Conditional Use Permit 346 N. Santa Cruz AveMEETING DATE: 3/24/14
ITEM NO:
COUNCIL AGENDA REPORT
DATE: MARCH 12, 2014
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: CONDITIONAL USE PERMIT APPLICATION U -13 -023. PROJECT
LOCATION: 346 N. SANTA CRUZ AVENUE. PROPERTY OWNER: LINDA
POND, POND FAMILY TRUST. APPLICANT• MATT OETINGER
FERNWOOD CELLARS.
CONSIDER A REQUEST TO OPERATE A TASTING ROOM ON PROPERTY
ZONED C -2. APN 529 -04 -043.
PLANNING COMMISSION RECOMMENDATION:
The Planning Commission recommended that the Town Council:
1. Make the required findings (Attachment 1) and approve Conditional Use Permit U -13 -023
with modifications as recommended by the Planning Commission (motion required); and
2. Adopt a Resolution of approval with recommended conditions for a Conditional Use Permit
(CUP) to operate a tasting room on property zoned C -2 (Attachment 2) (motion required).
ALTERNATIVES:
Instead of the aforementioned action, the Council may:
• Approve the application subject to modified or additional conditions of approval
(motion required); or
• Continue the project to a date certain with specific direction (motion required); or
• Remand the project to the Planning Commission with specific direction (Attachment
3) (motion required); or
• Deny the application (Attachment 4) (motion required).
PREPARED BY: SANDY L. BAILY ZJ Ub
Director of Community Development
Reviewed by: A Assistant Town Manager 94own Attorney Finance
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PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: 346 N. SANTA CRUZ AVE/U -13 -023
March 19, 2014
BACKGROUND:
The proposed project would occupy a commercial space previously occupied by a personal
service business, Harlow, a beauty salon. The subject property has a second building located
behind the subject commercial space that is occupied by a personal service business, Marbella, a
beauty salon.
The current Alcoholic Beverage Policy (ABP) (Attachment 7) was adopted by the Town Council
in September 2001. A map of nearby alcohol serving and selling establishments is attached as
Exhibit 5 of Attachment 10. The purpose of the ABP is to provide parameters for alcoholic
beverage service and direction through a General Policy and a Specific Policy. Staff analyzed
the proposed Conditional Use Permit (CUP) against the ABP.
When reviewing a Conditional Use Permit (CUP), the deciding and recommending bodies
should consider the information in the applicant's business plan; however, the key consideration
should be the explicit proposed use since the business plan can change from owner to owner.
The explicit use may be, and is often, defined in the recommended conditions of approval as a
"use" condition. The CUP runs with the land, and the deciding and recommending bodies
should review applications based on the explicit use as opposed to the applicant or the
applicant's business plan.
DISCUSSION:
A. Project Summary
The applicant is requesting approval to operate a 659 square foot wine tasting room with no
seating and the off -site sales of alcohol. The tasting room proposes to be closed Monday
through Wednesday except for during the holiday season (noted as late November through
December in the applicant's letter, Exhibit 4 of Attachment 10). The maximum hours of
operation would be Monday through Thursday, 4:00 p.m. to 8:00 p.m.; Friday and Saturday,
11:00 a.m. to 8:00 p.m.; and Sundays, 11:00 a.m. to 5:00 p.m.
The letter of justification (Exhibit 4 of Attachment 10) describes the proposal as a tasting
room. The proposed business would offer flights of wine (wine tasting), glass sales (wine
by- the - glass), and retail sales. See Attachment 10 for a thorough description of the project.
B. Planning Commission
On February 12, 2014, the Planning Commission considered the subject application. See
Attachment 9 for the Commission's full discussion.
The Planning Commission recommended approval of the CUP. The Planning Commission
recommendation included a modified condition as follows (additions underlined):
USE: The approved use is a wine tasting room, which cannot involve more than two
wineries, with retail sales. Retail sales of beer or hard liquor are not permitted.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: 346 N. SANTA CRUZ AVE/U -13 -023
March 19, 2014
The Planning Commission discussion raised questions regarding occupancy, parking, food
consumption, and ABC definitions and limitations. Following is information to address these
questions:
■ Occupancy. Pursuant to the Uniform Building Code, the subject space's occupancy is
classified as assembly without fixed seats — standing space, which is calculated as
five net square feet (i.e. does not include restrooms, etc.) per occupant. The net
square footage of the assembly area is approximately 191 square feet. Therefore, the
maximum occupancy permitted by the Uniform Building Code is approximately 38
persons. It should be noted that the Town does not calculate parking based on
building occupancy. See next bullet for discussion regarding parking requirements.
■ Parking. A tasting room is not a use specifically listed in the parking requirement
section of Town Code. When a use is not specifically listed in the Town Code,
Section 29.10.150 states that the Planning Director shall determine the parking
requirements by analogy to the requirements for the listed uses. Staff has determined
that the tasting room's parking requirements are most similar to parking requirements
for a bar.
A bar requires one parking space for every three seats. Although there are no seats
proposed, staff used the dimensions from the Uniform Building Code to determine
the number of patrons projected at the standing bar. The Uniform Building Code
provides dimensions for determining the occupancy load, or anticipated number of
persons, for fixed seating booths — one occupant for every 24 inches; no calculation is
provided for a standing counter top. Using the ratio of one patron per 24 inches of
counter space (excluding the counter area broken by the 90- degree corner) results in
10 standing patrons plus one ADA patron, and 3.7 parking spaces.
Using the above parking analogy, the parking required for the existing salon and new
business would be:
Use
Square Footage
Counter Area
Re uirO Parkin
Marbella Salon
1,306
4.3 spaces
Tasting Room
659
13' -6" + 8' -2"
3.7 spaces
Total
8 spaces
Existing Parking in the Parking Assessment District
8 spaces
If it was determined that the parking requirement for the proposed use was retail (1
space for every 300 square feet), the proposed use would require 2.2 parking spaces.
In either scenario, the parking requirements would be met.
■ Food consumption. A tasting room is not specifically defined in Town Code. Similar
to and beginning with the establishment at 416 N. Santa Cruz Avenue, Enoteca La
Storia, the Town recognized wine establishments did not fall into the Town Code
definitions of restaurant or bar. The application at 416 N. Santa Cruz Avenue
resulted in a recommendation by the Planning Commission and direction from the
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: 346 N. SANTA CRUZ AVE/U -13 -023
March 19, 2014
Town Council to modify the Town's Alcoholic Beverage Policy to, among other
things, consider adding one or more definitions for wine establishments. The draft
revised Alcoholic Beverage Policy contains the following proposed definition for a
tasting room:
A Tasting Room is defined as alcoholic beverage service in the form of samples
(small pours) provided in conjunction with a retail operation. Meals shall not be
permitted. Specific hours of operation for each establishment are determined in
either the Operating Agreement, if required, and the Conditional Use Permit.
Tasting rooms shall meet the Purpose and General Policy of this Alcoholic
Beverage Policy.
Staff has interpreted the subject application does not fall into the Town's definitions
for restaurant or bar in that only prepackaged food is for sale, no seats are provided,
and the hours of operation are not typical of a restaurant or bar. The prepackaged
food might be consumed onsite by patrons tasting wine. However, it may be difficult
to classify the use as restaurant should food consumption occur onsite given that the
food is prepackaged and the space has no seats (see specialty retail policy,
Attachment 6).
ABC definitions and limitations. ABC does not limit the number or size of pours for
wine tasting under the Type 02 license, which the applicant has. The applicant is
amenable to limiting the size and number of pours.
To clarify the number and size of tastings the following condition of approval is
suggested:
NUMBER AND SIZE OF TASTINGS: Each customer may only be served a
maximum of 5 -one ounce pours, or 1 -five ounce pour, or a combination, not to result
in a total exceeding five ounces per customer per day. If the California Department
of Alcohol Beverage Control (ABC) adopts limitations for tastings that are more
restrictive than this condition, then the number and size of tastings shall be limited by
ABC limitations. If the California Department of Alcohol Beverage Control (ABC)
adopts limitations for tastings that are less restrictive than this condition, then this
condition shall limit the number and size of tastings.
PUBLIC COMMENTS:
The Town received one public comment regarding this item (Attachment 8).
CONCLUSION:
The project would allow a tasting room to operate in a vacant commercial space previously
occupied by a personal service business. The use would provide a wine tasting room service
with retail sales to the community similar to what was previously provided by two other tasting
locations that recently closed (French Cellar and Fleming- Jenkins).
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: 346 N. SANTA CRUZ AVE/U -13 -023
March 19, 2014
Traditionally, the downtown shopping core has been defined as N. Santa Cruz Avenue from
Main Street to Royce Street, and University Avenue from Main Street to Elm Street. Downtown
streets outside of that area have exhibited higher turnover of businesses and vacancies tend to
stay on the market for longer periods of time. Additionally, foot traffic diminishes traveling
north from Main Street along N. Santa Cruz Avenue. The proposed project would bring visitors,
shoppers, and residents to a less frequented area of N. Santa Cruz Avenue.
The Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic beverage
service when the proposal would not negatively affect residential neighbors, alcohol related
incidents would not occur, and when the application would provide a positive impact to the
commercial area. The Planning Commission believes this application meets the aforementioned
parameters and recommends approval of the application subject to the modified condition
discussed above. Staff has also suggested an additional condition to regulate tastings as
discussed above.
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 Approving the Conditional Use Permit (with Exhibit A)
3. Resolution Remanding the Conditional Use Permit to the Planning Commission
4. Resolution Denying the Conditional Use Permit
5. Recommended Conditions of Approval
6. Specialty Retail Policy (one page)
7. Alcoholic Beverage Policy (six pages)
8. Email from Eric Baugher, received March 14, 2014
9. Excerpt of the Planning Commission verbatim meeting minutes of February 12, 2014
10. Report to the Planning Commission for the meeting of February 12, 2014
Distribution:
cc: Matt Oetinger, Fernwood Cellars, 7137 Redwood Retreat Road, Gilroy, CA 95020
Pond Family Trust, 7137 Redwood Retreat Road, Gilroy, CA 95020
SLB:JS:cgt
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REQUIRED FINDINGS FOR:
346 N. Santa Cruz Avenue
Conditional Use Permit U -13 -023
Requesting approval to operate a tasting room on property zoned C -2. APN 529 -04 -043.
PROPERTY OWNER: Linda Pond, Pond Family Trust
APPLICANT: Matt Oetinger, Fernwood Cellars
FINDINGS
Required finding for CEQA:
■ The project is Categorically Exempt pursuant to Section 15301 of the State Environmental
Guidelines as adopted by the Town. No significant effect on the environment will occur
since the project uses an existing structure with no increase in floor area.
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 use of the property is essential or desirable to the public convenience or
welfare in that the use would will provide a wine tasting room service with retail sales to
the community previously provided by two other tasting locations that recently closed
(French Cellar and Fleming- Jenkins) as well as bring visitors, shoppers, and residents to a
less frequented area of North Santa Cruz Avenue; and
(2) The proposed use will not impair the integrity and character of the zone in that the use
will be in a commercial zone; and
(3) The proposed use would not be detrimental to public health, safety or general welfare in
that the use will be subject to provisions of the Alcoholic Beverage Policy and conditions
placed on the permit will mitigate potential impacts; and
(4) The proposed use of the property is in harmony with the various elements or objectives of
the General Plan and the purposes of the Town Code as discussed within the February 12,
2014, Planning Commission Staff Report and the March 24, 2014, Town Council Agenda
Report.
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 commercial uses.
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RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
GRANTING APPROVAL OF CONDITIONAL USE PERMIT APPLICATION U -13 -023.
APN: 529 -04 -043
CONDITIONAL USE PERMIT APPLICATION: U -13 -023
PROPERTY LOCATION: 346 N. SANTA CRUZ AVENUE
PROPERTY OWNER: LINDA POND, POND FAMILY TRUST
APPLICANT: MATT OETINGER, FERNWOOD CELLARS
WHEREAS, This matter came before the Town Council for public hearing March 24,
2014, and was regularly noticed in conformance with State and Town law.
WHEREAS, The applicant seeks approval for a Conditional Use Permit (CUP) to
operate a wine tasting room and retail sales of wine for offsite consumption on property zoned C-
2. The applicant requested no seats and maximum hours of operation of Monday through
Thursday, 4:00 p.m. to 8:00 p.m.; Friday and Saturday, 11:00 a.m. to 8:00 p.m.; and Sundays,
11:00 a.m. to 5:00 p.m.
WHEREAS, On February 12, 2014, the Planning Commission considered a request for
approval of CUP U -13 -023 on property zoned C -2. The Planning Commission recommended
approval of the request with modified Conditions of Approval, finding that the proposal was
desirable to the public in that the use will provide a wine tasting room service with retail sales to
the community similar to what was previously provided by two other tasting locations that
recently closed (French Cellar and Fleming- Jenkins), as well as bring visitors, shoppers, and
residents to a less frequented area of North Santa Cruz Avenue; it will not impair the integrity of
the zone in that the use will be in a commercial zone; will not be detrimental to public health,
safety, or welfare in that the use will be subject to provisions of the Alcoholic Beverage Policy
and conditions placed on the permit will mitigate potential impacts; and is in harmony with the
ATTACHMENT 2
elements and objectives of the General Plan and Town Code as discussed within the February 12,
2014, Planning Commission report.
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 for
their meeting on March 24, 2014, 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 for their meeting on March 24,
2014, and incorporates the findings made by the Planning Commission on February 12, 2014,
regarding this application.
B. The project is categorically exempt from environmental review pursuant to
Section 15301 of the State Environmental Guidelines as adopted by the Town.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. CUP application U -13 -023 to operate a tasting room on property zoned C -2 is
approved.
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 be sought within the time
limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or
such shorter time as required by state and federal Law.
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos, California, held on the 24th day of March, 2014, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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CONDITIONS OF APPROVAL — March 24, 2014
346 N. Santa Cruz Avenue
Conditional Use Permit U -13 -023
Requesting approval to operate a tasting room on property zoned C -2. APN 529 -04 -043.
PROPERTY OWNER: Pond Family Trust
APPLICANT: Matt Oetinger, Fernwood Cellars
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. Any changes or modifications 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 changes.
2. EXPIRATION OF APPROVAL: The Conditional Use Permit application will expire two
years from the date of approval unless it is used before expiration. Section 29.20.335
defines what constitutes the use of an approval granted under the Zoning Ordinance.
3. LAPSE FOR DISCONTINUANCE: If the activity for which the Conditional Use Permit
has been granted is discontinued for a period of one (1) year the approval lapses.
4. USE: The approved use is a wine tasting room, which cannot involve more than two
wineries, with retail sales. Retail sales of beer or hard liquor are not permitted.
5. SEATING: No seating is allowed. A standing only bar counter is permitted.
6. HOURS OF OPERATION: Maximum hours of operation are Monday through Thursday,
4:00 p.m. to 8:00 p.m.; Friday and Saturday, 11:00 a.m. to 8:00 p.m.; and Sundays, 11:00
a.m. to 5:00 p.m.
7. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed.
8. ALCOHOLIC BEVERAGE POLICY: The applicant shall be subject to comply with any
new requirements in the Town's Alcoholic Beverage Policy within six (6) months from the
date of the change in policy.
9. 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.
10. 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.
11. 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.
12. 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.
EXHIBIT A
of Attachment
Building Division
13. PERMITS REQUIRED: A Building Permit shall be required for the any alterations to the
existing commercial building. Separate permits are required for electrical, mechanical, and
plumbing work as necessary.
14. CONDITIONS OF APPROVAL: The Conditions of Approval must be blue -lined in full on
the cover sheet of the construction plans. A Compliance Memorandum shall be prepared
and submitted with the building permit application detailing how the Conditions of
Approval will be addressed.
15. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ".
16. TITLE 24 ACCESSIBILITY — COMMERICAL: For any proposed tenant improvements,
on -site parking and general path of travel shall comply with the latest California Title 24
Accessibility Standards. Work shall include, but not be limited to, accessibility to building
entrances from parking facilities and sidewalks. The building shall be upgraded to comply
the latest California Title 24 Accessibility Standards. Necessary work shall be first
investigated by the design Architect and then confirmed by Town staff.
17. APPROVALS REQUIRED: The project requires the following departments and agencies
approval before issuing a building permit:
a. Community Development — Planning Division: Jennifer Savage (408) 399 -5702
b. Santa Clara County Fire Department: (408) 378 -4010
c. County Environmental Health Department: (408) 885 -4200
TO THE SATISFACTION OF THE CHIEF OF POLICE:
18. 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.
19. 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.
20. 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.
21. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a
designated driver program such as complimentary non - alcoholic beverages for designated
drivers.
22. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be
posted in a visible location.
N: \DEV \CONDrrNS\2014\NSC346.docx
RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
REMANDING A REQUEST TO APPROVE CONDITIONAL USE PERMIT
APPLICATION U -13 -023 TO THE PLANNING COMMISSION FOR FURTHER
CONSIDERATION.
APN: 529 -04 -043
CONDITIONAL USE PERMIT APPLICATION: U -13 -023
PROPERTY LOCATION: 346 N. SANTA CRUZ AVENUE
PROPERTY OWNER: LINDA POND, POND FAMILY TRUST
APPLICANT: MATT OETINGER, FERNWOOD CELLARS
WHEREAS, This matter came before the Town Council for public hearing March 24,
2014, and was regularly noticed in conformance with State and Town law.
WHEREAS, The applicant seeks approval for a Conditional Use Permit (CUP) to
operate a wine tasting room and retail sales of wine for offsite consumption on property zoned C-
2. The applicant requested no seats and maximum hours of operation of Monday through
Thursday, 4:00 p.m. to 8:00 p.m.; Friday and Saturday, 11:00 a.m. to 8:00 p.m.; and Sundays,
11:00 a.m. to 5:00 p.m.
WHEREAS, On February 12, 2014, the Planning Commission considered a request for
approval of CUP U -13 -023 on property zoned C -2. The Planning Commission recommended
approval of the request with modified conditions of approval, finding that the proposal was
desirable to the public in that the use will provide a wine tasting room service with retail sales to
the community similar to what was previously provided by two other tasting locations that
recently closed (French Cellar and Fleming- Jenkins) as well as bring visitors, shoppers, and
residents to a less frequented area of North Santa Cruz Avenue; it will not impair the integrity of
the zone in that the use will be in a commercial zone; will not be detrimental to public health,
safety, or welfare in that the use will be subject to provisions of the Alcoholic Beverage Policy
ATTACHMENT 3
and conditions placed on the permit will mitigate potential impacts; and is in harmony with the
elements and objectives of the General Plan and Town Code as discussed within the February 12,
2014, Planning Commission report.
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 for
their meeting on March 24, 2014, along with any and all subsequent reports and materials
prepared concerning this application.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. CUP application U -13 -023 to operate a tasting room on property zoned C -2 is
remanded to the Planning Commission for further consideration.
2. The decision does not constitute a final administrative decision and the application
will be returned to the Planning Commission for further recommendation. The application will then
be sent back to Council for a final decision.
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos, California, held on the 24`h day of March, 2014, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
DENYING A REQUEST TO APPROVE CONDITIONAL USE PERMIT APPLICATION
U -13 -023.
APN: 529 -04 -043
CONDITIONAL USE PERMIT APPLICATION: U -13 -023
PROPERTY LOCATION: 346 N. SANTA CRUZ AVENUE
PROPERTY OWNER: LINDA POND, POND FAMILY TRUST
APPLICANT: MATT OETINGER, FERNWOOD CELLARS
WHEREAS, This matter came before the Town Council for public hearing March 24,
2014, and was regularly noticed in conformance with State and Town law.
WHEREAS, The applicant seeks approval for a Conditional Use Permit (CUP) to
operate a wine tasting room and retail sales of wine for offsite consumption on property zoned C-
2. The applicant requested no seats and maximum hours of operation of Monday through
Thursday, 4:00 p.m. to 8:00 p.m.; Friday and Saturday, 11:00 a.m. to 8:00 p.m.; and Sundays,
11:00 a.m. to 5:00 p.m.
WHEREAS, On February 12, 2014, the Planning Commission considered a request for
approval of CUP U -13 -023 on property zoned C -2. The Planning Commission recommended
approval of the request with modified conditions of approval, finding that the proposal was
desirable to the public in that the use will provide a wine tasting room service with retail sales to
the community similar to what was previously provided by two other tasting locations that
recently closed (French Cellar and Fleming - Jenkins) as well as bring visitors, shoppers, and
residents to a less frequented area of North Santa Cruz Avenue; it will not impair the integrity of
the zone in that the use will be in a commercial zone; will not be detrimental to public health,
safety, or welfare in that the use will be subject to provisions of the Alcoholic Beverage Policy
and conditions placed on the permit will mitigate potential impacts; and is in harmony with the
ATTACHMENT 4
elements and objectives of the General Plan and Town Code as discussed within the February 12,
2014, Planning Commission report.
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 for
their meeting on March 24, 2014, 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. These findings
are based on the evidence presented in the Council Agenda Report for their meeting on March
24, 2014, and incorporates the findings made by the Planning Commission on February 12, 2014,
regarding this application.
B. The project is categorically exempt from environmental review pursuant to
Section 15301 of the State Environmental Guidelines as adopted by the Town.
NOW, THEREFORE, BE IT RESOLVED:
CUP application U -13 -023 to operate a tasting room 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 be sought within the time
limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or
such shorter time as required by state and federal Law.
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos, California, held on the 24`h day of March, 2014, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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CONDITIONS OF APPROVAL — March 24, 2014
346 N. Santa Cruz Avenue
Conditional Use Permit U -13 -023
Requesting approval to operate a tasting room on property zoned C -2. APN 529 -04 -043.
PROPERTY OWNER: Pond Family Trust
APPLICANT: Matt Oetinger, Fernwood Cellars
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. Any changes or modifications 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 changes.
2. EXPIRATION OF APPROVAL: The Conditional Use Permit application will expire two
years from the date of approval unless it is used before expiration. Section 29.20.335
defines what constitutes the use of an approval granted under the Zoning Ordinance.
3. LAPSE FOR DISCONTINUANCE: If the activity for which the Conditional Use Permit
has been granted is discontinued for a period of one (1) year the approval lapses.
4. USE: The approved use is a wine tasting room, which cannot involve more than two
wineries, with retail sales. Retail sales of beer or hard liquor are not permitted.
5. SEATING: No seating is allowed. A standing only bar counter is permitted.
6. HOURS OF OPERATION: Maximum hours of operation are Monday through Thursday,
4:00 p.m. to 8:00 p.m.; Friday and Saturday, 11:00 a.m. to 8:00 p.m.; and Sundays, 11:00
a.m. to 5:00 p.m.
7. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed.
8. ALCOHOLIC BEVERAGE POLICY: The applicant shall be subject to comply with any
new requirements in the Town's Alcoholic Beverage Policy within six (6) months from the
date of the change in policy.
9. 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.
10. 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.
11. 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.
12. 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.
ATTACHMENT 5
Building Division
13. PERMITS REQUIRED: A Building Permit shall be required for the any alterations to the
existing commercial building. Separate permits are required for electrical, mechanical, and
plumbing work as necessary.
14. CONDITIONS OF APPROVAL: The Conditions of Approval must be blue -lined in full on
the cover sheet of the construction plans. A Compliance Memorandum shall be prepared
and submitted with the building permit application detailing how the Conditions of
Approval will be addressed.
15. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ".
16. TITLE 24 ACCESSIBILITY — COMMERICAL: For any proposed tenant improvements,
on -site parking and general path of travel shall comply with the latest California Title 24
Accessibility Standards. Work shall include, but not be limited to, accessibility to building
entrances from parking facilities and sidewalks. The building shall be upgraded to comply
the latest California Title 24 Accessibility Standards. Necessary work shall be first
investigated by the design Architect and then confirmed by Town staff.
17. APPROVALS REQUIRED: The project requires the following departments and agencies
approval before issuing a building permit:
a. Community Development — Planning Division: Jennifer Savage (408) 399 -5702
b. Santa Clara County Fire Department: (408) 378 -4010
c. County Environmental Health Department: (408) 885 -4200
TO THE SATISFACTION OF THE CHIEF OF POLICE:
18. 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.
19. 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.
20. 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.
21. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a
designated driver program such as complimentary non - alcoholic beverages for designated
drivers.
22. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be
posted in a visible location.
N:\DEV\CONDiTNs\2014\NSC346.docx
PLANNING DEPARTMENT POLICY
TOWN OF LOS GATOS
Subject: Description of Restaurants and Specialty Retail Businesses That Offer Food Products
Page: Section Number.
Approved: .e ,L /f 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.
WDEMUDIPOLICY.
ATTACHMENT 6
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i
RESOLUTION 2001 -106
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE TOWN'S ALCOHOLIC BEVERAGE POLICY
WHEREAS, the sale of alcoholic beverages, if not regulated, can jeopardize public safety,
result in an increase of calls for police services and compromise the quality of life for Town
residents; and
WHEREAS, The Town Council wants to balance the regulation of alcoholic beverage
service and protection of residential neighborhoods with the goal of maintaining a vibrant and
successful Downtown and commercial areas throughout Los Gatos; and
WHEREAS, the Town Council held a study session on July 2, 2001 to discuss issues
relating to service of alcoholic beverages; and
WHEREAS, the Town Council has indicated a desire to review all applications for new
alcohol service or change in existing service, and a need to amend the existing Alcohol Policy,
BE IT RESOLVED: the Town Council of the TOWN OF LOS GATOS
does hereby adopt the amended Alcoholic Beverage Policy attached hereto as Exhibit A.
ATTACHMENT 7
1
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 171 day
of September, 2001, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman,
Mayor Joe Pirzynski.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED: 6
IOR TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
GZs�e
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS; CALIFORNIA
—i
2
�l
POLICY REGULATING THE CONSUMPTION AND
SERVICE OF ALCOHOLIC BEVERAGES
L Purpose
The consumption or service of alcoholic beverages, if not regulated, can jeopardize public
safety, result in an increase of calls for police services and compromise the quality of life for
Town residents. This policy provides parameters for alcoholic beverage service, particularly
addressing late night service when alcohol related incidents are most likely to occur and when
the disturbances to Town residents is least tolerable.
The service of alcoholic beverages, with or without meals, past 10 PM is a discretionary
privilege to be determined on a case by case basis. The following provisions are intended to
balance the protection of residential neighborhoods in close proximity to commercial districts
and still maintain the viability of our commercial centers in which restaurants have an essential
role. Hours of operation may be regulated based on an establishment's proximity to
residential neighborhoods or schools, the concentration of establishments in an area serving
alcoholic beverages or for other reasons that may arise at the public hearing.
The deciding body may approve a conditional use permit to serve alcoholic beverages based
on the merits of the application and subject to the following requirements:
IL General policy
1. The Town shall continue to strongly discourage new applications for stand alone bars
or restaurants with separate bars.
2. The Town shall continue to discourage applications for entertainment establishments
serving alcoholic beverages.
3. Entertainment in association with an eating or drinking establishment may be allowed
if standards and a permit process are adopted.
4. Alcoholic beverage service for new conditional use permit applications or applications
for modification of a conditional use permit shall not be allowed:
A. After 11 PM Sunday through Thursday, except for holidays and evenings
before holidays.
B. After 1 AM Friday, Saturday, holidays or evenings before holidays.
An existing establishment with a conditional use permit in good standing allowed to serve
alcoholic beverages past the hours stated above may continue to operate under their existing
hours of operation.
Exhibit A
Town of Los Gatos
Alcoholic Beverage Policy
Page 2 of 4
Any establishment serving alcoholic beverages shall be subject to the following:
A 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.
B. 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.
C. All establishments shall use an employee training manual that addresses
alcoholic beverage service consistent with the standards of the Californian
restaurant Association.
D. All licensed operators shall have and shall actively promote a designated
driver program such as complimentary non - alcoholic beverages for designated
drivers.
E. Taxicab telephone numbers shall be posted in a visible location.
6. The deciding body shall make the following findings prior to approving an application
for conditional use permit to serve alcoholic beverages past I OPM:
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.
A meal is defined as a combination of food items selected from a menu (breakfast,
lunch or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish
trays, etc. (hot or cold) are not meals.
8. Alcoholic beverage service in approved outdoor seating areas may be permitted if
adequate separation from public areas is provided as determined by the Town
Manager. The separation shall clearly suggest that alcohol is not allowed outside the
restaurant seating area.
Town of Los Gatos
Alcoholic Beverage Policy
Page 3 of 4
III. Specific Policy
1. Restaurants:
Alcoholic beverages may only be served with meals.
2. Restaurants With Separate Bars:
Alcoholic beverage service is permitted in the dining area only in conjunction with
meal service. Meal service shall be available until closing or 11 PM Sunday through
Thursday and until 12 midnight Friday, Saturday, holidays and evenings before
holidays, whichever is earlier, if late night bar service is available. Specific hours of
operation for each establishment are determined upon issuance of a conditional use
Permit.
IV. Review Process
1. Proposals for new bars or restaurants with bars and all requests for new alcohol
service or a change to existing service shall be reviewed by the Planning Commission.
The Commission will make a recommendation to the Town Council and the Council
shall have final review authority.
2. Changes in ownership for businesses involving service of alcoholic beverages shall be
reviewed by the Community Development Department. The following process will
be followed:
a. The Director of Community Development shall contact the new business
owner to make them aware of the conditions of approval attached to the Use
Permit for the location.
b. One year following issuance of a business license, surrounding/impacted
property owners shall be notified and any comments regarding the operation
of the business shall be solicited.
c. If the Director of Community Development becomes aware of any alcohol
related impacts on the surrounding neighborhood, the Director shall review
the operation of the business to determine whether there is a violation of the
use permit.
Town of Los Gatos
Alcoholic Beverage Policy
Page 4 of 4
d. If there are violations of the use permit that have not been voluntarily
corrected by the business owner the matter will be forwarded to the Planning
Commission for public hearing pursuant to Section 29,20.3 10 of the Zoning
Ordinance.
e. Pursuant to Section 29.20.315 of the Zoning Ordinance the Planning
Commission may revoke or modify the conditional use permit if it finds that
sufficient grounds exist.
IV. Enforcement
All conditional use permits issued to establishments for alcoholic beverage service on -site
shall be subject to Section 29.30.310(b) of the Town Code authorizing the Town Manager
to take enforcement action if it is determined that the sale of alcohol has become a nuisance
to the Town's public health, safety or welfare. Enforcement of section 29.20.310(b) of the
Town Code will be based on, but not limited to, the following factors:
I. The number and types of calls for service at or near the establishment which that are
a direct result of patrons actions;
II. The number of complaints received from residents ad other citizens concerning the
operation of an establishment;
iII. The number of arrests for alcohol, drug, disturbing the peace, fighting and public
nuisance violations associated with an establishment;
IV. The number and kinds of complaints received from the State Alcoholic Beverage
Control office and the County health Department;
V. Violation of conditions of approval related to alcoholic beverage service.
The Alcoholic Beverage Policy is not to be construed to be a right of development. The Town retains
the right of review and approval (or denial) of each project based on its merits.
N:IEVIIZINN hd P.h,y 01dmhdOoh�Y.Md
From: Eric Baugher [mailto:beric(aaridgewine.com]
Sent: Friday, March 14, 2014 11:39 AM
To: Council
Subject: Proposed Los Gatos Winery Tasting room for Fernwood Cellars
Dear Los Gatos Town Council,
A good winemaking friend of mine, Matt Oetinger of Fernwood Cellars, has an upcoming town council meeting to
discuss his opening a wine tasting room in Los Gatos. As I'm away on sales travel for Ridge, unable to attend to offer my
support of this proposal, I'm writing you instead.
I have known Matt for well over a fourteen years, and over this time watched him successfully grow his winery
business. He's a very capable businessman, competently making great wine with his wife, Tiffany. He really does
represents so much of what is great about the winemaking entrepreneurial spirit of the Santa Cruz Mountains. As you
must be aware, the Santa Cruz Mountains, is predominately made up of small family operated wineries. Most are in
remote corners of the appellation. This creates a huge limitation for winery visitation and consumer exposure. It's tough
on these wineries to successfully market to their buyers when they're so far off the beaten path. I have been to Matt's
winery on several occasions, it's a trek to get there, but worth the drive to enjoy the beautiful environment. However,
there is a bigger movement forming for many remote wineries to locate tasting rooms in population centers that make it
more convenient to taste and purchase limited production wines. This saves consumers time and money. Saratoga's
old town has several winery tasting rooms that I pass daily on my way to Ridge. They are always packed with consumers
tasting wine, listening to music, and most likely enjoy meals at the nearby restaurants. I believe these tasting rooms add
to the culture of a community and compliment the food scene quite well. Los Gatos and Saratoga, are in my opinion,
the center of art, food, and culture for Silicon Valley. I believe a tasting room that serves the great wines of Fernwood
Cellar would be a great addition to this.
Kindest regards,
Eric
Eric Baugher
Vice President of Winemaking
RIDGE VINEYARDS
18100 Monte Bello Road
Cupertino, CA 95015
408 - 868 -1365
bericAridgewine.com
www.ridgewine.com
ATTACMCW 8
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M TOWN OF LOS GATOS ITEM NO: 2
PLANNING COMMISSION STAFF REPORT
•i 1° Meeting Date: February 12, 2014
PREPARED BY: Jennifer L. Savage, Associate Planner
isavaeea,losgatosca.gov
APPLICATION NO: Conditional Use Permit Application U -13 -023
LOCATION: 346 N. Santa Cruz Avenue (east side of N. Santa Cruz Avenue,
approximately 200 feet south of Los Gatos - Saratoga Road)
APPLICANT/
CONTACT PERSON: Matt Oetinger, Femwood Cellars
PROPERTY OWNER: Pond Family Trust
APPLICATION SUMMARY: Requesting approval to operate a tasting room on property zoned
C -2. APN 529 -04 -043.
RECOMMENDATION:
PROJECT DATA:
DEEMED COMPLETE: January 6, 2014
FINAL DATE TO TAKE ACTION: July 6, 2014
Forward Conditional Use Permit U -13 -023 to the Town Council
with a Recommendation of Approval, Subject to the Conditions
Contained in this Report.
General Plan Designation:
Zoning Designation:
Applicable Plans & Standards:
Parcel Size:
Surrounding Area:
Central Business District
C -2 — Central Business District
General Plan; Central Los Gatos
Redevelopment Plan; Alcoholic
Beverage Policy
2,822 square feet
I I ExIsfing Land Use I General Plan
North
nasi Lommeraal Central Business District C -2
South Commercial Central Business District C -2
West I Commercial re.,...,,i
CEQA: The project is Categorically Exempt according to Section 15301
of the State Environmental Guidelines as adopted by the Town
because the project consists of permitting an existing facility
involving negligible use beyond the existing use.
ATTACMENT 10
Planning Commission Staff Report - Page 2
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
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.
• 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.
CONSIDERATIONS: None.
ACTION: Forward Conditional Use Permit U -13 -023 to the Town Council
with a Recommendation of Approval, subject to the conditions
contained in this report.
EXHIBITS: 1. Location Map
2. Findings and Considerations
3. Recommended Conditions of Approval
4. Letter of Justification (three pages), received January 2, 2014
5. Concentration Map
6. Development Plans (one page), received January 2, 2014
BACKGROUND:
The proposed project would occupy a commercial space previously occupied by a personal
service business, Harlow, a beauty salon. The subject property has a second building located
behind the subject commercial space that is occupied by a personal service business, Marbella, a
beauty salon.
The amended Alcoholic Beverage Policy (ABP) was adopted by the Town Council in September
2001. The purpose of the ABP is to provide parameters for alcoholic beverage service and
direction through a General Policy and a Specific Policy. Staff analyzed the proposed
Conditional Use Permit (CUP) against the ABP.
PROJECT DESCRIPTION:
A. Conditional Use Permit
The applicant is requesting approval to operate a wine tasting room serving flights of wine
(wine tasting) and "glass sales" (wine by the glass). Flights of wine would consist of up to
five one -ounce pours. Glass sales consist of four -ounce pours. The applicant also proposes
retail sales including bottles of wine for offsite consumption, wine - related items, and
premade, prepackaged food.
Plarming Commission Staff Report - Page 3
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
A standup bar is proposed; no seating is proposed. The hours of operation would vary (see
Exhibit 4); the maximum hours of operation would be Monday through Thursday 4:00 p.m.
to 8:00 p.m., Friday and Saturday 11:00 a.m. to 8:00 p.m., and Sundays 11:00 a.m. to 5:00
p.m.
The applicant provided a letter of justification (Exhibit 4) and development plans (Exhibit
6) describing the proposal. The service and sale of alcoholic beverages requires a
Conditional Use Permit. Since the use involves on -site consumption of alcohol, the
Planning Commission shall make a recommendation to the Town Council, who will be the
final deciding body pursuant to the ABP.
B. Location and Surrounding Neighborhood
The project site is located on the east side of N. Santa Cruz Avenue, approximately 200
feet south of Los Gatos - Saratoga Road (Exhibit 1). The property is surrounded by
commercial uses.
C. Zoning Compliance
The zoning designation allows alcoholic beverage service and sales subject to the approval
of a Conditional Use Permit. The zoning designation allows retail sales.
ANALYSIS:
A. Project Summary
The applicant is requesting to operate a 659 square foot wine tasting room with no seating
and the off -site sales of alcohol. The tasting room proposes to be closed Monday through
Wednesday except for during the holiday season (noted as late November through
December in the applicant's letter, Exhibit 4). The maximum hours of operation would be
Monday through Thursday 4:00 p.m. to 8:00 p.m., Friday and Saturday 11:00 a.m. to 8:00
p.m., and Sundays 11:00 a.m. to 5:00 p.m.
The letter of justification describes the proposal as a tasting room. The proposed business
would offer flights of wine (wine tasting), glass sales (wine by- the - glass), and retail sales.
B. Alcoholic Beverage Policy
Purpose
The requirements contained in the ABP are intended to protect nearby residential
neighborhoods, while maintaining `the viability of our commercial centers.' The policy
Planning Commission Staff Report - Page 4
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
provides assurance that hours of operation will be regulated for a variety of reasons,
including proximity to residential neighborhoods and concentration of alcoholic beverage
serving establishments within one area.
The site is located on the east side of N. Santa Cruz Avenue south of the Los Gatos -
Saratoga Road/N. Santa Cruz Avenue intersection. The nearest residence to the west is
approximately 250 feet away at 221 Bachman Avenue; the nearest residence to the east is
approximately 240 feet away at 333 University Avenue and separated by commercial
spaces and a public parking lot. The alcoholic beverage service will cease no later than
8:00 p.m., which would reduce potential impacts to the residential neighborhoods.
A map illustrating the concentration of business serving or selling alcohol in the vicinity of
the subject property is attached as Exhibit 5.
General Policy
The ABP'S General Policy contains eight requirements. Requirements 2 and 3 are not
applicable to the subject application because there will be no entertainment. Requirement 8
is not applicable to the subject application because there will be no outdoor seating.
Requirement No. 1 states `the Town shall continue to strongly discourage new applications
for stand -alone bars or restaurants with separate bars.' Neither the ABP nor the Town
Code provides a tasting room definition. The proposal does not fall into the definition of a
bar in that the establishment would not serve or sell any hard liquor or mixed drinks and
would not be open past 12:00 a.m.
Requirement No. 4 does not permit alcoholic beverage service after 11:00 p.m. Sunday
through Thursday, except for holidays and evenings before holidays, or after 1:00 a.m.
Friday, Saturday, holidays, and evenings before holidays. The applicant is proposing to end
alcoholic beverage service at 8:00 p.m. or earlier, depending on the day of the week.
Requirement No. 5 states an establishment serving alcoholic beverages is subject to five
provisions related to alcohol service. The provisions are included as conditions of
approval.
Requirement No. 6 requires the deciding body to make specific findings to approve an
application to serve alcoholic beverages after 10:00 p.m. The applicant is not proposing to
operate after 10:00 p.m. and findings are not required.
Requirement No. 7 defines a meal as `a combination of food items selected from menu.'
The applicant is not proposing to provide meals; premade, prepackage foods would be part
of the business' retail sales.
Plamting Commission Staff Report - Page 5
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
Specific Policy
The Specific Policy has two requirements that address alcoholic beverage service at
restaurants. The applicant is not proposing a restaurant; premade, prepackage foods would
be available as part of the business' retail sales.
C. Parkins
The subject property has credit for eight parking spaces in the Parking Assessment District.
A tasting room is not a use specifically listed in the parking requirement section of Town
Code. When a use is not specifically listed in the Town Code, Section 29.10.150 states that
the Planning Director shall determine the parking requirements by analogy to the
requirements for the listed uses.
Previous wine tasting uses were ancillary to, and located in, a retail business (The French
Cellar; Fleming Jenkins). The tasting area occupied a fraction of the floor space with the
majority of the space containing retail items. The subject use has an ancillary amount of
retail display. Therefore, staff has determined that the tasting room's parking requirements
are most similar to parking requirements for a bar in that, at both businesses, a patron will
stay awhile for the experience and the business spaces are largely occupied by a counter top
bar.
A bar requires one parking space for every three seats. Although there are no seats
proposed, staff used the dimensions from the building code to determine the number of
patrons projected at the standing bar. Building Code Section 1004.4 provides dimensions
for determining the occupancy load, or anticipated number of persons, for fixed seating
booths — one occupant for every 24 inches. Using the ratio of one patron per 24 inches of
counter space (excluding the counter area broken by the 90- degree comer) results in 10
standing patrons plus one ADA patron, and 3.7 parking spaces.
Using the above parking analogy, parking requirements for the existing salon and new
business would be:
Use
S uare Footage
Counter Area
R uired.Parkin
Marbella Salon
1,306
4.3 spaces
Tasting Room
659
131-611+ 8' -2"
3.7 spaces
Total
8 spaces
Existing parking
8 spaces
If we assume the parking requirement for retail (1 space for every 300 square feet) for the
proposed use, the use would require 2.2 parking spaces. In either scenario, the parking
require would be met.
Planning Commission Staff Report - Page 6
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
D. Traffic
The project would not result in an increase of ADT (average daily trips) or peak trips.
E. Conditional Use Permit Findings
In order to grant approval of a Conditional Use Permit, the deciding 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.
In regards to finding one, the use will provide a wine tasting room service with retail sales
to the community previously provided by two other tasting locations that recently closed
(French Cellar and Fleming- Jenkins) as well as bring visitors, shoppers, and residents to a
less frequented area of North Santa Cruz Avenue. In regards to the second finding, the use
will not impair the integrity of the zone since the use will be in a commercial zone. In
regards to finding three, the. use will not be detrimental to public health safety or general
welfare because the use will be subject to provisions of the Alcoholic Beverage Policy and
conditions placed on the permit will mitigate potential impacts. In regards to the final
finding, the proposed use meets the objectives of the General Plan and Town Code as
discussed within this report.
F. General Plan
The goals and policies of the 2020 General Plan applicable to this project include but are
not limited to:
Policy LU -2.1 — Minimize vehicle miles traveled for goods and services by allowing
and encouraging stores that provide these goods within walking distance of
neighborhoods in Los Gatos.
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 preserve the small -
town atmosphere.
Planning Commission Staff Report - Page 7
346 N. Santa Cruz Avenue /U -13 -023
February 12, 2014
Policy LU -9.6 — Encourage development that maintains and expands resident - oriented
services and/or creates employment opportunities for local residents consistent with
overall land use policies of the Town.
G. Environmental Review
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.
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.
PUBLIC COMMENTS:
At this time, the Town has not received any public comment.
SUMMARY AND RECOMMENDATION:
A. Summary
Staff recommends conditions of approval consistent with the applicant's proposed use
regarding the operating hours. As conditioned, the site has adequate parking to
accommodate the existing and proposed uses. The proposed use would close by 8:00 p.m.
The proposed application is in conformance with Town Code and is supported by the
General Plan.
B. Recommendation
The Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic
beverage sales and service 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. Based on the evidence submitted by the applicant,
staff believes this application meets these requirements.
Planning Commission Staff Report - Page 8
346 N. Santa Cruz Avenue/U -13 -023
February 12, 2014
If the Planning Commission finds merit with the proposed project, it should:
1. Find that the proposed project is categorically exempt, pursuant to Section 15301 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
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. Recommend approval to Town Council of Conditional Use Permit application U-
13 -023 with the conditions contained in Exhibit 3.
If the Commission has concerns with the proposed use, it can:
1. Continue the matter to a date certain with specific directions; or
2. Recommend approval of the application to Town Council with additional and /or
modified conditions; or
3. Recommend denial of the application to Town Council.
Pr oared by:; C—Ap roved b
Jennifer L. Savage, AICP y L . Ba ICP
Associate Planner Director of Community Developm t
SLB:JS:cgt
cc: Matt Oetinger, Femwood Cellars, 7137 Redwood Retreat Road, Gilroy, CA 95020
Pond Family Trust, 7137 Redwood Retreat Road, Gilroy, CA 95020
Ni \DEV\PC REPORTSU014 \NSC346.dax
346 N. Santa Cruz Avenue
0
EXHIBIT I
of Attachment 10
This Page
Intentionally
Left Blank
REQUIRED FINDINGS FOR:
346 N. Santa Cruz Avenue
Conditional Use Permit U -13 -023
Requesting approval to operate a tasting room on property zoned C -2. APN 529 -04 -043.
PROPERTY OWNER: Pond Family Trust
APPLICANT: Matt Oetinger, Fernwood Cellars
FINDINGS
Required finding for CEQA:
■ 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 use of the property is essential or desirable to the public convenience or
welfare in that the use will provide a wine tasting room service with retail sales to the
community previously provided by two other tasting locations that recently closed
(French Cellar and Fleming- Jenkins) as well as bring visitors, shoppers, and residents to a
less frequented area of North Santa Cruz Avenue; and
(2) The proposed use will not impair the integrity and character of the zone in that the use
will be in a commercial zone; and
(3) The proposed use would not be detrimental to public health, safety or general welfare in
that the use will be subject to provisions of the Alcoholic Beverage Policy and conditions
placed on the permit will mitigate potential impacts; and
(4) The proposed use of the property is in harmony with the various elements or objectives of
the General Plan and the purposes of the Town Code as discussed within the February 12,
2104, Planning Commission Staff Report.
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 commercial uses.
NADEV\F1NDINGS12014W SC346.dmx
EXHWIT 2
of Attachment 10
This Page
Intentionally
Left Blank
CONDITIONS OF APPROVAL — February 12, 2014
346 N. Santa Cruz Avenue
Conditional Use Permit U -13 -023
Requesting approval to operate a tasting room on property zoned C -2. APN 529 -04 -043.
PROPERTY OWNER: Pond Family Trust
APPLICANT: Matt Oefinger, Fernwood Cellars
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. Any changes or modifications 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 changes.
2. EXPIRATION OF APPROVAL: The Conditional Use Permit application will expire two
years from the date of approval unless it is used before expiration. Section 29.20.335
defines what constitutes the use of an approval granted under the Zoning Ordinance.
3. LAPSE FOR DISCONTINUANCE: If the activity for which the Conditional Use Permit
has been granted is discontinued for a period of one (1) year the approval lapses.
4. USE: The approved use is a wine tasting room with retail sales.
5. SEATING: No seating is allowed. A standing only bar counter is permitted.
6. HOURS OF OPERATION: Maximum hours of operation are Monday through Thursday
4:00 p.m. to 8:00 p.m., Friday and Saturday 11:00 a.m. to 8:00 p.m., and Sundays 11:00
a.m. to 5:00 p.m.
7. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed.
8. ALCOHOLIC BEVERAGE POLICY: The applicant shall be subject to comply with any
new requirements in the Town's Alcoholic Beverage Policy within six (6) months from the
date of the change in policy.
9. 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.
10. 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.
11. 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.
12. 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.
EXHIBIT 3
of Attachment 10
Building Division
13. PERMITS REQUIRED: A Building Permit shall be required for the any alterations to the
existing commercial building. Separate permits are required for electrical, mechanical, and
plumbing work as necessary.
14. CONDITIONS OF APPROVAL: The Conditions of Approval must be blue -lined in full on
the cover sheet of the construction plans. A Compliance Memorandum shall be prepared
and submitted with the building permit application detailing how the Conditions of
Approval will be addressed.
15. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ".
16. TITLE 24 ACCESSIBILITY — COMMERICAL: For any proposed tenant improvements,
on -site parking and general path of travel shall comply with the latest California Title 24
Accessibility Standards. Work shall include, but not be limited to, accessibility to building
entrances from parking facilities and sidewalks. The building shall be upgraded to comply
the latest California Title 24 Accessibility Standards. Necessary work shall be first
investigated by the design Architect and then confirmed by Town staff.
17. APPROVALS REQUIRED: The project requires the following departments and agencies
approval before issuing a building permit:
a. Community Development — Planning Division: Jennifer Savage (408) 399 -5702
b. Santa Clara County Fire Department: (408) 378 -4010
c. County Environmental Health Department: (408) 885 -4200
TO THE SATISFACTION OF THE CHIEF OF POLICE:
18. 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.
19. 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.
20. 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.
21. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a
designated driver program such as complimentary non - alcoholic beverages for designated
drivers.
22. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be
posted in a visible location.
N:\DE V"NDITNS\2014 \NSC346.docx
C E L L A R S
_r RECEIVED
December 5, 2013 JAN 2 2014
To: Planning Commission Town of Los Gatos
Town Council, Town of Los Gatos TOWN OF LOS GATOS
PLANNING DIVISION
Re: Letter of Justification for
Fernwood Cellars, Inc. Tasting Room, DBA Vines of Los Gatos
It is with great anticipation that we look forward to a growing positive relationship
between the Town of Los Gatos and the "Vines of Los Gatos" Tasting Room. The
proposed wine tasting room would be located at 346 N. Santa Cruz Ave., Los Gatos,
in a freestanding building that has been owned by our family for over 50 years. The
previous tenant "Harlow" was a beauty salon, offering hair, skin and makeup
services. It appears that there is an inordinately high concentration of these service -
style businesses in that specific area of Town, and we would be replacing it with a
retail business.
The proposed name of the store would be "Vines of Los Gatos ". The purpose of the
Tasting Room would be to expose new clients to our wines. Fernwood Cellars is a
Santa Cruz Mountain bonded winery, located west of Gilroy, near Mount Madonna.
All of its wines are produced from vineyards we own or control, and grapes are
sourced from Los Gatos, Monte Sereno, Saratoga, Los Altos and from the home
ranch. Fernwood Cellars is owned and operated by Matt and Tiffany Oetinger. Matt
was born and raised in Los Gatos, attended and graduated from Los Gatos High
School in 1991. Since the building in which the tasting room is proposed is owned
by our family, this would truly be an owner- operator set up, with long -term
occupancy and establishing a tradition of excellence as primary goals of the business
model.
In regards to adhering to and addressing the Town's Alcoholic Beverage Policy, we
feel we would be operating within the parameters established. As noted below our
hours of operation, at the latest, would be open until 8 PM, not the 10 PM cutoff
mentioned in the policy. The location of the building does not abut nor is it within
close proximity to any residential area.
We understand that based on the discretion of the Chief of Police there may need to
be periodic meetings to address on -going employee alcoholic beverage service
training. We have been pouring our wines for the public for over 10 years and have
never had any negative situation arise. We shall use an employee - training manual,
which among other aspects of our business will address beverage service, in
accordance to the California Alcoholic Beverage Control. We will have non - alcoholic
beverages available for designated drivers, or whoever should wish, as well as
having taxicab telephone numbers posted. EXHiB1T 4
7137 REDWOOD RETREAT ROAD, GILROY, CALIFORNIA 95020 rrvorvc 406.846.0611 of Attachment 10
C E L L A R S
The purpose of the proposed business location would be to provide flights of wine
to customers in an effort to share our locally grown and produced wines and to
educate the public and our clients. As two other downtown tasting rooms have
recently closed through retirement, our proposed business would fill a niche in the
community that demographically embraces the culture of wine. Since this is retail
zoning, obviously we intend to sell our wines, as well as wine - related items
(corkscrews, glasses, hats, etc). Bottles of wine would be sold from behind the bar
(as shown in the floor plan). We would also like to sell food items, which have been
pre - prepared, pre - packaged and purchased from local producers. Food would be
stored and sold from the Health Department- approved refrigeration unit (as shown
in the floor plan). Our wine - related items, as listed above, would be sold from
displays, as denoted in the floor plan, as well as from behind the bar. We would not
be doing any food preparation within the building, simply re- selling the pre-
packaged items. There would be no seating within the tasting room for patrons. In
adherence to our Type 2 ABC license, our "satellite" tasting room would pour 1
ounce pours during the tasting flight, limited to 5 wine flights. We would also sell 4-
ounce pours, termed "glass sales," for consumption on site. The staff would be
trained in age verification, as well as monitoring intoxication levels and cease to
provide wine to anyone appearing intoxicated. At this time it is not our intention to
have any live entertainment for the business, or private parties.
Our proposed hours of operation would be:
Mon -Wed typically closed, (although Late November - December, during the Holiday
Season, we would be open from 4 -8 PM)
Thursdays 4 -8 PM
Fridays 11AM -8PM
Saturday 11AM -8PM
Sundays 11 -5 PM
We also propose subletting, within the building, to another winery, Naumann
Vineyards, a winery located on Montebello in Cupertino. The same employees
would staff all wineries' sales.
The location of Vines of Los Gatos would bring additional foot traffic to that retail
and services area. This would be desirable for this particular section of N. Santa
Cruz, as currently its foot traffic appears to be less then further south on the same
street. Being right next door to the very popular Los Gatos Cafe, we would be a
positive experience for their customers before or after a meal, especially on the
weekends when patrons stand on the sidewalk, waiting to be seated. And vice versa
for our clientele -- -they may choose to dine at the Caf6, before or after visiting our
establishment. Other restaurants in the immediate area will benefit by having our
Tasting Room available while waiting for dinner reservations. With the restaurants
7137 REDWOOD RETREAT ROAD, GILROY, CALIFORNIA 95020 PHONE 408.848.0611 r.. 408.848.1237
currently operating in the area we feel that this business in no way will impair the
integrity or character of the zone, but will in fact enhance it. At this point we have
not contacted any of our residential neighbors in regards to our proposal, as there
does not appear to be any homes within a reasonable area that our business would
impact
Since the first block of N. Santa Cruz Avenue going south from Los Gatos - Saratoga
Road is like a Gateway /Welcome to Downtown area, The Vines of Los Gatos proposes
to landscape our small planters and walls of the building with grapevines and,
visually, the block building will be enhanced by vines of labeled varietals. It will add
character to the building, complementing the Business and be a focus of interest for
passersby. We do not intend to modify any trees, or the building to change setbacks.
It would not change the current flow of pedestrian traffic.
As a native of Los Gatos and a fifth - generation Santa Clara County family member, I
am eager to return to the Town of Los Gatos. The wines of Fernwood Cellars have
achieved national acclaim and awards at many prominent and celebrated wine
competitions. We have been invited to attend and speak at the Prestigious Vintner's
Series at the Ahwahnee Hotel, Yosemite, won numerous Gold /Best of Class Awards,
as well as 90+ ratings from wine magazines through the years. Our focus is to
produce top quality, hand - crafted wine from grapes, all sourced from our own
vineyards, following a commitment to the Company Vision: "Quality is Timeless."
This Tasting Room would be the next step in that progression, introducing and
promoting our wines for sale to the Silicon Valley local market.
I thank you for your consideration and look forward to a long and prosperous
relationship with The Town of Los Gatos.
7137 REDWOOD RETREAT ROAD, GILROY, CALIFORNIA 95020 P... E 408.848.061 I FAx408.848.1237
This Page
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Source: Town of Los Gatos
Date: January 16. 2014
EXHIBIT 5
of Attachment 10
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