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Attachment 42CEQA FINDINGS OF FACT of the TOWN COUNCIL OF THE TOWN OF LOS GATOS for the NORTH FORTY SPECIFIC PLAN 2014 ATTACHMENT 4 2 I. Introduction The North Forty Specific Plan ( "the Project" or "Specific Plan") will involve the development of up to 364 residential units and 580,000 square feet of non - residential uses, limited to a maximum of 250,000 square feet ( "sf') for office/hotel uses and 400,000 sf for commercial uses. Approximately 30 percent, or 13.2 acres, of the project area will be preserved as open space. The Project includes amendments to the 2020 General Plan and the zoning code. The Town of Los Gatos ( "Town "), as lead agency, prepared a Draft Environmental Impact Report (EIR) for the Project in April, 2014 (State Clearinghouse No. 2011122070). This document was made available for review on April 4, 2014, for a forty -five (45) day review period. Accordingly, written comments were solicited until May 19, 2014. The Town of Los Gatos prepared responses to comments on the Draft EIR, and published both comments and responses to comments in the Final EIR, which was posted on the Town's website on July 21, 2014. These findings have been prepared in accordance with the California Environmental Quality Act (CEQA) (Pub. Resources Code, § 21000 et seq.) and its implementing guidelines ( "CEQA Guidelines ") (Cal. Code Regs., tit. 14, § 15000 et seq.). II. Project Description As reflected in the Project Description in the Draft EIR, the Project is a Specific Plan for future development of the 44 -acre area located at the northern extent of the Town of Los Gatos, at the junction of the State Route 17 and State Route 85 freeways (hereinafter the "Plan Area "). Access to the Plan Area is from the two adjoining surface streets: Los Gatos Boulevard on the southeast and Lark Avenue on the southwest. The Plan Area is comprised of 33 parcels. (Draft EIR, p. 2 -1.) Development is expected to take place over a five to 20 -year time period. The Specific Plan provides a framework and development standards for the development of vacant parcels and re- development of the already - developed parcels. The Specific Plan establishes three districts (Lark, Transition, and Northern), within which a mix of commercial and residential uses is envisioned. (Draft EIR, p. 2 -18.) In general terms, the Specific Plan places residential land uses and lower intensity retail and office uses to the south end of the Plan Area, with more intense commercial uses, such as entertainment, restaurant, and shopping uses, at the north end. (Draft EIR, p. 2 -23.) The Specific Plan limits total non - residential floor area to 580,000 sf and residential development to 364 units (both inclusive of existing uses). Additionally, the following maximum development capacities are established for each type of non - residential use: 250,000 square feet of office/hotel, and 400,000 square feet of commercial (including restaurants, retail, specialty market, health club, personal services, and entertainment). A 2 hotel with or without a conference center is also allowed, potentially providing for between 200 and 250 conference participants. The Specific Plan requires at least 30 percent (about 13.2 acres) of the Plan Area be retained in open space. (Draft EIR, p. 2- 18.) The Project includes several changes to the Town of Los Gatos 2020 General Plan ,.relating to Los Gatos Boulevard and the Plan Area. (See Draft EIR, p. 2 -21; General Plan Amendment GP 14 -001.) In particular, the Project requires changes to the General Plan Overlay Designation guidelines and Policy LU11.4. Additionally, a zoning amendment will implement a specific plan overlay for the Plan Area. (See Draft EIR, p. 2 -21 to 2 -22; Zoning Code Amendment Z -14 -001.) The Specific Plan's development standards and design guidelines will serve as the zoning for the Plan Area, supplementing and/or superseding the existing Town of Los Gatos zoning code. About 27 acres of the Plan Area are in agricultural use and about 17 acres of the Plan Area have been developed with a variety of urban uses. Portions of the Plan Area along Los Gatos Boulevard are developed with older residences and older and newer commercial buildings. Additional residences are located on side streets and within the orchard area, with a total of about 32 houses within the Plan Area. Existing commercial uses include a gasoline station on the corner of Los Gatos Boulevard and Lark Avenue, medical offices, car rental, retail, and eating and drinking establishments. Existing commercial uses within the Plan Area comprise about 66,000 square feet of floor area. Bennett Way and Burton Road extend into the Plan Area and provide access to most of the residences. Much of the remaining Plan Area is planted in walnut orchards, with several supporting farm buildings, with primary access on Noddin Avenue off Los Gatos Boulevard. (Draft EIR, p. 2 -1 to 2 -2.) The Town of Los Gatos 2020 General Plan designates the Plan Area as Mixed Use Commercial with a North Forty Specific Plan overlay. (Draft EIR, p. 2 -17.) The Plan Area currently carries a variety of zoning classifications, corresponding to the existing uses: RC Resource Conservation on the agricultural areas; CH Restricted Highway Commercial and CH:PD Restricted Highway Commercial/Planned Development on the commercial areas; and R -1:8 Single Family Residential on the residential areas. (Draft EIR, p. 2 -17.) Zoning amendments are required to accommodate the types of development proposed, because the current zoning reflects existing conditions, not the land uses described in the Town of Los Gatos 2020 General Plan or proposed in the Specific Plan. (Draft EIR, p. 2 -21.) The project vicinity is principally developed land within the greater San Jose metropolitan area. To the northeast of the Plan Area are the State Route 85 freeway, houses, and a few offices. To the southeast of the Plan Area are a hospital, medical offices, other commercial buildings, and houses. To the southwest of the Plan Area are houses, a reservoir, and commercial uses. To the northwest of the Plan Area lie the State 3 Route 17 freeway, an orchard, a private school, a tennis /swim club, a small number of houses, apartments, a mobile home park, Los Gatos Creek, and the Los Gatos Creek recreation trail. The State Route 17 /State Route 85 interchange occupies a large area to the north of the Plan Area. Figure 6, Project Vicinity Existing Conditions, and Figure 7, Project Vicinity Photographs, illustrate the existing land uses near the Plan Area. (Draft EIR, p. 2 -22.) A. Purpose and Objectives The Town's Draft EIR for the North Forty Specific Plan Project identified the following project objectives: Provide a specific plan that is consistent with the Los Gatos 2020 General Plan and the Town's adopted vision statement for the Plan Area. Future development within the Plan Area should seamlessly integrate with the existing development within Los Gatos, while preserving significant public views and providing trees and open space. Future development of the Plan Area'should also provide for the Town's unmet commercial and residential needs and minimize adverse effects on Town infrastructure, services, and schools. 2. Provide a residential program that designates a variety of development intensities to help achieve the Town's unmet needs, including the young working professionals and empty- nester move -down buyers, as well as complies with the Town of Los Gatos Housing Element, with the number of units having sales prices or rents for low income earners equal to a minimum of 20 percent of the market rate residential units. 3. Encourage a diversity of residential offerings and affordability levels for the targeted buyers, including cottage /garden cluster, rowhome /townhomes, condominium flats, multifamily affordable, and vertical mixed use. 4. Offer a commercial program that will complement the existing uses within the Town and capture retail sales that are currently leaking out of the Town. 5. Limit the commercial program to a maximum of 580,000 square feet of commercial (with a maximum of 400,000 square feet of retail, restaurants, personal services, health club and entertainment, and up to 250,000 square feet being office and/or hotel uses). 6. Allow for the construction of office uses in the North District of the Plan Area. :i 7. Create a sustainable community by designing the Specific Plan's public spaces and expanding the Plan Area's street frontage to encourage alternative forms of transportation such as walking, bicycling, and public transportation. 8. Respect the history of the site by featuring distinctive and attractive building design and landscaping that gestures towards its agrarian roots. 9. Assist the Town with satisfying its Regional Housing Needs Allocation for market rate and affordable housing units. (Draft EIR, p. 2 -42 to 2 -43; Final EIR, p. 4 -3.) III. Environmental Review Process and Project Approval Based upon the decision to prepare an EIR, the Town of Los Gatos prepared and distributed a Notice of Preparation for a 30 -day comment period on December 22, 2011. However, subsequent changes were made to the project description and a revised NOP was circulated for comment from February 13, 2013, to March 14, 2013, in accordance with CEQA Guidelines section 15082. The California Office of Planning and Research assigned State Clearinghouse Number 2011122070 to the Project. A scoping meeting was held at the Los Gatos Town Council Chambers on March 6, 2013. Several members of the public attended the scoping meeting; however, no agency representatives were present. On April 4, 2014, the Town published the Draft EIR for the North Forty Specific Plan Project, commencing a 45 -day public review period that ended on May 19, 2014. On July 21 2014, the Town issued the proposed Final EIR for consideration by the Town's Planning Commission and, subsequently, by the Town Council. On July 23 and August 13, 2014, the Planning Commission considered the Project, acting in an advisory capacity. After hearing public testimony, the Commission determined to recommend approval of the Project to the Town Council. On September 2, September 16, and December 2014, and - 20 15-2 ", the Town Council considered the Project. After receiving public testimony and deliberating, the Council approved the Project. IV. Record of Proceedings In accordance with Public Resources Code section 21167.6, subdivision (e), the record of proceedings for the Town of Los Gatos' decision on the Project includes the following ' documents: • The April 2014 Draft EIR and its appendices; • The Final EIR and its appendices; • All documents cited or referenced in the Draft and Final EIRs; • The Mitigation Monitoring and Reporting Program for the Project; • All findings and resolutions adopted by the Town of Los Gatos in connection with the Project and all documents cited or referred to therein; • All reports, studies, memoranda, maps, staff reports, or other planning documents relating to the Project prepared by the Town of Los Gatos relevant to the Town's compliance with the requirements of CEQA and the Town's action on the Project; • All documents submitted to the Town by other public agencies or members of the public in connection with the Project, up through the close of the final public hearing on Project before the Town Council held on September 2, September 16, and December 2014, and , 24442015; • Any minutes and/or verbatim transcripts of public meetings and public hearings held by the Town of Los Gatos in connection with the Project; • Any documentary or other evidence submitted to the Town of Los Gatos at such public meetings and public hearings; • Any and all resolutions adopted by the Planning Commission and the Town Council of the Town of Los Gatos regarding the Project, and all staff reports, analyses, and summaries related to the adoption of those resolutions; • Matters of common knowledge to the Town of Los Gatos, including, but not limited to federal, state, and local laws and regulations; • Town of Los Gatos 2020 General Plan; • Town of Los Gatos 2020 General Plan Final Environmental Impact Report; • Town of Los Gatos General Plan Update Background Report; • Los Gatos Town Codes; • Los Gatos Sustainability Plan; • Any documents expressly cited in these findings, in addition to those cited above; and • Any other materials required for the record of proceedings by Public Resources Code section 21167.6, subdivision (e). The custodian of these documents is the Director of the Community Development Department, which is located at 110 East Main Street in Los Gatos. The Town's decisionmakers have relied on all of the documents listed above in reaching their decisions on the Project even if not every document was formally presented to the decision makers. Without exception, any documents set forth above not found in the project files fall into one of two categories. Many of them reflect prior planning or legislative decisions with which the Town Council was aware in approving the Project. (See City of Santa Cruz v. Local Agency Formation Commission (1978) 76 Cal.App.3d 381, 391 -392.) Other documents influenced the expert advice provided to the Town of Los Gatos staff or consultants, who then provided advice to the Town Council as final decisiomnakers. For that reason, such documents form part of the underlying factual basis for the Town's decisions relating to approval of the proposed project. (See Pub. Resources Code, § 21167.6, subd. (e)(10); Browning- Ferris Industries v. City Council of City of San Jose (1986) 181 Cal.App.3d 852, 866; Stanislaus Audubon Society, Inc. v. County of Stanislaus (1995) 33 Cal.AppAth 144, 153, 155.) V. Findings Required Under CEQA Public Resources Code section 21002 provides that "public agencies should not approve projects as proposed if there are feasible alternatives or feasible mitigation measures available which would substantially lessen the significant environmental effects of such projects[.]" The same statute provides that the procedures required by CEQA "are intended to assist public agencies in systematically identifying both.the significant effects of proposed projects and the feasible alternatives or feasible mitigation measures which will avoid or substantially lessen such significant effects." Section 21002 goes on to provide that "in the event [that] specific economic, social, or other conditions make infeasible such project alternatives or such mitigation measures, individual projects may be approved in spite of one or more significant effects thereof." 7 The mandate and principles announced in Public Resources Code section 21002 are implemented, in part, through the requirement that agencies must adopt findings before approving projects for which EIRs are required. This mandate to adopt findings is found in Public Resources Code section 21081, subdivision (a), and CEQA Guidelines section 15091, subdivision (a). For each significant environmental effect identified in an EIR prepared for a proposed project, the approving agency must issue a written finding reaching one or more of three permissible conclusions. The three possible findings are: (1) Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effects as identified in the final EIR. (2) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by that other agency. (3) Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIR. (Pub. Resources Code, § 21081, subd. (a); see also CEQA Guidelines, § 15091, subd. (a).) "[ Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, legal, and technological factors." (CEQA Guidelines, § 15364.) Here, as set forth in Table A to CEQA Findings, the Town Council has adopted the first permissible finding with respect to most significant effects identified in the EIR, concluding that such effects can be mitigated to less than significant levels. For two impacts to Transportation and Traffic (Impacts 3.13 -2 and 3- 13 -6), the Town Council has adopted the second permissible finding because the mitigation measures that would reduce these impacts to less - than- significant levels are within the jurisdiction of another agency, Caltrans. Finally, for one impact to Cultural Resources (Impact 3.5 -1), the Town Council has adopted the third permissible finding because specific economic, legal, social, technological or other considerations make infeasible the mitigation measures or project alternatives that would avoid the significant impacts. With respect to a project for which significant impacts are not avoided or substantially lessened, a public agency, after adopting proper findings, may nevertheless approve the project if the agency first adopts a statement of overriding considerations setting forth the specific reasons why the agency found that the project's "benefits" rendered "acceptable" 9 its "unavoidable adverse environmental effects." (CEQA Guidelines, §§ 15093, 15043, subd. (b); see also Pub. Resources Code, § 21081, subd. (b).) The California Supreme Court has stated, "[t]he wisdom of approving ... any development project, a delicate task which requires a balancing of interests, is necessarily left to the sound discretion of the local officials and their constituents who are responsible for such decisions. The law as we interpret and apply it simply requires that those decisions be informed, and therefore balanced." (Citizens of Goleta Valley v. Board of Supervisors (1990) 52 Cal.3d 553, 576 (Goleta II).) VI. Significant Effects and Mitigation Measures The Project will cause or contribute to a number of potentially significant environmental impacts. Many of these environmental effects can be mitigated to less than significant levels through the adoption of feasible mitigation measures. (Draft EIR, p. 3 -1 to 3 -250.) But the Project will result in significant and unavoidable impacts to: (1) Transportation and Traffic (Draft EIR, pp. 6 -2 to 6 -3); and (2) Cultural Resources (Draft EIR, pp. 3 -73 to 3 -78; Final EIR, pp. 4 -1, 4 -4.) With respect to transportation- related impacts, the Project - generated traffic would exceed one percent of capacity on the southbound State Route 85 mixed flow lanes from Winchester Boulevard to State Route 17, a segment that already operates at LOS F. (Draft EIR, p. 3 -222 [Impact 3.13 -2]; Final EIR, p. 4 -6.) The EIR did not identify any feasible mitigation that would reduce this impact to less - than- significant levels because improvements necessary to address increased delays on state highways would be under the jurisdiction of Caltrans. (Draft EIR, p. 323.) But the Draft EIR notes that the Santa Clara Valley Transportation Authority and Caltrans are currently planning to convert existing high occupancy vehicle lanes on State Route 85 into high occupancy/ toll lanes that would reduce this significant impact to less- than- significant levels. (Draft EIR, p. 6- 3.) Additionally, the project would result in significant and unavoidable impacts on operations of one Congestion Management Program highway segment during the PM peak period. (Draft FIR, p. 3 -229 [Impact 3.13 -6, also discussing southbound State Route 85 lanes from Winchester Boulevard to State Route 17].) Finally, the removal of six potentially historic structures will result in significant and unavoidable impacts. (DEIR, pp. 3- 73 -3 -78 [Impact 3.5 -1]; Final EIR, pp. 4-1,44.) The Town of Los Gatos' findings with respect to the Project's significant and potentially significant effects and mitigation measures are set forth in the table attached to these findings (Table A to CEQA Findings). The findings set forth in the table are hereby incorporated herein by reference. This table does not attempt to describe the full analysis of each environmental impact contained in the Draft and Final EIRs. Instead, the table provides a summary description of each impact, describes the applicable mitigation measures identified in the Draft EIR or Final EIR and adopted by the Town of Los Gatos, and states the Town's findings on the significance of each impact after imposition of the adopted mitigation measures. A full explanation of these environmental findings and conclusions can be found in the Draft EIR and Final EIR, and these findings hereby incorporate by reference the discussions and analyses in those documents supporting the Final EIR's determinations regarding mitigation measures and the Projects' impacts and mitigation measures designed to address those impacts. In making these findings, the Town Council ratifies, adopts, and incorporates into these findings the analyses and explanations in the Draft EIR and Final EIR, and ratifies, adopts, and incorporates in these findings the determinations and conclusions of those documents relating to environmental impacts and mitigation measures. VII. Mitigation Monitoring and Reporting Program Subdivision (a) of Public Resources Code section 21081.6 requires lead agencies to "adopt a reporting and mitigation monitoring program for the changes to the project which it has adopted or made a condition of project approval in order to mitigate or avoid significant effects on the environment." For the North Forty Specific Plan Project, the Town satisfied this obligation by preparing a Mitigation Monitoring and Reporting Program (MMRP), which was included in Section 5 of the Final EIR. The MMRP provides a list of all adopted project mitigation measures, identifies the parties responsible for implementing such measures, and identifies the timing for implementing each measure. The MMRP is being approved concurrently with the adoption of these Findings of Fact. VIII. Project Alternatives Based on the impact analysis and adopted mitigation measures, all significant effects of the North Forty Specific Plan Project will be mitigated to a less - than- significant level, except for two impacts to Transportation and Traffic and one impact to Cultural Resources. CEQA therefore requires the Town Council to consider any alternative from the EIR that would reduce the severity of these three significant impacts to determine whether the alternative is "feasible" within the meaning of CEQA. Public Resources Code section 21061.1 defines "feasible" to mean "capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors." CEQA Guidelines 10 section 15364 adds another factor: "legal" considerations. (See Goleta II, supra, 52 Cal.3d at p. 565.) The concept of "feasibility" also encompasses the question of whether a particular alternative or mitigation measure promotes the underlying goals and objectives of a project. (California Native Plant Soc. v. City of Santa Cruz (2009) 177 Cal.AppAth 957, 1001 [ "an alternative `may be found infeasible on the ground it is inconsistent with the project objectives as long as the finding is supported by substantial evidence in the record "'].) An alternative may also be rejected because it "would not `entirely fulfill' [a] project objective." (Citizens for Open Government v. City of Lodi (2012) 205 Cal.App.4th 296, 314 -315.) "[F]easibility" under CEQA encompasses `desirability' to the extent that desirability is based on a reasonable balancing of the relevant economic, environmental, social, and technological factors." (City of Del Mar v. City of San Diego (1982) 133 Cal.App.3d 410, 417; see also Seguoyah Hills Homeowners Assn. v. City of Oakland (1993) 23 Cal.App.4th 704, 715.) The Draft EIR evaluated three specific alternatives in detail: 1) No Project Alternative (Alternative 1) 2) Increased Residential/ Reduced Commercial (Alternative 2) 3) Historic Preservation (Alternative 3) The range of alternatives selected by the Town is reasonable given the proposed uses, identified significant impacts, and project objectives. As required by the CEQA Guidelines, the EIR includes the mandatory "No Project Alternative." The second alternative is the "Increased Residential/ Reduced Commercial" Alternative. It involves increasing the residential capacity by 25 percent to 455 units and reducing the commercial capacity by 25 percent to 435,000 square feet. Alternative 3, the "Historic Preservation" Alternative, involves setting aside four or five acres of the Plan Area as a conservation area, within which the potentially historic structures could be relocated and preserved. A. ALTERNATIVES CONSIDERED AND DISMISSED FROM FURTHER CONSIDERATION Five other alternatives were considered but eliminated from further consideration because they were found to be unsuitable for use as alternatives in the EIR (Draft EIR, pp. 5 -2 to 5 -4): 1) 2020 General Plan Build -out Alternative: Under this alternative, the Plan Area would be developed in accordance with the development assumptions used in preparation of the 2020 General Plan and its EIR. Build -out of the Plan Area under I this scenario would include up to 750 residential units and development of up to 580,000 square feet of retail or office space. This alternative would intensify air quality, greenhouse gas emissions, noise, and traffic impacts. 2) 2000 General Plan Build -out Alternative: This was the no project alternative for the 2020 General Plan EIR. Build -out of the Plan Area under this scenario could have allowed up to 1,100 residential units and 1,400,000 square feet of commercial uses. This alternative would significantly increase traffic, noise, air quality, greenhouse gas emission impacts; increase storm water run -off, and shift the jobs housing balance to 1:8 compared with 1:6 under the 2020 General Plan. 3) Medium - Density Residential Alternative: This was another alternative in the 2020 General Plan EIR. It would have limited residential development to 500 units and commercial development to 500,000 square feet within the Plan Area. The Increased Residential/ Decreased Commercial Alternative analyzed in the EIR is similar to this alternative. 4) Commercial Alternative: Another alternative in the 2020 General Plan EIR, this scenario would limit residential development to 300 units and commercial development to 750,000 square feet within the Plan Area. This alternative would significantly increase traffic, noise, air quality, greenhouse gas emission impacts; increase storm water run -off; and shift the jobs housing balance to 1:8 compared with 1:6 under the 2020 General Plan. 5) Alternative Location: The point of the Draft Specific Plan is to provide a more detailed plan for development of the Plan Area. A project at another location would not achieve this objective and would be contrary to the policy direction of the 2020 General Plan. B. PROJECT ALTERNATIVES ADDRESSED AT LENGTH IN EIR The Draft EIR identified and compared environmental effects of the three alternatives listed below with environmental impacts resulting from the Project. The environmentally - superior alternative would be the No Project Alternative because it would reduce impacts in all but three environmental topic areas and would be similar to the Project in the other three. The second environmentally - superior alternative would be the Increased Residential/ Reduced Commercial Alternative, which would reduce the severity of the significant and unavoidable impacts to Transportation and Traffic, as well as reduce the severity of impacts to Air Quality, Greenhouse Gas Emissions, and Hydrology and Water Quality. 12 1. ALTERNATIVE 1: THE No Project Alternative a. Description Section 15126.6, subdivision (e), of the CEQA Guidelines requires that a "no project" alternative be evaluated in comparison to a proposed project. The no project alternative must discuss the existing conditions that were in effect at the time the Notice of Preparation was published, as well as what would be reasonably expected to occur in the foreseeable future if the project were not approved, based on current plans and consistent with available infrastructure and community services. The Town did not assume that "No Project" for this site meant "no development." Rather, the Town was cognizant of the requirement from CEQA Guidelines section 15126.6, subdivision (e)(2), that a No Project Alternative must consider "what would reasonably be expected to occur in the foreseeable future if the project were not approved, based on current plans and consistent with available infrastructure and community services." (See also CEQA Guidelines, § 15126.6, subd. (e)(3)(C).) Consistent with this obligation, "where failure to proceed with the project will not result in preservation of existing environmental conditions, the analysis should identify the practical result of the project's non - approval and not create and analyze a set of artificial assumptions that would be required to preserve the existing physical environment." (Id., subd. (e)(3)(B).) The No Project Alternative assumes that the Project would not be implemented and that the current land uses would continue within the Plan Area. Some minor renovation of existing development could occur, but no new infrastructure would be constructed. Under the 2020 General Plan, no entitlements are allowed without adoption of a specific plan. b. Analysis of the No Project Alternative's Ability to Reduce Significant Unavoidable Project Impacts Under the No Project Alternative, most of the project impacts identified in the EIR would be reduced as compared to implementation of the Project because the Plan Area would only see some minor renovation activity if the Project is not implemented. The impacts that would be reduced under the No Project Alternative include: Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Greenhouse Gas Emissions, Hazardous Materials, Hydrology and Water Quality, Noise, Public Services, Transportation, and Utilities. In contrast, impacts to Geology and Soils, and Land Use and Planning would be similar to those under the Project. (Draft EIR, pp. 5 -5 to 5 -7, 5- 17.) 13 c. Feasibility of the No Project Alternative The No Project Alternative would not meet any of the 9 stated project goals or objectives, which contemplate substantial development of a certain kind on the project site, as opposed to leaving the site unchanged. (Draft EIR, p. 2 -42 to 2 -43.) For this reason, the Town Council has determined that the No Project is infeasible within the meaning of CEQA and therefore rejects the Alternative. 2. ALTERNATIVE 2: The Increased Residential/ Reduced Commercial Alternative a. Description The Increased Residential/ Reduced Commercial Alternative is intended to reduce the Project's significant and unavoidable traffic impacts, by reducing the commercial component of the Project, which has the greatest level of traffic generation. This alternative is similar to the 2020 General Plan EIR's Medium Density Residential Alternative. Under this alternative, the commercial capacity of the Plan Area would be reduced by 25 percent from 580,000 to 435,000 square feet, and the residential capacity of the Plan Area would be increased by 25 percent from 364 to 455 units. Layout of the Plan Area would remain essentially the same as in the Draft Specific Plan, but because of the shift in land use capacities, it is assumed that there would be a greater emphasis on residential development within the Transition District. (Draft EIR, p. 5 -8.) b. Analysis of the Increased Residential/ Reduced Commercial Alternative's Ability to Reduce Significant Unavoidable Project Impacts Adoption of the Increased Residential /Reduced Commercial Alternative would reduce the severity of the significant and unavoidable impacts related to Transportation and Traffic, as well as the significant unavoidable impact on Cultural Resources. (Draft EIR, pp. 5 -16, 5 -17; Final EIR, p. 4 -8.) This alternative causes no new significant impacts. Under this alternative, the severity of one potentially significant impact (Noise) that can be mitigated to less than significant levels would increase. In other words, although the significance determination (less than significant with mitigation) is the same for the Noiseis impact under the Project and Alternative 2, the severity of the impact would be greater under this alternative. In contrast, the severity of three four other impacts ,(Air 14 Quality, Greenhouse Gas Emissions, Transportation, and Hydrology and Water Quality) would decrease under Alternative 2, although the significance determination for these impacts would also remain the same as under the Project. Thus, the Increased Residential /Reduced Commercial Alternative is better than the Project on some environmental issues, but worse on others. (Draft EIR, p. 5 -17.) Aesthetics The Increased Residential /Reduced Commercial Alternative would result in minimal changes to aesthetics compared to the Project. The Increased Residential/Reduced Commercial Alternative would reduce the commercial building square footage by about 25 percent, and could result in reduced building heights, although the alternative would not alter the heights allowed in the Specific Plan. This alternative would result in a similar level of aesthetic impacts compared to the Project. Agricultural Resources The Increased Residential/Reduced Commercial Alternative would remove all existing agricultural uses from the Plan Area. The Increased Residential/Reduced Commercial alternative would result in a similar level of agricultural impacts compared to the Project. Air Oualit The Increased Residential/Reduced Commercial Alternative would reduce daily traffic volumes by about 19 percent, and would result in a corresponding reduction in air emissions compared to the Project. The Increased Residential/Reduced Commercial Alternative could also place additional residential units within an area that has elevated toxic air contaminant concentrations, although the extent of this effect is less in the Transition District, and will be decreasing in the coming years due to more stringent diesel fuel and engine requirements. Policy inconsistencies and construction dust impacts would be unchanged. Overall, the Increased Residential/Reduced Commercial Alternative would result in a reduced level of air quality impacts compared to the Project. Biological Resources The Increased Residential /Reduced Commercial Alternative would potentially affect the same special - status species as the Project, because development would take place throughout most of the Plan Area. The Increased Residential /Reduced Commercial Alternative would result in a similar level of biological resources impacts compared to the Project. Cultural Resources The Increased Residential/Reduced Commercial Alternative would potentially disturb unknown buried cultural resources. The Increased Residential /Reduced Commercial Alternative would likely propose the removal of the historic buildings within the Plan Area, although similar mitigation measures would apply. The Increased Residential/Reduced Commercial Alternative would result in a similar level of cultural 15 resources impacts compared to the Project. Therefore, the impact would be significant and unavoidable even with mitigation. Geology, Soils, and Mineral Resources The Increased Residential /Reduced Commercial Alternative would result in development of a different mix of commercial and residential buildings, but would not affect overall development density. The Increased Residential/Reduced Commercial Alternative would result in a similar level of geology, soils, and mineral resources impacts as the Project. Greenhouse Gas Emissions The Increased Residential/Reduced Commercial Alternative would reduce daily traffic volumes by about 19 percent compared to the Project, and would result in a corresponding reduction in greenhouse gas emissions. The Increased Residential/ Reduced Commercial Alternative would result in a reduced level of greenhouse gas impacts compared to the Project. Hazards and Hazardous Materials The Increased Residential /Reduced Commercial Alternative would result in development on the portions of the Plan Area that are affected by migrating off -site groundwater contamination, similar to development of the Project. The Increased Residential/Reduced Commercial Alternative would result in a similar level of hazards and hazardous materials impacts compared to the Project. Hydrology and Water Quality The Increased Residential /Reduced Commercial Alternative would result in slightly less impervious surface within the Plan Area, based on typically higher building coverage percentages for commercial development. Because there would be less commercial development and more residential development, more open space with pervious surfaces would be likely. This would reduce storm water run -off rates in comparison with the proposed project. The Increased Residential/Reduced Commercial Alternative would result in a reduced level of hydrology and water quality impacts compared to the Project. Land Use and Plannine The Increased Residential/Reduced Commercial Alternative would result in a somewhat changed mix of land uses within the Plan Area, with additional residential units and fewer commercial uses. The Increased Residential/Decreased Commercial Alternative would have 61 percent of the residential units and 75 percent of the commercial development envisioned for the Plan Area in the Town of Los Gatos 2020 General Plan. The Increased Residential /Reduced Commercial Alternative would retain the mixed use concept directed by the Town of Los Gatos 2020 General Plan, and would not result in adverse effects on the Town's downtown commercial area. The Increased Residential/Reduced Commercial Alternative would result in a similar level of land use and planning impacts compared to the Project. 16 Noise The Increased Residential/Reduced Commercial Alternative would result in an increased number of residential units within the Plan Area. Portions of the Plan Area nearest to major streets and highways have an ambient noise level that exceeds the standard for residential development. The Increased Residential /Reduced Commercial Alternative would likely place more residential units within these areas, and expose additional residential units to high noise levels. Because traffic volumes generated by the alternative would be about 19 percent less, there would be less project - generated noise, but this would result in a moderate change in noise levels, and not outweigh the effects of ambient noise from non - project sources. The Increased Residential /Reduced Commercial alternative would result in an increased level of noise impacts compared to the Project. Population, Housing, and Public Services The Increased Residential /Reduced Commercial Alternative would result in additional residents and additional housing within the Plan Area, which would contribute to meeting the Town's housing goals. Although the number of housing units would increase, the overall demand for public services would be similar to the Project because commercial uses would be reduced. The Increased Residential /Reduced Commercial Alternative would result in a similar level of population, housing, and public services impacts compared to the Project. Transportation and Traffic To provide an estimate of trip generation under the Increased Residential/Reduced Commercial Alternative, the Project's residential trip generation was increased by 25 percent and the Project's commercial trip generation was decreased by 25 percent. Although other factors influence trip generation, this method provides a reasonable estimate for comparison purposes. The Increased Residential /Reduced Commercial Alternative would result in a daily trips reduction of about 19 percent, compared to either of the proposed project's development scenarios. Trip reductions during the PM peak period would also be 19 percent compared to the Project. Reductions during the AM peak period would be less pronounced: 15 percent less than development scenario A and ten percent less than development scenario B. Peak residential commute traffic (which would increase under this alternative) more closely aligns with the AM peak period than do trips to retail stores. Most retail stores open after the peak traffic period, so reductions in commercial traffic have less influence on AM peak period traffic. Level of service analysis was not prepared for the Increased Residential/Reduced Commercial Alternative; however, delays at intersections would decline with the reduced traffic volumes, and some of the intersection level of service impacts could potentially be reduced compared to the Project. Likewise, traffic contributions to the freeway segments would be reduced. 17 Potential impacts related to transit, bicycle, pedestrian, and Town policy would remain the same with the Increased Residential/Reduced Commercial Alternative. The Increased Residential /Reduced Commercial Alternative would result in a reduced level of traffic and transportation impacts compared to the Project. Utilities and Service Systems The Increased Residential/Reduced Commercial Alternative would require water, sewer, storm drainage, and solid waste services similar to those required by the proposed project. The Increased Residential /Reduced Commercial Alternative would result in a similar level of utilities and service systems impacts compared to the Project. c. Feasibility of the Increased Residential/ Reduced Commercial Alternative The Town Council rejects the Increased Residential/ Reduced Commercial Alternative in part based on policy considerations. (See Pub. Resources Code, § 21061.1; CEQA Guidelines, § 15364; see also City of Del Mar v. City of San Diego (1982) 133 Ca1.App.3d 410, 417; California Native Plant Soc. v. City of Santa Cruz (2009) 177 Cal.AppAth 957, 1001; Sequoyah Hills Homeowners Assn. v. City of Oakland (1993) 23 Cal.AppAth 704, 715.) The Increased Residential/Reduced Commercial alternative places additional residences in locations where noise and toxic contaminants must be mitigated as described in the EIR. The Increased Residential/Reduced Commercial alternative would not fully achieve the economic benefits anticipated in the General Plan, because 25 percent less commercial development could be built within the Plan Area. The existing uses (76,000 square feet) would represent a higher percentage of commercial uses within the Plan Area, with only 359,000 square feet of new commercial buildings allowed. Memorandum from Richard James, EMC Planning Group, Inc., to Joel Paulson, July 17, 2014 ( "EMC Memo ").) Furthermore, the Town Council finds the Increased Residential/ Reduced Commercial Alternative to be infeasible in part because it does not fully meet project objectives. (California Native Plant Soc. v. City of Santa Cruz (2009) 177 Cal.AppAth 957, 1001; Citizens for Open Government v. City of Lodi (2012) 205 Cal.AppAth 296, 314 -315.) The Increased Residential /Reduced Commercial alternative would be inconsistent with the Project Objective to provide up to 580,000 square feet of commercial uses in two general categories. The Specific Plan objectives call for up to 400,000 square feet of retail, restaurants, personal services, health club and entertainment; and/or up to 250,000 square feet of office and/or hotel. The Increased Residential /Reduced Commercial could accommodate all of one commercial category and or lesser amounts of each. m For all of the forgoing reasons, and any one of them by itself, the Town Council determines that the Increased Residential/ Reduced Commercial Alternative is infeasible and is hereby rejected. 3. ALTERNATIVE 3: The Historic Preservation Alternative a. Description The Historic Preservation Alternative is intended to reduce the Project's significant impacts on potentially historical resources by preserving them instead of documenting them. This Alternative would set aside four or five acres of the Plan Area as a historic conservation area, within which the six potentially historic structures could be relocated and preserved. The remainder of the Plan Area would be used generally as proposed in the Specific Plan, and development limits would remain unchanged. (Draft EIR, p. 5 -13.) The Draft EIR assumed that the four or five acre conservation area would encompass the existing location of the red barn, in order to reduce costs associated with relocating the largest of the potentially historic structures. Depending on the location of the historic conservation area and the purposes to which the potentially historic buildings are put, some residential uses could be located within the Northern District or some commercial uses could be located within the Lark District. (Draft EIR, p. 5 -13.) b. Analysis of the Partial- Historic Preservation Alternative's Ability to Reduce Si¢nificant Unavoidable Project Impacts Adoption of the Historic Preservation Alternative would reduce the significant and unavoidable impacts related to Cultural Resources to a less than significant level. Other significant and unavoidable impacts to Transportation and Traffic would not be reduced to less - than- significant levels. This alternative causes no new significant impacts. (Draft EIR, p. 5 -17.) Under this alternative, the severity of potentially significant impacts that can be mitigated to less than significant levels would inerease- remain similar to those under the Project. (Draft EIR, p. 5 -17.) Thus, the Historic Preservation Alternative is only better than the Project on the Cultural Resources issue, but same as the Project on all other environmental issues. Aesthetics The Historic Preservation Alternative would result in development of most of the Plan Area. Four or five acres of the Plan Area would be set aside for preservation of potentially historic structures, but this would not significantly change the appearance of the Plan Area compared to the Project. The Historic Preservation Alternative would result in a similar level of aesthetics impacts compared to the proposed project. 19 Agricultural Resources The Historic Preservation Alternative would remove all existing agricultural uses from the Plan Area. Although several potentially historic buildings related to current and past agricultural uses would remain, the agricultural uses themselves would be gone. The Historic Preservation Alternative would result in a similar level of agricultural resources impacts compared to the Project. Air Quality The Historic Preservation Alternative would result development and trip generation the same as with the Project, and therefore, air emissions would also be about the same as those of the proposed project. The Historic Preservation Alternative would result in a similar level of air quality impacts compared to the Project. Biological Resources The Historic Preservation Alternative would potentially affect the same special - status species as the proposed project, because development would take place throughout most of the Plan Area. The Historic Preservation Alternative would result in a similar level of biological resources impacts compared to the Project. Cultural Resources The Historic Preservation Alternative would preserve the potentially historic buildings within the Plan Area within a historic conservation area. Under this alternative, a historic conservation area of about four to five acres would be set aside, within which the potentially historic buildings from throughout the Plan Area would be relocated as development of the Plan Area proceeded. The potentially historic structures could be preserved for adaptive reuse or as a cultural display. The Historic Preservation Alternative would result in a less- than- significant levels of cultural resources impacts compared to the proposed project's significant and unavoidable impacts. Geology, Soils, and Mineral Resources The Historic Preservation Alternative would result in development of most of the Plan Area with new buildings similar to those of the Project. The potentially historic buildings would be preserved, and are expected to require structural rehabilitation as part of their relocation; therefore, the potentially historic structures would meet applicable building code requirements, and not be inordinately more prone to damage from seismic activity. The Historic Preservation Alternative would result in a similar level of geology, soils, and mineral resources impacts compared to the Project. Greenhouse Gas Emissions The Historic Preservation Alternative would result in development and trip generation the same as with the Project, and therefore, greenhouse gas emissions would also be about the same as those of the Project. The Historic Preservation Alternative would result in a similar level of greenhouse gas emissions impacts compared to the Project. 20 Hazards and Hazardous Materials The Historic Preservation Alternative would result in development on the portions of the Plan Area that are affected by migrating off -site groundwater contamination, similar to development of the proposed project. The Historic Preservation Alternative would result in a similar level of hazards and hazardous materials impacts compared to the Project. Hydrology and Water Quality The Historic Preservation Alternative would not significantly change the development type of intensity, nor the overall arrangement of development within the Plan Area. The Historic Preservation Alternative would result in a similar level of hydrology and water quality impacts compared to the Project. Land Use and Planning The Historic Preservation Alternative would result in a similar mix of land uses within the Plan Area, with about four to five acres set aside for historic preservation. Adaptive reuse of the potentially historic buildings could include residential, commercial, or other types of uses could occupy the historic conservation area. The Historic Preservation Alternative would retain the mixed use concept directed by the Town of Los Gatos 2020 General Plan, and would not result in adverse effects on the Town's downtown commercial area. The Historic Preservation Alternative would result in a similar level of land use and planning impacts compared to the Project. Noise The Historic Preservation Alternative would not significantly change the location or intensity of development within the Plan Area compared to the proposed project. The Historic Preservation Alternative would result in a similar level of noise impacts compared to the Project. Population, Housing, and Public Services The Historic Preservation Alternative would not significantly change the location, type, or intensity of development within the Plan Area compared to the Project. The same number of existing residences could be replaced with new development, and the same number of residential units would occupy the Plan Area at build -out. The development capacity of the Plan Area would not be changed, and the services demands would be the same as for the Project. The Historic Preservation Alternative would result in a similar level of population, housing, and public services impacts compared to the Project. Transportation and Traffic The Historic Preservation Alternative would have the same combination of land uses and would generate the same number of vehicular trips as the proposed project. The Historic Preservation Alternative would result in a similar level of transportation and traffic impacts compared to the Project. 21 Utilities and Service Systems The Historic Preservation Alternative would require water, sewer, storm drainage, and solid waste services similar to those required by the Project. The Historic Preservation Alternative would result in a similar level of utilities and service systems impacts compared to the Project. c. Feasibility of Partial - Historic Preservation Alternative -- Environmentally Superior Alternative) The Town Council rejects the Historic Preservation Alternative on the basis of policy considerations. (See Pub. Resources Code, § 21061.1; CEQA Guidelines, § 15364; see also City of Del Mar v. City of San Diego (1982) 133 Cal.App.3d 410, 417; California Native Plant Soc. v. City of Santa Cruz (2009) 177 Cal.AppAth 957, 1001; Sequoyah Hills Homeowners Assn. v. City of Oakland (1993) 23 Cal.AppAth 704, 715.) The Historic Preservation Alternative would hinder the design of Plan Area build -out, because the potentially historic buildings are located throughout the site. Relocation of the buildings into a consolidated site or locations that would reduce adverse effects on design may not be feasible, given the age and uncertain construction methods and conditions of the buildings. If the buildings were to be relocated, the developer and/or the Town would incur considerable expense. The developer and/or the Town would also incur considerable expense in preservation of the historic buildings in place. Depending on the specific re -use proposed, reuse of the barn may be limited by, or costs may increase to accommodate, building code standards for the specific occupancy group proposed. Preservation of the potentially historic buildings would result in either denser overall development with reduced open space (if the historic building square footage were counted in addition to the maximum square footage /residential units allowed), or displacement of some commercial square footage or residential units. For the forgoing reasons, the Town Council determines that the Historic Preservation Alternative is infeasible and is hereby rejected. 22 IX. STATEMENT OF OVERRIDING CONSIDERATIONS As set forth in the preceding sections, the Town Council's approval of the North Forty Specific Plan project will result in significant adverse environmental impacts to Transportation and Traffic and Cultural Resources, which cannot be mitigated to a less - than- significant level. A. Overriding Considerations In accordance with Public Resources Code section 21081, subdivision (b), and CEQA Guidelines section 15093, the Town Council has, in determining whether or not to approve the Project, balanced the economic, social, technological, and other benefits of the Project against its unavoidable environmental risks, and has found that the benefits of the Project outweigh the significant adverse environmental effects that are not mitigated to less - than - significant levels, for the reasons set forth below. In making this finding, the Town Council has balanced the benefits of the Project against its significant environmental impact and has indicated its willingness to accept these risks. The following statements identify the reasons why, in the Town Council's judgment, the benefits of the Project outweigh its significant unavoidable effects: Any one of the reasons for approval cited below is sufficient to justify approval of the Project. Thus, even if a court were to conclude that not every reason is supported by substantial evidence, the Town Council will stand by its determination that each individual reason is sufficient. The substantial evidence supporting the various benefits can be found in the preceding findings, which are incorporated by reference into this Section, and in the documents found in the Record of Proceedings, as defined in Section IV. The Project accomplishes the following policy objectives of the Town: The Project provides a specific plan consistent with the Los Gatos 2020 General Plan and the Town's adopted vision statement for the Plan Area. Future development within the Plan Area will s°°- Tintegrate with the existing development within Los Gatos, while preserving significant public views and providing trees and open space. Future development of the Plan Area will also provide for the Town's unmet commercial and residential needs and minimize adverse effects on Town infrastructure, services, and schools. 2. The Project provides a residential program that designates a variety of development intensities to help achieve the Town's unmet needs, including the young working professionals and empty- nester move -down buyers, as well as complies with the Town of Los Gatos Housing Element, with the number of units having sales prices or rents for low income earners equal to a minimum of 20 percent of the market rate residential units. 23 3. The Project encourages a diversity of residential offerings and affordability levels for the targeted buyers, including cottage /garden cluster, rowhome /townhomes, eandeminium flats, multifamily affordable, and/or vertical mixed use. 4. The Project offers a commercial program that will complement the existing uses within the Town and capture retail sales that are currently leaking out of the Town. 5. The Project will create a sustainable community because the Specific Plan's public spaces and expanded street frontage provides the opportunity for bicycle lanes and pedestrian walkways tou ill encourage alternative forms of transportation such as walking, bicycling, and public transportation. 6. The Project respects the history of the site by featuring distinctive and attractive building design and perimeter landscaping that gestures towards its agrarian reets to reflect the agricultural heritage of the site. 7. The Project will assist the Town with satisfying its Regional Housing Needs Allocation for market rate and affordable housing units. The Town Council may modify or add other considerations. 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