Addendum Part 3Town Council Meeting 05105/15
Item #1a
MINUTES OF THE TOWN COUNCIL /PARKING AUTHORITY MEETING
APRIL 14, 2015
The Town Council of the Town of Los Gatos conducted a Special Meeting on Tuesday,
April 14, 2015, at 7:00 p.m.
MEETING CALLED TO ORDER AT 7:00 P.M.
ROLL CALL
Present: Mayor Marcia Jensen, Vice Mayor Barbara Spector, Council Member Steve
Leonardis, Council Member Rob Rennie, Council Member Marico Sayoc.
Absent: None
PLEDGE OF ALLEGIANCE
The Mayor led the Pledge of Allegiance. The audience was invited to participate.
VERBAL COMMUNICATIONS
John Shepardson
- Commented on the cost of police services.
Diane Abbati, Superintendent, Los Gatos Union School District
- Thanked Matt Morley, Parks and Public Works Director and staff for the Green Bike
Lanes and invited all to join the students and the Council for the Ribbon Cuffing on
April 15; she announced the Safe Routes to School Summit at Los Gatos Lodge on
May 7 and mentioned that Mayor Jensen will be on the panel.
PUBLIC HEARINGS
1. 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
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 & Mivoko
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
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
(Continued from 313115)
ATTACIUMENT 8 0
Public Hearings Item 1 — continued
Laurel Prevetti, Assistant Town Manager /Community Development Director, presented
the staff report.
Council discussed the matter.
MOTION: Motion by Council Member Rob Rennie to allow 364 residential
units.
VOTE: Motion failed for lack of a second.
MOTION: Motion by Vice Mayor Barbara Spector to allow a maximum of
270 housing units. Seconded by Council Member Steve
Leonardis.
VOTE: Motion passed 3/2. Council Members Rob Rennie and Marico
Sayoc voting no.
MOTION: Motion by Vice Mayor Barbara Spector that the Specific Plan
state that the Town's General Plan (100 %) density bonus provision
shall not apply within the Specific Plan area. Seconded by Mayor
Marcia Jensen.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Steve Leonardis to use
Option1 /Project B from Attachment 67 to allow 376,000 square feet
of shopping center and a 150 -room hotel.
VOTE: Motion failed for lack of a second.
MOTION: Motion by Council Member Steve Leonardis to allow 300,000
square feet of shopping center and 60,000 square feet of general
office, and exclude medical office.
VOTE:
Recess at 8:54 p.m.
Motion withdrawn.
Reconvened at 9:09 p.m.
2
Town Council /Parking Authority April 14, 2015
Public Hearings Item 1 — continued
MOTION: Motion by Council Member Marico Sayoc to reduce the
maximum capacity of non - residential development by 25% from
580,000 square feet to 435,000 square feet, remove medical office,
leaving flexibility between office, hotel, and commercial as dictated
in Table 2 -2 of the Draft Specific Plan. Seconded by Mayor
Marcia Jensen.
VOTE: Motion passed unanimously.
Staff was asked to bring back to Council at the June 2, 2015, Town Council meeting a
breakdown of uses within the approved limit that will not require a statement of
overriding consideration.
MOTION: Motion by Mayor Marcia Jensen to combine Sections 2.6.6 and
2.7.4 on page 2 -25 into a single section that is a height requirement
for the Specific Plan; that the maximum building height is 35 feet;
that there could be an exception up to 45 feet for affordable
housing and /or hotel; that any references to exceptions for
achieving excellence in architecture design be eliminated; that
there would be no concept of a framed view or view corridor; that
the view would be of the hills not the ridge; and that the maximum
height would be inclusive of all features. Seconded by Vice Mayor
Barbara Spector.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Marico Sayoc to retain the minimum
open space requirement 30% as currently contained in the draft
Specific Plan with further delineation by staff between public and
private. Seconded by Mayor Marcia Jensen.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Marico Sayoc to support the Historic
Preservation Committee recommendation by retaining the overall
agrarian feel of the Specific Plan area through the development
process; the red barn should be retained as much as is
salvageable; the HPC should work with applicants on their
individual applications to determine how that agrarian feel is
integrated into the development; working with an arborist, the HPC
and the applicant would determine if original trees could be
retained or if they should be replanted. Seconded by Council
Member Rob Rennie.
Town Council/Parking Authority April 14, 2015
Public Hearings Item 1 — continued
VOTE: Motion passed 3/2. Vice Mayor Barbara Spector and Council
Member Steve Leonardis voting no.
MOTION: Motion by Council Member Rob Rennie to adopt the Planning
Commission recommendation in Attachment 18, page 4, second
bullet pertaining to Section 4.9. Seconded by Council Member
Marico Sayoc.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Rob Rennie to add the wording
"separated bike lanes or multi -use paths where possible" on page
4 -1, under Policy C5. Seconded by Vice Mayor Barbara Spector.
VOTE: Motion passed 4/1. Council Member Steve Leonardis voting
no.
MOTION: Motion by Council Member Rob Rennie to add some sort of a
multi -modal path paralleling A Street, potentially through the
buildings, as some sort of multi -modal path rather than using A
Street or sharrows. Seconded by Council Member Marico Sayoc.
VOTE: Motion failed 2/3. Mayor Marcia Jensen, Vice Mayor Barbara
Spector and Council Member Steve Leonardis voting no.
MOTION: Motion by Mayor Marcia Jensen to direct staff to bring back to
Council scenarios on how to incorporate north -south multi -modal
paths parallel to A Street in the Specific Plan. Seconded by
Council Member Rob Rennie.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Rob Rennie to require the first
applicant proposing over 100 units to put in A Street, which must
continue from Lark Avenue to Noddin, upgrade Noddin to a full
street, and add Neighborhood Street.
VOTE: Motion failed for lack of a second.
Town Council /Parking Authority April 14, 2015
Public Hearings Item 1 — continued
MOTION: Motion by Vice Mayor Barbara Spector to direct staff to bring
back to Council a report delineating what the items of infrastructure
are, when in the process they would be completed, and explain
what nexus for fees, infrastructure, etc. means, and what the
limitations are. Seconded by Council Member Steve Leonardis.
VOTE: Motion passed unanimously.
MOTION: Motion by Mayor Marcia Jensen to change Section 6.6.3 to make
it reflect current Town Code and policies, including the elimination
of the Community Benefit Policy. Seconded by Council Member
Steve Leonardis.
VOTE: Motion passed unanimously.
MOTION: Motion by Mayor Marcia Jensen to change language in Section
4.10, page 4 -9, to state Transportation Demand Management
programs are required instead of advisable for each application as
it comes in. Seconded by Council Member Marico Sayoc.
VOTE: Motion passed unanimously.
MOTION: Motion by Mayor Marcia Jensen to include in Section 4.10, page
4 -9, shuttle options as part of a Transportation Demand
Management Plan. Seconded by Vice Mayor Barbara Spector.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Rob Rennie to include as a new
policy the first bullet under Chapter 5 in Attachment 18, page 4.
Seconded by Council Member Marico Sayoc.
VOTE: Motion passed unanimously.
MOTION: Motion by Council Member Rob Rennie to include as a new
policy the second bullet under Chapter 5 in Attachment 18, page 4.
Seconded by Council Member Marico Sayoc.
VOTE: Motion passed 3/2. Mayor Marcia Jensen and Vice Mayor
Barbara Spector voting no.
5
Town Council /Parking Authority April 14, 2015
Public Hearings Item 1 — continued
MOTION: Motion by Council Member Marico Sayoc that on page 3 -18
under Section 3.2.10(a) delete "where feasible' to say "use native
and /or drought tolerant plants" and make mandatory rather than
promote, with the exception of the orchard. Seconded by Mayor
Marcia Jensen.
VOTE: Motion withdrawn.
MOTION: Motion by Council Member Marico Sayoc that on page 3 -18
under Section 3.2.10(a) delete "where feasible" to say "use native
and /or drought tolerant plants" and change "promote' to "mandate,
except those orchard trees that are retained as part of the Historic
Preservation District. Seconded by Mayor Marcia Jensen.
VOTE: Motion failed 2/3. Vice Mayor Barbara Spector and Council
Members Steve Leonardis and Rob Rennie voting no.
MOTION: Motion by Vice Mayor Barbara Spector to direct staff to come
back to Council with alternatives, if possible, that are
environmentally sound given the drought and pavement conditions
of the site for Section 3.2.10(a). Seconded by Council Member
Rob Rennie.
VOTE: Motion passed unanimously.
MOTION: Motion by Vice Mayor Barbara Spector to delete from the
Discretionary Approval Summary Table (Appendix E) the height
exceptions, lines 5, 6 and 7. Seconded by Mayor Marcia Jensen.
VOTE: Motion passed unanimously
MOTION: Motion by Vice Mayor Barbara Spector to strike line 13 and
acknowledge that any Specific Plan amendment would follow the
procedure identified under line 14 from the Discretionary Approval
Summary Table. Seconded by Mayor Marcia Jensen.
VOTE: Motion passed unanimously.
Town Council /Parking Authority April 14, 2015
Public Hearings Item 1 — continued
MOTION: Motion by Council Member Rob Rennie to add as a policy the
recommendation from Planning Commission on Attachment 18,
page 4, the first bullet and change "and" to "or." Seconded by
Council Member Marico Sayoc.
VOTE: Motion passed unanimously.
MOTION: Motion by Mayor Marcia Jensen to continue the matter to the
June 2, 2015 Council meeting. Seconded by Council Member
Steve Leonardis.
VOTE: Motion passed unanimously.
OTHER BUSINESS
There was no other business.
ADJOURNMENT
The meeting adjourned at 11:22 p.m.
Attest:
/s/ Shelley Neis, Clerk Administrator
Town Council /Parking Authority April 14, 2015
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How to protect downtown Los Gatos' long term vitality and retail base.
The purpose of this note is to outline the long term threat that excessive food and
beverage service capacity at the North 40 represents. The proposed solution is to limit
the total number of "seats" allowed in the future development. This metric affords the
developer ample flexibility in how these seats are used for which tenants or concepts,
while still capping a retail amenity that has become an anchor in and of itself. If
unchecked, a large food and beverage service tenant base at the North 40 will sap the life
out of downtown Los Gatos.
To ultimately understand a seating cap, it is important to first understand why. If we look
back just 20 years, Los Gatos was an incredibly vibrant downtown and the envy not just
of the South Bay but also much of the Peninsula and beyond. New parking had been
added, a vibrant night life, restaurant scene, unique retail and some chain stores thrived.
Santa Cruz was still struggling to rebuild bridges into their downtown - let alone fill the
structures inside. Willow Glen and Campbell were very quiet. Santa Row was the Town
and Country ranch style low coverage shopping center that had very little food and
entertainment. Castro Street was mostly vacant together with an unhealthy portion of Los
Altos' downtown. The Downtowns of Redwood City and San Jose were perceived to be
down right dangerous and were desolate retail environments. Traffic was lighter and Los
Gatos was easy to drive to and was really the only alternative retail experience to a mall
south of Palo Alto.
Fast forward to the present and we have a booming Campbell, Willow Glen, Castro
Street, Santa Row, Redwood City, Los Atlos, Morgan Hill, emerging downtown San
Jose, coming downtown Cupertino via the Main Street development as well as huge
investment in outdoor "main street" dining in Valley Fair and many other food options in
large scale retail environments through out the South Bay like all the restaurants added
around the perimeter of Oakridge.
Downtown Los Gatos is over retailed for our own small population. It survives because
people outside the community choose to spend their money here. At the same time that
options are proliferating closer to the consumer, traffic to get here and parking once you
do, make other options more appealing.
The trend to build better retail and "Main Street" concepts in other communities isn't
going to stop, nor can the Los Gatos Town Council do anything about it. With this in
mind, the Council can choose to ensure that the North 40 brings complimentary types of
retail instead of building another downtown at the expense of our own. This can be done
by limiting the number of seats available for food and beverage uses while also
encouraging larger footprint retailers that do not fit in downtown. This type of tenant is
where the sales tax leakage exists.
Current economics and retail trends mean that most retail demand other than larger boxes
is from food, food, more food and soine services. Some reports list this demand as high
as 60% - look to Campbell and Willow Glen and the ratio of new food tenants to any
ATTACIMENT 8
other is probably closer to 3 to 1. Consumers have the disposable income to eat out
rather than cook and want to buy the experience of a community setting that a downtown
or one of the mini downtowns now being developed provide.
Regardless of income levels, people can still only eat 3 meals a day and so, at some point,
there are more seats than stomachs. That tipping point is here already especially as
downtown Campbell and Willow Glen have added hundreds of "seats" to their downtown
capacity. Most of the new restaurants in these communities are net new rather than
rehabbing existing space. The list of food and beverage tenants is long and the impact on
downtown Los Gatos is obvious. The following impact is not so obvious, but
exceedingly more important.
Much of the shopping done and available in Downtown Los Gatos is discretionary and
typically stapled together with food and beverage: a trip to shop or a salon and a dining
experience. Food and beverage tenants also create foot traffic for traditional retailers.
Dinner at Palacio's is probably the only reason many people know that we now have a
patio furniture store where the Gap originally was.
People want to be where people are. It's what drives momentum for some communities
while others slow. We believe that the vibrancy of our food and beverage community in
downtown Los Gatos needs to be protected to save the vitality of the other retail and
services and the tax dollars they generate. If the North 40 is allowed to build a food and
entertainment service offering that goes beyond the needs of the immediate community, it
will come at the expense of our downtown's vitality.
When the next recession comes - and it will, the North 40 will be able to weather that
storm much better as a single landlord than a downtown with multiple owners and
agendas. A single landlord can choose to support businesses at a loss to keep them alive
and maintain the cross shopping and buzz that retailers and consumers seek — lots of
separate small owners with different loans simply cannot. As consumers pull back, some
businesses will fail and vacancy will set in. Vacancy is a cancer and spreads aggressively
as the vibrancy fades. Capping the amount of food and food entertainment developed in
the North 40 will help stem that tide and provide long term support for downtown. With
food and beverage limited, space for retail not available in Los Gatos town limits can
land at the North 40 and our downtown may again thrive. Unchecked, North 40 will be a
well parked, easily accessed, outdoor dining and entertainment destination that will
further sap the life from Downtown and ultimately hurt the town's tax base and it's sense
of community.
We believe that capping the number of seats in the development associated with the food
and beverage / entertainment component of the North 40 is the most efficient metric.
This would apply to any and all establishments serving prepared food and beverage for
consumption to include, restaurants, cafe's, the prepared food section of grocery stores
like the seating in Whole Foods, any market hall concept, and all community or common
"landscape" seating within 200' of such an establishment's entry or exit point. Patio
seating should be permitted and accounted for as seating. Food Hall seating is incredibly
efficient as it provides a fluid common area seating and bar height eating surface that is
shared by multiple tenants. As a result of the mix of tenants and their busiest times,
market hall seating tends to run at capacity more often than traditional restaurants.
As for how many seats, we have a few metrics to suggest for guidance. For a frame of
reference, The Aqui in Campbell has 170 inside and 56 outside, a Panera typically has
about 150, the Bucco Di Bepo's in Oakridge mall has 321 inside and 48 outside. In a
survey we conducted of 18 restaurants in a range of sizes from 1,200 sf to 12,350 sf, the
average number of seats per total sf of gross area (kitchen, sales area, restrooms, storage
etc.) was I seat per 30 square feet. As such, if there is a feeling that the council believes
the immediate neighborhood needs X square feet for Y number of additional food and
beverage options, then we suggest that number of square feet be divided by 30 and those
be the number of seats allowed.
Another way to cross check this may be to examine the amount of net new restaurant area
added in the last couple years to downtown Campbell and Willow Glen. It is not very
high and yet the impact on downtown has been significant. We estimate the total number
of net new food space added to these communities to be around 37,000. The trade area
that these two accessible communities draw from is far larger than the stated intent of the
advisory committee for the North 40. If this isn't supposed to be a regional draw, how
much food and beverage service is really needed?
If the intent of allowing food and beverage into the North 40 was to provide people in the
immediate area an alternative to downtown, than I believe that the area needed is far less
than what has been added to downtown Campbell and Willow Glen recently. The site
sits on the Northern boarder of Los Gatos. If that immediate population was 10% of Los
Gatos' 32,000 people, I'd be surprised. If all of the 3200 people frequented this location 3
times a week (average American buys prepared food 5.8 times a week and not all those
meals are in the same place), across the various times, they could be served from 275
seats. (3200 people x 3 trips) /(1 seat x 5 meals served). Other commercial presence there
will bring some other trips. However, serving the neighborhood can clearly be done with
relatively few seats.
Market Hall. If a market hall concept is proposed, we believe that seats allocations
should recognize the intense use of these spaces and so a seat associated here should
count 1.5 times. For example, if 300 seats are approved for the North 40 and the market
hall is proposed to contain 100, those seats should count as 150 seats.
We believe that this proposed seat metric allows the developer the ability to create a
vibrant environment how ever they see fit without undo or complicated red tape while
still protecting downtown Los Gatos from yet another "main street" style development.
Food and Beverage Service is the core of new retail demand and is what consumers are
seeking in a community environment. We have that infrastructure already here in our
own existing downtown. Please support our downtown by not allowing another one to be
built in our town limits.
I write this letter as a downtown Los Gatos resident with deep concern for the future of
downtown Los Gatos and confirmation of the logic presented in this letter by numerous
members of the Real Estate community. They also confirm that there are numerous
larger format retailers that would love to be at the North 40. Campbell's Dell Avenue
plan and recent transactions there is proof that developers are betting that new office can
be built in the immediate trade area. All that aside, unchecked food and beverage retail at
the North 40 is a both immediate and long term threat to downtown Los Gatos and one of
the few the are in the Town Council's control. Please use it.