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Staff ReportMEETING DATE: 10/06/15 ITEM NO: !p8 CAt °9 COUNCIL AGENDA REPORT DATE: SEPTEMBER 22, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER V � A_ " 7/ . SUBJECT: PROVIDE DIRECTION ON THE TOWN'S DEFINITIONS AND POLICIES FOR FORMULA RETAIL, SPECIALTY RETAIL, OUTDOOR SEATING, AND RELATED BUSINESS USES AND PROCESSES RECOMMENDATION: Provide direction on theTown's definitions and policies for formula retail, specialty retail, outdoor seating, and related business uses and processes. BACKGROUND: At its September 1, 2015 meeting, the Town Council began discussions on Town definitions and policies for formula retail, specialty retail, and outdoor seating. The Council heard from several business owners and stakeholders who identified a number of concerns regarding conducting business in Los Gatos. Following the public hearing, the Council voted to continue this item to October 6, 2015, and requested that staff return with information that includes a compilation and summary of those items presented by the public speakers including formula retail, Conditional Use Permits (CUP), outdoor seating, and tying seating to parking requirements. The Council also requested an outline of the processes that would apply should Council choose to affect change on any of the categories. DISCUSSION: From the public testimony by business owners on this topic, staff compiled a list of concerns that were addressed by the speakers. In addition to those specifically named in the Council motion, Council indicated "etc." and staff has interpreted the "etc." to include: Ordinance 2021 which strongly discourages the replacement of retail with a restaurant use, traffic impact fees on new business models, CUP compliance, and simplifying the process for business to operate in Los Gatos. PREPARED BY: MONICA RENN Economic Vitality Manage Reviewed by: ! 11_%Assistant Town Manager 44LTown Attorney Finance NAMGRUldminWorkFilest2015 Council Reports \October 6\Formula Retail specialty Retail and Outdoor Seating.doc PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 DISCUSSION (cont'd): Staff has compiled topics raised on September 1, 2015 into the categories of formula retail, specialty retail and outdoor seating. Addressing the CUP process and simplifying it for businesses should be addressed as a final step, once Council has addressed each of the topics of discussion outlined below because the direction pursued could dictate process changes. For each topic of discussion, staff had provided remarks and the process for affecting change based on Council direction. FORMULA RETAIL DISCUSSION POINT Balance of formula versus independent retail locations in downtown The number of existing locations and their locations in the world that would classify a merchant as a formula retailer by the Town Adding restaurants to the formula retail provisions STAFF REMARKS There is currently no set balance. The notion of an "80/20 rule" was a suggestion by a previous Council member that is not contained within any policy or ordinance. The Town currently defines a formula retailer as any retailer with more than 7 locations anywhere in the world. This is among the most restrictive policies benchmarked with other cities, as most only restrict the number of locations within the United States. Staff would recommend, at a minimum, amending the definition to include more details and criteria for defining formula retailers in an effort to provide clearer direction to prospective businesses. Through research, staff discovered most jurisdictions include restaurants in their formula provisions. In Los Gatos, restaurants require a CUP either way; however, since CUPS run with the land, a national brand restaurant could hypothetically move into the space of a former independent restaurant, cafe, etc. If it is the desire of the Council to keep formula retail restrictions in downtown, including restaurants should be considered. PROCESS FOR AMENDMENTS If the Council elects to add a specific balance, this could be done by either adopting a policy, or adding it to the Town Code along with the other guidelines for formula retail. A Town Code amendment would require public hearings by both Planning Commission and Town Council. The Town defines formula retail within the Town Code, and provides findings for deciding bodies to use in their decision making. Any changes to the definition or how it is applied would require a Town Code amendment to Chapter 29 "Zoning Regulations" with public hearings by both the Planning Commission and Town Council. Adding restaurants would require a Town Code amendment with public hearings by both the Planning Commission and Town Council. PAGE MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 DISCUSSION (cont'd): SPECIALTY RETAIL DISCUSSION STAFF REMARKS PROCESS FOR AMENDMENTS POINT Specialty retail versus restaurant: How they are defined and permitted Seats in specialty retail locations 2021, Attachment 7 Staff recommends that the Council review and adopt changes to the Town's definitions of restaurants, aligning them more closely with those defined by the traffic impact policy, and perhaps add a definition for specialty retail. Should the Council agree, staff also recommends rescinding of the Specialty Retail Administrative Policy. In addition, the Council may wish to identify which food uses should require a CUP. Council could choose to allow specialty food retail uses to offer very limited seats to customers. Attachment 5 offers some suggestions of limited seating calculations. Offering these seats could allow merchants to create a more customer friendly experience, while keeping the seat allowance low to ensure that the space could not become a full restaurant without review through the CUP process. Seats could be allowed at a ratio of seats per square foot, or a set not to exceed number. this ordinance is still desired, and if so, would it be most appropriate to only include those restaurants that contain a full kitchen. Small restaurants without kitchens could more easily return to a retailer in the future. The Town currently uses an Administrative Policy to define Specialty Retail. This could be rescinded by the Town Council. The absence of this policy would require any food related use to go through the restaurant CUP process. Amending the way the Town defines various categories of restaurants and specialty retail would require a Town Code amendment to Chapter 29 with public hearings by both the Planning Commission and Town Council. Allowing seats for could be addressed in the Town Code, or in a Policy. Town Code amendment would require public hearings by both the Planning Commission and Council, whereas a Council Policy could come directly back to Council for approval. Amendment or recession of this ordinance would require public hearings by both Planning Commission and Town Council. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 DISCUSSION (cont'd): DISCUSSION POINT STAFF REMARKS PROCESS FOR AMENDMENTS Traffic Impact Currently, the Town's Traffic Impact Policy Council could vote to review and Policy defines specialty retailers as "walk -in, amend the Traffic Impact Policy. definitions & impulse businesses such as juice bars coffee Redefining businesses uses would traffic mitigation shops, yogurt shops and donut shops," and require a Code amendment and public fees not requiring them to pay restaurant type hearing by both Planning Commission traffic mitigation fees. Changing a use, for and Council. example from retail to restaurant, causes a significant increase in average daily trips, per the Institute of Transportation Engineers calculations, thus requiring new restaurants to pay $879.00 per trip. The Town has lost interest from several new independent eateries because of this fee alone. There is a spectrum of options that the Council could consider including: • Define specialty retail as an impulse business in the Town Code to reflect the Traffic Impact Policy. This would require amending the way the Town defines restaurants as well. • Assess the traffic mitigation fees for increased trip generation only in the case of a newly constructed development. • Do not apply traffic impact fees to downtown given that most customers visit more than one merchant location when they visit downtown. • Establish a minimum threshold of square footage, for the assessment of traffic mitigation fees. Some jurisdictions do not apply a traffic impact fees to any business under a specific number of square feet. For example, any business moving into a space smaller than 2,000 square feet would be exempt from traffic impact fees. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 DISCUSSION (cont'd): OUTDOOR SEATING DISCUSSION STAFF REMARKS Addition of Council could choose to allow any outdoor seats restaurant with adequate outdoor space for ADA and pedestrian access to add seating, and not include this in the overall seating count for the restaurant. Defining and calculating seats As trends emerge in various commercial industries, seating styles often change to meet these trends. Seats or areas to convene may take many forms, some of those may include: stand -up counter space without seats; large communal tables seating multiple parties; couches, benches, ottomans, and lounges; and traditional options of tables with chairs or booths. It becomes difficult to assign a number of "seats" to the options that do not include an individual chair, one of a few reasons why staff recommends that the Council discuss and provide direction on how seats are defined and calculated, regardless of their location within the restaurant. Currently, the number of approved seats is tied to the number of parking spaces credited to a commercial space; however, some patrons use alternate transportation, ride together, or park once and visit several downtown locations. Thus, it may be more appropriate to allow restaurants to define seating based on the fire occupancy code. Most jurisdictions benchmarked either use this method, or allow seats based on square footage. Rooftop Seating I The notion of rooftop seating was raised by property owners as a way for customers to dine outside without encroaching on public right -of -way. PROCESS FOR AMENDMENTS 1 his could be addressed as a Uouncul policy or packaged with other Code amendments, which would require public hearings by both the Planning Commission and Council. A policy could be adopted by the Council that defines seating types; however, if changes are considered for how seats are calculated within restaurants, a Code amendment would require public hearings by the Planning Commission and Town Council. Allowances for rooftop seating coui be made through a Council adopted policy, or Code amendment with public hearings by the Planning Commission and Council. PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 CONCLUSIONS AND RECOMMENDATION: Staff recommends that the Council provide direction on the Town's definitions and policies for formula retail, specialty retail, outdoor seating, and related topics. Given the complexity and connectivity of these issues, the Council may wish to structure their discussion as follows: • Formula Retail o Consider the original intent of the formula retail provisions, and if these provisions should still apply to the Los Gatos business community. o If it is still the desire of the Council to maintain them, direct staff to prepare Code amendments to address one or more of the following: ■ Modify the definition (see Attachment 2) to add more clarity for qualifying a business as a formula retailer; ■ Include restaurants in the formula provisions; ■ Limit the existing locations that qualify a business as formula to the United States; and/or ■ Increase the threshold of minimum existing locations to a number greater than 7. o Consider defining a specific balance of formula to independent retailers, and include this language within the proposed Code amendments. • Specialty Retail The Council may direct the preparation of Town Code amendments and /or a new Council Policy to address one or more of the items bulleted below. If a policy is elected, Council could direct language for that policy at this meeting, and staff could return with a drafted policy for review and approval at the next scheduled Council meeting. o Consider the intent of having provisions for a specialty retailer that allow for a food use that is not a restaurant. Identify specific amendments that address the Council's preferences for how the Town defines and permits specialty retail type uses. o Consider the current application of the Town's Traffic Impact Policy and how it defines specialty retail /impulse businesses. Identify specific amendments to the policy or its application. o Consider allowing limited seats at a specialty retail location, and identify specific allowances and capacity, if applicable. Identify the allowances within a proposed policy or Code amendments. PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 CONCLUSIONS AND RECOMMENDATION (cont'd): o Consider amending all food use /restaurant use definitions to allow for clarity and continuity with one another. Depending on Council's decision to define specialty retail, redefining the restaurant definitions may be required. Attachments 5 and 6 provide existing and draft definitions to help guide the discussion. o Consider the intent of Ordinance 2021, and if this ordinance is still desired by the Council. Direct staff to prepare the appropriate documents to reflect Council's decision to rescind, amend or take no action. • Outdoor Seating The Council may direct the preparation of Town Code amendments and/or a new Council Policy to address one or more of the items bulleted below. If a policy is elected, Council could direct language for that policy at this meeting, and staff could return with a drafted policy for review and approval at the next scheduled Council meeting. o Consider guidelines for outdoor seating including the use of the public right -of -way and private property, including rooftop seating. o Consider mechanisms for permitting outdoor seating on both a temporary and ongoing basis. o Consider and determine how the number of outdoor seats should be calculated and if it should be a part of the total seats allowed in a restaurant, or if additional seats can be permitted if outdoor space exists. o Consider how the Town defines seats both indoors and out, and if seats should be permitted based on on -site parking and parking credits, square footage, or fire code occupancy. Changes to Chapter 29 of the Town Code require public hearings by both the Planning Commission and Town Council. Staff could prepare a comprehensive Town Code amendment that addresses all of the potential changes recommended by the Council with recommendations for changes to the Conditional Use Permit process and regulations, so that they could be addressed at one Planning Commission meeting, then one Town Council meeting. Moving forward, new CUPS would be conditioned based on the newly adopted code or policy language. For items that do not require a Code amendment, Council may elect to direct staff to draft one or more Council Policies. Such policies could be drafted based on the direction given at this meeting, and could be returned as quickly as the next Council meeting for further consideration and approval. For existing businesses with Conditional Use Permits more restrictive than new policies or Code amendments, Council could choose to include language in the ordinance that allows CUPs in PAGE MAYOR AND TOWN COUNCIL SUBJECT: FORMULA RETAIL, SPECIALTY RETAIL, AND OUTDOOR SEATING. SEPTEMBER 22, 2015 CONCLUSIONS AND RECOMMENDATION (cont'd): existence before its adoption to be held to the least restrictive guidelines between the Code and the existing conditions. The other option would be to reopen all existing CUPS for modification, which would be an extremely costly and time intensive process. COORDINATION: This staff report was written in coordination with the Town Manager's Office and Community Development Department. FISCAL IMPACT: None ENVIRONMENTAL ASSESMENT: This is not a project defined under CEQA, and no further action is required. Attachments (previously received with September 1 2015 Council Agenda materials and redistributed for your convenience): 1. Illustration of relationship between the regulations that affect business uses 2. Formula Retail: current definition and recommended amendments 3. List of current Formula Retailers in the Downtown 4. Specialty Retail Administrative Policy 5. Recommendation for Specialty Food Retail definition and seating ratio calculations 6. Current Restaurant Use definitions and recommendations for amendments Attachments received with this report: 7. Ordinance 2021 DISCUSSION POINTS & RELATIONSHIPS BETWEEN BUSINESS REGULATIONS • Identify specific characteristics to define Formula Retail, considering best practices: • Number of existing locations • Locations of existing retail locations (US vs. Worldwide) • Extending the regulation to include all commercial retail including restaurants and specialty retailers. o C2 zone vs other commercial zones • Compare all definitions for consistency and clarity: • Specialty Food Retailers • Restaurant uses • Consider Traffic Impact Policy definition of "Impulse Businesses." • Should there be a consideration for Specialty Food Retail with alcohol service? • Should limited seats be allowed in a Specialty Food Retailer? • Number of Seats: Calculations based on parking or Square footage • Types of seats: benches, stand up counters, or other quick resting points. • Consider the placement of seats: • Private /Commercial property • Rooftop or patio seating • Use of public right -of -way • Temporary (Parklets or seasonal) • Ongoing use • Consider permitting the use of public right -of -way: o Encroachment permits (temporary ) o CUP (on going use) o Other mechanism Implement barriers for ABC if alcohol service is present Calculating outdoor seating- Should it be a part of the total seat count? • Should the way we calculate total seat be modified? • Consider trends in communal dining and gathering: o Communal Seating (benches, couches, etc.) • Seat regulations: o Types of businesses allowed to have seats o Calculation of seats based on parking, square footage, or fire occupancy code. • Placement of seats (indoor vs outdoor) • Non -food establishments looking for ancillary seating /gathering opportunities • Consider the consistency and clarity in all Formula Retail, Specialty Food Retail and Restaurant use definitions • Hybrid businesses o How to define hybrid businesses now and moving forward in the absence of a defined use category • Plan for applying any changes that may lessen regulations on implemented CUPS. o Grouping CUP modifications o Individual seats I ATTACHMENT 1 CURRENT FORMULA RETAIL DEFINITION AND RECOMMENDED AMENDMENTS CURRENT DEFINITION: Formula retail business means a retail business which, along with seven (7) or more business locations, is required by contractual or other arrangement to maintain any of the following: standardized merchandise, services decor, uniforms, architecture, colors, signs or other similar features. Formula Retail Businesses are defined as a type of retail sales establishment or restaurant which, along with 10 or more other retail sales establishments located in the United States, maintains two or more of the following features: a standardized array of merchandise or menu, a standardized facade, a standardized decor and color scheme, a uniform apparel, standardized signage, a standardized layout, a trademark or a servicemark. 1. Standardized means both identical and substantially the same. 2. Array of merchandise or menu shall be defined as 50% or more of in -stock merchandise or menu items. 3. Fagade shall be defined as the face or front of a building, including awnings, looking onto a street or an open space. 4. Decor shall be defined as the style of interior finishings, which may include but is not limited to, style of furniture, wallcoverings or permanent fixtures. 5. Color Scheme shall be defined as selection of colors used throughout, such as on the furnishings, permanent fixtures, and wallcoverings, or as used on the facade. 6. Uniform Apparel shall be defined as standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hat, and pins (other than name tags) as well as standardized colors of clothing. 7. Signage shall be defined as business signs pursuant to section 29.10.135 of the Town Code. 8. Trademark shall be defined as a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods from one party from those of others. 9. Servicemark shall be defined as word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of a service from one party from those of others. ATTACHMENT Formula Retailers in Downtown Los Gatos Gymboree 5 N. Santa Cruz Benefit Cosemetics 7 N. Santa Cruz Apple Store 23 N. Santa Cruz Restoration Hardware 26 N. Santa Cruz Powell's Sweet Shoppe 35 N. Santa Cruz Verizon Wireless 50 N. Santa Cruz Site for Sore Eyes 53 N. Santa Cruz Pharmaca 54 N. Santa Cruz J. Crew 105 N. Santa Cruz We Olive 112 N. Santa Cruz Willams Sonoma 122 N. Santa Cruz Bellini Furniture 155 N. Santa Cruz Mike's Bikes 201 N. Santa Cruz Title Nine 218 N. Santa Cruz California Closets 349 N. Santa Cruz Rural Supply 110 S. Santa Cruz Joseph A. Bank 150 W. Main Street Sur La Table 23 University Ave. Banana Republic 25 University Ave. Francesca's Collection 29 University Ave. GAP 35 University Ave. White House /Black Market 50 University Ave. Blue Illusion 50 University Ave. Papyrus 50 University Ave. Talbots 50 University Ave. Anthropologie 50 University Ave. Lucy Activewear 50 University Ave. Chicos 50 University Ave. *Formula retailers currently represent approximately 10% of the tenant in the C -2 zone. ATTACHMENT 3 PLANNING DEPARTMENT POLICY TOWN OF LOS GATOS Subject Description of Restaurants and Specialty Retail Businesses That Offer Food Products Page: Section Number: Approved: Z_ L lf,, Effective Date: Revised Date: Lee E. Bowman, Planning Director August 1, 1996 PURPOSE To provide guidelines for determining whether a business serving food products is specialty retail or restaurant. POLICY It is best to obtain a written description of a proposed business trom the applicant to provide a "paper trail' and avoid possible misunderstanding. If a proposed business is not described below staff shall obtain a written description of a proposed business from the applicant so the Planning Director may make the final determination. Specialty Retail - Specialty Retail include those businesses which offer pre - packaged foods (e.g. pre -made sandwiches, candy, donuts and other bakery items, frozen pizza to go, bagels without condiments, etc.). No seating for customers is allowed in any business where food products are sold. Restaurant - A definition of restaurant is contained in the Zoning Ordinance (§ 29.10.020). Restaurants include those businesses offering food or drinks that are ordered by a customer and prepared while the customer waits (e.g. bagels with condiments, gourmet coffee shops (except sales of whole bean or ground coffee), sandwiches, ice cream, yogurt, pizza or Chinese to -go, health drinks, etc.). Any business that sells food products and offers seating for customers is considered a restaurant. k1D&MU"OUOY. ATTACHMENT SEATING CHART CALCULATIONS BASED ON SQUARE FOOTAGE RECOMMENDATION: Specialty Food Retail businesses are defined as a business providing a specialty food or beverage intended for off -site consumption. Specialty food retail uses typically have few types of items, but often offer a variety of options within the single item type. Items are paid for before consumption and include uses such as juice bars, frozen dessert shops, coffee /tea shops, bagel /donut shops, bakeries, sandwiches, and similar uses. Specialty Retail locations are subject to formula retail use restrictions and may not offer more than I .seat per 2001250 square feet of gross floor area. SEAT CALCULATIONS FOR CONSIDERATION ATTACHMENT SPECIALTY SPECIALTY SPECIALTY FOOD RETAIL, FOOD RETAIL, FOOD RETAIL, SEATS TO SEATS TO SEATS TO CONSIDER AT CONSIDER AT CONSIDER AT 1 PER 200 SF I PER 250 SF 1 PER 300 SF 500 6_7 6.4 2_5 2_0 1.7 750 10.0 9.6 3_8 3_0 2.5 1000 13.3 12.8 5_0 4_0 3.3 1250 16.7 16.0 6_3 5_0 4.2 1500 20.0 19.1 7_5 6_0 5.0 2000 26.7 25.5 10.0 8.0 6.7 2250 30.0 28.7 11.3 9_0 7.5 2500 33.3 31.9 12.5 10.0 8.3 2750 36.7 35.1 13.8 11.0 9.2 3000 40.0 38.3 15.0 12.0 10.0 3500 46.7 44.7 17.5 14.0 11.7 4000 53.3 51.1 20.0 16.0 13.3 ATTACHMENT CURRENT RESTAURANT USE DEFINITIONS AND RECOMMENDED AMENDMENTS CURRENT USE DEFINITIONS: Sec. 29.10.020. - Definitions. Restaurant means a retail food service establishment in which food or beverage is prepared, served and sold to customers for on -site or take -out consumption. Restaurant, drive -in means a restaurant where food or beverages are sold to be eaten in vehicles whether on or off the premises or are delivered directly to the occupants of vehicles. Restaurant, fast,food means a restaurant with a large carry-out clientele, long hours of service, some open for breakfast but all open for lunch and dinner, and high turnover rates for eat -in customers. Restaurant, high turnover (sit -down) means a restaurant with turnover rates generally of less than one (1) hour, is usually moderately prices and frequently belong to a restaurant chain, generally service breakfast, lunch and dinner, and are sometimes open twenty -four (24) hours a day. Restaurant (minor) means any restaurant that satisfies the following criteria: (1) Provides less than 25 seats; (2) Serves no alcoholic beverages; (3) Proposes no significant exterior changes that would alter the architectural character of the building; and (4) Provides a net increase of less than five peak hour traffic trips. Restaurant, quality means a restaurant of high quality and with turnover rates usually of at least one (1) hour or longer, generally do not serve breakfast, may not serve lunch, but always serve dinner. SUGGESTED AMENDMENTS FOR RESTAURANT USE DEFINITIONS Restaurant means a retail food service establishment in which full meals are available, prepared, served, and sold to customers for on -site or take -out consumption, and provide indoor and /or outdoor seating. Restaurant with Alcohol Service means any restaurant where alcohol is available to customers during meal service, or while waiting for a table for meal service, and in designated bar and food service area while meal service is available. Restaurants with alcohol service typically do not provide late night entertainment. Restaurant, minor means any restaurant that satisfies the following criteria: 1. Provides less than 25 seats; 2. Serves no alcoholic beverages; ATTACHMENT 3. Proposes no significant exterior changes that would alter the architectural character of the building; and 4. Provides a net increase of less than five peak hour traffic trips. Restaurant, drive -in means a restaurant where food and /or beverages are sold to be eaten in vehicles whether on or off the premises or are delivered directly to the occupants of vehicles. Restaurant, fast food means a restaurant providing ready to eat meals to a high volume of largely carry-out clientele with long hours of service. Some open for breakfast but all open for lunch and dinner, food is available upon a short waiting time, and the turnover rate for dine -in customers is typically very high. Restaurant, high- turnover sit down means a restaurant which provides full meals to customers in a casual setting with turnover rates typically less than an hour. Orders may be taken at a counter or table -side, and the primary focus of the restaurant is onsite dining though take out may be available. Restaurant, full- service sit down means a restaurant which provides full service meals, where customers order and are served at their table. Characteristics typical of a full- service sit down restaurant include: Turnover rates greater than an hour; the availability of reservations; limited take out business; most do not serve breakfast, some do not serve lunch, and all serve the majority of their clients for dinner; most offer menu options that change regularly with the season or chef s preference. ORDINANCE 2021 ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 29 TO PROVIDE A MORE COMPREHENSIVE REVIEW OF ADDITIONAL RESTAURANT USE IN THE DOWNTOWN AREA THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I The C -2 (Central Business District Commercial) zone of the Town of Los Gatos contains a mix of retail, restaurant, and associated uses that sustains the economic vitality and historic atmosphere of the area, and is an essential part of the community. However, too many restaurants concentrated in this one area would displace retail uses that are vital to continued success and to having businesses that attract Town residents throughout the day. This ordinance is intended to discourage the displacement of retail uses by restaurant uses by requiring the Planning Commission to conduct a careful review of all applications for new restaurant uses in the C -2 zone through the public hearing process. SECTION II Section 29.10.020 is amended to read as follows: Bar means a drinking place where alcoholic beverages and snacks are served; possibly with entertainment such as music, television screens, video games or pool tables. Restaurant, fast food means a restaurant with a large carry-out clientele, long hours of service, some open for breakfast but all open for lunch and dinner, and high turnover rates for eat -in customers. Restaurant, high turnover (sit -down) means a restaurant with turnover rates generally of less than one hour, is usually moderately priced and frequently belong to a restaurant chain, generally serve breakfast, lunch and dinner, and are sometimes open 24 hours a day. Restaurant, quality means a restaurant of high quality and with turnover rates usually of at ATTACHMENT least one hour or longer, generally do not serve breakfast, may not serve lunch, but always serve dinner. SECTION III Subsection (16) of Section 29.20.745 is amended to read as follows: (16) Determine and issue zoning approval for minor restaurants that are located outside Downtown [the C -2 zone]. SECTION IV Subsection (8) of Section 29.20.750 is amended to read as follows: (8) Determines conditional use permit applications that are not assigned to the Development Review Committee. SECTION V This ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on August 5, 1996 and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on September 16, 1996. This ordinance takes effect 30 days after it is adopted. COUNCIL MEMBERS: AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Randy Attaway. NAYS: None ABSENT: None ZR ABSTAIN: None SIGNED: HE TOWN LOS GATOS LOS GATOS, CALIFORNIA ATTEST: - � de6p"L�, CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA