North Forty Specific PlanZoWN of MEETING DATE: 12/16/14
ITEM NO: I
!ps SA�pS
COUNCIL AGENDA REPORT
DATE: DECEMBER 10, 2014
TO: MAYOR AND TOWN COUNCIL AAII
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. RECEIVE REQUESTED INFORMATION PER COUNCIL MOTION.
B. 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.
C. CONSIDER ADOPTION OF THE NORTH FORTY SPECIFIC PLAN.
D. CONSIDER ADOPTION OF GENERAL PLAN AMENDMENTS.
E. CONSIDER ADOPTION OF AN ORDINANCE EFFECTING A ZONING
CODE AMENDMENT.
PREPARED BY: LAUREL R. PREVETTI
Assistant Town Manager /Director of Co ni�y Development
Reviewed by: N/A Assistant Town Manager �A own Attorney N/A Finance
N: \DEV\TC REPORTS\2014 \N40TC12 -16 -14 [FINAL]Am Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
December 10, 2014
BACKGROUND:
On September 2, 2014, the Town Council conducted a public hearing on the North Forty Specific
Plan and the associated General Plan Amendments, Zoning Code Amendment, and Environmental
Impact Report (EIR). Following the closing of the public testimony portion of the public hearing,
the items were continued to the September 16, 2014 Council meeting due to the lateness of the
hour.
On September 16, 2014, the Town Council discussed the matter, continued the items to an
unspecified future date, and directed staff to provide the following additional information:
• Obtain information regarding the loss of orchard and agricultural resources;
• Look at alternatives to the ITE, such as "EPA MXD" and the National Cooperative
Highway Research Program 684 (NCHRP 684), as a way to consider traffic impacts of
mixed use developments such as that proposed in the Specific Plan (but not as new
alternatives for inclusion in this EIR);
• Report back to Council with specific information relating to the traffic impacts of the
proposed Dell Avenue Area Plan as outlined in Campbell's July 2, 2014 Notice of
Preparation (focusing on the potential increase to 3 million square feet total commercial
development from the 2 million square feet analyzed in the April 4, 2014 EIR), as well as
traffic impacts arising from the Good Samaritan emergency room expansion and the
proposed Samaritan Court office building project;
• Obtain the updated school demographic study to be presented at the October 14`h Los
Gatos Union School District Board meeting, and provide that document to Council; and
• Obtain additional information in an economic impact analysis or other report that can
better address potential impacts of North 40 development on Downtown, including:
- Sizes of retail spaces;
- Hypothetical case study comparing how different kinds of retail might affect
Downtown; and
- Whether or not regulatory schemes, ordinances, or policies that affect Downtown (e.g.,
formula retail CUP restrictions) are maintained or included in the N40 Specific Plan.
DISCUSSION:
The Council should review the additional information that has been provided and continue their
discussion on the North Forty Specific Plan, General Plan Amendments, Zoning Code
Amendment, and EIR.
A. Orchard and Agricultural Resources
The EIR included a "Historic Preservation" Alternative which included the retention of four
or five acres of the Plan Area as a historic conservation area. This area would accommodate
the retention of the red barn in its current location and the relocation of six other historic
structures within an orchard setting. This Alternative would reduce the impacts to cultural
resources to less than significant and is identified as the environmentally superior alternative
in the EIR.
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
December 10, 2014
In response to the Council's inquiry, Cary and Co. Inc. prepared additional information
regarding Historic Resources which include the existing orchard and agricultural resources
(Attachment 36). In summary, they found that employing all of the following measures
would reduce the significant unavoidable impact to Cultural Resources to a less than
significant level:
1. Retain the Red Barn and the Yuki family residence at 14919 Los Gatos Boulevard
(originally identified as C and D respectively on Figure 1, Potential Historic District,
Appendix G, Historic Resources Reports, North Forty Specific Plan Draft EIR, April 3,
2014; also shown on Figure B of Attachment 36).
2. Retain the two agricultural structures located west of the Red Barn at the edge of the
property. Although not identified as contributing resources, these two structures would
add to the Setting, Feeling and Association of the orchard.
3. Retain the portion of the orchard depicted on the attached site plan such as the red
boundary line in Figure B of Attachment 36. The yellow dashed line in the same figure
shows an alternate boundary which makes the total area smaller contingent on the
removal of the newer Yuki house at 14917 Noddin Avenue, the adjacent small cottage to
the east (no address), and the house and garage 14929 Noddin Avenue located to the west
(see red X's in Figure B of Attachment 36). All sites would be replanted.
These measures would affect the ability to develop a significant portion of the Specific Plan
Area.
This information may be useful to the Council in consideration of the Planning
Commission's recommendations pertaining to historic resources and the orchard (see page
five of Attachment 29).
B. Alternatives to ITE
Fehr and Peers Transportation Consultants prepared an analysis that compared ITE traffic
generation rates with a combined modelling method called MXD+ that uses a hybrid of the
"EPA MXD" and the National Cooperative Highway Research Program 684 (NCHRP 684)
rates (Attachment 37). This modelling methodology provides an alternative to the ITE
standard and is considered a better measure than each of the models independently, as
explained in the Fehr and Peers report. Their analysis was peer reviewed and concurred with
by TJKM on behalf of the Town (Attachment 39).
As a refresher, the traffic assessment in the EIR, using the ITE approach, concluded that the
impacts on two freeway segments were significant and unavoidable. Other impacts
associated with the North 40 development have recommended mitigation measures or did not
reach the threshold of significance. The analysis studied two scenarios that are variations of
the Specific Plan:
Scenario A:
• Retail: 269,000 square feet
• Hotel: 150 Rooms
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP- 14- 001 /Z -14- 001 /EIR -10 -002
December 10, 2014
• Office: 125,000 square feet (split evenly between medical/ dental and general office)
• Residential: 364 units (73 cottage cluster units, 73 apartments, 218 condo/ townhouse
units)
Scenario B:
• Retail: 400,000 square feet
• Hotel: 150 Rooms
• Residential: 364 units (73 cottage cluster units, 73 apartments, 218 condo/ townhouse
units)
The MY-D+ modelling reflects Average Daily Trip (ADT) reductions of greater than 10% for
both project scenarios A and B, with a three to seven percent morning peak hour reduction
and greater than 23% reduction in the evening peak hour timeframe. When these changes are
applied to the two freeway segments where there are significant unavoidable impacts, the
alternative modelling demonstrates no significant freeway impacts for Scenario B and one
significant unavoidable impact for one of the segments in Scenario A, as presented in the
table below. The reductions would also apply to the rest of the project area, including Town
streets and intersections.
The Council may include the findings of this additional analysis in the revised Findings of
Fact and Statement of Overriding Considerations (Attachment 42).
C. Traffic Impacts from Additional Proiects
Fehr and Peers Transportation Consultants prepared additional analysis that included the
increased size of the proposed Dell Avenue Area Plan, Good Samaritan emergency room
(ER) expansion, and Samaritan Court office building project (Attachment 38). Their analysis
was peer reviewed by TJKM on behalf of the Town (Attachment 39).
In summary, the addition of the new developments would create a significant impact on four
intersections prior to implementation of mitigation measures (see Table B on Attachment 38).
Notably, the addition of either Scenario A or B has minimal additional impact to the delays at
the intersections when added to the cumulative impact of the other projects. Each project
(Dell Ave, Good Samaritan ER Expansion, and Samaritan Court Medical Office) is
responsible for addressing any significant impacts and identifying them in their own
environmental document. The Town would have the opportunity to comment on their draft
Im acts
Scenario
Freeway Segment
TIA
MY-D+
Southbound 85
Significant/
Significant/
A
Bascom to Union
Unavoidable
Unavoidable
Southbound 85
Significant/
Less than significant
A
Winchester to Hwy 17
Unavoidable
Southbound 85
Significant/
Less than significant
B
Bascom to Union
Unavoidable
Southbound 85
Less than
Less than significant
B
Winchester to Hwy 17
significant
The Council may include the findings of this additional analysis in the revised Findings of
Fact and Statement of Overriding Considerations (Attachment 42).
C. Traffic Impacts from Additional Proiects
Fehr and Peers Transportation Consultants prepared additional analysis that included the
increased size of the proposed Dell Avenue Area Plan, Good Samaritan emergency room
(ER) expansion, and Samaritan Court office building project (Attachment 38). Their analysis
was peer reviewed by TJKM on behalf of the Town (Attachment 39).
In summary, the addition of the new developments would create a significant impact on four
intersections prior to implementation of mitigation measures (see Table B on Attachment 38).
Notably, the addition of either Scenario A or B has minimal additional impact to the delays at
the intersections when added to the cumulative impact of the other projects. Each project
(Dell Ave, Good Samaritan ER Expansion, and Samaritan Court Medical Office) is
responsible for addressing any significant impacts and identifying them in their own
environmental document. The Town would have the opportunity to comment on their draft
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN/GP- 14-001 /Z- 14-001 /EIR- 10-002
December 10, 2014
environmental documents. The jurisdictions responsible for evaluating and approving those
projects make the decision to certify (or not) the project's EIR, adopt (or not) a Findings of
Fact and Statement of Overriding Considerations if impacts are significant and cannot be
mitigated, and approve (or not) the project.
Traffic engineering standards do not consider the cumulative effect from multiple concurrent
but unrelated projects on freeway segments due to the complexity of assigning trips on
roadways that provide regional transportation. In this situation, it is reasonable to expect that
the additional projects would create an impact on freeway segments, and those projects
would measure and address the freeway impacts through their respective environmental
review processes.
This information addresses one of the recommendations by the Planning Commission (see
page one of Attachment 29).
D. School Demograyhic Study
The Los Gatos Union School District's Draft Demographic Study is included in Attachment
40. On December 8, the Superintendent transmitted an updated Student Population
Projections Report dated November 3, 2014 (see Attachment 43).
This information may be useful to the Council in consideration of the Planning
Commission's recommendations pertaining to schools (see page six of Attachment 29).
E. Additional Economic Analysis
Economist Dr. Ralph McLaughlin is the Director of the Certificate in Real Estate
Development Program at San Jose State University and he prepared an economic analysis
(Attachment 4 1 ) that considers several hypothetical scenarios to:
• Evaluate different sizes of commercial spaces,
• Compare how different kinds of tenants might affect Downtown, and
• Evaluate the effects of regulatory schemes
The hypothetical scenarios identify the factors (lease rates, space size, business type mix, and
regulatory schemes) that influence the competitiveness of the North 40 Specific Plan with
Downtown Los Gatos. For purposes of the study, Downtown is defined as that portion of
Downtown zoned C -2, which includes Santa Cruz Avenue from Highway 17 to Highway 9,
the commercial portions of University Avenue, Main Street to Los Gatos High School, and
the side streets.
In summary, the report concludes that the North 40 is likely to present low levels of
competition with Downtown based on current information:
1. Leasing rates are likely to be higher in the North 40, including the costs of providing
parking.
2. The overlap of tenant space size and business types between the two areas is likely to
be low if the North 40 offers larger tenant spaces more conducive to formula retail
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
December 10, 2014
and personal services. This would distinguish the two commercial areas in terms of
their business offerings.
3. The North 40 could symbiotically increase the business activity in Downtown if the
mix of business types and space sizes complement each other rather than compete.
Large format and general merchandise retail establishments were viewed as not
highly competitive with the retail available in Downtown. Regulatory requirements
for Conditional Use Permits (CUPS) and parking management could also contribute
to reducing the competition between the two areas.
Examples of complementary business types and space sizes are shown in scenarios 3 through
5. Scenarios 1 and 2 are more competitive. Specifically, North 40 should offer a lower
percentage of spaces less than 5,000 square feet and a higher percentage of spaces larger than
10,000 square feet than Downtown. The report documents the tenant spaces by four business
types: formula retail, non - formula retail, restaurant, and personal service.
In terms of regulatory schemes, the Town could eliminate the CUP requirement for formula
retail in the North 40 to create an incentive for such businesses to locate there instead of
Downtown. The CUP requirement for restaurants should be the same for both areas to not
give North 40 a competitive advantage for these types of businesses which may be the most
vulnerable to competition.
Parking was studied in terms of supply and time limits. The parking requirements are higher
in North 40, adding to the expense of operating in North 40 while providing more abundant
parking than Downtown. Without parking time limits similar to Downtown, consumers will
stay longer in North 40, which gives restaurants and other businesses that benefit from longer
stays a competitive advantage in North 40.
The Specific Plan could be modified to reflect the findings of this analysis to foster the North
40 as a complementary commercial area rather a competitive one. The Plan could have more
detailed guidance for tenant spaces for different business types (see Attachment 24), CUP
requirements, and parking time limits. The Plan is unable to address leasing rates or other
contract terns that are negotiated between a property owner /property manager and tenant.
Dr. McLaughlin will be at the December 16 Town Council meeting should the Council wish
to ask questions on the report, approach, and conclusions.
This information may be useful to the Council in consideration of the Planning
Commission's recommendations pertaining to economic vitality (see page five of Attachment
29).
CONCLUSION:
Following the Council's discussion of the new information, the Council may choose to discuss
any of the following matters: the EIR, North Forty Specific Plan, General Plan Amendments,
and Zoning Code Amendment. Previous staff reports presented suggestions in response to the
Planning Commission's deliberations and identified particular policy issues for Council
consideration that may affect the Specific Plan. When ready, the Council may consider taking
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN/GP- 14-00 1 /Z- 14-00 1 /EIR- 10-002
December 10, 2014
action on the items as outlined in the staff report for the September 2, 2014 Council meeting. A
revised Findings of Fact and Statement of Overriding Considerations are contained in
Attachment 42.
Attachment (Previously received on April 4, 2014):
1. Draft Environmental Impact Report ( http : / /www.losgatosea.gov /N40DEIR)
Attachments (Previously received on July 11, 2014):
2. Final Environmental Impact Report with the Mitigation Monitoring and Reporting Program
( http : / /www.losgatosca.t4ov /N40FEIR)
3. Public Hearing Draft North Forty Specific Plan (Note: The complete Specific Plan including
appendices is also available online at: http : //www.losizatosca.govIN40SP)
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 (Previously received with Staff Report on August 28, 2014):
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)
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z- 14- 001 /EIR -10 -002
December 10, 2014
Attachments (Previously received with Addendum on August 29, 2014):
19. Resolution 2010 -091: Resolution of the Town Council of the Town of Los Gatos
Recommending Certification of the Environmental Impact Report and Adoption of the 2020
General Plan (includes Exhibit A)
20. Public Comment received from 11:01 a.m. Thursday, August 28, 2014 through 11:00 a.m.
Friday, August 29, 2014
Attachments (Previously received with Desk Item on September 2, 2014):
21. Map of the Los Gatos Union School District Boundary and school site options within the
North 40.
22. Letter from the Los Gatos Union School District received Friday, August 29, 2014 after
11:00 a.m.
23. Public Comment received from 11:01 a.m. Friday, August 29, 2014 through 11:00 a.m.
Tuesday, September 2, 2014.
24. Additional Limitations for Commercial (Exhibit 8 from the August 15, 2012 Advisory
Committee meeting.
Attachments (Previously received with September 16, 2014 Staff Report):
25. Grosvenor exhibit displayed at the September 2, 2014 Town Council meeting.
26. Letter from the Los Gatos Union School District, dated September 5, 2014.
27. Public Comment received from 11:01 a.m. Tuesday, September 2, 2014 through 11:00 a.m.
Thursday, September 11, 2014.
28. Fehr & Peers letter dated September 10, 2014.
29. Table of Planning Commission recommendations and proposed responses for Council
consideration.
Attachments (Previously received with September 16, 2014 Addendum):
30. Letter from A. Don Capobres, Linda Mandolini, and Wendi Baker dated September 12, 2014
(7 pages)
31. Public Comments received from 11:01 a.m. Thursday, September 11, 2014 through 11:00
a.m. Friday, September 12, 2014
Attachments (Previously received with September 16. 2014 Addendum #2):
32. Public Comments received from 11:01 a.m. Friday, September 12, 2014 through 11:00 a.m.
Monday, September 15, 2014
33. Highland Oaks Existing Traffic Calming
Attachment (Previously received with September 16, 2014 Desk Item):
34. Public Comment received from 11:01 a.m. Monday, September 15, 2014 through 11:00 a.m.
Tuesday, September 16, 2014
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MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
December 10, 2014
Attachment (Previously received with September 16, 2014 Desk Item #2):
35. Traffic analysis information
Attachments received with this Staff Report:
36. Agricultural Resources information
37. Alternative to ITE Traffic Information Analysis by Fehr and Peers ( "Trip Generation Rate
Comparison ")
38. Additional Proposed Projects by Fehr and Peers ( "Additional Future Year Information ")
39. TJKM Peer Review of Fehr and Peers Reports contained in Attachments 37 and 38
40. Draft School District Demographic Study dated October 8, 2014
41. Additional Economic Analysis
42. Revised Findings of Fact and Statement of Overriding Considerations
43. Letter from Superintendent Diane Abbati dated December 8, 2014 with School District
Student Population Projections dated November 3, 2014
44. Public Comment received from 11:01 a.m. Monday, September 16, 2014 through 11:00 a.m.
Thursday, December 11, 2014
Distribution
cc: Grosvenor Americas, Attn: Steve O'Connell, 1 California Street, Suite 2500, San Francisco,
CA 94111
Summerhill Homes, Attn: Wendi E. Baker, 3000 Executive Parkway, Suite 450, San Ramon,
CA 94583
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