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Attachment 4 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 SECTION ONE OF ORDINANCE 2021 REGARDING DISCOURAGING THE DISPLACEMENT OF RETAIL USES BY RESTAURANTS WHEREAS, the Los Gatos Town Council adopted Section One of Ordinance 2021 in 1996 to ensure that a more careful public review was given to all new restaurants applying to replace a retail location within the Downtown C-2 zone, and to discourage the replacement of retail with restaurant uses; and WHEREAS, when Section One of Ordinance 2021 was adopted, the retail environment was much different than it is in 2016, and there was a greater demand for brick and mortar retail spaces; 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, 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 Section One of Ordinance 2021; and ATTACHMENT 4 WHEREAS, on February 25, 2016, the Policy Committee discussed the current role of Section Once of Ordinance 2021 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 Conditional Use Permit (CUP) typically takes between three to 6 months and can cost tens of thousands of dollars, including fees for attorneys, architects, and community outreach consultants and other costs and there have been instances where a use is desired by the Planning Commission and public however due to Section One of Ordinance 2021, staff has been required to recommend denial to the Planning Commission, and the Planning Commission has felt bound to deny the application while publically declaring their support for the use. WHEREAS, the Policy Committee made a recommendation to the Town Council that a resolution should be adopted to implement a pilot program that suspends the provisions of Section One of Ordinance 2021 for eighteen months; and WHEREAS, an eighteen month suspension of the requirement to discourage the replacement of retail with restaurant uses allows for greater business opportunities and offers the Council, community, and staff the ability to cautiously monitor the effects on the character of Los Gatos shopping districts. NOW, THEREFORE, BE IT RESOLVED: 1. The Town Council hereby suspends Section One of Ordinance 2021 given that the circumstances and commercial environment in which it was adopted have significantly changed making this ordinance no longer relevant, and currently hindering business opportunities in Los Gatos. 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 ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\MGR\AdminWorkFiles\Council Committee - POLICY\2016\March 7 Special Meeting\Attahcments for Report\Draft Reso for ordinance 2021 rescission.docx