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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