North Forty Specific Plantio"" F MEETING DATE: 03/03/15
ITEM NO: I
°s sAt�e
COUNCIL AGENDA REPORT Ct
DATE: FEBRUARY 26, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
ROBERT SCHULTZ, TOWN ATTORNEY
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 ADOPTION OF THE NORTH FORTY SPECIFIC PLAN.
B. CONSIDER ADOPTION OF GENERAL PLAN AMENDMENTS.
C. CONSIDER ADOPTION OF AN ORDINANCE EFFECTING A ZONING
CODE AMENDMENT.
D. ADOPTION OF A MITIGATION MONITORING AND REPORTING
PROGRAM, AND ADOPTION OF FINDINGS OF FACT AND
STATEMENT OF OVERRIDING CONSIDERATIONS.
PREPARED BY: LAUREL R. PREVETTI
9 "'— �"
Assistant Town Manager /Director of Community Development
Reviewed by: N/A Assistant Town Manager N/A Town Attorney N/A Finance
N: \DEV \TC REPORTS\2015 \N40 TC 3 -3 -15 .doc Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
February 26, 2015
BACKGROUND:
On February 3, 2015, the Town Council deliberated on the North 40 Specific Plan. In the course
of the discussion, the Council identified potential topic areas of consensus, clearly stating that no
motions were approved on those topics. In addition, the Council requested that the Town
Attorney and Town staff return with information on the following topics:
• Senior housing
• Senior housing implications for the Town's Regional Housing Needs Allocation (RHNA)
• Potential mix and size limitations for commercial spaces
• Office and hotel uses
This memorandum responds to these topics and also provides the background regarding the
Advisory Committee's identification of 364 housing units for the Specific Plan. The report also
transmits to the Council the verbatim minutes from the February 3, 2015 Town Council meeting
(Attachment 52), a letter submitted by A. Don Capobres, Linda Mandolini, and Wendi Baker
regarding requiring developers to provide senior housing (Attachment 53), and additional public
correspondence received after the distribution of Addendum B for the February 3, 2015
(Attachment 54). As with all correspondence to the Town Council and/or Planning Commission,
staff has not prepared written responses to the issues raised by members of the public. Staff is
available to answer any questions pertaining to the correspondence.
DISCUSSION:
1. Senior Housing
The following is an excerpt from a Staff Report prepared for the September 16, 2014 Council
meeting with regard to designating senior housing in the North 40 Specific Plan. The same
concerns that the Town Attorney states in this Staff Report are still applicable.
Both federal and state law prohibit the Town from using its planning and zoning powers
to deny residency to, or make housing unavailable to, or discriminate against, families
with children. Planning or zoning restrictions that are adopted to discourage or prevent
families with children from living in the Town, such as zoning sites to permit only senior
housing or limiting the number of bedrooms in residences, would violate these
provisions.
However, all of the fair housing statutes contain exceptions for senior housing. These
sections allow discrimination if the housing is built and designed to serve seniors.
Housing in compliance with these provisions must either require all residents to be 62
years of age or older; or comply with more stringent design standards and require at least
one member of each household to be 55 years of age or older.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN/GP- 14-001 /Z- 14-00 1 /EIR- 10-002
February 26, 2015
According to our Housing Element, `The population of the Town is aging. The median
age in Los Gatos is currently 45 years, while in 1970 the median age was 30 years. Given
Los Gatos' aging population, senior housing is a significant issue for the Town. The
California Department of Finance projects that by 2030, Santa Clara County's senior
population will continue to increase, both from population growth and from the aging of
the existing residents. Over 140, 000 people are projected to be added to the county, and
60 percent of that growth will be people 65 or older. By 2030, 1 in 4 adults (and one -
fifth of the total population) in the county will be 65 or older. Approximately 5, 265
seniors reside in Los Gatos, according to 2010 U.S. Census data, which represents
approximately 18 percent of the population. About 80 percent of existing senior
households in Los Gatos are homeowners. Given Los Gatos' aging population, senior
housing is a significant issue for the Town. Based on national surveys, most seniors
would like to be able to remain in their current homes, or, if that is not possible, in their
current community."
Based upon the Housing Element, the Town could designate senior housing in the
Specific Plan at appropriate locations and densities in keeping with the goals and policies
of the Housing Element and General Plan. However, if there is any evidence that the
provisions for senior housing were adopted with the intent of excluding housing for
families with children, the Specific Plan could be found to be invalid. Therefore, the
Town should not adopt Specific Plan provisions for the North Forty with the intent of
excluding or discouraging families with children because of overcrowding of schools.
As an alternative to designating senior housing at set locations and densities, the Town
could provide incentives for senior housing in recognition of its unique characteristics:
lower automobile use, less traffic, and smaller household size. For instance, State density
bonus law permits all senior housing to receive a 20 percent density bonus whether or not
it is affordable.
2. Senior Housing Implications for the Town's Regional Housing Needs Allocation
R( HNA)
The Town's RHNA can be satisfied with housing for any household type as long as the
Town identifies sites for housing development in the amounts required for each income
category of the RHNA.
3. Potential Mix and Size Limitations for Commercial Spaces
On February 3, 2015, the Council discussed the mix and size of commercial spaces. The
Council considered reducing the total amount of small commercial spaces (0 to 1,500
square feet and 1,501 to 3,000 square feet) to each accounting for no more than 2.5% of
the total 400,000 square feet available. With this in mind, staff has prepared a proposed
revision to Table 2 -7 that captures this reduction and creates a new small tenant space
category of 3,001 to 5,000 square feet to align with the market analysis prepared by Dr.
Ralph McLaughlin (Attachment 41).
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
February 26, 2015
Table 2-7
Individual Store Size
Additional Limitations for Commercial (400,000 sf)
% of Total (Total Square Footage)
0 - 1,500 sf
2.5 (10,000)
1,501 - 3,000 sf
2.5 (10,000)
3,001 - 5,000 sf
5(20,000)
5,001 - 10,000 sf
25 (100,000)
10,001 - 25,000 sf
25 (100,000)
25,001 - 50,000 sf
40 (160,000)
*PERCENTAGES APPLY TO 400,000 sf OR THE TOTAL AMOUNT OF sf AT BUILDOUT.
Maximum Individual
Commercial Tenant Size
50,000 SQUARE FEET
In addition, Attachment 55 provides a conceptual model of commercial size breakdown. The
Council may wish to consider adding this table, or something similar, to the Glossary of the
Specific Plan.
Attachment 56 contains tenant mix and space information from King's Court, Old Town,
Santana Row, and Vasona Station. These data may be useful to the Council as it considers
commercial space mix and size.
4. Office and Hotel Uses
On February 3, 2015, the Council agreed that the Specific Plan should allow hotel and office
uses, with potential limitations on office. Based on the Environmental Impact Report, the
maximum amount of medical office that would have environmental clearance with the Draft
North 40 Specific Plan is 62,500 square feet. The Council may wish to modify the third note
in Table 2 -2: Maximum Development Capacity (page 2 -10 of the Draft Specific Plan,
Attachment 3) to read, "If medical office exceeds EIR traffic scenario (62,500 square feet of
medical office), additional traffic evaluation is required."
Staff is also researching hotel information for Council's consideration. Hotel Valencia at
Santana Row is over 200,000 square feet. As information for Los Gatos hotels becomes
available, it will be provided to Council as an Addendum.
5. 364 Housing Units
Staff researched the history of the Advisory Committee's decision to reduce the housing
capacity from 750 units as identified in the General Plan to 364 units contained in the Draft
North 40 Specific Plan. In September 2011, the Committee reduced the housing capacity to
690 units. In January 2012, it was reduced to 555 units. A further reduction to 400 units
occurred in July 2012. In August 2012, the Advisory Committee established the 364 -unit
cap. The Committee recommended a 50,000- square foot reduction for the 540,000- square
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
February 26, 2015
foot total of housing uses (or 91 percent of total). The 91 percent factor was then applied to
400 units to achieve 364 units.
Attachment (Previously received on April 4, 2014):
1. Draft Environmental Impact Report (htti)://www.losgato,.;ca.govfN40DEIR)
Attachments (Previously received on July 11, 2014):
2. Final Environmental Impact Report with the Mitigation Monitoring and Reporting Program
(http://www.losgatosca.gov/N40FEIR)
3. Public Hearing Draft North Forty Specific Plan (Note: The complete Specific Plan including
appendices is also available online at: http : / /www.losgatosea.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 (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)
PAGE 6
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN/GP- 14-00 1 /Z- 14-001 /EIR- 10-002
February 26, 2015
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
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14- 001 /Z -14- 001 /EIR -10 -002
February 26, 2015
Attachment (Previously received with September 16, 2014 Desk Item #2):
35. Traffic analysis information
Attachments (Previously received with December 16, 2014 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
Attachments (Previously received with December 16, 2014 Desk Item):
45. Public Comment received from 11:01 a.m. Thursday, December 11, 2014 through 11:00 a.m.
Tuesday, December 16, 2014
Attachments (Previously received with February 3, 2015 Staff Report
46. Updated Table of Planning Commission recommendations and proposed responses for
Council consideration
47. North 40 Specific Plan Area Property Ownership Map
48. Public Comment received from 11:01 a.m. Tuesday, December 16, 2014 through 11:00 a.m.
Thursday, January 29, 2015
Attachments (Previously received with January 30, 2015 Addendum):
49. Correspondence received from 11:01 a.m. Thursday, January 29, 2015 through 11:00 a.m.
Friday, January 30, 2015
Attachments (Previously received with February 2, 2015 Addendum B):
50. Correspondence received from 11:01 a.m. Friday, January 30, 2015 through 11:00 a.m.
Monday, February 2, 2015
Attachments (Previously received with February 3. 2015 Desk Item):
51. Exhibits showing existing General Plan and Zoning designations for the Specific Plan area
PAGE 8
MAYOR AND TOWN COUNCIL
SUBJECT: NORTH 40 SPECIFIC PLAN/GP- 14-00 1 /Z- 14-001 /EIR- 10-002
February 26, 2015
Attachments received with this Staff Report:
52. Verbatim minutes from the February 3, 2015 Town Council meeting (124 pages)
53. Letter from A. Don Capobres, Linda Mandoline, and Wendi Baker dated February 13, 2015
(seven pages)
54. Correspondence received from 11:01 a.m. Tuesday, February 2, 2015 through 11:00 a.m.
Thursday, February 26, 2015 (84 pages)
55. Conceptual model of commercial size breakdown
56. Shopping center tenant mix and sizes
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
LRP:JSP:cg