows for great foot traffic flow and streetscape
experience for shoppers. Additionally, we believe Lexington House is the best fit for
the following reasons;
• Lexington House concept would bring vitality, energy, and foot traffic to an
area that is otherwise dark and quiet at night.
Lexington House concept follows the "model" of other Towns /Cities such as
Campbell, San Carlos, Palo Alto, and Los Altos that are thriving economically
with the concept of a more equal ratio of restaurant and retail balance —a
large foot traffic driver during the day and evening,
Lexington House will create a publicity'buzz' around being one of the first
fully green /sustainable /solar designed restaurants in the South Bay. We will
bring a huge draw of local patrons, but will also bring in new clientele from
L e' i n gt-o -w H rn,,�
all over the bay area due to a following we have developed over two decades
in the industry,
The economic synergy will exist between Lexington House and all the retail
shops on the east side of North Santa Cruz Ave, We are discussing an
economic collaboration with the Los Gatos Theatre — offering a sophisticated
menu for theatre patrons and associated events that are promoting
community activity in the area.
Community Benefit /Value -Add
Lexington House intends to add value to the community by doing the following;
9 Our website will display our motivation and commitment to being a
green /sustainable restaurant, We'll also create a link to the Town of Los
Gatos website to view all of the steps and policies that are being
implemented in order to ensure sustainable practices in our businesses and
daily lives,
Y We will offer an "open- door" policy to anyone who wishes to visit us and tour
our restaurant to see how we operate a sustainable /green business,
0 Lexington House will offer its services and varied donations to all school,
community and the arts fundraisers— ensuring our contribution matters to
the vitality of the local community, Additionally, we plan to have varied
'themed- events' at Lexington House throughout the year to raise funds,
6 In every way possible we will buy local and hire focal, We want to support
the local purveyors, farmers, and residents.
® As part of our sustainable approach we will offer via bicycle /rickshaw, lunch
"to -go" delivery service to local businesses.
6 Realizing the potential increase of foot - traffic that will result in our opening,
we are offering to contribute to a crosswalk upgrade for the two nearest
crosswalks of our 40 N, Santa Cruz location.
Supporting our "green" commitment, we are proposing to create a
greenway' along the Elm Street sidewalk— starting at the parking lot and
leading all the way to our entrance. It could entail planter boxes, trees,
shrubbery, or a green vertical garden (vegetated wall garden) on Elm Street
side of building,
U We want encourage patrons to ride their bikes to Lexington House —
supporting our commitment to being green and sustainable, We plan to
install modernized bike racks on Elm Street side of 40 N, Santa Cruz building,
Green Design and Sustainable Practices
Lexington House understands that saying we are green and sustainable are just
words —we want to put those words into action and actually be green and
sustainable through operating our business, We will adhere to all of the Town of
Los Gatos Guidelines in regard to specific design requirements during the process of
our green design goal, Lexington House plans to implement the following to ensure
operating a green /sustainable business to its fullest;
I�
L oy_Gn�o-rw H
• Water conservation; low -flow faucets, low -flow glass - washer and
dishwasher, source a water - conserving laundry company, water served by
request only for patrons.
• Electricity: 100% LED lighting, Energy Star appliances, PV generation
(Solar), Energy Efficiency monitoring system,
• Reduce Waste: Composting — F.O.G. Energy, Grease buy- back —E -fuel, Take-
out containers and silverware made of sustainably produced compostable
material.
• Recycling /Reuse: Work with purveyors to use reusable containers for
delivery of product, no purchased bottle -water service, no purchased bottled
soft drink service, reuse glass wine bottles for water service
Sustainable Materials: Construction materials —FSC wood, reclaimed wood,
fly ash concrete. Kitchen equipment — reclaimed stainless steel when
possible. Restaurant furnishings —Re -use, reclaimed materials, woods,
fabrics. Paper Products —Re -use, 100% recycled paper for all types of paper
uses
• Pollution Prevention: Biodegradable /non -toxic cleaning products, non-
toxic paints, non -toxic cleaning processes, paperless office as much as
possible, non -toxic ink used if printing, purchase organic food as much as
possible and locally produced, non - motorized food delivery service.
Programs to reward patrons who walk or bike to our restaurant.
° .Educate: Model for a green business in Los Gatos and beyond, offer
educational events /tours for service industry and public, incorporate
sustainable concept into marketing materials and our patrons experience,
f offer a "green - footprint" report and 'green' tips on all receipts for guests.
Adherence to Town Policy and Ordinances
Lexington House is very aware of the Town's Alcoholic Beverage Policy, the
enforcement of Section 29.30.310(b), including resolution 2001 -106. We will fully
comply with all such policies. We understand we are asking for a new liquor license
for the 40 N. Santa Cruz location and support the Town's policies and concerns,
understanding the intention to balance the protection of residents, yet ensuring the
viability of commercial operations such as restaurants. We respect and understand
the service of alcoholic beverages with meals is a discretionary privilege of the
Town and Lexington House will treat it as such —a privilege. Lexington House feels
that to operate a successful restaurant, be competitive and ensure viability in the
Town, being able to offer all services to our guests is paramount. We refer to places
such as James Randall, Manresa, and Gardino's as examples. Lexington House has
every intention to operate responsibly within the Town's Alcoholic Beverage Policy.
The following is our findings and justification fora full liquor license.
Alcohol Service for a Restaurant
Lexington House concept will create food and drink that are meant to pair together.
All wine, beer, and spirits are chosen carefully to pair them with our food. Therefore,
Lexington House will ensure meals are available to all patrons who plan to have an
L e y- ngto-w R o-i u�
alcoholic beverage during operating hours, Alcoholic beverages will only be
available during food service hours,
Alcohol and Food Service Hours: Lexington has no plans to serve food or alcohol
past 12 am on any given day, We will serve food until closing time,
Impact on Neighborhoods: Lexington House is not in close proximity to
surrounding neighborhoods,
Complaints and Non - Compliance Issues: Lexington House is a new operation so
we have no history for reference; however, both operating managers have a proven
track - record at current employment positions and past employment positions for
operating and ensuring accordance with all Alcoholic Beverage Policies and
following all standards to the fullest capacity,
outdoor Alcoholic Service: Lexington House will adhere to all Town policies for
outside alcohol service, The outside design will ensure proper enclosure and will
closely monitored by the outside host to ensure beverage is not taken outside of
designated service area.
Entertainment in Association with Alcohol Service: Lexington House has no
current plans to apply for an entertainment license,
Police Department Policy Adherence: Lexington House welcomes any periodic
meetings and ongoing employee training that will help ensure complete compliance
with Alcoholic Beverage Policy, and ensuring proper service to the general public,
Employee Training: Lexington. House will provide initial training and have a
training manual that addresses in great detail the Alcoholic Beverage Policy,
ensuring standards are met and are consistent, Additionally, we will have periodic
meetings to discuss any and all current or new alcohol service policies and
standards.
Designated Driver Policy: Lexington House will make prominent a designated
driver program through our menus, marketing materials, etc, "Mocktails ", a non -
alcoholic cocktail will be a part of the beverage offerings. We will also ensure
taxicab numbers are displayed for our guests to see,
Community Benefit
Lexington House is fully committed to operating a responsible business that offers
full food and drink service to its patrons, We want to prove that we are a value -add
to the community, The location of Lexington House is excellent for encouraging
people to walk to our restaurant before or after a movie or shopping, Lexington
House will prove that having a restaurant that offers full alcohol service increases
the success, sales and viability of the business while increasing tax revenue, which
directly benefits the community, Lexington House will be a unique option that is
currently not available, and will help keep residents in our Town, adding revenue, a
new energy, and value to the downtown area and community of Los Gatos,
L H otw ei
Summary
Lexington House fully believes that the Town of Los Gatos will agree that our
concept will be unique and different. Our goal is to be a destination establishment —
providing an attractive option to residents and non - residents. We will be the leader
in community advocacy, generating a loyal customer base, operating a responsible
and sustainable business. We are very confident we can meet our goals of setting a
new standard of restaurant, be a successful operation, and also enhance the quality,
community, and downtown area of the Town of Los Gatos,
Lexington House is confident the Town of Los Gatos will agree that our philosophies
are unique, while ensuring our concepts meet all the policies and criteria set forth in
the General Plan, Town Code, and Alcohol Beverage Policy,
Sincerely,
Stephen Shelton and James Marino — Managing Owners /Partners, Lexington House
VA
L ex:;,n rto -ry R o-tt,�e
The Management
Stephen Shelton and James Marino are the Managing Partners of Lexington House, They
bring more than two decades of local experience in the restaurant and service industry
to this endeavor, Our Chef David Murphy brings over a decade of educational and
culinary expertise,
Stephen Shelton has worked in various businesses and restaurants throughout San
Francisco, Napa Valley, and the South Bay —all involving serving people and learning
the value of developing personal and professional relationships. He realized his passion
for the craft, and was skilled at serving people from the earliest stage of his career.
Stephen has been sharpening those tools for the past 20 years, After stepping away
from the service industry to earn a degree in Environmental City Planning and
Sustainability from Sonoma State University, Stephen returned to the restaurant world
with a keen understanding of the need for businesses, and specifically restaurants to
become more sustainable in all aspects of their operations and processes. Stephen's
realization, coupled with an energetic philosophy for the restaurant industry, invited a
partnership with James Marino for the opening of Lexington House.
James Marino is a native of the South Bay and was born and raised in Campbell. James
attended Westmont High School when he started working at a coffee shop in the
Pruneyard. He quickly became assistant manager and then began education at West
Valley Community College. James worked at several local restaurants gathering strong
experience in the food and beverage service industry. He then completed his Bachelor of
Arts degree in English Literature at San Diego State University. Upon his return to the
bay area, James re- discovered his dedication to the service industry he was so
passionate about. He worked from server to trainer and then quickly joined the
management team of The Fish Market Restaurant Group. Over the years, James
discovered a great passion for bartending specifically in learning its history and its
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parallels to food, James polished his ability to use fresh, local ingredients to craft well
thought -out libations. It is this history and his experience that converged to inspire
James' dream of starting a fine, fresh and locally inspired restaurant in The Town of Los
Gatos, a shared vision with Stephen Shelton,
David Murphy believes being a chef is about craftsmanship; an experience, a pride, and
a discipline, His career began at the Marriott, North Houston, TX at age 16, Later, he
attended Le Cordon Bleu in Austin, When the San Francisco Bay Area food culture
pulled David West, he landed his first job as Sous Chef at Il Fornaio in San Jose, Having a
thirst to gain experience with fine, local seasonal cuisine, he went to Madera of
Rosewood, Sand Hill Resort, David's incessant drive for self- achievement drew him to
New York's downtown Manhattan, staging at Michelin - starred restaurants such as Le
Cirque, Bouley, and Daniel, David realized his love of the seasonally based food of the
Bay Area, and he returned here to work with some of the most acclaimed chefs in San
Francisco — Michael Mina and Daniel Patterson. David's experience, creativity and
commitment to the craft are what make him the ideal compliment to James and Stephen
in the creation of Lexington House.
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