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Conditional Use Permit 112 N Santa Cruz AveCOUNCIL AGENDA REPORT DATE: MAY 22, 2014 MEETING DATE: 06/02/14 ITEM NO: 1 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: CONDITIONAL USE PERMIT APPLICATION U -14 -004. PROJECT LOCATION: 112 N. SANTA CRUZ AVENUE. PROPERTY OWNER: LOS GATOS COMMERCIAL LLC. APPLICANT: JOS PEIJNENBURG OLIVINUM. CONSIDER A REQUEST TO OPERATE A FORMULA RETAIL BUSINESS WITH A WINEBAR ON PROPERTY ZONED C -2. APN 529 -03 -040. PLANNING COMMISSION RECOMMENDATION: On April 23, 2014, the Planning Commission recommended that the Town Council: 1. Make the required findings (Attachment 1) and approve Conditional Use Permit U -14 -004 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 formula retail business (We Olive) with a winebar 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: LAUREL R. PREVETTI Lk fl of Community Development I Reviewed by: Assistant Town Manager I own Attorney Finance N: \DEV\TC REPORTS\2014 \112 N. Santa Cnaz.docx Refortnatted: 5/30/02 PAGE MAYOR AND TOWN COUNCIL SUBJECT: 112 NORTH SANTA CRUZ AVENUE/U -14 -004 May 22, 2014 BACKGROUND: The existing 3,298 sq. ft. building has four tenant spaces, three ground floor retail /commercial tenants (Sumi's Tailoring, Sushi on the Run, and Maria's) and an upstairs office space. The proposed project would combine two of the commercial tenant spaces previously occupied by a restaurant (Sushi on the Run) and a retail household goods shop ( Maria's). The site has a large rear patio and accessory structure (624 sq. ft.) that have made it difficult to find a retail- focused tenant for the space in that not many retail tenants would be able to utilize the patio area to display merchandise as Maria's did. The current Alcoholic Beverage Policy (ABP) (Attachment 6) was adopted by the Town Council in September 2001. A map of nearby alcohol serving and selling establishments is attached (Exhibit 5 of PC Report). 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. DISCUSSION: A. Project Summary The applicant is requesting approval to operate a formula retail olive oil and wine store with a winebar to the rear of the tenant space (Exhibit 8 of PC Report). The applicant proposes the winebar with food service and wine tasting as a compliment to the retail to showcase the products for sale and to demonstrate food preparations with the products. As described by the Applicant (Exhibit 4 of PC Report), the majority of the food items prepared in the winebar include products for direct sale within the store. The retail sales available would include California wines and olive oils as well as balsamic vinegars, mustards, and tapenades. An olive counter and a wine and food tasting bar counter are proposed. The olive oil demonstration and tasting counter is located towards the front of the store, no seating will be provided. This counter will display the olive oils for sale and provide a place for questions and tasting of the oils, no other food service will be provided at this counter. The wine and food tasting bar counter is part of the winebar area and would provide wine tastings as well as food samplings. This counter area would have seating for up to nine customers and will be located within a restricted area for people 21 years and older. The applicant is proposing the following hours of operation: RETAIL AREA (no wine sales or tasting) WINE AND TAPAS AREA Sunda 11:00 AM to 7:00 PM 12:00 PM to 7:00 PM Monday through Friday 9:00 AM to 9:00 PM 12:00 PM to 9:00 PM Saturday 10:00 AM to 9:00 PM 12:00 PM to 9:00 PM PAGE MAYOR AND TOWN COUNCIL SUBJECT: 112 NORTH SANTA CRUZ AVENUE/U -14 -004 May 22, 2014 B. Planning Commission On April 23, 2014, the Planning Commission considered the subject application. See Attachment 8 for the Commission's verbatim minutes. The Planning Commission unanimously recommended approval of the CUP. The Planning Commission recommendation included an additional allowance for classes or events, subject to the condition below: CLASSES /SPECIAL EVENTS: No more than two events /classes may be provided per month. No more than 20 attendees shall be permitted at these events/classes. The events /classes shall be held during the approved operating hours but the retail and winebar are to be closed during scheduled events. CONCLUSION: The project would create a unique retail and eating and drinking establishment. As conditioned, the site has adequate parking to accommodate the existing and proposed uses and the proposed use would close by 9:00 p.m. The proposed application is in conformance with Town Code. 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 i positive impact el the commercial area. The Planning Commission believes this application meets the aforementioned parameters and recommended approval of the application subject to the additional condition discussed above. When reviewing a Conditional Use Permit (CUP), the deciding body 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 may be, and is often, defined in the recommended conditions of approval as a "" conditiuse on. use The CUP runs with the land, and the deciding body should review applications based di the explicit use as opposed to the applicant or the applicant's business plan. If the deciding body believes there is merit, it can include, as a condition of approval, a requirement that the CUP be reevaluated within one year or six months from occupancy (i.e., the commencement of the use). While this was not recommended by the Planning Commission, if the Town Council finds merit to including such a condition, the deciding body may consider the following condition: REVIEW: The Planning Commission shall review the application one year from final occupancy to ensure the conditions imposed are mitigating potential impacts and/or to ensure compliance. This review shall be noticed as a public heari ng. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 112 NORTH SANTA CRUZ AVENUE/U -14 -004 May 22, 2014 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. Alcoholic Beverage Policy (with Exhibit A) 7. Report to the Planning Commission for the meeting of April 23, 2014 (includes Exhibits 1 -8 of PC Report) 8. Excerpt of the Planning Commission verbatim meeting minutes of April 23, 2014 9. Additional letters of support received at the April 23, 2014 Planning Commission meeting (three pages) Distribution: cc: Olivinum Inc. 798 Pershing Avenue, San Jose, CA 95126 Los Gatos Commercial LLC, 393 Main Street, Los Altos, CA 94022 LRP:MM:cg TOWN COUNCIL —June 2, 2014 REQUIRED FINDINGS FOR: 112 N. Santa Cruz Avenue Conditional Use Permit U -14 -004 Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. PROPERTY OWNER: Los Gatos Commercial LLC APPLICANT: Jos Peijnenburg, Olivinum FINDINGS Required finding for CEQA: ■ 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. 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; and (2) The proposed use will not impair the integrity and character of the zone; and (3) The proposed use would not be detrimental to public health, safety, or general welfare; 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 required by Section 29.20.190 of the Town Code for denying a Conditional Use Permit for a formula retail business or personal service use: The deciding body may deny a conditional use permit for a formula retail business or a personal service business if any of the following findings are made: (1) The proposed use of the property is not in harmony with specific provisions or objectives of the general plan and the purposes of this chapter; (2) The proposed use will detract from the existing balance and diversity of businesses in the commercial district in which the use is proposed to be located; ATTACHMENT 1 Page 2 of 2 112 N. Santa Cruz Avenue /U -14 -004 (3) The proposed use would create an over - concentration of similar types of businesses, or; (4) The proposed use will detract from the existing land use mix and high urban design standards including uses that promote continuous pedestrian circulation and economic vitality. 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. N: \DEV \FINDINGS\2014 \I 12 NSC.docx RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS GRANTING APPROVAL OF CONDITIONAL USE PERMIT APPLICATION U -14 -004 APN: 529 -03 -040 CONDITIONAL USE PERMIT APPLICATION: U -14 -004 PROPERTY LOCATION: 112 NORTH SANTA CRUZ AVENUE PROPERTY OWNER: LOS GATOS COMMERCIAL LLC. APPLICANT: JOS PEIJNENBURG, OLIVINUM WHEREAS, this matter came before the Town Council for public hearing June 2, 2014, and was regularly noticed in conformance with State and Town law. WHEREAS, the applicant seeks approval of a Conditional Use Permit (CUP) to operate a formula retail business (We Olive) with a winebar on property zoned C -2. The applicant requested 21 seats and maximum hours of operation as defined in conditions 8 and 9 of Exhibit A (attached). WHEREAS, on April 23, 2014, the Planning Commission considered a request for approval of CUP application U -14 -004 on property zoned C -2. The Planning Commission recommended approval of the request with an additional Condition of Approval, finding that the proposed use of the property is essential or desirable to the public convenience or welfare in that the use would add a unique retail and eating and drinking establishment that does not currently exist in Town; the proposed use will not impair the integrity and character of the zone in that the use will be in a commercial zone; and 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 the proposed use of the property is in harmony with the various elements or objectives of the ATTACHMENT 2 General Plan and the purposes of the Town Code as discussed by the Planning Commission at the April 23, 2014, Planning Commission meeting. 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 June 2, 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. These findings are based on the evidence presented in the Council Agenda Report for its meeting on June 2, 2014, and incorporate the findings made by the Planning Commission on April 23, 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 -14 -004 to operate a formula retail business (We Olive) with a winebar 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 regular meeting of the Town Council of the Town of Los Gatos, California, held on the 2 "d day of June, 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 N, DEV PESOS `'014'.Appime_ L NSC.docz This Page Intentionally Left Blank CONDITIONS OF APPROVAL — June 2, 2014 112 N. Santa Cruz Avenue Conditional Use Permit U -14 -004 Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. PROPERTY OWNER: Los Gatos Commercial LLC APPLICANT: Jos Peijnenburg, Olivinum 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 for a formula retail business selling olive oils, vinegars, and packaged food accompaniments. The use also includes a winebar with wine tastings and on and offsite wine and beer sales. On or offsite sales of hard liquor are not permitted. 5. ALCOHOL SERVICE: The service of beer and wine (including wine tastings) is permitted only when food service is available. Food service, for the purposes of this condition, is defined as a combination of items selected from a menu. 6. SEATING: No more than 21 seats are permitted (inclusive of indoor and outdoor courtyard seating). No seats shall be placed at the olive oil display counter. 7. OLIVE OIL DISPLAY COUNTER: No food service shall occur at the display counter, limited tasting of olive oils is permitted. No seating shall be placed at this counter. 8. HOURS OF OPERATION (RETAIL): Maximum hours of operation for non - alcoholic retail sales are Monday through Friday, 9:00 a.m. to 9:00 p.m.; Saturday, 10:00 a.m. to 9:00 p.m.; and Sundays, 11:00 a.m. to 7:00 p.m. 9. HOURS OF OPERATION (WINEBAR): Maximum hours of operation for the winebar and on or offsite sales of beer and or wine are Monday through Saturday, 12:00 p.m. to 9:00 p.m.; and Sundays, 12:00 p.m. to 7:00 p.m. 10. CLASSES /SPECIAL EVENTS: No more than two events/classes may be provided per month. No more than 20 attendees shall be permitted at these events/classes. The events /classes shall be held during the approved operating hours but the retail and winebar are to be closed during scheduled events. 11. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed. 12. 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. 13. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts. EXHIBIT A of Attachment 2 14. 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. 15. 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. 16. 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. 17. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval, and may be secured to the satisfaction of the Town Attorney. Building Division 18. 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. 19. 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. 20. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ". 21. 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 to the latest California Title 24 Accessibility Standards. Necessary work shall be first investigated by the design Architect and then confirmed by Town staff. 22. APPROVALS REQUIRED: The project requires the following departments and agencies approval before issuing a building permit: a. Community Development —Planning Division: Mami Moseley (408) 354 -6802 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: 23. UNIFORMED SECURITY: Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 24. 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. 25. 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. 26. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a designated driver program such as complimentary non - alcoholic beverages for designated drivers. 27. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted in a visible location. NADMCONDUNS\2014 \1 12 NSC.docx This Page Intentionally Left Blank RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS REMANDING A REQUEST TO APPROVE CONDITIONAL USE PERMIT APPLICATION U -14 -004 TO THE PLANNING COMMISSION FOR FURTHER CONSIDERATION APN: 529 -03 -040 CONDITIONAL USE PERMIT APPLICATION: U -14 -004 PROPERTY LOCATION: 112 NORTH SANTA CRUZ AVENUE PROPERTY OWNER: LOS GATOS COMMERCIAL LLC. APPLICANT: JOS PEIJNENBURG, OLIVINUM WHEREAS, this matter came before the Town Council for public hearing June 2, 2014, and was regularly noticed in conformance with State and Town law. WHEREAS, the applicant seeks approval of a Conditional Use Permit (CUP) to operate a formula retail business (We Olive) with a winebar on property zoned C -2. The applicant requested 21 seats and maximum hours of operation as defined in conditions 8 and 9 of the draft conditions of approval. WHEREAS, on April 23, 2014, the Planning Commission considered a request for approval of CUP application U -14 -004 on property zoned C -2. The Planning Commission recommended approval of the request with an additional Condition of Approval, finding that the proposed use of the property is essential or desirable to the public convenience or welfare in that the use would add a unique retail and eating and drinking establishment that does not currently exist in Town; the proposed use will not impair the integrity and character of the zone in that the use will be in a commercial zone; and 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 the ATTACHMENT 3 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 by the Planning Commission at the April 23, 2014, Planning Commission meeting. 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 June 2, 2014, along with any and all subsequent reports and materials prepared concerning this application. NOW, THEREFORE, BE IT RESOLVED THAT: 1. CUP application U -14 -004 to operate a formula retail business (We Olive) with a winebar 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 regular meeting of the Town Council of the Town of Los Gatos, California, held on the 2 "d day of June, 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 N: DEA R F.SOS 2014 Remand I I2 NSC.docx This Page Intentionally Left Blank RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DENYING A REQUEST TO APPROVE CONDITIONAL USE PERMIT APPLICATION U -14 -004 APN: 529 -03 -040 CONDITIONAL USE PERMIT APPLICATION: U -14 -004 PROPERTY LOCATION: 112 NORTH SANTA CRUZ AVENUE PROPERTY OWNER: LOS GATOS COMMERCIAL LLC. APPLICANT: JOS PEIJNENBURG, OLIVINUM WHEREAS, this matter came before the Town Council for public hearing on June 2, 2014, and was regularly noticed in conformance with State and Town law. WHEREAS, the applicant seeks approval of a Conditional Use Permit (CUP) to operate a formula retail business (We Olive) with a winebar on property zoned C -2. The applicant requested 21 seats and maximum hours of operation as defined in conditions 8 and 9 of the draft conditions of approval. WHEREAS, on April 23, 2014, the Planning Commission considered a request for approval of CUP application U -14 -004 on property zoned C -2. The Planning Commission recommended approval of the request with an additional Condition of Approval, finding that the proposed use of the property is essential or desirable to the public convenience or welfare in that the use would add a unique retail and eating and drinking establishment that does not currently exist in Town; the proposed use will not impair the integrity and character of the zone in that the use will be in a commercial zone; and 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 the proposed use of the property is in harmony with the various elements or objectives of the ATTACHMENT 4 General Plan and the purposes of the Town Code as discussed by the Planning Commission at the April 23, 2014, Planning Commission meeting. 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 June 2, 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 its meeting on June 2, 2014, and incorporate the findings made by the Planning Commission on April 23, 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: 1. CUP application U -14 -004 to operate a formula retail business (We Olive) with a winebar 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 regular meeting of the Town Council of the Town of Los Gatos, California, held on the 2nd day of June, 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 u DEVRESOS2014umy_iQNSCdoc« This Page Intentionally Left Blank OF APPROVAL — June 2, 2014 112 N. Santa Cruz Avenue Conditional Use Permit U -14 -004 Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. PROPERTY OWNER: Los Gatos Commercial LLC APPLICANT: Jos Peijnenburg, Olivinum 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 for a formula retail business selling olive oils, vinegars, and packaged food accompaniments. The use also includes a winebar with wine tastings and on and offsite wine and beer sales. On or offsite sales of hard liquor are not permitted. 5. ALCOHOL SERVICE: The service of beer and wine (including wine tastings) is permitted only when food service is available. Food service, for the purposes of this condition, is defined as a combination of items selected from a menu. 6. SEATING: No more than 21 seats are permitted (inclusive of indoor and outdoor courtyard seating). No seats shall be placed at the olive oil display counter. 7. OLIVE OIL DISPLAY COUNTER: No food service shall occur at the display counter, limited tasting of olive oils is permitted. No seating shall be placed at this counter. 8. HOURS OF OPERATION (RETAIL): Maximum hours of operation for non - alcoholic retail sales are Monday through Friday, 9:00 a.m. to 9:00 p.m.; Saturday, 10:00 a.m. to 9:00 p.m.; and Sundays, 11:00 a.m. to 7:00 p.m. 9. HOURS OF OPERATION (WINEBAR): Maximum hours of operation for the winebar and on or offsite sales of beer and or wine are Monday through Saturday, 12:00 p.m. to 9:00 p.m.; and Sundays, 12:00 p.m. to 7:00 p.m. 10. CLASSES /SPECIAL EVENTS: No more than two events/classes may be provided per month. No more than 20 attendees shall be permitted at these events/classes. The events/classes shall be held during the approved operating hours but the retail and winebar are to be closed during scheduled events. 11. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed. 12. 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. 13. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts. ATTACHMENT 5 14. 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. 15. 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. 16. 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. 17. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval, and may be secured to the satisfaction of the Town Attorney. Building Division 18. PERMITS REQUIRED: A Building Pernrit shall be required for the any alterations to the existing commercial building. Separate permits are required for electrical, mechanical, and plumbing work as necessary. 19. 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. 20. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ". 21. 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 to the latest California Title 24 Accessibility Standards. Necessary work shall be first investigated by the design Architect and then confirmed by Town staff. 22. APPROVALS REQUIRED: The project requires the following departments and agencies approval before issuing a building permit: a. Community Development — Planning Division: Mami Moseley (408) 354 -6802 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: 23. UNIFORMED SECURITY: Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 24. 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. 25. 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. 26. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a designated driver program such as complimentary non - alcoholic beverages for designated drivers. 27. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted in a visible location. N:\DEV \C0NDITNS\2014 \112 MCA= This Page Intentionally Left Blank 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, THEREFORE 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 6 PASSED AND ADOPTED at a regular meeting of the Town Council held on the 1711 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--- a OZHE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC BEVERAGES I. 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: 11. General policy 1. The Town shall continue to strongly discourage new applications for stand alone bars or restaurants with separate bars. The Town shall continue to discourage applications for entertainment establishments serving alcoholic beverages. Entertainment in association with an eating or drinking establishment maybe 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 pen-nit 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 of Attachment 6 Town of Los Gatos Alcoholic Beverage Policy Page 2 of 4 5. 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. The deciding body shall make the following findings prior to approving an application for conditional use permit to serve alcoholic beverages past l OPM: A. Late night service will not adversely impact adjacent residential neighborhoods. B. The applicant does nothaveahi story 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 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 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 29.20.318(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 29.20.318(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 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. \DEV UZ 14NE\CuuncilTolicim @001alcohol policy.wpd _` MN TOWN OF LOS GATOS ITEM NO: 1 " I PLANNING COMMISSION STAFF REPORT cos ci�� Meeting Date: April 23, 2014 PREPARED BY: Mami F. Moseley, Associate Planner mmoseleva,losgatosca eov APPLICATION NO: Conditional Use Permit Application U -14 -004 LOCATION: 112 N. Santa Cruz Avenue (east side of N. Santa Cruz Avenue, approximately 75 feet south of Grays Lane) APPLICANT/ CONTACT PERSON: Jos Peijnenburg, Olivinum PROPERTY OWNER: Los Gatos Commercial LLC APPLICATION SUMMARY: Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. RECOMMENDATION: PROJECT DATA: DEEMED COMPLETE: March 31, 2014 FINAL DATE TO TAKE ACTION: September 31, 2014 Forward Conditional Use Permit U -14 -004 to the Town Council with a Recommendation of Denial. 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 4,375 square feet 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 uses within an existing facility. ATTACHKENT 7 Existing Land Use General Plan Zoning North Commercial Central Business District C -2 East Commercial Central Business District South Commercial Central Business District E West Commercial Central Business District C -2 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 uses within an existing facility. ATTACHKENT 7 Planning Commission Staff Report - Page 2 112 N. Santa Cruz Avenue/U -14 -004 April 23, 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 29.20.190(b) of the Town Code for denying a formula retail business. • As required by Section IV.B of the Redevelopment Plan for the Central Los Gatos Redevelopment Project that it meets the uses set forth in the Town's General Plan. CONSIDERATIONS: ACTION: EXHIBITS: BACKGROUND: The existing 3,298 sq. ft retail /commercial tenants None. Forward Conditional Use Permit U -14 -004 to the Town Council with a Recommendation of Denial. 1. Location Map 2. Findings and Considerations (two pages) 3. Recommended Conditions of Approval (two pages) 4. Letter of Justification (eight pages), received March 31, 2014 5. Alcohol Concentration Map 6. Formula Retail Concentration Map 7. Letters of support (31 pages) 8. Development Plans (nine pages), received April 3, 2014 . building is broke up into four tenant spaces, three ground floor (Sumi's Tailoring, Sushi on the Run, and Maria's) and an upstairs office space. The proposed project would combine two of the commercial tenant spaces previously occupied by a restaurant (Sushi on the Run) and a retail household goods shop ( Maria's). The site has a large rear patio and accessory structure (624 sq. ft.) that have made it difficult to find a retail- focused tenant for the space in that not many retail tenants would be able to utilize the patio area in merchandise display as Maria's did. 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. Planning Commission Staff Report - Page 3 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 PROJECT DESCRIPTION: A. Conditional Use Permit The applicant is requesting approval to operate a formula retail olive oil and wine store with a winebar to the rear of the tenant space (Exhibit 8). The applicant proposes the winebar as a compliment to the retail in that the intent is to showcase the products for sale, providing customers with quality demonstrations of their use /application. As shown in Exhibit 4, the majority of the food items prepared in the winebar include products for direct sale within the store. The retail sales available would include California wines and olive oils as well as balsamic vinegars, mustards, and tapenades. An olive counter and a wine and food tasting bar counter are proposed. The olive oil demonstration and tasting counter is located towards the front of the store, no seating will be provided. This counter will display the olive oils for sale and provide a place for questions and tasting of the oils, no other food service will be provided at this counter. The wine and food tasting bar counter is part of the winebar area and would provide wine tastings as well as food samplings. This counter area would have seating for up to nine customers and will be located within a restricted 21 years and up area, as will the winebar. The applicant is proposing the following hours of operation: The applicant provided a letter of justification (Exhibit 4) and development plans (Exhibit 8) 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. B. Location and Surrounding Neighborhood The project site is located on the east side of N. Santa Cruz Avenue, approximately 75 feet south of Grays Lane (Exhibit 1). The property is surrounded by commercial uses. RETAIL AREA (no wine sales or tasting) WINE AND TAPAS AREA Sunda 11:00 AM to 7:00 PM 12:00 PM to 7:00 PM Monday throu Frida 9:00 AM to 9:00 PM 12:00 PM to 9:00 PM Saturday 10:00 AM to 9:00 PM 12:00 PM to 9:00 PM The applicant provided a letter of justification (Exhibit 4) and development plans (Exhibit 8) 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. B. Location and Surrounding Neighborhood The project site is located on the east side of N. Santa Cruz Avenue, approximately 75 feet south of Grays Lane (Exhibit 1). The property is surrounded by commercial uses. Planning Commission Staff Report - Page 4 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 C. Zoning Compliance The zoning designation allows alcoholic beverage service and sales, and formula retail businesses subject to the approval of a Conditional Use Permit. ANALYSIS: A. Proiect Summary The applicant is requesting to join two commercial spaces on the same property into one 2,158 sq. ft. formula retail business and winebar. The retail area will include primarily local olive oils, balsamic vinegars and other food spreads, and the winebar will provide small plates showcasing items sold within the store along with wines and beer by the glass or ounce. The applicant is also proposing to have education opportunities for their retail and winebar clients to learn about olive oil benefits and production, called "meet the grower." These offerings will be held in building B at the back of the lot during retail hours and would be limited to olive oil education and would be an extension of the retail business. The letter of justification describes the proposal further and provides the applicant's justification for the proposal (Exhibit 4). The applicant is also proposing minor changes to the exterior of the building to combine the two tenant spaces and improve the rear patio area (Exhibit 8). These changes will require building permits but do not require an Architecture and Site Application. B. Alcoholic Beverage Policv Purpose The requirements contained in the ABP are intended to protect nearby residential neighborhoods, while maintaining `the viability of our commercial. centers.' The policy 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 Grays Lane. The nearest residences are located across the Town parking lot to the rear fronting on University Avenue, nearly 200 feet away. A map illustrating the concentration of business serving or selling alcohol in the vicinity of the subject property is attached as Exhibit 5. Planning Commission Staff Report - Page 5 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 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 in the front of the business, all patio seating will be accessed through the building. Requirement No. 1 states `the Town shall continue to strongly discourage new applications for stand -alone bars or restaurants with separate bars.' While neither the current ABP nor the Town Code provides a definition for a wine bar, the Town has approved several over the last few years with similar conditions. 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 9:00 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. therefore those findings are not required. Requirement No. 7 defines a meal as `a combination of food items selected from a menu.' The applicant is proposing to provide small plates /tapas style items similar to other winebars currently operating in Town. Specific Policy The Specific Policy has two requirements that address alcoholic beverage service at restaurants. The applicant is not proposing an operation that falls into either of these categories, but would be similar to other winebars approved in Town, and as a condition of approval, would be subject to any changes to the ABP. C. Conversion of Retail Use to Restaurant in the C-2 In 1996, the Town Council adopted Ordinance 2021 that is "intended to discourage the displacement of retail uses by restaurant uses by requiring the Planning Commission to conduct a careful review of all applications for new restaurant uses in the C -2 Zone through the public hearing process." Planning Commission Staff Report - Page 6 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 The application would be taking over two tenant spaces, one of which is a small restaurant and the other is a larger retail space. The applicant is proposing to retain both elements in their proposal. It should be noted that the applicant has more than seven other strictly retail locations, and while there is a strong retail component to the proposal, it would be considered a formula retailer which is also strongly discouraged in the C -2. As a result, the Commission should carefully consider the potential impact of the conversion of this space in the downtown. D. Parking The subject site has credit for 13 parking spaces within the Parking Assessment District, there is no parking located onsite. Seven of the 13 parking spaces for the site would be associated with the 2,158 sq. ft. space created by combining the two tenant spaces. The remaining six parking spaces are allocated for the existing office and tailor uses that will remain. The proposed use is a combination of retail sales and a winebar with tastings. Town Code requires one parking space for every three seats for the proposed use. The applicant is proposing 21 seats (13 indoor and eight on the rear patio). Based on the conditions provided in Exhibit 3, the use would comply with parking requirements. E. Traffic The project would not result in an increase of ADT (average daily trips) or peak trips from the previous uses. F. Conditional Use Permit Findings 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. The deciding body may deny a conditional use permit for a formula retail business or a personal service business if any of the fallowing findings are made: (1) The proposed use of the property is not in harmony with specific provisions or objectives of the general plan and the purposes of this chapter; (2) The proposed use will detract from the existing balance and diversity of businesses in the commercial district in which the use is proposed to be located; Planning Commission Staff Report - Page 7 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 (3) The proposed use would create an over- concentration of similar types of businesses, or; (4) The proposed use will detract from the existing land use mix and high urban design standards including uses that promote continuous pedestrian circulation and economic vitality. While staff believes there may be merit based on the specific type of formula retail proposed, and the limitations built into the recommended conditions, Town Code and Town Council direction has been to discourage an increase in new formula retail businesses in the C -2. In order to grant approval of a Conditional Use Permit (for a formula retail business or a winebar), 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. If the Planning Commissions finds merit with the applicant's proposal, the above findings will have to be made in a motion to recommend approval to the Town Council. G. General Plan The goals and policies of the 2020 General Plan applicable to this project may 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. • 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. • Goal LU -10 — Preserve Downtown Los Gatos as the historic center of the Town, with goods and services for local residents, while maintaining the existing Town identity, environment, and commercial viability. Planning Commission Staff Report - Page 8 112 N. Santa Cruz Avenue/U -14 -004 April 23, 2014 H. Environmental Review The project is Categorically Exempt according to Section 15301 of CEQA as adopted by the Town, which exempts permitting a use within an existing facility. No significant effect on the environment will occur since the project uses an existing structure with no increase in floor area. I. Redevelopment Plan for the Central Los Gatos Redevelopment Proiect 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: The applicant has provided a number of letters obtained from other downtown retailers, as well as a letter of support from the California Olive Oil Council (Attachment 6). SUMMARY AND RECOMMENDATION: A. Summary Based on the applicant's intent to serve alcohol without requiring meal service and the direction of Ordinance 2021 regarding conversion of retail space in the downtown, staff recommends the Planning Commission forward a recommendation for denial of the proposed application to the Town Council In addition, if the Commission finds merit with the application, the Commission could also consider including the following condition if necessary: REVIEW: The Planning Commission shall review the CUP one year from occupancy to ensure compliance and to determine if conditions need to be added or modified to reduce potential impacts. B. Recommendation Staff recommends denial of the project because it conflicts with Ordinance 2021 and introduces a new formula retail use in the C -2 zone. If the deciding body concurs with staffs recommendation, it should recommend denial of the application to the Town Council. Planning Commission Staff Report - Page 9 112 N. Santa Cruz Avenue/U -14 004 April 23, 2014 If the deciding body finds merit with the proposed project and that it is in compliance with Ordinance 2021 and that the proposed formula retail use is appropriate, 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, the findings will need to be provided; 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 -14- 004 with the conditions contained in Exhibit 3. It should be noted that the Commission must expand the findings noted in Exhibit 2 if the Commission recommends approval of the proposal. Alternately the Commission can: I. 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. a Prepared by: Marni F. Moseley, AICP Associate Planner SLB:MM:cgt Sandy L. Baiy,AICP Director of Community cc: Olivinum Inc. 798 Pershing Avenue, San Jose, CA 95126 Los Gatos Commercial LLC, 393 Main Street, Los Altos, CA 94022 N: \DEV\PC REPORTS\2014 \1 12 NSC.dmx This Page Intentionally Left Blank 112 N. Santa Cruz Avenue EXHIBIT 1 yp- This Page Intentionally Left Blank REQUIRED FINDINGS FOR: April 23, 2014 112 N. Santa Cruz Avenue Conditional Use Permit U -14 -004 Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. PROPERTY OWNER: Los Gatos Commercial LLC APPLICANT: Jos Peijnenburg, Otivinum 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; and (2) The proposed use will not impair the integrity and character of the zone; and (3) The proposed use would not be detrimental to public health, safety, or general welfare; 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 required by Section 29.20.190 of the Town Code for denying a Conditional Use Permit for a formula retail business or personal service use: The deciding body may deny a conditional use permit for a formula retail business or a personal service business if any of the following findings are made: (1) The proposed use of the property is not in harmony with specific provisions or objectives of the general plan and the purposes of this chapter; (2) The proposed use will detract from the existing balance and diversity of businesses in the commercial district in which the use is proposed to be located; (3) The proposed use would create an over - concentration of similar types of businesses, or; (4) The proposed use will detract from the existing land use mix and high urban design standards including uses that promote continuous pedestrian circulation and economic vitality. E%HIBIT 2 0 Page 2 of 2 424 N. Santa Cruz Avenue/U -12 -004 April 23, 2014 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. N:\DEV\FINDINGS\2014 \112 NSC.docx CONDITIONS OF APPROVAL —April 23, 2014 112 N. Santa Cruz Avenue Conditional Use Permit U -14 -004 Requesting approval to operate a formula retail business (We Olive) with a winebar on property zoned C -2. APN 529 -03 -040. PROPERTY OWNER: Los Gatos Commercial LLC APPLICANT: Jos Peijnenburg, Olivinum 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 for a formula retail business selling olive oils, vinegars, and packaged food accompaniments. The use also includes a winebar with wine tastings and on and offsite wine and beer sales. On or offsite sales of hard liquor are not permitted. 5. ALCOHOL SERVICE: The service of beer and wine (including wine tastings) is permitted only when food service is available. Food service, for the purposes of this condition, is defined as a combination of items selected from a menu. 6. SEATING: No more than 21 seats are permitted (inclusive of indoor and outdoor courtyard seating). No seats shall be placed at the olive oil display counter. 7. OLIVE OIL DISPLAY COUNTER: No food service shall occur at the display counter, limited tasting of olive oils is permitted. No seating shall be placed at this counter. 8. HOURS OF OPERATION (RETAIL): Maximum hours of operation for non - alcoholic retail sales are Monday through Friday, 9:00 a.m. to 9:00 p.m.; Saturday, 10:00 a.m. to 9:00 p.m.; and Sundays, 11:00 a.m. to 7:00 p.m. 9. HOURS OF OPERATION (WINEBAR): Maximum hours of operation for the winebar and on or offsite sales of beer and or wine are Monday through Saturday, 12:00 p.m. to 9:00 p.m.; and Sundays, 12:00 p.m. to 7:00 p.m. 10. LIVE ENTERTAINMENT: No live entertainment or amplified music is allowed. 11. 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. 12. TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts. 13. SIGN PERMIT: A Sign Permit from the Los Gatos Community Development Department must be obtained prior to any changes to existing signs or installation of new signs. 14. CERTIFICATE OF USE AND OCCUPANCY: A Certificate of Use and Occupancy from the Los Gatos Community Development Department must be obtained prior to commencement of use. EXHIBIT 3 Pi 15. BUSINESS LICENSE: A business license from the Town of Los Gatos Finance Department must be obtained prior to the commencement of any new or change of use. 16. 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. Building Division 17. 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. 18. 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. 19. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36 ". 20. 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. 21. APPROVALS REQUIRED: The project requires the following departments and agencies approval before issuing a building permit: a. Community Development — Planning Division: Mami Moseley (408) 354 -6802 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: 22. 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. 23. 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. 24. 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. 25. DESIGNATED DRIVER PROGRAM: The restaurant operator shall actively promote a designated driver program such as complimentary non- alcoholic beverages for designated drivers. 26. POSTING OF TAXICAB TELEPHONE NUMBERS: Taxicab telephone numbers shall be posted in a visible location. N:\DEVCONDrrNS\2014 \112 NSC.docx RECEIVED MAR 312014 TOWN OF LOS GATOS PLANNING DIVISION 3/31/2014 Jos Peijnenburg Frank Mercurio Olivinum Inc., DBA We Olive Los Gatos We Olive LLC 798 Pershing Ave San Jose CA 95126 -2411 Planning Commission, Town of Los Gatos 110 E Main St Los Gatos, CA 95030 Letter of Justification (Application Number: U -14 -004) Property Address: 112 N Santa Cruz Ave, APN 529 -03 -063 Proposed Uses: I. Primary use is retail sale of Olive Oils, Balsamic Vinegars and related products 2. Complementary tasting of Olive Oil, Balsamic Vinegar and related products. 3. Education - centric wine and food service offered in a defined 21 and over area of the store. Limited craft beer and non - alcoholic beverage service also available. 4. Cold kitchen food service of small plates that feature retail gourmet food items 5. Retail of artisan Wines and Beer Location and surrounding neighborhood: The project site is located in the heart of the Central Business District and is zoned C -2. The current occupants are Maria's Home Furnishings and Sushi on the Run. The immediate neighboring businesses are Sumi's Tailoring and Alterations (on the same property) to the left and Natural Creations (garden fixtures) to the right. The total square footage of the property is 3,298, of which 2,158 will be improved. The upstairs (offices) and Sumi's Tailoring and alterations will not be impacted. The improvements will be made to the downstairs area, the yard and the building in the back. We believe that our application is fully in line with Goal LU -10 of the Town of Los Gatos 2020 General Plan. Project Summary: The applicant is requesting to change the existing Conditional Use Permit for the property to allow for the uses described below. The newly proposed uses will retain a similar mix of retail and food service offered by the previous tenants, namely Sushi on the Run and Maria's Home Furnishings. ffiIBIT 4 M Retail of Olive Oils, Balsamic Vinegars and related products, complimentary tastings of Olive Oil, Balsamic Vinegar and related products The majority of the main building will be for retail of olive oil, balsamic vinegars and related products (hand- crafted tapenades, mustards, pesto, spreads). Fustinos with California produced 'We Olive' Olive Oil and Balsamic Vinegars will be prominent in this section and it allows complementary sampling of these products. The area also includes a display and tasting counter, where all locally sourced artisan olive oils and balsamic vinegars are available for sale and for complimentary sampling. No bar stools or food service will be available at this counter or anywhere within the retail area of the store. Throughout the retail space, virtually all other food items for sale (tapenades, mustards, spreads, etc.) are available for complimentary sample tasting as well - it's a culinary retail experience. Artisan Wine, Beer and Cold kitchen prepared food service -featuring retail items Towards the back of the main building, a 21- and -over area will be created to allow wine and beer service. This area will clearly be marked as '21 and over' in accordance with the ABC license. In this same area, our cold kitchen will offer a menu of simply - prepared, healthful small plates that feature gourmet food items sold in the retail portion of our store. Seating in the 21- and -over area will include both inside seating as well as seating in a small restricted portion of the yard closest to the main building. We sell only small production, artisan - produced wines from California. Consistent with our philosophy of sampling in the retail portion of the store, all wines are available for sale by the taste and by the glass. This provides our guests with a unique education - oriented experience of locally sourced wines.. A small selection of bottled brew -pub style beers will also be available and sourced as locally as possible. In addition, we will offer gourmet bottled non - alcoholic beverages. Wine and beer will only be served when food is available. Available food options can be selected from our small plates menu. A sample of our Wine and Beer list as well as our Small Plates menu has been provided as part of the application. Retail of artisan Wines and Beer Wine and beer will also be available for out - the -door purchase by bottle. All alcoholic beverages sold for this purpose will be at room temperature. Office, storage and a space for guests to 'meet the grower' The remainder of the yard and building W will not be used for retail. Approximately half of the back building will be used as office (for the retail operation) and storage. The remainder of the back building, adjacent to the yard, will be converted into a open space. This area will serve as an indoors /outdoors area for guests 'meet the olive grower' -a chance ask for their favorite recipe.... We anticipate inviting growers to the store once or twice per month maximum, and is really an extension or our retail operations — designed to maintain normal traffic to the store, much like a sale. Agrowing family This site will be a franchise in the We Olive formula. We Olive has been operating stores in California for over a decade. Born in Paso Robles, there are currently 11 stores operational. In the Bay Area these are in San Francisco and Walnut Creek. The first We Olive and Wine Bar was established in La Jolla. There have been no incidents associated with the wine and beer service at our stores Industry and local demand A number of people associated with the olive and wine industries in California have encouraged We Olive to open a store in the South Bay. Patricia Darragh — Executive Director of the California Olive Oil Council has provided a letter of support. A growing number of guests of our stores in San Francisco, Walnut Creek, Paso Robles and San Luis Obispo are asking about a South Bay location. We are pleased and excited to bring the experience of a We Olive and Wine Bar to Santa Clara County and to Los Gatos in particular! Olive Oil, Wine and Simply- Prepared Small Plates: an ideal combination We Olive's core business is the sale of fine California Extra Virgin Olive Oil, and the education of its benefits and use to our guests. Our oils are certified Extra Virgin by the California Olive Oil Council. The array of other products we carry all complement and enhance this experience. The addition of a wine tasting and small plates bar augments this objective with a new dimension. Care is taken to select only fine California wines that we can exclusively represent in our area. They are chosen to accompany a brief "tapas- style' menu featuring fresh local breads and produce, with select cheeses and salamis, enhanced with the We Olive gourmet products. All menu items will be prepared in our cold- kitchen. It's all about California California is now recognized globally as a premium source for fine olives, olive oils, and wines. For the growing number of people who recognize this and desire these, we will provide that source. For others, we offer an opportunity to sample all of our products while receiving an education in their use and application. Our staff is trained in the history of California olives and the production of olive oil. We will occasionally provide opportunity for the public to meet some of the growers, producers, and authors. Gift baskets and boxes are a significant part of our business. Arol a Bar! Our intention is that we are not perceived as a "bar" even though our licenses will be such. Our true desire and intention is that the olive products are the focus of our business. Our opening hours reflect this intention. The small plates and wine service component has been added to provide guests the opportunity to see and taste our products in a real application. To illustrate this the sales breakdown from our La Jolla store is retail sales 65 %, in -store wine & beer 25% and in -store small plates 10%. We have the experience We have worked successfully with the local authorities in the similar high -end boutique communities of San Diego (La Jolla) and Thousand Oaks to bring the 'Olive Oil and Wine Bar concept there. We Olive has successfully implemented provisions that were part of the permitting process in both cities. Both locations are thriving and have created a loyal local following. Sheila Fortune — Executive Director of the La Jolla Visitors and Merchant Association has provided a letter of support. We Olive Education and Support The We Olive franchising organization will provide abundant training and support to the local staff in the We Olive Los Gatos store to make sure the operation is safe and in compliance with the laws and local permit. '21 and over signs will be placed on the perimeter of the designated area. Staff will be trained to verify ID before serving guests and will be trained to stop serving those who app ear to be intoxicated. For designated drivers, non - alcoholic beverages (locally sourced mineral waters and sodas) will be served. Numbers of taxi services will be displayed. Good neighbors The We Olive franchising organization stresses the importance of being good neighbors and will direct the local staff to be non - disruptive in the business operations. We intend to have our deliveries being made through the back of the premises (where our storage room will be), in the hours of 7 -10 AM. Our- heart is in the community We Olive has a proven track record in addressing the needs of the communities it operates in, if and when those needs tie into our concept. In February, the American Heart Association is highlighted with fundraising efforts, cooking classes, recipe contests, heart- healthy tips throughout the organization. October is Breast Cancer Awareness month, when similar events occur for this cause. Other charities that have benefitted from We Olive are the Leukemia & Lymphoma Society, the American Cancer Society, Food for the Hungry, Toys for Tots, the Association of Junior League and local Food Banks. Every location has a local flavor as to what good causes are supported and this will be no different in Los Gatos. Opening Hours: It is our intend to keep the following opening hours. Hazardous Materials No Hazardous Materials will be used in the operation of We Olive Los Gatos. Parking and Traffic As the current site already occupies both a retail operation (Maria's) and a restaurant (Sushi on the Run), we have restricted seating to what is already allotted for this property: 7 parking spaces equaling 21 seats. Therefore, there should be no negative impact on parking and traffic. Endorsements In addition to the support from the California Olive Oil Council and the La Jolla Visitors and Merchant Association mentioned above, the Landlord also has provided a letter of support. Furthermore, 28 businesses on Santa Cruz Avenue and neighboring streets have signed a letter of endorsement: Galeria Ante, Motor Cellular, Automobuild, Natural Creations, Sumi s Tailoring and Alterations, Williams Sonoma, Toss Designs, Vintages, Wells Fargo Bank, ProAnox, Tsume Nail Salon, Abeo Footware, Amour Patisserie, The Yellow Brick Road, Los Gatos Company, Azadeh Couture, Opa's Authentic Greek, Butter Paddle, Petroglyph Los Gatos, Round Table Pizza, Besos, J. Crew, Voluptuary, Only the Best, Cultured Nails, Wan Cube, Toll House Hotel, PostalMate Plus & Sur La Table. Justifications for approval 1. We Olive & Wine Bar is striving to perpetuate the rich history of Olive Oil and Wine. This centuries old pairing is brought back to life through the successful integration of "The Olive Oil Experience," a retail gourmet food tasting, and an educational, tasting- oriented wine bar. Wrap all of these things together, pair it with a casually elegant atmosphere, and you have a unique culinary experience that friends, family, and neighbors can enjoy together. 2. We Olive's retail concept is a natural fit for Downtown Los Gatos; it is unique and not replicated anywhere in the South Bay. It will enhance the Central Business District and fill a niche. It is complementary to the other businesses in Town and promotes synergy which is imperative to the health of all businesses, independent and national stores alike. Retail Wine and Tapas Sunday 11:00 AM to 7:00 PM 12:00 PM to 7:00 PM Monday Through Friday 9:00 AM to 9:00 PM 12:00 PM to 9:00 PM Saturday 10:00 AM to 9:00 PM 12:00 PM to 9:00 PM Hazardous Materials No Hazardous Materials will be used in the operation of We Olive Los Gatos. Parking and Traffic As the current site already occupies both a retail operation (Maria's) and a restaurant (Sushi on the Run), we have restricted seating to what is already allotted for this property: 7 parking spaces equaling 21 seats. Therefore, there should be no negative impact on parking and traffic. Endorsements In addition to the support from the California Olive Oil Council and the La Jolla Visitors and Merchant Association mentioned above, the Landlord also has provided a letter of support. Furthermore, 28 businesses on Santa Cruz Avenue and neighboring streets have signed a letter of endorsement: Galeria Ante, Motor Cellular, Automobuild, Natural Creations, Sumi s Tailoring and Alterations, Williams Sonoma, Toss Designs, Vintages, Wells Fargo Bank, ProAnox, Tsume Nail Salon, Abeo Footware, Amour Patisserie, The Yellow Brick Road, Los Gatos Company, Azadeh Couture, Opa's Authentic Greek, Butter Paddle, Petroglyph Los Gatos, Round Table Pizza, Besos, J. Crew, Voluptuary, Only the Best, Cultured Nails, Wan Cube, Toll House Hotel, PostalMate Plus & Sur La Table. Justifications for approval 1. We Olive & Wine Bar is striving to perpetuate the rich history of Olive Oil and Wine. This centuries old pairing is brought back to life through the successful integration of "The Olive Oil Experience," a retail gourmet food tasting, and an educational, tasting- oriented wine bar. Wrap all of these things together, pair it with a casually elegant atmosphere, and you have a unique culinary experience that friends, family, and neighbors can enjoy together. 2. We Olive's retail concept is a natural fit for Downtown Los Gatos; it is unique and not replicated anywhere in the South Bay. It will enhance the Central Business District and fill a niche. It is complementary to the other businesses in Town and promotes synergy which is imperative to the health of all businesses, independent and national stores alike. 3. A'We Olive and Wine Bar' is a perfect fit for the property at 112 N Santa Cruz Ave. This property has been on the market for over 3 years (in various size offerings). Due to its unique features —the large yard and back building in particular, the owners have had difficulties attracting the right concept for this space. Our proposal for the yard and back building will make this location into a vibrant retail destination. A letter from the Landlord and proprietor of'Maria's Antiques' — Rita Armstrong— is supporting this justification. 4. We Care at We Olive. Our commitment to the community is proven and real. The American Heart Association, various Breast Cancer Awareness organizations and others have benefited from our community outreach at our other locations and we will continue this tradition in Los Gatos. 5. Olive oil has an FDA approved heart healthy claim - our goal is to educate our guests through opportunities to 'meet the grower', cooking classes and other programs that promote a healthy lifestyle. We Olive promotes high quality products, and embraces the local, farm fresh and organic concepts that are valued by those living and shopping in Los Gatos. 6. The revenues through the collection of Sales Tax will be significant. Our very comparable store in La Jolla (similar size and demographics) has yearly revenues exceeding $1M within 2 years of start of operation. 7. The current space occupied both a restaurant (Sushi on the run) and a retail concept (Maria's Antiques), therefore We Olive — with its unique tasting concept that promotes retail - will not change the balance of retail to restaurant use in the Central Business District. While in the definition of the Town, our concept is 'formula retail' (more than 7 locations), the enterprise is truly a local Californian business. The applicant /franchisee is local. He will be held to the highest of standards by the We Olive organization and will create a professional, responsible and well run business. Sincerely Jos Peijnenburg Frank Mercurio Proprietor CEO Olivinum Inc., DBA We Olive Los Gatos We Olive LLC small bites 0 q ve * Denotes We Olive product available in our retail store Hie Olive Oil Experience *A# cheese and charcuterie available for retail (for takeaway only) — ask your server & r' ;'xs2 ., r Luc Bowl of Almonds 4.00 California almonds roasted in extra virgin olive oil and sea salt Bowl of Olives 4.00 Castelvetrano olives from Sicily. Picked under-ripe to produce an intensely green, buttery and delicious olive. Stuffed Peppadews 6.00 Mild, sweet South African pickled peppers stuffed with goat cheese and salami, drizzled with *Aged Balsamic Vinegar. House -made Hummus 9.00 We Olive's signature hummus made with our *Exclusive Harvest & *Coratina Olive Oil, topped with *Dukkah and served with crackers and fresh veggies. Garlicky White Bean Spread 12.00 Cannellini beans with garlic, lemon, fresh herbs and our bestselling *Fresh Garlic & Olives de Oro Rosemary Olive Oils. Served with crackers and fresh veggies. Roasted Tomato Basil Hummus 13,00 Made in -house with roasted tomatoes, garlic, and *Fresh Basil Olive Oil. Served with crackers and fresh veggies. Smoked Albacore Spread 15.00 Pole- caught albacore tuna with Sonoma Smoked Olive Oil blended into a creamy and delicious spread. Paired with cracker bread and fresh veggies. We Olive Dip Duo 14.00 Pick any two of our house made dips listed above! Served with crackers and fresh veggies. Smoked Albacore Sandwich 15.00 We Olive's Popular Smoked Albacore Tuna Spread, heirloom tomato slices, micro greens mix served on a fresh artisan baguette. Drizzled with Sonoma Smoked Olive Oil & *Champagne Mimosa vinegar. Caprese Sandwich 12.00 Fresh artisan mozzarella, heirloom tomato slices, micro basil greens served on a fresh artisan baguette. Drizzled with *Fresh Basil Olive Oil & *Aged Balsamic. Add Prosciutto 2.00 Sandwiches served with your choice of Arugulo & cherry tomatoes dressed with *Arbequina Olive Oil or Strawberry Mint salad dressed with *Lemon Olive Oil & *Peach White Balsamic. Spring Berry Salad 13.00 Blackberries, Strawberries, & Cinnamon Pecan Crusted Goat Cheese over Arugula. Dressed with sea salt & a house made Blackberry Balsamic Vinaigrette: *Arbequina Olive Oil, *Blackberry Balsamic, Colorado Sweet Yellow Clover Raw Honey, Sonoma Syrup Co. Blackberry Currant Cheese Drizzler. Heirloom Caprese Salad 15.00 Locally grown heirloom tomatoes, fresh artisan mozzarella and micro basil greens. Served with *Aged Balsamic Vinegar, and *Fresh Basil Extra Virgin Olive Oil. BurtataAntipasti Plate 17.00 Fresh burrata served with arugula and *Arbequina Olive Oil, accompanied by fresh fruit, prosciutto, stuffed peppadews, olives, and assorted nuts. Artisan Cheese and Charcuterie Plate 19.00 An ever - changing selection of artisanal cheeses and hand -made salumi, Served with crackers, fruit, nuts, *Sweet Balsamic Mustard, and Savannah Bee Co. Cheese Honey. Cheese only plate available. We Olives Sweets and Treats 10.00 Daily soft cheese selection, fresh fruit, artisan honey, dark chocolate, and a Brown Butter sea salt cookie. Late Harvest Wine pairing feat WesterlyViogner — add 3.00. beer offerings o ive Ask about our "off-menu" beer of the week! & �lfii ✓' f ��r 'i Blonde Ale - Mission Brewery San Diego — Kolsch -Style Ale 6.00 The color of a pilsner and the character of an ale. Mission blonde adds a Kokch yeast stain for fruitiness that compliments the blend of noble hops. Lager -like with a delicate dynes 5 %ABV Pale Ale - "Ruth" Hair of the Dog, Portland OR 12 oz. 7.00 A light and refreshing American Ale, made with pale malt and crystal hops.506 ABV Seasonal Ale — Shipyard "Pumpkinhead," Portland, ME, 12oz 7,00 A light delicious Ale with aromas of fresh pumpkin and beautifully balanced sweetness, Get it fast before it runs out 5 06 ABV Belgian Wheat Beer - Ahagash White, Portland, Maine, 12oz 7.00 Brewed with spices. Hints of tropical fruit Winter beer for paradise. 5.2 %ABV 15.00 IPA - "Racer 5" Bear Republic, Sonoma, CA.12oz. 7.00 Full bodied beer brewed with American pale and crystalmalts, and heavily hopped with Chinook Cascade, Columbus and Centennial. Piney and delicious! 7 %ABV 12.00 Rye IPA - Black Market - Temecula, CA 10.00 A golden/amber beer that showcases bold American hops with the extra flavor dimension of the use of rye malt as 20% of the malt bill. 7.5 %ABV Julian Hard Cider - Julian, San Diego County, 22oz 13.00 A hard cider made from fresh Julian apples, not sugary-sweet and fikny like imitation ciders; lightly carbonated, bright acid, tart apple flavor with a dry finish. 6.99 %ABV Belgian Pale Ale - Lost Abbey Devotion, San Marcos, San Diego, 22oz 14.00 A fragrant Belgian Pale Ale. Added hops, a floral nose, with a bright finish 6.75 %ABV Seizoen Breta - Logsdon farmhouse Ales, Hood RiverVWley, OR, 750 ml. 20.00 Special B ettanomyces yeast provides added dryness and cusp complexity to the Semen Bretta Bottle conditioned with pear juice for a natural carbonation 8.0%ABV Belgian Quad - "Mor Mor " Brouwerij West, Palos Verdes, CA 500 ml. 15.00 Using imported Belgian malt. German noble hops and a house yeast strain, this beer is a deep black -red in color with full palate and a dry finish. 10 %ABV Port Old Viscosity Ale - American Dark Strong Ale, 22 oz. 12.00 Starts out with 80% new stainless steel krmernaUOrtithen pm ancilfw 20% OldV*cosity aged in bourbon barrels Cocoa notes and atoasted oak vv iia and ash conple>dty 10%ABV non - alcoholic beverages Vignette Country Wine Sodas 4.50 Your choice of Rose, Pinot Noir, or Chatdonnay 12 oz Coke (de Mexico!) 4.50 A more natural tasting Coke, made with real cane sugar San Pellegrino 500 ML 4.00 Aqua Panna I L 6.00