North Forty Specific Plant wx °f MEETING DATE: 09/02/14
ITEM NO:
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SOS c "tOS COUNCIL AGENDA REPORT
DATE: AUGUST 27, 2014 J�
TO: MAYOR AND TOWN COUNCILA+�p � v`�460t*�
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: NORTH FORTY SPECIFIC PLAN GENERAL PLAN AMENDMENT GP -14-
001 ZONING CODE AMENDMENT Z -14 -001 AND ENVIRONMENTAL
IMPACT REPORT EIR -10 -002. PROJECT LOCATION: THE PLAN AREA
COMPRISES APPROXIMATELY 44 ACRES LOCATED AT THE
NORTHERN EXTENT OF THE TOWN OF LOS GATOS BORDERED BY
STATE ROUTE 17 AND STATE ROUTE 85 FREEWAYS TO THE WEST
AND NORTH LOS GATOS BOULEVARD TO THE EAST, AND LARK
AVENUE TO THE SOUTH APN 424 -07 -009, 010, 024 THROUGH 027, 031
THROUGH 037 052 THROUGH 054 060, 063 THROUGH 065, 070, 081
THROUGH 086 090 094 THROUGH 096. 099, 100, 424 -06 -115, 116, AND
129. PROPERTY OWNERS: THOMAS & MIYOKO YUKI HERBERT &
BARBARA YUKI ETPH LP WILLIAM MATTES, PETER BRUTSCHE
WILLIAM FALES WILLIAM HIRSCHMAN, ELIZABETH DODSON,
PATRICIA CONNELL HANS MATTES, TAK PETROLEUM, DEWEY
VENTURA ALEXANDER & BETTY MOISENCO, LUCY, DAGOSTINO,
ROBERT & GEORGIANNA SPINAZZE MARIANNE EZELL LOS GATOS
MEDICAL OFFICE CENTER LLC. APPLICANT: TOWN OF LOS GATOS.
A. CONSIDER CERTIFICATION OF AN ENVIRONMENTAL IMPACT
REPORT, ADOPTION OF A MITIGATION MONITORING AND
REPORTING PROGRAM, AND ADOPTION OF FINDINGS OF FACT
AND STATEMENT OF OVERRIDING CONSIDERATIONS.
B. CONSIDER ADOPTION OF THE NORTH FORTY SPECIFIC PLAN.
C. CONSIDER ADOPTION OF GENERAL PLAN AMENDMENTS.
D. CONSIDER ADOPTION OF AN ORDINANCE EFFECTING A ZONING
CODE AMENDMENT.
PREPARED BY: LAUREL R. PREVETTIL
Assistant Town Manager /Director of Commun ty evelopment
Reviewed by: N/A Assistant Town Manager WTown Attorney _*Finance
N9DEV \TC REP0RTS\2014 \N40TC9- 2 -14.dm Reformatted: 5/30/02
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
August 27, 2014
RECOMMENDATION:
After the public hearing, it is recommended that the Town Council:
1. Adopt a resolution (Attachment 14) to certify the Environmental Impact Report (EIR -10 -002)
(Attachments 1 and 2), adopt the Mitigation Monitoring and Reporting Program (Attachment
2), and adopt the findings of fact and statement of overriding considerations (Exhibit 14
within Attachment 5); and
2. Adopt a resolution (Attachment 15) to adopt the North 40 Specific Plan including findings
that the Specific Plan is consistent with the General Plan and its corresponding Elements; and
3. Adopt a resolution (Attachment 16) to adopt the proposed General Plan amendments (GP -14-
001) including the findings that the amendments are internally consistent with the existing
goals and policies of the General Plan and its corresponding Elements; and
4. Introduce an ordinance (Attachment 17) to amend the Town Zoning Code including the
required finding that the Zoning Code amendment is internally consistent with the General
Plan and its Elements.
ALTERNATIVES:
Given the multiple components of this item, the Town Council may make a motion(s) to do one
or more of the following for each component:
Deny the General Plan amendments and Zoning Code amendment without certifying the
Environmental Impact Report pursuant to the California Environmental Quality Act (CEQA);
or
2. Continue the matter to a date certain with specific direction; or
3. Remand the matter to the Planning Commission with specific direction.
BACKGROUND:
What is a Specific Plan?
Under California State law, a municipality may prepare and adopt a Specific Plan to help
implement the municipality's General Plan for a particular geographic subarea of the community.
A Specific Plan provides more detailed land use and establishes the primary means of
development guidance within the project area than occurs in the community's General Plan. By
law, Specific Plans must include, among other items:
• Explanation of the relationship to and consistency with the General Plan;
• Location and distribution of land uses, including the amount of each type and the
development densities and intensities;
• Development standards and guidelines for each land use;
• Transportation circulation, other infrastructure, and public facilities to support the planned
level of development; and
• Implementation strategies, including financing of infrastructure.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
August 27, 2014
Once a Specific Plan is adopted, development applications for the area are reviewed by the
municipality for consistency with the Specific Plan as well as other governing land use documents
in the community.
North 40 Specific Plan Process Overview
The North 40 is approximately 44 acres in size and is a key gateway to the Town of Los Gatos.
The area is bounded by State Route (Highway) 17 to the west, State Route (Highway) 85 to the
north, Los Gatos Boulevard to the east, and Lark Avenue to the south.
A draft Specific Plan for this area was written in 1999, but was not adopted. In 2010, the Los
Gatos Town Council adopted an updated General Plan, called the 2020 General Plan. It required
the preparation of a Specific Plan for the North 40 and included goals, policies, general
guidelines, and implementation strategies to inform the preparation of the Specific Plan.
In 2011, the Town Council appointed the North 40 Advisory Committee consisting of Town
Council, Planning Commission, and other community representatives to provide direction on the
preparation of the North 40 Specific Plan, consistent with the General Plan. The Committee
participated in over 17 meetings over a two year period. Public participation also occurred at the
Committee meetings and through two community workshops, an on -line survey, and three Town
Council /Planning Commission study sessions. In addition, a dedicated North 40 webpage
contains all of the Advisory Committee summaries, draft documents, and other materials for
public access.
On March 5, 2012, the Town Council adopted the following Vision statement and Guiding
Principles to inform the preparation of the Specific Plan and the Advisory Committee's work:
Vision
The North 40 reflects the special nature of our hometown. It celebrates our history,
agricultural heritage, hillside views, and small town character. The North 40 is seamlessly
woven into the fabric of our community, complementing other Los Gatos residential and
business neighborhoods. It is respectful of precious community resources and offers unique
attributes that enrich the quality of life of all of our residents.
Guiding Principles to Achieve this Vision
• The North 40 will look and feel like Los Gatos.
• The North 40 will embrace hillside views, trees and open space.
• The North 40 will address the Town's residential and/or commercial unmet needs.
• The North 40 will minimize or mitigate impacts on town infrastructure, schools, and
other community services.
The Specific Plan contemplates up to 364 housing units and up to 580,000 square feet of non-
residential uses. Of the non - residential uses, maximums for specific uses are:
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
August 27, 2014
• 250,000 square feet of office/hotel; and
• 400,000 square feet of other commercial (such as retail, restaurants, specialty market,
health clubs, personal service, and entertainment).
Open space is an important component of the North 40 Specific Plan. At least 30% of the area
(approximately 13.2 acres) is required to be open space in the form of green spaces and plazas,
integrated throughout the Plan area. An overview of the Specific Plan is contained in the staff
report to the Planning Commission for its meeting of July 23, 2014 (Attachment 4).
After reviewing and commenting on the October 2013 Screencheck Draft of the North 40 Specific
Plan, the Advisory Committee concluded its work on October 15, 2013 and it was dissolved (see
Attachment 4, Exhibit 10 for the notes of this meeting). The Committee did not formally
recommend the Specific Plan; however, it did identify specific next steps:
• Staff should provide language on phasing to the Planning Commission that meets the
Vision Statement.
•
Staff should identify any "ripple" effects of phasing.
• Staff should communicate with the school districts on student generation rates.
• The Planning Commission should be provided information on the impacts of the number
of residential units, including a traffic study.
These and other topics are addressed in the Planning Commission staff report, addendum, and
desk items (Attachments 4 - 8).
DISCUSSION:
Planning Commission Recommendations
On July 23, 2014, the Planning Commission conducted a public hearing on the Draft North 40
Specific Plan, its Final Environmental Impact Report (FEIR), and other related items. The
Commission heard testimony from 25 individuals and closed the public portion of the public
hearing. Due to the lateness of the hour, the Commission continued the entire item to its
regularly scheduled meeting of August 13, 2014, including the opportunity for the applicant (i.e.,
the Town) to respond to the testimony and answer Commission questions.
In addition, the Planning Commission identified specific issues for staff review to facilitate the
Commission's deliberation on the North 40. The issues were Transportation/Traffic, Residential,
Retail, Height, Schools, Historic Resources, Alternatives, Environmental Impact Report,
Utilities, and General. The Planning Commission staff report (Attachment 7) responds to these
issues by topic area and also responds to public comments and questions that were not
specifically identified in the Commission's requests. The information contained in Attachment 7
was coordinated with the Town Attorney, Parks and Public Works Department, and Economic
Vitality staff.
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z- 14- 001/EIR -10 -002
August 27, 2014
On August 13, 2014, the Planning Commission completed its work on the North 40 Specific Plan
and Environmental Impact Report (EIR). They unanimously passed two motions (6 -0 -1, Burch
recused) as summarized in Attachment 11 and restated below:
A. Recommend that the Town Council consider the North 40 Specific Plan in light of the
specific recommendations and possible amendments to the Specific Plan accordingly (see
Attachment 18 for detailed recommendations), and
B. Forward the Final Environmental Impact Report to the TC without certification for the
reasons that the PC cannot make the overriding considerations and due to specific
deficiencies in the EIR related to traffic and urban decay:
• Update the traffic analysis to include the new development capacity identified in
the recently released Notice of Preparation for the Dell Avenue Area Plan.
• Update the traffic analysis to study the effects of full interchanges at Winchester
and Highway 85, and Bascom and Highway 85.
• Analyze the reduction in traffic impacts with a reduction in the overall
development capacity of the Specific Plan.
• Address the concern that the expert traffic opinion is inconsistent with the
perception and "hard facts of experience of Los Gatos traffic."
• Complete additional analysis on alternative circulation plans.
• Convene a focus group to identify mechanisms (other than the CUP process) to
ensure that the North 40 complements and does not compete with Downtown Los
Gatos.
• Consider additional controls to protect Downtown.
In addition, the Planning Commission Chair acknowledged the value of all of the public
comments that the Commission received in testimony and in writing. She recognized the
important work completed by the citizens and she encouraged the Council to review all public
comments. The letters are included in Attachment 4 (Exhibits 12 and 13), Attachment 5 (Exhibit
17), Attachment 6 (Exhibit 18), Attachment 7 (Exhibits 23 and 24), and Attachment 8 (Exhibit
29). Verbatim minutes of the public testimony provided on July 23, 2014 can be found in
Attachment 7 (Exhibit 22).
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z- 14- OOI/EIR -10 -002
August 27, 2014
Policy Issues
This report discusses the recommendations of the Planning Commission and provides additional
information to assist the Town Council with its deliberations on the North 40 Specific Plan and
Final Environmental Impact Report. Many of the Commission's detailed recommendations have
been consolidated in Attachment 18 as proposed text modifications to the Specific Plan. While
some of the detailed recommendations have policy implications, there are five larger policy
considerations that need further clarification and direction from the Town Council. These items
include traffic, development capacity and density, building heights, and Conditional Use Permits
and economic vitality. Although the Planning Commission did not focus on phasing, staff
understands that this may be an issue of interest to the Council and it is also included in this
report.
The Council may wish to consider these and other issues in the context of the Vision and
Guiding Principles adopted by the Town Council on March 5, 2012 for the North 40 mentioned
on page three of this report. As the Council makes decisions on these individual items, staff will
be tracking how those decisions may have implications for text revisions to the Specific Plan and
related documents.
Tra c
The Planning Commission expressed concern about the overall traffic impacts to the community
with development of the North 40 Specific Plan. This concern was also voiced in public
testimony. The Commission recommended that one or more additional studies be completed to
provide the Town with supplemental information to guide its decision on the North 40 Specific
Plan. General estimates of the cost and time to prepare each traffic analysis are provided below.
These costs do not include the costs of revising the Environmental Impact Report (EIR),
recirculating it for another 45 -day public comment period, and holding a new Planning
Commission hearing.
TRAFFIC ANALYSIS
ESTIMATED
ESTIMATED
COST
TIME
Update the traffic analysis to include the new
development capacity identified in the recently
$15,000
Nine Weeks
released Notice of Preparation for the Dell Avenue
Area Plan.
Update the traffic analysis to study the effects of full
interchanges at Winchester and Highway 85, and
$20,000
Eleven Weeks
Bascom and Highway 85.
Analyze the reduction in traffic impacts with a
reduction in the overall development capacity of the
$20,000
Seven Weeks
Specific Plan (e.g., 25% reduction for all land uses).
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z- 14- 001/EIR -10 -002
August 27, 2014
The Council may choose to direct one or more of the above studies; however, for purposes of
compliance with the California Environmental Quality Act (CEQA), no additional traffic
analysis is required. Attachment 13 contains a memorandum from the Town Attorney regarding
the Dell Avenue Area Plan and explains that the cumulative traffic analysis contained in the
North 40 EIR was prepared following CEQA Guidelines and recent case law. -
The Council may choose to reduce the development capacity of the Specific Plan without an
additional traffic study because the EIR includes a No Project Alternative and a Reduced Scale
Alternative in addition to the proposed Specific Plan. The analysis contained in these
alternatives brackets the potential impacts of a 25% reduction alternative.
Should the Council direct one or more of the studies, this information would be available in a
revised EIR and the public would have the ability to comment on the revised document. The
Specific Plan and its revised EIR would be the subject of new hearings before the Planning
Commission and Town Council.
Development Capacity and Density
While the Planning Commission did not have a specific recommendation for a reduced
development capacity, they did recommend that the Town Council consider lower densities for
both residential and non - residential uses. The Specific Plan currently proposes up to 364
housing units and up to 580,000 square feet of non - residential uses.
The EIR provides environmental clearance for a Reduced Scale Alternative with a 25%
reduction in the amount of non - residential uses (up to 435,000 square feet total). Similarly,
clearance is also provided for a reduced amount of housing down to the existing number of
homes on the North 40. Reductions in development capacity would create a corresponding
reduction in traffic impacts; however, significant and unavoidable impacts would still occur. If
the Council would like consider reduced development in the North 40, the Council should
indicate the specific amount of each land use. This information is necessary to verify
environmental clearance and to make any needed changes to the Specific Plan and associated
documents.
The Guiding Principles for the Specific Plan reference meeting the Town's "unmet needs" for
housing and commercial development while having the "look and feel of Los Gatos." The Plan
focuses on providing housing opportunities for first time homebuyers, "empty nesters," and
seniors based on the demographic trends and the existing housing mix in Los Gatos. A reduction
in housing capacity and density may prompt the development community to propose more
typical single - family detached housing that would encourage families to move to North 40 and
therefore increase the number of students at local schools. Likewise, a reduction in non-
residential capacity may result in more segregated land uses and typical, auto - oriented shopping
centers.
Another way to consider reduced development capacity is to retain the housing types and design
parameters while translating the reduced capacity into an increase in the open space
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z- 14- 001/EIR -10 -002
August 27, 2014
requirements. The development community would likely comment that these changes could
affect the financial feasibility of construction and they may not be able to build under those
parameters.
Buildine Heights
After hearing public testimony regarding building heights, individual Planning Commissioners
offered several approaches to addressing heights in the North 40. Some of the recommendations
are included in Attachment 18 with specific text revisions to the Specific Plan. Another
recommendation was to set a 35 -foot building height limit as the "rule" and to make it very
difficult to obtain an exception; the Town Council would be the deciding body for all height
exceptions. As drafted, Appendix E of the Specific Plan (Attachment 3) currently specifies the
deciding body for height exceptions (and many other discretionary Planning approvals) as the
Planning Commission.
A third height recommendation was to consider a process to rescind a height exception after a
Conditional Use Permit (CUP) has been granted. Although there was not much discussion about
the specific reasoning behind the recommendation, staff understood that this was intended to
ensure that any height exception did not run with the land. For example, if one development
received a CUP approval for a height exception and many years later, a replacement project was
proposed, then a new CUP would be required so the deciding body at that time could determine
if increased heights were still appropriate.
Conditional Use Permits and Economic Vitalitv
The Planning Commission discussed the importance of a vital and vibrant Downtown in Los
Gatos while creating appropriate non - residential development opportunities in the North 40
area. The Commission was particularly interested in making sure that Downtown had the
appropriate protections from competitive uses in the North 40. These comments reflect back on
the Council adopted Guiding Principles for the North 40 to provide for the Town's unmet needs.
As discussed in the staff report to the Planning Commission for August 13, 2014 (Attachment
7), several uses, such as general merchandise retail, are not currently provided in Los Gatos,
resulting in residents shopping in neighboring communities.
Another concern was that the Conditional Use Permit requirements for certain uses in
Downtown may discourage tenants from Downtown and instead attract them to the North 40.
In public testimony, the Commissioners also heard that the North 40 would have abundant
parking compared to Downtown, further discouraging investment Downtown. In response,
some Commissioners thought that all uses in the North 40 should obtain a CUP to "provide
equity and fairness" with Downtown.
One Commissioner suggested that specific criteria be developed to determine when a CUP
would be required. One criterion could be "equity and fairness" with Downtown, while other
criteria might include, but not be limited to, uses that may generate potentially disruptive
behaviors (e.g., alcoholic beverage consumption) and uses that result in large assemblies of
people.
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
August 27, 2014
As the Council considers these recommendations, staff suggests that the Council review Tables
2 -1 on pages 2 -7 through 2 -9 for the uses for which a CUP is proposed to be required and
Appendix E for the Discretionary Approvals (Attachment 3)
Finally, the Commission recommended convening a focus group to identify mechanisms (other
than the CUP process) to ensure that the North 40 complements and does not compete with
Downtown Los Gatos. This could occur after the Specific Plan is adopted and when a specific
development application is on file with the Town. This would allow the prospective North 40
developer the opportunity to respond specifically to concerns and/or prepare additional analyses.
The Town anticipates an ongoing dialogue with the business community throughout the
implementation of the Specific Plan.
Phasing
Although the Planning Commission did not have a specific recommendation regarding phasing,
this issue was raised by the Advisory Committee who requested that "staff should provide
language on phasing to the Planning Commission that meets the Vision Statement." This was
done in the staff report to Planning Commission for its July 23, 2014 meeting (Attachment 4).
The Council may wish to discuss and provide direction on this issue.
ENVIRONMENTAL ASSESSMENT:
An Environmental Impact Report has been prepared pursuant to the California Environmental
Quality Act. The Planning Commission did not recommend the certification of the EIR because
they found that the traffic and urban decay analyses to be deficient. Specifically, they requested
additional traffic analyses as discussed above, alternative circulation plans, and a reconciliation
of expert traffic opinion with the "hard facts of experience of Los Gatos traffic."
In terms of urban decay concerns, the Commission requested additional assurances that
development in the North 40 would not have a negative effect on downtown. This topic is
addressed above in the section of Conditional Use Permits and Economic Vitality. It is staffs
opinion that the EIR analysis is complete, legally adequate, and compliant with CEQA and that
the Council may direct additional policy protections for Downtown as part of the Specific Plan
rather than the EIR.
CONCLUSION:
At its hearing on September 2, 2014, the Town Council should take public testimony and begin
its deliberations on the Specific Plan, its EIR, and associated General Plan amendments and
Zoning Code amendment. Town staff from multiple Departments and consultants will be at the
meeting to answer questions and assist the Council as appropriate. Draft resolutions have been
provided as a basic framework for Council consideration. The Council may wish to include
additional facts and findings to reflect its deliberations and decision(s). Once the Town has an
adopted Specific Plan, the Town can continue its review of a pending application for a portion of
the North 40.
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP- 14- 001 /Z -14- 001 /EIR -10 -002
August 27, 2014
Attachments (Previously received on April 4, 2014)
1. Draft Environmental hnpact Report ( htty : / /www.losgatosca.gov/N40DEIR)
Attachments (Previously received on Julv 11. 2014
2. Final Environmental Impact Report with the Mitigation Monitoring and Reporting Program
(h!W://www.losizatosca.jzov/N40FEIR)
3. Public Hearing Draft North Forty Specific Plan (Note: The complete Specific Plan including
appendices is also available online at: htty : / /www.losgatosca.gov/N40SP)
Attachments (Previously received on August 22.2014):
4. Report to the Planning Commission for the meeting of July 23, 2014 (excluding Exhibits 5 &
6)
5. Desk Item Report to the Planning Commission for the meeting of July 23, 2014
6. Desk Item 2 Report to the Planning Commission for the meeting of July 23, 2014
7. Report to the Planning Commission for the meeting of August 13, 2014
8. Desk Item 3 Report to the Planning Commission for the meeting of August 13, 2014
Attachments received with this report:
9. Verbatim minutes from the August 13, 2014 Planning Commission meeting (141 transcribed
pages)
10. Public Comment received through 11:00 a.m. Thursday, August 28, 2014
11. Detailed Planning Commission recommendations on the North Forty Specific Plan from their
August 13, 2014 meeting (six pages)
12. Draft findings (one page)
13. Memorandum from the Town Attorney (four pages)
14. Draft Resolution certifying the Environmental Impact Report (EIR -10 -002), adopting the
Mitigation Monitoring and Reporting Program, and adopting the Findings of Fact and
Statement of Overriding Considerations, including Exhibit A.
15. Draft Resolution for the adoption of the North Forty Specific Plan
16. Draft Resolution adopting General Plan Amendments of the Town's General Plan (GP -14-
001), including Exhibit A.
17. Draft Ordinance effecting a Zoning Code Amendment of the Town Code (Z -14 -001),
including Exhibit A.
18. Planning Commission Recommendations for Text Changes to the North 40 Specific Plan
(four pages)
Distribution
cc: Grosvenor Americas, Attn: Steve O'Connell, 1 California St, Ste. 2500, San Francisco CA 94111
Summerhill Homes, Attn: Wendi E. Baker, 3000 Executive Pkwy, Ste. 450, San Ramon CA
94583
LRP:JSP:cg