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Attachment 1w. TOWN OF LOS GATOS ITEM NO: 1 PLANNING COMMISSION STAFF REPORT Meeting Date: February 26, 2013 PREPARED BY: Suzanne Avila, Senior Planner savila(n,losgatosca $ ov APPLICATION NO.: Architecture and Site Application S -13 -050 Conditional Use Permit Application U -13 -020 LOCATION: 16268 Los Gatos Boulevard (east side of Los Gatos Boulevard), two lots south of Shannon Road) APPLICANT/PROPERTY OWNERS: Fox Creek Fund, LLC CONTACT PERSON: Gary Kohlsaat, Architect APPLICATION SUMMARY: Requesting approval of a Conditional Use Permit and Architecture and Site application for construction of a new office building on property zoned C -1. APN 532 -06 -060. DEEMED COMPLETE: January 31, 2014 FINAL DATE TO TAKE ACTION: July 30, 2014 RECOMMENDATION: Approval, subject to conditions. PROJECT DATA: General Plan Designation: Mixed Use Commercial Zoning Designation: C -1 Applicable Plans & Standards: General Plan Commercial Design Guidelines Parcel Size: 18,693 square feet Surrounding Area: Existing Land General Plan Zoning Use East Calv Church Low Denser Residential R -1:8 South Ca1va�Church Low Density Residential R -1:8 West I Single Family PD Mixed Use Commercial CH:PD Office I Mixed Commercial C -1 CEQA: The project is categorically exempt pursuant to Section 15303 for construction of an office building less than 10,000 square feet. ATTACHMENT 1 Planning Commission Staff Report - Page 2 16268 Los Gatos Boulevard/ S -13 -050 U -13 -020 February 26, 2013 FINDINGS: ■ As required by Section 15303 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. ■ That the project complies with the Commercial Design Guidelines. ■ As required by the Town's Traffic Policy for community benefit. CONSIDERATIONS: ■ As required by Section 29.20.150 of the Town Code for Architecture and Site applications. ACTION: The decision of the Planning Commission is final unless appealed within ten days. EXHIBITS: 1. Location map (one page) 2. October 23, 2013 Planning Commission minutes (73 transcribed pages) 3. December 16, 2103 Town Council minutes (two pages) 4. Town Council resolution 2013 -055 (three pages) 5. Required Findings and Considerations (two pages) 6. Recommended Conditions of Approval for CUP (one page) 7. Recommended Conditions of Approval for A &S (10 pages) 8. Project data sheet (one page) 9. Applicant's letter (two pages), received February 12, 2014 10. Color and material exhibit (one page) 11. Revised development Plans (19 sheets), received January 31, 2014 BACKGROUND: The subject property is located on the east side of Los Gatos Boulevard and is the second parcel south of Shannon Road. The existing 1,988 square foot building on the site was constructed in the 1940's as a single - family residence and has been used for commercial purposes since 1976. The property was annexed into the Town in 1961, so there are no building records showing the actual construction date. County records indicate that the building was modified in 1960 and cites that year as the effective year built. The building has been vacant since February 2013, when the applicant purchased the property. Previous tenants included personal service and office uses. Planning Commission Staff Report - Page 3 16268 Los Gatos Boulevard/ S -13 -050 U -13 -020 February 26, 2013 There is a 24 foot wide access easement along the north property line. The easement is used to provide access to the adjacent commercial building and will also be used to access the parking for the proposed office building. On October 23, 2013, the Planning Commission considered the subject applications and following a lengthy discussion, approved the project with added conditions to change the roofing material to tile and to add balconies on the second floor to reduce massing. The Planning Commission minutes are attached as Exhibit 2. On November 4, 2013, the Planning Commission decision was appealed by the owners of the adjacent commercial property. On December 16, 2013, the Town Council considered the appeal. The Council granted the appeal and remanded the matter to the Planning Commission for further consideration of an increased front setback, possible reduction of building size, and/or stepping back the second floor on the front elevation. Town Council summary minutes are attached as Exhibit 3 and the Council resolution is Exhibit 4. PROJECT DESCRIPTION: A. Location and Surroundine Neighborhood The project site is located on the east side of Los Gatos Boulevard, two parcels south of Shannon Road. The adjacent properties to the north contain a multi -tenant commercial building located on the corner of Los Gatos Boulevard and Shannon Road and a single - family residence that fronts on Shannon Road. Calvary Church abuts the property on the south (side) and east (rear). Office uses and the Laurel Mews Planned Development are located to the west, across Los Gatos Boulevard. B. Conditional Use Permit A Conditional Use Permit (CUP) is required for a new office building in the C -1 zone. Findings for granting approval of a CUP are included in Exhibit 5. C. Architecture and Site Approval Architecture and Site approval is required for the demolition of the existing commercial building and construction of a new office building. Considerations for the review of Architecture and Site applications are included in Exhibit 5 as required by Section 29.20.150 of the Town Code. Planning Commission Staff Report - Page 4 16268 Los Gatos Boulevard/ 5 -13 -050 U -13 -020 February 26, 2013 D. Zoning Compliance Office activities are a permitted use in the C -1 zone. The proposed project is compliant with parking requirements, maximum height, lot coverage and setbacks. Greater setbacks are required on the south side and east (rear) of the building because the adjacent property is in a residential zone. ANALYSIS: A. Architecture and Site The applicant is proposing to construct a 6,813 square foot two -story office building (the previous building reviewed by the Planning Commission was 7,047 square feet). Parking is being provided along the south side and rear property lines and beneath a portion of the second floor of the building. The building will be 25 feet 7- inches at the highest point, inclusive of an equipment well that will screen future roof mounted mechanical equipment. The maximum height allowed in the C -1 zone is 35 feet. General project data is included in Exhibit 8. The plans have been revised to incorporate the tile roofing and second floor balconies previously conditioned by the Commission (see sheets A -1, and A-4 of the development plans, Exhibit 11. Pursuant to Town Council direction, the building has been set back further from the front property line. The previous front setback was 15 feet and has been increased to 24 feet 10- inches. The applicant was not able to set the building back any further as it would eliminate parking spaces and impact drive aisles and backup areas. If the building is pushed back further it would impact the privacy of the adjacent residence on the north side of the property. As noted above, the applicant also reduced the building size to 6,813 square feet (previously 7,047 square feet). The applicant has indicated that any further reduction of the building size would make the project economically infeasible. The second floor was set back to add balconies as recommended by the Planning Commission. Setting the second floor back any further would compromise required ingress and egress (inclusive of the need for an elevator and interior stairs from the front lobby to the second floor). The story poles have been revised to reflect the new location and smaller building size and the project identification sign was revised to indicate the date of the Planning Commission meeting. B. Parkin Business and professional office uses require one space per 235 square feet. A total of 29 parking spaces are required and have been provided as surface spaces along the rear and south side of the property, and beneath the second floor of the building. The applicant Planning Commission Staff Report - Page 5 16268 Los Gatos Boulevard/ S -13 -050 U -13 -020 February 26, 2013 has relocated one parking space to the front of the building and will be installing an electric charging station for this space. In addition to business and professional office uses, the on -site parking is also adequate to support retail which is a permitted use in the C -1 zone. Medical office is not being proposed and would require an amendment to the CUP, if proposed in the future, to allow appropriate traffic analysis to be completed. If medical office were proposed for the entire building, 27 parking spaces would be required based on the requirement for one space per 250 square feet or six spaces per doctor or dentist, whichever is more restrictive. Most of the north side of the building will be enclosed to screen the parking and drive aisle from the street. The fence and wall on the south property line will screen the parking spaces from the street and adjacent church property. C. Landscape Plan Three trees are proposed to be removed including a 38 -inch Italian Stone Pine, 20 -inch Deodar Cedar and 4 -inch Avocado. Replacement trees have been incorporated into the landscape plan (see sheet L3.0 of the development plans, Exhibit 11). In addition there are planters along the north side of the building. Increasing the front setback has provided additional planting area in front of the building. Landscape buffers along the front, rear, and south side of the property will be fully landscaped. D. South Property Line Wall The applicant proposed a masonry wall with sections of steel panels that will be installed in the areas where the trees are located (see sheets LLO and L1.1 of the development plans, Exhibit 11). If all masonry construction were required, four of the trees would need to be removed and the fifth would be severely impacted and might not survive the construction. The applicant's proposal will preserve the property line trees and there is not a residential use on the south side of the parcel. In addition, the proposed wall meets the intent of the Code as it will provide a solid barrier between commercial and residentially zoned properties. The Commission agreed with this approach when approving the original project. The wall design remains the same for the south property line. E. Community Benefit The proposed development will not result in a significant increase in traffic. The net increase in floor area is 4,825 square feet which will generate about 53 average daily trips. The project is expected to add seven trips during the a.m. peak period and seven trips during the p.m. peak period. A traffic impact mitigation fee is required (see Planning Commission Staff Report - Page 6 16268 Los Gatos Boulevard/ S -13 -050 U -13 -020 February 26, 2013 condition #60, Exhibit 7). As required by the Town's Traffic Policy the applicant is required to demonstrate community benefit since there will be an increase of more than five trips during a peak period. The proposed community benefit is the provision of needed Class A office space and provision of an electric vehicle parking space and charging station. In addition, the property owner is part of the ownership group that is investing in and restoring the Los Gatos Theater. F. General Plan Conforman ce Applicable goals and policies of the 2020 General Plan include, but is not limited to the following: • Policy LU -1.8: Commercial development of any type shall be designed in keeping with the small town character of Los Gatos. • Goal LU-4: To provide for well - planned, careful growth that reflects the Town's existing character and infrastructure. • Policy LU -6.1: Protect existing residential areas from the impacts of non- residential development. • Policy: LU -63: Protect existing residential areas from adjacent non - residential uses by assuring that buffers are developed and maintained. • Policy LU -6.5: The type, density and intensity of new land use shall be consistent with that of the immediate neighborhood • Policy LU -6.8: New construction, remodels, and additions shall be compatible and blend with the existing neighborhood. • Policy LU -12.8: Uses on Los Gatos Boulevard south of Robert s Road shall be residential or office. • Goal LU -13: To promote appropriate and compatible development along Los Gatos Boulevard that complements the whole Town and serves residents and families. • Policy LU -13.4: New development along Los Gatos Boulevard shall be designed to minimize adverse impacts on adjacent residential areas. • Goal CD -1: Preserve and enhance Los Gatos's character through exceptional community design. • Policy CD -1.4: Development on all elevations shall be of high quality design and construction, a positive addition to and compatible with the Town's ambiance. Development shall enhance the character and unique identity of existing commercial and/or residential neighborhoods. • CD -2: To limit the intensity of new development to a level that is consistent with surrounding development and with the Town at large. • CD -3.9: Parking structures and facilities shall have a low profile, be screened from view and be aesthetically pleasing. Planning Commission Staff Report - Page 7 16268 Los Gatos Boulevard/ 5 -13 -050 U -13 -020 February 26, 2013 G. Commercial Design Guidelines Staff and the Architectural Consultant reviewed the project using the Commercial Design Guidelines and found it to be consistent with common design guidelines, and guidelines specific to the C -1 district and to Los Gatos Boulevard. The revised design was not reviewed by the Architectural Consultant as staff determined it was in compliance with the direction provided by the Planning Commission and Town Council. H. Los Gatos Boulevard Plan The land use goals of the Los Gatos Boulevard Plan are as follows: 1. To promote commercial activity that complements the whole Town. 2. To provide a dependable source of income, employment opportunities, goods and services. 3. To encourage a mix of uses along Los Gatos Boulevard that are compatible with surrounding uses. 4. To provide a transition from higher density uses at the north end of Los Gatos Boulevard to existing residential uses at the south end of Los Gatos Boulevard. Applicable policies include the following: Neighborhood commercial, multi - family and office uses shall be concentrated south of Los Gatos - Almaden Road. Uses on Los Gatos Boulevard south of Shannon Road shall be residential or office; existing non - residential uses shall not be intensified. New development must be designed in order to minimize adverse impacts upon adjacent residential uses. 1. CEOA Determination The project is categorically exempt pursuant to Section 15303 for construction of an office building less than 10,000 square feet. PUBLIC COMMENTS: Public hearing notices were sent to surrounding property owners within 300 feet of the project site. Tenants are noticed in addition to the property owner when the owner does not reside on the premises. As of the date of this report no written correspondence had been received. Staff met with two of the owners of the adjacent commercial property (north side) and subsequently with the project architect, property owner and one of the neighboring property owners to review the current plans. The owners of the adjacent commercial building would like to see the new building set back further than is proposed. Planning Commission Staff Report - Page 8 16268 Los Gatos Boulevard/ S -13 -050_, U -13 -020 February 26, 2013 CONCLUSION AND RECOMMENDATION: A. Conclusion The project complies with applicable zoning regulations and is consistent with applicable provisions of the Commercial Design Guidelines. The building will have high quality architecture and materials and will provide needed Class A office space. The applicant is also providing a designated parking space for electric vehicles and is installing a charging station. The building has been further set back from the front property line and has been reduced in size as directed by the Town Council. Since the initial submittal of the subject applications the architectural style was significantly modified to have more of a residential feel and through several iterations of the plans, the building size has been reduced by about 1,000 square feet. B. Recommendation Staff recommends that the Planning Commission take the following actions to approve the applications: 1. Find that the project is categorically exempt from CEQA (Exhibit 5); 2. Make the required findings for the granting of a Conditional Use Permit (Exhibit 5); 3. Find that the project is consistent with the Commercial Design Guidelines (Exhibit 5); 4. Find that the project is consistent with the considerations for approval of Architecture and Site applications (Exhibit 5); 5. Find that community benefit is being provided as required by the Town's Traffic Policy (Exhibit 5); and 6. Approve Conditional Use Permit application U -13 -006 and Architecture and Site application S -13 -050, subject to the conditions in Exhibits 6 and 7 and the development plans (Exhibit 11). Alternatively, the Commission may take one of the following actions: 1. Approve the subject applications with additional and/or modified conditions of approval, including the requirement for the wall on the south property line to be of masonry construction; or 2. Continue the applications to a date certain and provide direction to the applicant and staff on desired plan changes or additional provision of community benefit; or 3. Make findings to deny the Conditional Use Permit and Architecture and Site applications. Planning Commission Staff Report - Page 9 16268 Los Gatos Boulevard/ S -13 -050 U -13 -020 February 26, 2013 FL ,.1.1 A, i 'r/ /. r Suzanne Avila, AICP Senior Planner SLB:SA:ct 0 Approved by L. Baily, ICP Director of Community Developme cc: Fox Creek Fund, LLC, 15466 Los Gatos Boulevard, Suites 109 -153, Los Gatos, CA 95032 Gary Kohlsaat, Kohlsaat & Associates, 51 University Ave., Ste. L, Los Gatos, CA 95030 N'OEVIPC REPORTS\20141LCB16268- CUP- A&S.doc This Page Intentionally Left Blank