Attachment 1
Draft Resolution to
be modified by Town
RESOLUTION 2016-
Council deliberations
and direction.
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
SUSPENDING CONDITIONAL USE PERMIT
REQUIREMENTS FOR FORMULA RETAIL BUSINESSES
WHEREAS,
retailers across the Town and the region are finding it increasingly difficult
to fill retail space with retail stores as the number of potential retail tenants has shrunk due to
competition with e-commerce and the consolidation of national retail brands; and
WHEREAS,
as the ease and availability of online shopping has increased and retailers
are finding it more difficult to keep their brick and mortar locations running successfully which
leads to less demand for retail space for independent stores that only offer retail and with less
demand, comes greater vacancy levels; and
WHEREAS,
over the last several quarters, the Town has experienced a decrease in sales
tax associated with general retail, and have had business owners report that their in store sales
are declining; and
WHEREAS
, the Town Council has adopted a strategic priority of developing an
Economic Strategic Plan to enhance and evaluate opportunities that allow the Town to improve
vibrancy and attract residents and visitors to shop, dine and stay; and
WHEREAS
, the Town Council has expressed interest in providing greater and more
fluid opportunities for businesses to thrive in Los Gatos, enhancing desirable amenities for the
community, encouraging local shopping and dining, and preventing leakage to other
communities; and
WHEREAS
, the Town Council has expressed that with the adoption of the North 40
Specific Plan, consideration should be given to making amendments to the requirements related
to Downtown businesses in order to level the playing field between the two shopping districts;
and
WHEREAS,
from September 2015 to February 2016, the Town Council and Planning
Commission discussed and deliberated on a variety of issues that relate to businesses in Los
Gatos including the Town’s regulation of formula retail businesses; and
WHEREAS
, on February 2, 2016, the Town Council continued their discussion of
formula retail businesses and recommended that the Policy Committee consider and make a
recommendation to the Town Council on the Town’s regulation of formula retail businesses; and
ATTACHMENT 1
WHEREAS,
on February 25, 2016, the Policy Committee discussed the current role
formula retailers play in the Town’s mix of retail businesses and considered several options that
may provide greater opportunities for businesses to locate within Los Gatos; and
WHEREAS,
the Policy Committee determined that to obtain a formula retail Conditional
Use Permit (CUP) typically takes between three to six months and can cost tens of thousands of
dollars, including costs for private attorneys, architects, and community outreach consultants. As
a result, formula retailers are not proposing or considering new locations in Los Gatos; and
WHEREAS,
the Policy Committee voted unanimously to recommend to the Town
Council that a resolution should be adopted to implement a pilot program that suspends the
requirement for formula retailers to obtain a CUP for eighteen months; and
WHEREAS,
an eighteen month suspension of the requirement for formula retail
businesses to obtain a CUP allows for greater business opportunities and offers the Council,
community, and staff the ability to collect data to monitor the effects on the character of Los
Gatos shopping districts, and conduct surveys of the businesses, shoppers, and visitors.
NOW, THEREFORE, BE IT RESOLVED:
1. The Town Council hereby suspends the regulations on formula retail for eighteen
months from the date of the adoption of this resolution.
2. During this eighteen month period, or following the review and recommendation
of the Council, this suspension may become a full Code Amendment.
PASSED AND ADOPTED
at a regular meeting of the Town Council of the Town of
th
Los Gatos, California, held on the 15 day of March, 2016, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
N:\MGR\AdminWorkFiles\Council Committee - POLICY\2016\March 7 Special Meeting\Attahcments for Report\Draft Reso for Formula
suspension.docx