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Attachment 52 - Part 21 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE MAYOR SPECTOR: All right, so we could call that Senior Affordable. Now, beside the Senior Affordable in that line item, can we also have a Senior, or is that where we get into the problematic area? LAUREL PREVETTI: A different type of housing for seniors, if I understand correctly? VICE MAYOR SPECTOR: Yes. I understand these smaller units, low- income senior; I understand that concept. Can we also now attribute a certain amount of the units to Senior and not violate any legal prohibitions? LAUREL PREVETTI: I believe you can. I think the question is whether you want it to be senior and affordable, because there are a lot of other types of housing that are now being offered in terms of assisted living or continuum of care, so there are other choices in the marketplace, and if it's the will of the Council, you could also be specific regarding that. VICE MAYOR SPECTOR: Madam Mayor, may I just ask one more? What I'm looking for, is there a way to say let's put aside the affordable, a place where we designate for seniors and it's not also affordable, it's just a place where seniors can live and it's designated for them. Can we do that? LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 65 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 LAUREL PREVETTI: You can, and again, I would defer to our Town Attorney, because once we start calling, let's say, for example, it's a cottage type of housing, someone could say oh, it's going to be for seniors, there are a fair number of requirements. How do we make sure that that's going to be a senior when a family or another type of household could easily move into that as well? VICE MAYOR SPECTOR: So that's the question. LAUREL PREVETTI: Yes. MAYOR JENSEN: Before I go to other comments, Mr. Paulson, can I get you to put 2.7.3, the language, up there on the board? Okay, so Members of the Council and Ms. Prevetti, I look at paragraph b. Could the Council put a bullet under b, because b is telling us the maximum number of units, and put a bullet under there that says X number of senior units? LAUREL PREVETTI: Yes. MAYOR JENSEN: Okay. Other comments of questions? Councilman Leonardis. COUNCIL MEMBER LEONARDIS: Thank you, Mayor Jensen. Going back to the previous discussion about different types of housing, and specifically senior LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan M.- 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 affordable or just regular senior housing, I think the senior population should be allowed to choose among the chart of the different categories of housing whatever housing they like. For instance, they might decide to pick what looked like a 2,300 square foot townhome; that might suit their needs. Or they might decide that they want the 500 square foot apartment; that might suit their needs. I think what we're really defining is an allocation in terms of a percentage across all housing types. I would just say we take the 364 units and we say it doesn't matter which units in particular they are, but 35% of them could be allocated to people who are 55 years and older, or one household member that's 55 years or older; I would think something like that based on our existing population numbers. We know how many people in town roughly are of that age. It would be very useful as a guide to try to determine what kind of numbers we could look at in this category and those categories. MAYOR JENSEN: Councilman Rennie. COUNCIL MEMBER RENNIE: A couple comments. I'll remind of one of the comments I made earlier. I think it's the California Department of Finance that says that 25% of our population by 2030 will be over 65, so we know that LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 67 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 we're moving in that direction. We're going to get a lot more seniors than we're allocating the percentage for, and so that's one comment. My second comment was if we put a limitation to seniors, I would prefer us use 62 and not 55. I think 55 is still going to draw kids into the school districts, which is part of one of the things we're trying to achieve with senior housing, and when I think of senior housing I'm really thinking of much older seniors that want to move into more of a move -down situation or a small unit. I turned 50 day. I don't feel like I'm going to be a senior in five years. MAYOR JENSEN: Happy birthday. This is how you want to spend it, right? I have a follow up question for Mr. Schultz, and a comment. Mr. Schultz, Councilman Leonardis was suggesting that a percentage of cross - housing types could be just designated for seniors. Is that legal? ROBERT SCHULTZ: I don't believe so. I've got to look into the exemptions that you do have under the Fair Housing Act, and so there is the ability in your Specific Plan to designate an area for senior housing. If that's where we're heading with it, then we're going to have to do LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan W] 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 more research in exactly how we can implement that and make the correct findings and have the exemption under the Fair (Housing Act. MAYOR JENSEN: Thank you. Just a comment on Councilman Leonardis' suggestion. Seniors could pick the type of housing they wanted to move into. Obviously people can pick the type of housing, to the extent they can afford it, that they want to move into. But one of the reasons that I would support a set aside for senior housing is based upon the chart that went up that the senior housing produces less traffic, that the senior housing has lower parking requirement, that the senior housing could maintain impacts in a particular community, including school impacts. I would not be comfortable with just saying we have lots of different kinds of housing types and seniors can live in them, because the benefits that I see to senior housing we would not get if we took that approach, so I couldn't support it. Councilman Leonardis. COUNCIL MEMBER LEONARDIS: My intention would be that it would be restricted still; you just take a percentage. If it's 25 %, if it's 35% of the total of the housing and the total among all the units, that those particular units, say, a certain amount of townhomes would LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan M 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 be age restricted, a certain amount of apartments would be restricted. They wouldn't be just like okay, here they are. If you're a senior, move in, great. If you're not a senior, you can move in anyway. So that's what I was getting at. It would offer not just the 500 square foot apartments for seniors, but it would offer more housing choices for the seniors. But it would be geared towards seniors having a choice of housing and it wouldn't be open to everybody. There are a certain amount of units within each category that would be senior only. MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: Thank you. I think we've been down this road in the North 40 Advisory Committee, and we probably are going to need for our Town Attorney to come back to us, because I know we can do the Eden type of senior affordable and designate that. Once we get past that into seniors generically, I believe it's more problematic, but maybe I'm wrong, and we need Mr. Schultz to weigh in. MAYOR JENSEN: Okay, let me make this suggestion, or see if we can wrap up this discussion. Is there consensus among the Council members that there should be what I'm going to call a set -aside for senior housing, LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 70 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 whether that be a number of units of a percentage of units? Is there consensus with the Council? Okay, so there is. Does the Council generally with the consensus agree with Vice Mayor Spector that in order to determine what that number or percentage should be that we need more information from the Town Attorney with respect to how those units can be designated? I'm seeing yes. And I'm going to add another question for the Council, to ask Ms. Prevetti. To the extent that the Council decides to designate a certain number of units as senior, what effect would that have on any kind of Regional Housing Needs Assessment or affordability assessment for purposes of our Housing Element? would people like that information as well? I'm going to get hopefully a yes. Okay. I hope that somebody's keeping track of these fabulous consensus motions that we're making here. I'm going to see if we can get a consensus on... I'm not sure of the proper way to determine this, and so maybe Staff can help us out in figuring out based upon the information that we get from Mr. Schultz and Ms. Prevetti, how many acres the Council should be looking at as designated for this 20 dwelling units per acre? Not just LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 71 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 for senior, but for affordable housing. Is that something that people would find helpful? Okay, I'm getting nods. Yes. COUNCIL MEMBER RENNIE: I guess I have kind of a question on that, because I'm thinking about the design that's there now. Maybe I just haven't thought all the way through, but I'm concerned that the design... So I know the design that is there I've been told is already 20 units per acre, but it's also got a lot of interspersed open space through it, so I'd be careful saying you've got to stuff it in a small amount; then you don't have any interlace to open space in there. I haven't thought all the way through what the implications are, but I want to be careful there. MAYOR JENSEN: Okay, so I will say stay tuned, because if you look at your handy outline, we are going to get to density and intensity, which is going to include open space designations and discussion regarding those issues, so I think that we'll stay with the big picture and then move to those questions. Have we gotten to the point where if we look at the outline that I gave people that was to discuss the housing type and amount, should there be a specific mix, should there be any affordability designations or age LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 72 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 limitations? I think we have discussed that and maybe we can put a check by that and take a break and then move to commercial square footage. I think we'll do that, and we'll take a break for about ten minutes. (INTERMISSION) MAYOR JENSEN: Thank you for all of your patience with us. I know this is a painstaking process. We'll see if we can move it a little faster, but I think it's really important to make sure that all of the Council people get their opinions on all these questions out there and that we have a productive discussion, so apologize for the length, but we'll try to make some progress. Our next discussion item is going to be commercial square footage, because ... just why not? Mr. Paulson, for this purpose I'm going to ask you to put up, if you have got it, the table from the May 2013 Draft Specific Plan, the 2 -7 table. And ladies and gentlemen, the Council, and the audience if you have a book, we're looking at 2.6.7, page 2 -26, and the point for us to consider is how much... I'm sorry; I got the wrong page. 2.6.7. Right, on 2 -26, 2.6.7, Retail Tenant Space, which is essentially talking about commercial uses. We also have Table 2.2, LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 73 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 which we can't all put up at the same time unfortunately. Maybe I'll have you go back to that. Table 2 -2 has got on it a maximum of commercial square footage. It has a listing of different uses and it does not break down the overall commercial use into unit sizes. That Table 2 -2 is on page 2 -10, so if everybody could take a look at that for a second, and then Mr. Paulson, if you could put the other table up again. This table actually is breaking down sizes of commercial uses within that commercial number at the 400,000 square feet. So what I'm going to ask Council to do is first to look at the 400,000 square feet, determine whether or not the Council thinks that that is appropriate, and then when and if the Council does that, should there be a specific mix of commercial types and uses or should there be any limitations to units of any particular size? That's why I put this table up, which was discussed at the Advisory Committee but then not put in the Specific Plan. So for those of you who were on the Advisory Committee, maybe if you could, when we get to that discussion, tell us something about that. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 74 I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So first let me open a discussion about this generalized 400,000 number for commercial use. Comments on that? Anyone? Councilman Leonardis. COUNCIL MEMBER LEONARDIS: This is a question for Staff. How does that number compare with the total square footage of our downtown, all the retail in the downtown Business District? JOEL PAULSON: I turn to Ms. Renn for the retail. Staff pulled data from the County Assessor's records, and so the total of our C -2 zoned parcels, which is our Central Business District, is around 1.1 million square feet. Now, that includes everything, that's not just retail, so if Ms. Renn has any additional information on strictly retail. MONICA RENN: Monica Renn, Economic Vitality Coordinator. Recently we went through the records to try to get an accurate count of just retail restaurant first floor uses in the downtown, and we came up with about 800,000 square feet. COUNCIL MEMBER RENNIE: Thank you. MAYOR JENSEN: Ms. Renn, can I ask you, did you break that down in any fashion into 2,000 square foot unit, 5,000 square foot unit, et cetera? LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan "i 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MONICA RENN: We broke it mostly down by use, and I can tell you most of the things downtown range from about 1,100 square feet to about 2,500 square feet; that's really where the bulk of the floor plate sizes are. Of course there are a few larger restaurants and larger store sizes. MAYOR JENSEN: Okay, other questions or comments just on the 400,000 square foot number? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: Actually, if I could just get clarification. It's 800,000 square feet? MONICA RENN: Yes. COUNCIL MEMBER SAYOC: So it's from Main Street to Highway 9? MONICA RENN: The C -2 District is all of North Santa Cruz from Highway 9 to 17 basically, and then Main Street from like Linden Plaza all the way to where the former Yarn Dogs was, and then there's University as well that goes all the way to Highway 9, and those streets in between Elm, all of those are all C -2. COUNCIL MEMBER SAYOC: Okay, thank you. MAYOR JENSEN: Did you break it down at all for North Santa Cruz Avenue, what people traditionally think of as downtown? LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 76 1 2 3 4 s 6 7 a 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 MONICA RENN: No, we didn't. I could probably get that information for you in just a minute. I'd just have to add it up; I do have it by the streets. MAYOR JENSEN: Okay. Councilman Rennie. COUNCIL MEMBER RENNIE: I can just remind you we got a report from I think it was a San Jose professor. In that report they listed what's currently in the downtown by sizes, and in restaurant non - formula, formula, and personal service by percentages. It's on page four of that report. MAYOR JENSEN: Thank you. I don't see a whole lot of discussion on the 400,000 square foot number. Do we need more information before we can make any kind of consensus determination on that? Councilman Rennie. COUNCIL MEMBER RENNIE: I'll go ahead and make a comment. I did again ask Grosvenor about what was the minimum size. We have 400,000 square feet, but I think there's already about 66,000 that exists now, and so when I talked to Grosvenor I got the feeling from him that he couldn't go much lower without losing the synergy that he wanted to build with his medium box retail anchors and then adding to that. While I'm talking I'll go ahead and comment also on this slide. Grosvenor did request that we allow some LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 77 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 mechanism to go over the 50,000 square feet, and so I asked a little bit, "What does that allow ?" and for example, a Safeway typically is about 55,000 square feet, so a typical Safeway would not fit under that. He suggested make it a CUP. I know we had comments, I think from Lee Quintana, saying how do you CUP for the size of something, so maybe that's not the right mechanism, but maybe we want to consider something there. MAYOR JENSEN: Other comments? Mr. Paulson, did you have a slide of the actual language of 2.6.7, by any chance? I may not have asked for that. In any event, if you don't have it, that's fine. The only limitation that it's putting on sizes within that 400,000 square feet is a maximum individual commercial retail tenant size of 50,000 square feet. That's what's currently in the plan. So if the Council wanted to change that or break down sizes, it would need to change the plan to do that. Vice Mayor Spector. VICE MAYOR SPECTOR: Thank you, Madam Mayor. I do know a problem that the Advisory Committee had on this issue, and we struggled with this a lot, is what square footage and how many stores? In doing that analysis we were examining the typical size of restaurants, typical size of LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan W 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 retail in the downtown, with the objective of not "competing." Council Member Sayoc may remember better, but we weren't able to come to any conclusion, which is probably why Table 2 -7 in the May draft of the Specific Plan is not in our current draft. My thinking right now is that we should have something other than the maximum size be 50,000, but what that magic number or numbers is, I don't know. MAYOR JENSEN: Councilman Leonardis. COUNCIL MEMBER LEONARDIS: Thank you, Mayor Jensen. We can try the approach that we used before with the housing. We can say choose a number and say that's the maximum or less, and in order to allow some flexibility in that number maybe we can select 50,000 or less. I don't know if that's going to get the boos from the audience or not, but we can try it. MAYOR JENSEN: Let's see if you get boos from up here. Comments on that suggestion? Vice Mayor Spector. VICE MAYOR SPECTOR: My comment is a question. Can you or the Mayor repeat or summarize what was the concept there? COUNCIL MEMBER LEONARDIS: Sure. I thought being that 50,000 could be exceeded and we wanted to have more LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 flexibility we could select a number; I just threw out 80,000. Eighty thousand or less, have it be the maximum. MAYOR JENSEN: As I understand Councilman Leonardis, he's suggesting that the language that we currently have in our Specific Plan where we limit 50,000 be 80,000. My comment on that is that I'm not sure I'm comfortable with 400,000 to start with, and I think that we should break down sizes into something that looks like what was proposed at the Advisory Committee. I'd be curious, for those who remember or were on the Advisory Committee, where the percentages came from. I'd also say with the 400,000 square feet, unlike the 364 I think it actually had a genesis where the EIR was listing a 580,000 square foot max for traffic purposes. We had existing commercial already on the Specific Plan zone, so the 400,000 is actually new commercial, and it can't be more than that or more than a certain percentage at build - out. I thought that was from EIR numbers. Is that correct, Staff? JOEL PAULSON: I believe the 560 actually is in the current General Plan, so that's where that number started, and so backtracking out from there with the LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan m 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 potential for some office and hotel, the 400,000 was where we landed for the additional commercial. MAYOR JENSEN: Okay, so now that I'm looking at the Table 2 -2 I see it says, "Projects cannot exceed the maximum traffic capacity evaluated under the EIR," which is where I got EIR, and so that was the 580,000? JOEL PAULSON: Yes, which just happens to be the same number that was in the General Plan. MAYOR JENSEN: Okay. I'm looking for comments on Councilman Leonardis' proposal to just change the language of the General Plan to 80,000, or I'm looking for comments on the concept of limiting commercial sizes further as by the chart we've got up here. Councilman Leonardis. COUNCIL MEMBER LEONARDIS: Also, looking at that lower end of the chart, the zero to 1,500 square feet, 5% of the total of the projected 400,000 —I know that's not agreed to yet —I guess that could be as many as 20 units or something, if my math is correct, at 1,000 square feet —does anybody have a calculator —so that seems as if it would compete with our downtown more. I would be more inclined to move those percentages towards the 3,000 to 10,000 square foot level. I understand that there will be a need for some smaller LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan LEA I 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 square footages. I mean it's inevitable that not everybody is going to be able to operate in a minimum floor plate of 3,000, but I think we should try to really minimize those lower square footages, reduce those percentages, and increase the larger percentages. MAYOR JENSEN: Councilman Rennie. COUNCIL MEMBER RENNIE: Let me try to remind us about, again, the report from the professor from San Jose; I'm sorry, I can't remember people's names very well. If you recall, he had five different scenarios where he varied different sizes. I asked a lot of questions, as I usually do of him, and his minimum size that he was using was 5,000 square feet. I asked about 3,000 and so forth and he claimed that below 5,000 square feet, it's really not going to make a difference. Then sort of related to this, what we're really trying to do is create a different kind of shopping experience from downtown, which means discouraging small, non - formula retail; formula retail is going to tend to be larger anyway. In his scenario #3, which he's starting to say is tipping towards downtown staying more competitive, he has 75% allowance for non - formula retail under 5,000 square LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan EN 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 feet, and he's claiming —if we believe him — downtown is going Ito be more competitive in that particular scenario. I thought through this and I was thinking I don't know if we want to go to just non - formula retail or retail in general, but I was going to propose maximum of 30% below 5,000 square feet and keep it simple and stop there based on all the information he gave us that kind of said it really didn't matter, try to keep it simple. COUNCIL MEMBER SAYOC: If I could just give some historical perspective from the North 40 Committee. The reason why the table is not in here, the table that we keep referring to, is the North 40 Committee could not come to any agreement on floor plate size, because if you look at it holistically, it's not just the floor plate, it's the type of retail. I mean there were so many factors that were going into, and that's why we couldn't come to an agreement and ultimately why the request for the urban decay analysis, hoping that that would be able to provide some information that would more accurately describe what would be directly competing with downtown. Now, I keep going back to what's considered neighborhood serving, and we had this discussion as well, when we haven't defined what exactly is this retail going LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan M 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to be? Is it neighborhood serving, or is it going to be this destination shopping center? If it's neighborhood serving, you need small square footage for the local coffee shop, for the dry cleaner, for certain things that the residents in the northern area would like to walk to. My concern is if you start eliminating the small pads you eliminate those neighborhood serving businesses that the northern section of Los Gatos has clearly said they need, they want, and they should have and be able to walk to. I don't know if it's the approach of looking at percentages. I mean there is a whole bunch of ways to look at it, and I don't necessarily know what the right thing is. I was hoping the economist had the magic answer; he gave us five different scenarios. Perhaps we pull together economists that can actually look at that and make specific recommendations, I don't know, but tonight I don't think I have the expertise to answer that question. MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: Thank you, Madam Mayor. A lot of issues. First of all, starting with increasing the 50,000 to 80,000, I'm not prepared to do that right now, because I LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 01 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 1E 19 20 21 don't know the logic of it. So maybe 50,000 is as good as 80,000, maybe 80,000 is better, but I'm not prepared to make that jump of a number. Neither am I prepared to say that I would never do it, but right now I'm not prepared to do that. Secondly, with regard to the square footage of zero to 3,000, zero to 1,500, and zero to 3,000, I agree with Councilwoman Sayoc: The reason this isn't in the back, or is not here anymore, is because we didn't know what to do with it, but we will need some small square footage sites on the North 40 at a minimum to serve the people who are living there. Do I know whether this percentage that we have in this 2 -7 is the right percentage? No, but it was as good as the North 40 Advisory Committee could do at that time. MAYOR JENSEN: Councilman Rennie, help me out. I believe that your proposal was not to break it down as per the chart that we have up here now, but to propose a maximum 30% below 5,000 square feet, was that your proposal? 22 23 24 25 COUNCIL MEMBER RENNIE: That's correct. MAYOR JENSEN: Okay. Let me go back up to the 400,000 square foot figure, and again, asking everyone to LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan m 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 keep in mind that it's a plan, not an application, is there consensus that we're comfortable with that square footage given the EIR information we had? Forgetting for a second commercial ramifications, economic ramifications, but traffic, what you're serving, et cetera, are people comfortable with the 400,000 square foot designation? Councilman Rennie is saying yes. Maximum, sorry. vice Mayor Spector, you're okay. Okay, so we have a consensus that we're... Yes. COUNCIL MEMBER RENNIE: I have a question for Staff. Is there a real world comparison with the 400,000? Obviously we try to compare it to our downtown, which is 800,000. What is a local mall or shopping area that is 400,000 square feet? Is there something like that that we're aware of? Like Santana Row, what's the square footage of that? MONICA RENN: I roughly just did the calculation of just North Santa Cruz from Highway 9 to the spa basically to get that office space that's kind of past that. Mindful this isn't anything that's on Montebello, but that's at about 318,000 square feet for just that stretch lof North Santa Cruz. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan M 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Then I can look really quick in just a moment and tell you what Old Town is square footage -wise and that can kind of give you an idea. That's a pretty good mix of bigger stores and smaller stores. MAYOR JENSEN: Okay, that would be helpful. Well, if you could do that really quick we can figure out the consensus on the 400,000 square feet. Yes. COUNCIL MEMBER RENNIE: I'm not sure that what we have in Town is a good comparison, because I don't think that what we're trying to build is something... I know what Grosvenor is trying to build, and I agree with it. Again, it's trying to build a different kind of shopping experience with general merchandising, which probably I'm guessing would have three anchor stores and around 50,000 just for argument's sake. So you've already chewed up 150,000, you've already got 66,000 out there, so you're already over 200,000 before you've started adding other stores in there. If you're going to do a comparison I think you need to look at some different kind of strip mall, maybe something where the REI is or something like that, versus something in our town that we don't want to copy anyway. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan ME 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 MAYOR JENSEN: Okay, thank you. Let's just get the answer. JOEL PAULSON: For all the tenant spaces for Old Town, that includes the upper floors and then also some of the below ground at the rear by the amphitheater, is approximately 95,000 square feet. MAYOR JENSEN: Okay, thanks. Yes. VICE MAYOR SPECTOR: Is that inclusive of the University side? JOEL PAULSON: Yes. VICE MAYOR SPECTOR: So Gap and all that? JOEL PAULSON: Correct. VICE MAYOR SPECTOR: Ninety -five thousand, thank you. MAYOR JENSEN: All right, thank you for the information. So knowing that, is there a consensus of the Council on the maximum, again, I'm going to emphasize maximum, 400,000 square foot figure? I'm seeing people nod. Councilman Leonardis is undecided. COUNCIL MEMBER LEONARDIS: I was looking for another comparison. I mean how large is Santana Row? Do we know square footage -wise? Because our downtown is spread out, it's less dense, it's spread out over more acreage, LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan E:F: 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and so I'm trying to figure out in a smaller amount of acreage square footage. JOEL PAULSON: Ms. Renn will see if she can get specific information on that and then we'll get back to you. Just for clarification, all of the C -2 parcels, based on MetroScan data, the square footage for those is approximately 39 acres. COUNCIL MEMBER RENNIE: Yes, I'm aware of that portion. Thank you. MAYOR JENSEN: Okay, so right now we have a 4 -1 consensus with a one iffy on the 400,000 square feet. Let's discuss limitations on size within that 400,000 square feet, and we have Councilman Rennie's suggestion on the table. I have a question for Staff before we start. Hypothetically, if there is a market hall that's developed... You guys want to figure out what you want to figure out, or tell me something? LAUREL PREVETTI: We were just trying to do a quick web search and the Town Manager found the square footage for Santana Row; it's about 647,000 square feet of the retail commercial space. MAYOR JENSEN: Okay, Councilman Leonardis. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan rW 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 COUNCIL MEMBER LEONARDIS: Does that also include any hotels? Is there a hotel there? LAUREL PREVETTI: There is a hotel. Yes, that would include the hotel. COUNCIL MEMBER LEONARDIS: Okay, thank you. MAYOR JENSEN: And we're going to get to the discussion of the (inaudible) hotel, which is designated at 250,000 square feet separately, but right now we're just doing commercial. So Councilman Leonardis, does that affect your opinion with respect to the consensus on the 400,000? COUNCIL MEMBER LEONARDIS: I'm going to say it seems kind of large for me, but I'm one of four. MAYOR JENSEN: Okay, so we have a 4 -1 consensus with a kind of... And remember, everyone, as we do these consensuses, this is obviously going to come back to us. So to the extent that you're not comfortable with it, when there gets to be a formal motion on what the Specific Plan looks like, obviously you don't have to stick with the consensus; we're going to get new information. My question with respect to the sizing or limitations on a particular unit is hypothetically if there is a market hall... When I think of a market hall I'm LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan BE 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 thinking not necessarily of the Ferry Building, but there's one in Napa called Oxbow Market that's a large structure, and within the large structure are many individual units, and they could be cheese, they could be wine, they could be food, they could be sandwiches, they could be chocolate, they could be whatever they are, but they're individual users with a large space. I don't know if this was discussed at the Advisory Committee or if Staff has some notion about this, but how might those spaces be counted toward a total square footage? Would it be the square footage of the container, or would it be the square footage of everything inside the container? JOEL PAULSON: I would look to the North 40 Advisory Committee members that are on the Council, but I believe it was contemplated that it be looking at the container. MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: I don't recall us discussing that specific issue at all. I definitely don't recall us making a decision on the container. I mean that would be my inclination, but I don't recall any discussion. MAYOR JENSEN: Councilwoman Sayoc. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 91 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COUNCIL MEMBER SAYOC: I'm going to have to agree with Council Member Spector. We didn't get to that level of specificity. MAYOR JENSEN: Okay. So I'm just going to throw out in our discussion of the limitations on the spaces how the Council and Specific Plan might be looking at that kind of space, because I could imagine there being a market hall that has all those spaces in it that I may not count against the percentage of each unit, or I may, depending on if that's the proper way to look at it. Or I may not count each of the spaces in there where I could buy a hunk of cheese as a restaurant, which is why we're all going through our policies and figuring out what specialty retail is. If I sit down with my hunk of cheese, does it become a restaurant? So there are all kinds of ramifications for that kind of concept that I wouldn't want to necessarily limit, encourage, whatever it might be. I'd want to write a plan that would allow for that type of use, but at the same time put what I think are reasonable limitations on other square footage uses in the plan. Anyone have comments on that? Councilman Rennie. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 92 1 2 3 4 5 6 7 a 9 10 11 12 13 14 is 16 17 19 19 20 21 22 23 24 25 COUNCIL MEMBER RENNIE: I meant to suggest, didn't get to it, that we should exclude the market hall from it, and I'm making the assumption that the market hall is going to be food items and things. If it turned into stalls of dress shops and shoe shops, then we would be competing with downtown and we'd end up with what we don't want. I don't understand completely market hall maybe, but I'm assuming that won't happen, that it will be food kinds of shops, in which case I'm okay having little ones for that, because I don't think that competes with downtown. MAYOR JENSEN: Other comments? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: Specifically with the market hall we did not get into a level of are we counting it pads of zero to 1,500, but definitely as I was going through it I was thinking of the square footage as a container, and there was a lot of discussion of having that container be flexible on the inside to change based on the seasonal items that were being produced in that area. So yes, the majority of items under consideration were food, but then you get into is it retail if it's a bottle of oil versus sitting down to eat with a bottle of LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 93 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 oil, and that's where we didn't make any of those distinctions. MAYOR JENSEN: Okay, so having thrown that out there, well, I can ask us to consider a couple of things. First let's consider Councilman Rennie's suggestion of the maximum 30% below 5,000 square feet. Where are people on that suggestion? Vice Mayor Spector. VICE MAYOR SPECTOR: With a question. So if we say less than 300 on... Give me the numbers again, please. MAYOR JENSEN: I believe Councilman Rennie suggested a maximum of 30% of commercial space at below 5,000 square feet. VICE MAYOR SPECTOR: So does that make it 120,000? MAYOR JENSEN: Don't ask me. Ask (inaudible). VICE MAYOR SPECTOR: A hundred and twenty thousand maximum of less than 5,000 square feet. I'm not ready to raise my hand on that one yet. MAYOR JENSEN: Councilman Leonardis. COUNCIL MEMBER LEONARDIS: The trouble I have with that is you could have 120 shops at 1,000 square feet potentially. I don't know if that's what they had in mind, LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 94 1 2 3 4 s 6 7 a 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 Ibut it could allow that based on Council Member Spector's Imath. MAYOR JENSEN: Okay. Councilman Rennie, are you holding up your hand? COUNCIL MEMBER RENNIE: I guess so. I mean if I'm reading the economist —I guess that's what we're calling him, the guy from San Jose State —he doesn't think it's likely that they were going to end up with a bunch of small shops like that. He actually even has a scenario that if you put no restrictions you'd end up with something that doesn't compete with downtown; it would be much larger type sites. Some of the reason for that is, believe it or not, the retail space up there is going to be more expensive than it is downtown. I think the common myth is downtown is more expensive than other places, and it's actually not. If you look in the report, downtown tends to be around $3 a square foot; there's some even less than that. They're expecting up there to be more $4 or $5 a square foot, so the ones that are going to want the small spaces are probably non- formula retail, which we're trying to scare away, but they're not going to be able to afford to be there. The formula retail, or these others, are going to want larger LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan W" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sites, so we're probably even wasting our time limiting it at my suggestion. I'm not too worried we're going to end up with 30,000 square foot spots. MAYOR JENSEN: Are you withdrawing your suggestion? COUNCIL MEMBER RENNIE: No, I'll keep it. MAYOR JENSEN: All right. I'm not prepared to go with your suggestion for the reasons that I've heard raised by other Council people. Let me throw something out, and I'm not eliminating your suggestion, Councilman Rennie, I'm just throwing this one out. But if Council Members turn to page 2 -26 of their Specific Plan, or recall it, 2.6.7 on page 2 -26 —there we go, it's up on the board —I'm wondering why that couldn't in large part mirror the language that we have for the residential uses where the residential use says there shall be a mix of residential? So here we say we allow for a mix. Couldn't we say something like there shall be a mix, blah, blah, blab, and then include a chart that is the same or similar to the 2 -7, like we do for the housing, as a hypothetical mix that people could refer to? Then if there is a market hall type thing proposed under the Specific Plan, I would imagine that would be who knows how big it LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan RR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 is 16 17 18 19 20 21 22 23 24 25 is, but if it's bigger than 50,000 square feet, allow that kind of container use to come in as a Conditional Use Permit. So that's what I'm suggesting as a possible approach, which I'd love to hear people's comment on. Vice Mayor Spector. VICE MAYOR SPECTOR: Thank you. Retaining 2.6.7, Retail Tenant Space, I agree with that. A chart such as 2- 7, I agree with that. I can't remember if you put specific numbers in there, but I would want the numbers of the small ones to be limited. I'm not prepared yet to have the market space to be a CUP. As we get into this I want to try and limit the CUPs, so I'm not prepared to go there yet; it's a possibility. MAYOR JENSEN: Other comments? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: I like the flexibility that the language allows for, but I'm trying to think of implementation. Should an application come forward, who decides what the appropriate mix of retail is? Who decides what's smaller neighborhood serving versus the larger space? I think that's what the North 40 Advisory Committee was grappling with, because if you don't limit, whether LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it's by pad size or percentages, then 20 years from now we just really have no control over what goes there. We'll get to that eventually, but is there a way to combine pad sizes with other mechanisms so that there's a constant scrutiny is the theme, is the retail mix, is the whatever is being proposed, envisioned, does it meet the vision of what the Specific Plan is? MAYOR JENSEN: Before we move on I'm going to see if Staff has any ideas, which they probably vetted with the Advisory Committee to achieve the kind of scrutiny that Councilwoman Sayoc is talking about or to allow for a more specific kind of oversight, if you will, of who decides what the mix is that's right. I think you're going to say well, put it in the plan, but is there something else that you could suggest? JOEL PAULSON: Well, to go back to one of the question of who would make that decision, it would be the initial decision of the Planning Commission, I think, as it's written currently for the A &S for commercial projects. Now, the Council could change that to have to Council be the decision maker, but down the line, short of your typical mechanism, which would be CUPs —and the Council will discuss further — otherwise, other commercial uses and LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan W 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 commercial centers in Town. We have requirements for CUPs Ifor certain uses and other uses can just switch out and levolve as the economy changes and those things change. So we can look at other mechanisms to control that. Based on our current Town Code of how we regulate the rest of the Town currently, probably the easiest link would be it's the discussion of should the North 40 have more CUPs or less than the downtown or some of the other areas of town? So unless Ms. Prevetti has anything else to offer. LAUREL PREVETTI: I just want to say that as you look at the larger container of space, so say something does come in at 30,000 square feet, for example, it's not unusual for tenants to want to reconfigure that space over time, so if it is the will of the Council to make sure that it doesn't get carved up into teeny, tiny tenant spaces, we would need some kind of policy. That way when and if a tenant improvement program comes in through our Building Division where there is no additional discretionary policy, we can at least do some plan conformance and make sure that that tenant space still meets the Specific Plan. I'm just trying to think downstream 20 years from now. We might have approved a CUP with all intentions that LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan W] 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it's basically just two tenants, but over time maybe that gets carved up. JOEL PAULSON: And I think that goes back to the Table 2 -7 with the percentages. If something like that is included in the plan, then it would have to go through potentially a Specific Plan amendment if, say, they started wanting to carve up those larger spaces, because they would no longer meet those percentages that are reflected in the Specific Plan. MAYOR JENSEN: Okay, other comments or questions? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: I just wanted to throw out there, one of the specific suggestions we received from the North 40 Advisory Committee as well as through public testimony is that we look at an economic task force of some sort, whether it's a standing committee that looks at our commercial areas on a permanent basis, that could be a mechanism that Staff can consider that could look into these issues. Because one thing that I've heard consistently when looking at this North 40, as well as other areas, is that retail will continually change based on the economics of the time, and so we get to this dilemma of how do we LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 100 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 write a plan that can actually be flexible to reflect the economics and the retail of that particular timeframe? MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: Thank you, Madam Mayor. I've heard the concept of having an external group that gives input, and so far it hasn't been an idea that has appealed to me. I really would like the Specific Plan to be a final document. I understand that there are challenges with that, but it is a preferable challenge for me to having an external group. MAYOR JENSEN: Okay, let's see if we can go back. Right now we have a consensus on a maximum of 400,000 square feet. Let's do an up or down on Councilman Rennie's suggestion of a 30% limitation on below 5,000 square feet. Who is in favor of that? Councilman Rennie. So I'm thinking that we're going to eliminate that. The other suggestion was to look at 2.6.7 and where, if you look at the chart, on the first sentence where it says, "The Specific Plan allows for a mix of retail uses," and instead say, "The Specific Plan shall create a mix of retail uses," and then include some kind of hypothetical example such that was included for residential LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 101 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 types in the Glossary for the residential. Is there anyone who is interested in pursuing that idea? Councilman Rennie. COUNCIL MEMBER RENNIE: I will support that idea. I'm not sure I like the "shall." It seems like we're going in the wrong direction, we're forcing maybe things smaller just so that we meet that. I know we said we want some smaller, but I'm struggling with it a little bit. What are we really trying to achieve with "shall" and does it really have any meaning there? MAYOR JENSEN: I guess as the suggestor, what I was trying to do was mirror the language that we have for the residential use so that we can have consistency across the Specific Plan where for residential use we said shall have a mix of different kinds of product types, and then referred to the Glossary chart. So what I'm suggesting simply is a mirror here with a "shall" indicating that we want a mix, and then referring, as we did with the residential, to a chart. The complete notion was to have some consistency in the references. COUNCIL MEMBER RENNIE: I'm not quite sure that we really want a mix. I think what we want is something that doesn't compete with downtown, which may be different than trying to get a mix. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 102 1 2 3 4 s 6 7 s 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 MAYOR JENSEN: Okay. Other comments on that suggestion? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: The chart that it would refer to, do we have a chart in mind? MAYOR JENSEN: Nope. COUNCIL MEMBER SAYOC: Okay. MAYOR JENSEN: No, I was using the 2 -7, and I'm just throwing these things out for discussion. So if it's got support, fine, we can discuss it further. If it doesn't have support, we'll move on to see if there's another suggestion. So I think it's me and Councilman Leonardis. Yes, Councilwoman Sayoc. COUNCIL MEMBER SAYOC: I guess the devil is in the details. I would support the idea, but it gets into what does the chart look like? MAYOR JENSEN: Okay, so let's see if there are other suggestions on how to tackle this. Does anyone have another suggestion on how to tackle it? We could of course just leave it the way it is; that's always an option. In the outline that was distributed for discussion it was, "Consider the commercial square footage. Should there be a specific mix of commercial types and uses ?" We've discussed that. "Should there be any LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 103 I 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 limitations on units of any particular size ?" I think we've done those discussions. So the question is do we think that we should change what we have, or should we simply leave it the way it is? And if we want to change it, what are the suggestions for changing it? Vice Mayor. VICE MAYOR SPECTOR: Thank you. Okay, I think that 2.6.7 is too general. I believe we do need specificity. I believe a table such as 2 -7 would be preferable to not having a table, and other than liking a small number of store sizes at zero to 3,000, I have no further input. MAYOR JENSEN: Councilman Leonardis. COUNCIL MEMBER LEONARDIS: Again, I will support the idea of the table and the zero to 3,000 categories, the zero to 1,500, and whatever the two bottom tiers were. I would recommend cutting those in half, having them 2.5% and 2.5% of the total. MAYOR JENSEN: Okay. Let me try this. Is there a consensus on whether the language in 2.6.7 is too general, as the Vice Mayor indicated? Do people think that it's too general, or are they okay with it? I think it's too general. We have two that think it's too general. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 104 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Okay, I'm going to go at it this way, because I'm getting blank looks. Let's try this. I'm going to have you raise your hand. Do people believe that there should be some form of definition, limitation, whatever, beyond what's written here for the type and size of commercial use within the 400,000 square feet? Raise your hand if you think that that's the case. All right. Raise your hand if you think that there should be some kind of chart, whatever form that might take, that can be used as a reference for this language that we can include in our Specific Plan? Okay. Now, how many people think that there should be anything added or changed about b on 2.6.7, the maximum individual commercial retail tenant size is 50,000 square feet? People think that that's fine, should be higher, lower, what do they think? Councilman Leonardis. COUNCIL MEMBER LEONARDIS: I think we should consider it to be higher. I'm thinking of all possibilities here. There could be a car dealership or somebody wants to come in, I don't know, so I was just thinking in reference to what Councilman Rennie has said previously about Safeway being 55,000 square feet. I don't know if there'll be a Safeway there, but if it were just over 50,000, if it were LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 60,000, if it were something, it would be nice to have the options. I believe you can always chop it down smaller, but you can't necessarily chop it up bigger, so that's why I said 80,000. I also thought about perhaps a building with a one -acre footprint with a second story that would be up to 80,000. MAYOR JENSEN: Councilman Rennie. COUNCIL MEMBER RENNIE: I think what we want to avoid is large box, and I'm not sure where that starts. Maybe Counsel can help us. What's a typical Walmart, for example, or a Costco? MAYOR JENSEN: While they're looking, the Vice Mayor has suggested that she is not comfortable with a CUP designation. How do other people feel about keeping b as it is, but saying, "The maximum individual commercial retail tenant size shall be 50,000 square feet absent a CUP approving a greater square footage "? So putting a CUP designation on, how do people feel about that? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: I don't think CUPs are the appropriate way to regulate pad sizes, but I'm wondering — I'm looking to Staff —are there alternative ways to do it? Should an application come forward that's 55,000 square LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 51 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 feet, it would have to come for a Specific Plan amendment. How difficult is that, I guess is the first question? JOEL PAULSON: Well, I would look to Ms. Prevetti, but you end up going through a similar process to this one, maybe with very specific topics, so probably not taking as long. But there are specific legal requirements that you have to meet to go through that amendment, whereas if you provide flexibility up front, you avoid going through that Specific Plan amendment. LAUREL PREVETTI: A Specific Plan amendment is very similar to a General Plan amendment, so you would need a recommendation from your Planning Commission, notice of public hearings, et cetera. MAYOR JENSEN: Okay, let me try this. We had a consensus on modifying the language to include different sizes and types. We had a consensus of spaces. We had a consensus on including some type of chart. Could we get a consensus on the chart, including proposals for units over 50,000 square feet, and do it that way? Because right now we've maxed our chart out, or at least our sample chart, is there consensus that we should think about? Will I get an answer? Oh, the size of a Walmart. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 107 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MONICA RENN: These types of places can range; they're typically in the 150,000 square foot range. Places such as Target and Walmart have moved to creating a smaller floor plate for areas such as this. Sometimes they do do a two -story type of thing. There's a Whole Foods in San Francisco that's about 40,000 square feet on each floor, so you get closer to the hundred there. There's also a rumor that a Target can do somewhere in the 50,000 to 60,000 with a very small, small floor plate. MAYOR JENSEN: Okay, so just so we can try to move forward on this, summarizing the consensus items again: the more specific language, a mix to size and use, a possible example hypothetical chart. My question now is should that chart include contemplated uses in square foot plate size of over 50,000 square feet? Councilman Leonardis. COUNCIL MEMBER LEONARDIS: I think it's a good idea to add that to the chart in the absence of committing to a number of 80,00 or less. MAYOR JENSEN: My problem to committing to just picking another number is that you could always pick a number, and so if we're going to go through an exercise of talking about how big things should be, or how small, it LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 108 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 makes more sense to me to say you can have one of them, you can have two of them, you can have whatever. If we're not going to go the CUP route, then just picking a number, because somebody will always come in with something higher. So I'm looking to see, I think I got a consensus on a chart. Now I'm looking to see if I have a consensus for maybe we should think about it, as Councilman Leonardis had said he wants the smaller square footages reduced on the percentage in the 2 -7 chart. Do we have a consensus on that? Yes? Yes. Okay, so we got that. Yes? VICE MAYOR SPECTOR: Before I raised my hand, or I already raised my hand, but are we doing 2.5% of total on the zero to 1.5, and 1.5 to 3,000, is that what I just raised my hand for? MAYOR JENSEN: That's what I understood Councilman Leonardis' suggestion to be. VICE MAYOR SPECTOR: That's fine. MAYOR JENSEN: Okay, so let's see who's raising their hand on that one. Okay, we got four. COUNCIL MEMBER SAYOC: Well, question. So that's 2.5 % of the zero to 1,500 and the 1,500 one to 3,000, right? Those two? LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAYOR JENSEN: I think that's the suggestion, yes. COUNCIL MEMBER LEONARDIS: My intention was to make the 5% 2.5 %, the other 5% 2.5 %. COUNCIL MEMBER SAYOC: Okay, so that comes to about 10,000 total per each. COUNCIL MEMBER LEONARDIS: The logic was say you have 1,000 square feet at 5% and that was 20 units at 1,000 square feet, it would bring it down to like ten units, if my math is correct on that, based on 400,000. COUNCIL MEMBER SAYOC: Okay. MAYOR JENSEN: So I think we have a consensus on that, which I'm going to say is 2.5% on zero to 1,500, and 2.5% on 1,501 to 3,000. Then leaving aside other figures for now, how many people believe that there should be an added "square," for lack of a better term, for any units above 50,000 square feet? COUNCIL MEMBER LEONARDIS: Can I comment on that? MAYOR JENSEN: Yes. COUNCIL MEMBER LEONARDIS: I have to confess, I did a little research based on what Ms. Renn's comments were about the size of a Target Express, or the one at Westgate, so to speak, and that is kind of what is driving LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 110 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 my idea, not that I'm suggesting that Target goes there, but there are instances such as the Whole Foods where they do a second story and it's a 30,000 to 40,000 square foot on top of each other. So with respect to what Council Member Rennie said earlier, a Costco or a Walmart or something, that's 150,000 square feet. I mean when we think in terms of big box, that's way big box; that's not what we're looking for. But when I think of 50,000, that was about the size of the Borders in Old Town before they divvied it all up or something. I'm pretty sure that's what it was, like 55,000 square feet. I don't want to limit us to be so small that it's not attractive to a potential tenant, and I don't believe in the CUP process of saying okay, well let's add 5,000 with the CUP. I'm trying to add flexibility. It doesn't have to be 80,000, but it could be more than 50,000. MAYOR JENSEN: So I hear you arguing that yes, there should be an additional section on whatever chart the Council decides to attach to this that should include units, however many percentage or whatever it is that's over 50,000, correct? COUNCIL MEMBER LEONARDIS: Yes. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 111 I 2 3 4 5 M 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: It's not that I disagree with Council Member Leonardis that we could have something above 50,000; I'm just not seeing the magic in these numbers. I mean is the magic that it's greater than 50,000 and 50,000 is written on this page, or is there logic to it? My mind is open to it, but I'm just not seeing the rationale. MAYOR JENSEN: Councilman Rennie, did you have your hand up? COUNCIL MEMBER RENNIE: On a different subject, but I'll address the subject. It doesn't sound like anybody can remember where the 50,000 came from, and Councilman Leonardis has come up with some potentials that are larger than that, and I know Grosvenor is thinking of some that are larger than that. It just feels like 50,000 is the wrong number. I think we'd be okay at 80,000. I think I'm happier changing that number to 80,000; I think that would fit most of what we want. Let me go to my other comment. I guess I raised my hand, but I think I'm a little uncomfortable reducing the percentages on the small size. You know, this is a pretty big area, and remember, it's any kind of commercial LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that you might also put in the Transition District or mixed in with the residential for coffee shops and so forth. Councilwoman Sayoc reminded us we're trying to do some neighborhood serving. I don't know what the size of a coffee shop is, but I'm worried that we've limited it down too much. Maybe we can compromise and keep the 15,000 to 3,000 at 5% and lower the other to 2.5. MAYOR JENSEN: So here's what I'm going to try to do. I'm going to see if the Council agrees that we ask Staff —just like we asked Staff for information regarding the residential units —to come back to us with suggested possible edits for 2.6.7, which include language regarding mix and size limitations, that we get a proposed chart —and when I think about the chart I'm not thinking of it as a mandatory chart, I'm thinking of it as the same kind of chart that was included for the Glossary as a hypothetical for the residential —and just have that come back to us in an iteration from Staff that at least we could take a look at so that we have something specific that we can discuss. How do people feel about that suggestion? If you're okay with it, raise your hand. Okay, so that's what we're going to do on that. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 113 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Those are kind of the questions I had regarding the breakdown of the commercial, which included square footage, Conditional Use Permits; we've discussed that. I think the Council's consensus is that they do not want to include Conditional Use Permits. We did not discuss, because it's probably better left for another discussion that the Council is going to have, one of the notes I put in the outline, which was another way to address issues with respect to the downtown would be to discuss eliminating what I'm going to call competition issues for regulations that are in the downtown. So formula retail, outdoor seating, whatever it might be, if we're talking about we want there to be a level playing field, how do we create that level playing field and if the Council so desires, is there a way to put that in the Specific Plan? So I'm just going to ask people if they want to just comment generally on it, that notion, but I'm not sure when I look to Staff, if the Specific Plan is where we ought to be discussing that, or we should be discussing that independently. Vice Mayor Spector. VICE MAYOR SPECTOR: Not in the Specific Plan. MAYOR JENSEN: Okay, and I'm getting nods on that, so I'm just going to put that on the table to not put LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 114 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in the Specific Plan, but to discuss at a future meeting where it's appropriate. COUNCIL MEMBER SAYOC: Madam Mayor, if I may? MAYOR JENSEN: Yes. COUNCIL MEMBER SAYOC: I agree it should not be in the Specific Plan, but I do think we have to have that conversation in parallel, because there are certain policies we could do downtown that would help and they're part of the discussion and the overall context. So would we have those conversations on a parallel track? MAYOR JENSEN: I don't know that we'd necessarily be having them on a parallel track, but your Mayor has put on the agenda a discussion of those items. I can't remember which date I put it on right now, I think May, but it can also come up on March 17th when we discuss the Alcohol and Entertainment Policy. Okay, so not in the Specific Plan. It's now ten minutes to eleven. We're gotten through point 1 in the outline, point 2 and point 3. We still have point 4, point 5 and point 6. Oh, we have to do office. Sorry. So lets discuss office. I'm going to tell the people in the audience that where we're probably not going to get tonight is a discussion of the density /intensity of LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 what we put in the plan, which is going to include open space, orchard set - asides, trees, structures, public open space, private open space, how open space is determined across the plan, height, commercial residential; that's a section. The next thing is going to be transportation and sustainability, which is going to include traffic mitigation, alternate transportation, bikes, parking strategies, et cetera. We might be able to do... Well, we'll see. Let's discuss office and hotel first, because if we look back, Mr. Paulson, at that chart, there we go, at the very top, it's 250,000 square feet for office and hotel. Comments? Questions? Vice Mayor Spector. VICE MAYOR SPECTOR: This discussion I do remember from the Advisory Committee; I think so does Ms. Sayoc. This was not a big debate in the sense that the Committee felt that giving the property the option of having a hotel was a good thing, that our financial analysis and economic analysis that we received indicated that a hotel would be used, or could be used, especially with the plethora of people using or going to the hospitals LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 116 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 around there and having friends or relatives stay over night, and also business uses. And the same thing with regard to the office. There was not a big debate there. I know that there are some individuals who have concerns about medical, and I can appreciate that, but our Committee and the economic information that we received indicated that offices such as start -up offices, that kind of innovation office, whatever you want to call it, that those were needs in our community that were not being met. So that one I do remember. MAYOR JENSEN: Thank you. Other discussion? Councilman Rennie. COUNCIL MEMBER RENNIE: I think we might want to consider breaking out office and hotel. I would be scared of 250,000 square feet of all office in there. I definitely like the idea of a hotel and a conference center. I think there should be some office. I think I'm buying the argument that we should maybe limit not allowing medical office, but the way it reads you could end up with no hotel and 250,000 square feet of office, which is quite a bit. MAYOR JENSEN: Vice Mayor Spector. VICE MAYOR SPECTOR: I remember that discussion also. The reason that we have the 250,000 is because we LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 117 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 were told again from experts and economic analysis a hotel — and this is a relatively small one — shouldn't be smaller than that in order to be viable. Now, that might beg the question of whether or not there should be office at all or whether there should be an "or" there. But that was the rationale for that number, as far as I can recall. MAYOR JENSEN: Councilwoman Sayoc. COUNCIL MEMBER SAYOC: I'm definitely in favor of keeping hotel, and the discussion definitely centered on 250,000 with the idea that conference centers was an unmet need in town and that a hotel is a logical to add the square footage so that we could provide some conference facilities for our town. The office, given what we now know about our job /housing balance as well as the impacts to traffic, I am perfectly comfortable taking office out. MAYOR JENSEN: So I will comment on this. I am in favor of the hotel as well. I would argue for office. I would argue against medical office; I think it's no longer an unmet need, particularly in that area of town. I think it's a huge traffic generator. Because we've discussed the types and designations of residential, I would also put a limitation on the types and designation for office. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 118 1 2 3 4 s 6 7 a 9 10 11 12 13 14 1s 16 17 is 19 20 21 22 23 24 25 I don't know what this would be, the square footage, for example, of an incubator or a start -up space. That may be something like, not called that, but like an office for ten people, for example, and I could see that office as being symbiotic with a small residential area where a 25 year old would work all day in the office, come back to his 1,000 square foot unit, go to coffee, go to get food, do whatever, all in the same space, and I actually see that as a potential traffic mitigation. That may be an idea world, but you have to build for that kind of thing. So when I say I don't have a problem with office, I would limit the type of office I was thinking of, and that may be • limitation based on a square foot of unit, not calling it • particular thing, but by making it smaller. I also see that as working with the hotel, because if I am an office space I could bring people to the hotel, talk to them about my product, whatever it might be. That would create some kind of working space within that plan, rather than bringing cars for whatever it might be for the medical. So I am for office and I am for hotel, but I'm for some kind of designation of office space. Vice Mayor Spector. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 119 I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE MAYOR SPECTOR: Thank you. I don't disagree. What we have to keep in mind is that 250,000 is a plan. I mean this is the Specific Plan. We're not building a hotel and we're not building offices, and so if we get rid of medical and we say it's office and hotel, that leaves the individual or company that ultimately develops the property the option of one and /or the other. So I agree with the Mayor that there are certain kinds of offices, and we can call them whatever is appropriate and we can specifically exclude medical. In my ideal world two years ago when we were first working on this, there were incubator offices by the hotel and they worked together really well, but that may not be the real world. MAYOR JENSEN: Other comments on this? Councilman Rennie, were you putting your hand up? COUNCIL MEMBER RENNIE: Yeah, I just want to go back to my comment, because it doesn't sound like it was understood very well. My concern is getting all office. I sort of like your idea of maybe creating a chart, but I don't want to get too much detail. Another alternate may just be it's 250,000 office /hotel total with office not to exceed 100,000, or something like that I would feel more comfortable with. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 120 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAYOR JENSEN: Okay, having that in mind, what Councilman Rennie just said, is there consensus on keeping an office and a hotel, but limiting the office in some fashion? Raise your hand if you think that's fine. Okay, so Staff, we are going to look to you to come back to us with a chart or language that will be indicative of the direction that the Council wants on that, which is 250,000 is fine, hotel is fine, and office is fine with limitations as we've discussed. I'm going to ask Council if they want to tackle the question of one of the things that's been raised by the public and has come up a lot with respect to the Specific Plan, whether or not there should be any, again, I'm going to say set - aside, within the plan for a school site? Do people want to take that on tonight at 11:00 o'clock, or do people want to defer that to a next discussion? Councilwoman Sayoc. COUNCIL MEMBER SAYOC: There's an education summit next week that all Council members and Planning Commissioners and the public have been invited to, and I actually think next week's discussion might provide valuable information for that specific item. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 121 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAYOR JENSEN: That's is an excellent point, and that is on February 12th, I believe, correct? COUNCIL MEMBER SAYOC: Correct. MAYOR JENSEN: 8:00 to 2:00 at Los Gatos Lodge, for those of you who are interested. Okay, looking to the Council again, I think we've had a productive discussion. I know it's been slow, so thank you for your patience, but we want to be thorough and fair and try to make the best decision that we can. Do we want to try to take on density /intensity, open space, heights, et cetera, tonight, or do we want to save that for another day when we get back information from the Staff on the other points? Councilman Leonardis. COUNCIL MEMBER LEONARDIS: Thank you, Mayor Jensen. I say we save that for another day. MAYOR JENSEN: Others? COUNCIL MEMBER RENNIE: It's not a very straightforward discussion, and so I think maybe we should save it also. MAYOR JENSEN: Okay. I'm not getting any protests about that. I hesitate whether to ask Ms. Prevetti or Mr. (Larson to tell us the consensus motions that you heard; I LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 122 1 2 3 4 5 6 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 don't particularly want to do that. I think we've been pretty clear in the record. I think our next decision is when we will come back to this, and ladies and gentlemen, at our next meeting we are going to be discussing Hillbrook, so I'm not so sure we want to put this on. Perhaps, Mr. Larson, you can remind us, March 3rd we have the Joint School Study Session, and remind me what else we have on that date? GREG LARSON: We have tentatively scheduled, pending Mayor's concurrence, the mid -year budget review and the fees and charges, and those are substantive items. I'm looking to Ms. Prevetti for any land use matters coming forward that night. LAUREL PREVETTI: Minor ones. Annexations, et cetera. GREG LARSON: Okay. MAYOR JENSEN: Okay, I'm going to look to my fellow Council people and try to get some indication. Does March 3rd, given those items, make sense for continuing the discussion? Okay, so I'm going to then make a motion to continue this matter to March 3`d. Is there a second? All right. All in favor? Opposed? Passes unanimously. So we gill next consider the North 40 and continue our discussion LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 123 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 on March 3rd. Thank you all very much for attending. Thank you all for your input. We appreciate it very much, and good evening. LOS GATOS TOWN COUNCIL 2/3/2015 Item #6, North 40 Specific Plan 124