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1994-154-Deny A Request To Modify Existing Approvals Granted To Operate A Restaurant To allow A Separate Bar And Outdoor Dining On Property In The C-2 ZoneRESOLUTION 1994 -154 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS GRANTING AN APPEAL OF A PLANNING COMMISSION DECISION TO DENY A REQUEST TO MODIFY EXISTING APPROVALS GRANTED TO OPERATE A RESTAURANT TO ALLOW A SEPARATE BAR AND OUTDOOR DINING ON PROPERTY IN THE C -2 ZONE WITH CONDITIONS; CONDITIONAL USE PERMIT APPLICATION U -94 -12 (PROPERTY ADDRESS: 15 1/2 NORTH SANTA CRUZ AVENUE PROPERTY OWNERS: BACIGALUPI FAMILY APPLICANT: MARK HACKER) WHEREAS: A. This matter came before the Council for public hearing on October 17, 1994, on an appeal by the applicant from a decision of the Planning Commission and was regularly noticed in conformance with State and Town law. B. The Council received testimony and documentary evidence from the applicant and property owners and all interested persons who wished to testify or submit documents. The Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet attached to the Council Agenda Reports dated September 28 and October 7, 1994, concerning this application. C. The Town of Los Gatos Policy Regulating the Consumption and Service of Alcoholic Beverages adopted by Resolution 1994 -29 vests in the Town Council the discretion to determine whether a separate bar within a restaurant should be approved. D. The Development Review Committee and the Planning Commission did an excellent job of reviewing, asking questions, and commenting on this application, which has resulted in an improved project proposal. E. The building within which this restaurant would be located may be the single most important historic building in the Downtown and is the "flagship" building of the Downtown. F. This building was one of the first to be restored following the Loma Prieta Earthquake, which has resulted in preserving an important part of the character of the Town and set an example for others. G. The size and configuration of the building necessitates a complementary tenant mix to be successful. H. A restaurant operation has been ongoing in these premises for many years and is simply replacing a use that has long occupied the premises, and this application would sustain a true restaurant operation. I. The proposed use is compatible with surrounding uses and is appropriate because it is a fine restaurant establishment located within an historic building surrounded by other commercial uses in the Downtown. J. The proposed use is desirable to the public convenience and necessity because it has a thoroughly professional business plan and design team, and will restore the second floor of this refurbished historic building to its former splendor as it was some 20 years ago. K. The proposed use will enhance the integrity and character of the zone in completing the restoration of this building, including seismic upgrade and outside renewal, which needs one more quality tenant. L. The proposed use will not be detrimental to the public health, safety, or welfare in that the community will be safeguarded by the conditions attached to the application. M. The proposed use is in harmony with the various elements of the General Plan, the Downtown Specific Plan, Town of Los Gatos Redevelopment Agency Plan for the Central Los Gatos Redevelopment Project, and the purposes of the Town Zoning Code. N. The proposed use will be automatically submitted to the Planning Commission for review for conformity to the conditions imposed and congruity with the expected result in approximately 12 months (November 1995), and this review will be subject to a call -up without prejudice by any Councilmember or appeal by an interested person as provided in the Zoning Code. O. The maximum number of seats in the bar and outside dining areas as well as the total number of seats in the use should be clearly defined. P. The proposed use will be subject to the Noise Ordinance and there does not appear to be a current need for additional noise conditions. ON Q. The proposed use has the look and feel of a true restaurant and some 40 seats have been removed from the previous use. R. Before issuance of a building permit for the proposed use, Architectural and Site Approval must be obtained from the Town for exterior changes and outdoor seating. S. The applicant and the owners have volunteered to add an addendum to their lease agreement that gives the owners control over a purchaser or sublessee from the applicant to ensure that the use will continue to be of high quality and character, and this additional oversight is an important factor in this appeal being approved and should be made a condition. T. In considering the applicant's request to be permitted to serve alcohol past 10 p.m. pursuant to the Town's Policy Regulating the Consumption and Service of Alcoholic Beverages: i. Late night service will not adversely affect adjacent residential neighborhoods because the proposed use is located in the center of a commercial district and backs up to a parking area; there are no residential neighborhoods immediately adjacent; and the conditions imposed by the approval, the Chief of Police, and the Noise Ordinance adequately protect the residential neighborhoods. ii. Applicant does not have a history of complaints or noncompliance with local ordinances. iii. Applicant has demonstrated a clear benefit to the community in that this application with complete the refurbishment and restoration of this historic building on the inside and outside, and will provide a viable commercial use on the second floor. U. The Planning Commission erred only insofar as the Town's Policy Regulating the Consumption and Service of Alcoholic Beverages vested discretion to allow a separate bar in a restaurant only in the Council so that the Commission was unable to proceed with approval of the application. K RESOLVED: 1. The appeal of the decision of the Planning Commission on Conditional Use Permit Application U -94 -12 is granted and the application for modification to the existing conditional use permit for the location to allow outdoor dining, a separate bar, and certain hours of operation is approved subject to the provisions of the Town Code and the conditions specified in Exhibit A hereto. 2. This decision does not and shall not constitute any precedent for permitting separate bars in restaurants in the Downtown or anywhere else in the Town, and the Town Council shall continue to examine any such request on a specific site, design, and historic use basis under the Town Code and Town policies. This decision constitutes a final administrative decision pursuant to Code of Civil Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los Gatos. Any application for judicial relief from this decision must be sought within the time limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such shorter time as required by state or federal law. 9 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7th day of November, 1994 by the following vote. COUNCIL MEMBERS: AYES: Steven Blanton, Linda Lubeck, Patrick O'Laughlin Mayor Randy Attaway NAYS: None ABSENT: Joanne Benjamin ABSTAIN: None ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA E EXHIBIT A CONDITIONS OF APPROVAL OF CONDITIONAL USE PERMIT APPLICATION U -94 -12 15 1/2 NORTH SANTA CRUZ AVENUE TO THE SATISFACTION OF THE PLANNING DIRECTOR: 1. No live entertainment shall be provided. 2. Maximum hours of operation shall be from 11:00 a.m. to 11:00 p.m., Sunday through Thursday, and from 11:00 a.m. to 1 a.m., Friday and Saturday and holidays and evenings before holidays. 3. Alcoholic beverage service is permitted in the dining area only in conjunction with meal service. Meal service shall be available until closing or 11 p.m. Sunday through Thursday, and until 12 midnight, Friday, Saturday, holidays, and evenings before holidays, whichever is earlier. A meal shall be defined as a combination of meal items selected from a menu which would constitute a normally accepted "meal" (breakfast, lunch, dinner, or brunch). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. shall not be considered meals. 4. The maximum number of seats in the use shall not exceed 120, including no more than 20 in the bar area and no more than 32 in the outside dining area. 5. The barrel maintained for cooking grease shall be kept within its designated enclosure, except when being emptied. It shall never be permitted to leak or overflow. 6. If a food grinder and /or dishwasher are used, a minimum 1,000 gallon grease interceptor must be installed. 7. The number of pool tables shall not exceed two. 8. All meals served on -site shall be on re- usable utensils. 9. Any take -out food shall be served on recycled containers. 10. The lease agreement between the property owner and the lessee of the use shall provide substantially as follows: A -1 Before a transfer of more than a 50% ownership interest in the restaurant may occur, the Lessee shall provide a minimum of 60 days notice to the Lessor for the purpose of allowing Lessor to make a full evaluation of the suitability of the proposed transferee. Lessee shall provide to Lessor, in addition to financial statements and all other information as required by the lease agreement, such other information as Lessor shall reasonably request regarding proposed change to format, reconfiguration of kitchen or floor plan, and /or decor changes by the proposed transferee. In case the information is insufficient to satisfy the Lessor that the continued operation of the restaurant will reflect the format and high standards set by Lessee, Lessor shall have the right to reasonably withhold consent to any such sale or transfer. This provision shall not be amended without the written approval of the Town. 11. Before issuance of any building permit for the approved use, approval of an Architecture and Site Review application shall be obtained from the Town for exterior changes and outdoor seating. 12. The use shall be automatically reviewed by the Planning Commission in November or December of 1995 to evaluate how the use has functioned. Any Councilmember may call the matter forward within 10 days following completion of the Commission review without prejudice. [If the owner or operator wishes to seek modification of any condition at that time, the application for modification will bear the normal fees for such an application.] TO THE SATISFACTION OF THE POLICE CHIEF: 13. Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 14. The establishment shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association. 15. The establishment shall have and shall actively promote a designated driver program such as complimentary non - alcoholic beverages for designated drivers. 16. Taxicab telephone numbers shall be posted at a visible location. 17. Six months from the date of this approval, or at the discretion of the Chief of Police, the operator shall hold a meeting with representatives from the Alcoholic Beverage Control or the Los Gatos Police Department for the purpose of A -2 employee training on licensed service of alcoholic beverages to the public. If it is determined that there are problems connected with the service of alcoholic beverages, they must be resolved within a time frame acceptable to the Police Chief. TO THE SATISFACTION OF THE CENTRAL FIRE PROTECTION DISTRICT: 18. Exits shall conform to the 1991 California Building Code. Exits not in compliance shall be brought into compliance. 19. Kitchen automatic fire extinguishing system shall be certified by a licensed contractor. 20. Provide portable fire extinguisher in accordance with the California Fire Code. 21. Building owner to provide fire department key box (KNOX). 22. Compliance items listed in a fire department inspection report dated 1992 for this occupancy shall be corrected. 23. Gate on North Santa Cruz Avenue side of the building shall be brought into compliance with California Building Code chapter 33. A -3