Loading...
Attachment 32 with exhibits A to G August 25, 2016 Joel Paulson Community Development Director Town of Los Gatos 110 E. Main St. Los Gatos, California 95031 Re: Response to Discussion Raised at August 16, 2016 Council Meeting – North Forty This memorandum is in response to many of the comments we h eard at the August 16, 2016 Council Meeting, during Council deliberations. In order to best respond to these precise comments, we had the meeting transcribed by a third -party. Attached is the certified transcription of the meeting as Exhibit A for reference. One motion by Council Member Rennie proposed several modifications to the architecture as reflected in our application. Council Member Sayoc follow ed up with several concerns to this motion: “So the difficulty I have in this particular motion is, when we have asked for these changes in the past as a planning commissioner, as a council member, I have always wanted to see what it is I'm approving. And with a project so large and so controversial and so visible as this, I have significant reluctance in just saying, Okay, and I'm going to hope for the best. I have utmost respect for our staff. I think they would do this, but I also don't think it's particularly fair to place the burden of all of these hearings onto their decision as this moves forward. That's my biggest impediment.” To address Council Member Sayoc’s concern, we have included for the Council’s consideration illustrations “Exhibit B” through “Exhibit G”, to be considered by Council on September 1st (and/or September 6 th) with opportunity for comment and more specific direction which we then believe could be approved at an administrative level by Staff and/or the Consulting Architect without further Council review : • “Exhibit B” – Architectural elevations along Los Gatos Boulevard with a more “commercial” appearance in nature. Footprints remain the same. Exhibit B: o Includes both previous and potential streetscape from Los Gatos Boulevard for comparison o Are a simple building form with low pitched hipped metal roofs, strong horizontal lines o High 10ft ceilings at first level and symmetrical arrangement of storefront windows for a more commercial feel to complement the existing commercial buildings along Los Gatos Boulevard o Three units tied together with framed accent walls and wood slat fencing to create a more commercial “single façade” while maintaining welcoming defined entries o High quality materials and finishes - metal roofing, smooth plaster walls, metal siding, wood slat fencing, aluminum storefront doors and windows 2 • “Exhibit C” – Example of more traditional architectural elevations along Lark Blvd. Footprints to remain the same. Elevations could include: o California Ranch: Providing softer scale with welcoming entry -trellis features that highlights the home’s entry and richness of the landscape. High quality materials and finishes include crisp horizontal wood siding, smooth plaster walls, wood paneling and trim accents. o California Bun galow/Cottage: Soft low pitch roof forms, with well-articulated architecture with strong horizontal lines and connection to the ground. A generous entry, with quality materials and finishes including expansive windows that bring the outside in, horizontal and board and batten wood siding, and a 40 year composition roof. o Mediterranean -influenced Bungalow: Provides a gentle, pedestrian scale with a welcoming, gracious entry. A second floor porch accents the entry and creates variety in the architecture. High quality materials and finishes include smooth plaster walls, and wood paneling and trim accents. • “Exhibit D” – Rowhome Elevation to replace or supplement existing Rowhome Elevation A. Heights remain below 35’and footprint to remain the same. Features include: o Low pitched hipped roofs o Single story elements create a gentle/pedestrian scale o Welcoming entries o Second and third floor balconies that create variety in the architecture o High quality materials and finishes - smooth plaster walls, wood paneling and trim accents • “Exhibit E” – An at-grade floorplan for Condominium cluster, resulting in 10 at-grade flats. o Plan 4 can becomes an at-grade, one-bedroom flat at 1,014 SF (Previously 1,608 SF, three- story plan ) o Plans 5, 2, and 3 adjust accordingly to accommodate the Plan 4 at-grade flat o Overall b uilding footprints remain the same • “Exhibit F” – Market Hall architectural enhancements, including: East Elevation: o "Market" sign removed. Smaller signage substituted o Clerestory glass softened with louvers o Removed glazed corner at SE and replaced with a "punched" display window o Ground story entry centralized with some sliding louvered barn doors on either side. Passage doors far right and left are kept. Central opening is >15' wide. o Sun shades tilted so they are visible. o Spandrel panels between first and 2nd floors changed to wood. o Added a south facing door for our possible florist spilling out near market main entry. South Elevation: o Removed corner glass and replaced with display window. o Enlarged storefront glazing of first opening and softened with louvers. o Added smaller signs on each storefront • “Exhibit G” – Modified trees at sound wall o Potential to change evergreens to Brisbane Box o Buckthorn trees at terminus of R2 – 1st St. and R2 – 3rd Street Further, Section 6.4.1 discusses Specific Plan Administration. It states: “Proposed developments within the Specific Plan Area will be reviewed pursuant to the established Architecture and Site Review and approval process as defined within Division 3 of the Zoning Ordinance. In addition, proposed developments will be required to adhere to existing Zoning Ordinance regulations and processes for other 3 types of discretionary review, such as those for conditional use permits, variances, and subdivisions.” Architecture and Site Plan Review and Tentative Map applications are decided on by the Town’s Planning Commission. It is only because this application was for a Vesting Tentative Tract Map (VTTM), rather than a Tentative Map, that Town Council became the required final decision making body for both the Architecture and Site Review and the VTTM. (An appeal to Architecture and Site Review and Tentative Map applications also would have resulted in Town Council hearing the applications.) It is not unusual for the Town Council to make broad architectural changes during a meeting with future staff-level review, such as the Albright application where there was a broad-brushed reduction of height and resulting modified building form. In addition to the attached, below are verbatim statements by Mayor Barbara Spector in making two motions for denial of the North Forty Phase I Applications, and our responses. Our conclusions are that her motion was not based on any objective standards or criteria contained in the North Forty Specific Plan. The first motion for denial is based on the residential program. MAYOR SPECTOR: “I will be making a motion now, and I will ask the Council to please listen to it because it is going to begin with provisions from the specific plan before I get to the actual motion itself. And these -- this motion is based on actual specific plan requirements.” 1) “The specific plan requires smaller cottage cluster -- the specific plan suggests smaller cottage cluster in the Lark area. It speaks to lower-intensity residential envisioned for the Lark district. That's Paragraph 2.3.1.” Analysis: Cottage clusters require a Conditional Use Permit under the Specific Plan, which is not “by right” development. They are a conditional use in the Lark District but are not required by the Specific Plan, so their absence is not an objective reason for denial; in fact, cottage clusters are the only residential types that require a Conditional Use Permit. The residential uses proposed for the Lark District are in fact lower intensity than those proposed in the Transition District. In addition, they are actually of lower intensity (for example, fewer three-story buildings, lower heights, more open space) than the Specific Plan requires for the Lark District. This has been substantiated in considerable detail in testimony and in letters from the Applicants. The Specific Plan states on page 2-3 Section 2.3.1 Lark District: In an effort to satisfy the Town’s unmet needs, development standards have been tailored to guide the development of residential product types including multi-family, townhomes, and “cottage cluster/garden cluster” housing types.” The “Permitted Land Use Table” 2.1, found on pages 2-7 through 2-9, identifies Townhomes/Garden Cluster, Rowhouses, Multi-Family, and Condominiums as permitted residential types within the Lark District. Live/Work is prohibited entirely in the Lark District, and Cottage Cluster is only permitted with a Conditional Use Permit. For additional information, see Letter from Applicants to Town, August 5, 2016. 2) “It anticipates lower-intensity shops, offices, residential land uses envisioned in the southern portion. That's Paragraph 2.4.” Analysis: See above regarding lower intensity uses proposed in the Lark District. (Of note, existing offices and a gas station have already been constructed within the Lark District and are not a part of this application.) 4 3) “Appendix 6C of the specific plan says that the specific plan development should address Los Gatos' unmet needs. And those unmet needs are identified as Generation Y and baby boomers.” Analysis: The preamble to Appendix C states: “At the time of this Specific Plan, some of the unmet needs of the Town of Los Gatos include residential product types that respond to emerging needs of the senior, empty nester, and young adult population. The following is a summary of current trends associated with these demographics.” In the Project, the affordable senior housing certainly addresses senior needs. The development standards in the Specific Plan were developed by the Town and adopted by the Town Council to serve Los Gatos’ unmet needs, and the market rate condominiums and apartments/live work are consistent with the standards developed to serve those needs . The primary housing stock in the Town is single-family detached homes. These attached condominiums, apartments, and live work units are significantly smaller in size than typically found in Town (see previously submitted Consumer Analysis by John Burns Real Estate Consulting). 4) “The development standards within the specific plan in Section 2 provide that we should ensure future development is comparable -- is compatible with surrounding areas, complement the downtown and contribute to the small town charm of Los Gatos. The development standards of Paragraph -- or Section 2 say that "the application project should be consistent with the land uses and vision of the" -- "as outlined in this chapter." This is an architecture and site application. Our architecture and site ordinance states, Paragraph 4, "We must examine site layout, including its appearance and harmony of the building with adjacent development." Paragraph 6, we must address exterior architectural design of the building and structures. The effect of the height, width, shape and exterior construction and design must be examined. Our specific plan once again states the application, the development, must seamlessly fit must complement, the existing town character and charm. Paragraph 3.4.” Analysis: These are subjective statements. There has been considerable testimony as to how the architecture is designed to fit into the existing Town character. Further, page 1.8, Section 1.5.1 states: “The Specific Plan contains both development regulations and design guidelines. Mandatory regulations are denoted by the use of the word “shall.” A guideline, which is denoted by the use of the word “should,” is not mandatory…” While not all of the “shalls” in the Specific Plan are objective, both an Objective Standards Matrix and a matrix of all “shalls” within the Specific Plan were submitted by the applicants with detailed responses on how these were met. Section 2, page 2 -1 also states: Land uses and development standards presented in this chapter form a comprehensive set of policies that will work in concert to steer future development and reinforce the desired North 40 vision…. Specific site development standards, such as building height, setbacks, and parking requirements will help create the appropriate scale and character of the envisioned development.” 5) “I t states in the specific plan, we must connect this part of Los Gatos to the rest of the town. Paragraph 3.4. Last time we had a meeting, I talked a little bit about the history of the vision statement. I like to think of this as its -- you know, as legislative history, but that's because I too am a lawyer and we talk that way. And we had guiding principles. And on January 9th, 2012, that is actually considered in the Planning Department as a reset. So on January 9th, 2012, this Town Council had a reset on its development of the specific plan. It -- instead one of the council members said, It is unfair to the developer and the Town to go forward without a vision statement. We will have -- if we go forward without a vision statement, we will have discomfort and dissension. We must decide -- and this is what we were saying on January 9th. We must decide, will we have a continuation of what we -- currently exist in Los Gatos that will continue past 5 Lark to 85 or will we have a distinct district? On the meeting of March 5th, 2012, this Council unanimously answered the question with a vision statement and guiding principles that continue the Los Gatos look and feel past Lark onto 85.” Analysis: This is a subjective issue. Although surrounded on all sides by major roads, the project is designed to fit into the surrounding parts of the Town, not to be a separate, self-contained district. For example, it is not gated, the public areas are open to the general public, and the application proposes to connect bike and multiuse trails and roadway improvements to enhance pedestrian, bicycle and automobile connectivity. The Silicon Valley Bicycle Coalition has supported this project and the connectivity that it will provide. With respect to connectivity, Section 4.1 Policy C9 (page 4 -1) states: “Connect the Specific Plan Area with Downtown, commercial centers, and other employment centers via light rail transit, bicycle paths, or trails.” The Application proposes a bicycle path to the Los Gatos Creek Trail, which connects the project not only to Downtown Los Gatos, but regionally. The application also satisfies Policies C1, C2, C3, C4, C5, C6, C7, C8, C9, and C10 (this is every policy in Section 4.1 regarding Circulation and Streetscape). Regarding the Specific Plan being a distinct district, while subjective, the Specific Plan does state on page 3-13 the following in Section 1.1, “The Specific Plan provides a vision for a unique new neighborhood that will incorporate the site’s unique agricultural characteristics” and further in Section 3.4, Neighborhood Identity: “The Specific Plan Area is a unique site within the Town of Los Gatos, and within the region. By utilizing quality signage, architecture, and identity elements, the Specific Plan Area can: 1. Create a gateway statement for Northern Los Gatos. 2. Incorporate architectural, landscape, and signage elements to unify the Specific Plan Area as a new neighborhood with its own identity while complementing the existing Town character and charm. 3. Connect this part of Los Gatos to the rest of town. 4. Reflect the agricultural history of the site.” It further states: “…the Specific Plan Area should be treated with a unique image, or “brand,” appropriate to its history and relationship to the Los Gatos community.” 6) “That look and feel is identified -- actually, this was -- I thought this was really helpful. Because lots of people talk about look and feel. This look and feel was identified in the Applicant's Exhibit G to their Attachment 17, I believe it was. And they talk about a blend of elements, of variety. They have photographs of the look and feel. They identified the look and feel by pictures taken throughout the town of Los Gatos. And that look and feel is consistent with what I would identify as the look and feel based upon what I, throughout my history here in this Los Gatos, have seen what the town looks like. It's not a uniformity. We don't match. We don't have a uniformity. But we blend. What we have here in this application is a disconnect. Not a blending. We have a disconnect. We have a disconnect in the style and the size and the massing. It isn't that Los Gatos doesn't want modern buildings, doesn't want, you know, flat-roof buildings. That's not the point. The point is that we have -- we want an application -- a development that blends. We don't want to have a distinct district that Council, in 19- -- in 2012, unanimously voted against. I actually am going to -- it's my intent to address the specific plan, as it relates to residential, separately from eco nomics. So based on those provisions of the specific plan and the other provisions and items which I just addressed, I am now going to move that, based on that information, we deny this application for failure to comply with the specific plan, as stated. This could be a long evening. All right. That motion dies. Ms. Sayoc. “ 6 Analysis: Whether architecture “blends” or embodies the “look and feel” of the Town is highly subjective, as is illustrated by the numerous, conflicting statements by Planning Commissioners and Councilmembers regarding the Project architecture. The Town’s consulting architect concluded that the Project architecture did embody the look and feel of Los Gatos. The second motion for denial is based on the proposed commercial program. MAYOR SPECTOR: “And, again, this motion will be based on the specific plan and express provisions of the specific plan.” 1) “The specific plan Paragraph 2.4.2 requires an applicant to do an economic study to assess the economic competitiveness of the application vis -à-vis the downtown. The specific plan includes Appendix A, which is a marketing study. The applicant's Attachment 17, Exhibit 7, attempts to address the Planning Commission's motion. The Planning Commission, as part of its motion to deny this application, referenced the fact that the economic study provided by the applicant was inadequate. So the -- when it came before the Council, a new Attachment 17, Exhibit 7, was provided. That economic study failed because, first of all, its center opinion is that the North 40 does not have a leasing advantage. That leasing advantage opinion is not the kind of information our specific plan was addressing. What we were looking for -- and also the specific plan -- the application did not address what the 26,000 square foot of commercial will be other than the market hall.” Analysis: The December 2015 Economic Report by Keyser Marston Associates (KMA) that was submitted in support of the application in fact addressed the 26,000 square feet of commercial space outside of Market Hall. It characterizes the 26,000 square feet as comparison retail space and states, “(a)ccording to this information, comparison retail space would consist of apparel, shoes, home furnishings, and other specialty stores (bicycle shop, b ook store, jeweler). A portion of comparison retail space may also be dedicated to personal and financial services (gym, bank, hair salon). In the July 21, 2016 Supplemental Economic Analysis, KMA further describes the 26,000 square feet. It states, “The remaining balance of 26,000 square feet is being targeted for neighborhood serving retail/commercial spaces that can also include neighborhood serving service businesses such as financial, medical, educational, fitness studios, personal services, and the like. In other words, the 26,000 square feet might not be exclusively traditional retail such as the traditional retail tenants in the Downtown Core and might not include any formula retail. The limited size of 26,000 square feet might be, for example, 10 sh ops if the average were 2,600 square feet per shop.” 2) “The economic study did not address the Town's identified commercial leakages, which included general merchandising.” Analysis : General merchandising is typically found in larger footprint stores. As stated in the BAE Urban Economics Market Study and Business Development Strategy dated August 12, 2011 (attached to Specific Plan), “larger retail uses should be configured on the north end of the site with any other large users (e.g., hotel), with smaller mixed-use, such as buildings containing specialty food or other smaller shops with office or residences above, could act as a buffer for more residential areas.” The application is focused on the southern Lark district as well as the “buffer” transition district. According to the Town’s North 40 Specific Plan, the opportunities to address the leakage category for building materials and general merchandising shall be considered in the Northern District as stated above. 7 Furthermore, the same BAE study states “despite the Town’s profile, with high home ownership and income levels, the Town has limited specialty food retail, showing no sales in meat markets, fish, and seafood markets, and product markets. Given the Town’s already-strong attraction as a food shopping destination, this may represent an opportunity to broaden the food retailing mix and enhance the Town’s strong position for this retail category”. This was reinforced in the BAE Urban Decay Study from November, 2013. This need is addressed with the proposed Market Hall concept in this application. 3) “It does not address the identified need for 10,000 square feet or above of commercial units.” Analysis : This need is partially addressed as follows: • Build ing A2 in the Transition District is proposed to be 10,412 square feet • Building B1 in the Transition District is proposed to be 22,700 square feet with market hall representing 16,380 square feet • Building C1 in the Transition District is proposed to be just under 10,000 square feet at 8,162 square feet Additional larger format retail stores shall be considered in later phases within the higher intensity Northern District as outlined in the Town’s North Forty Specific Plan. 4) “It did not address the new office and hotel uses which were suggested.” Analysis: As stated in the North Forty Specific Plan: • The Lark District is envisioned for residential and “limited retail/office uses”. Office development has already occurred in the Lark District with the three relatively new office buildings on Los Gatos Boulevard. • The Transition District provides a buffer between the Lark District and the active retail and entertainment emphasis of the Northern District. “The Transition District will accommodate a range of uses including neighborhood-serving stores, specialty market and mixed -use housing with residential units above commercial.” It also says a hotel or hospitality use could be a part, but is not required. Office is permitted but not required. • The Northern District envisions hotel and office uses 5) “And it did not address the number of commercial units by square footage; i.e., X percentage at a certain square footage. So because of these deficiencies in a mandated requirement of the specific plan, I'm going to move that we deny the application.” Analysis : While there was extensive debate on prescribing specific percentages to square foot ranges of commercial units over the years, the North Forty Specific Plan does not contain a requirement that commercial units must fit into specific square foot ranges. A table that assigned these percentages was contained in the draft North Forty Specific Plan but was not included in the final document that was approved by Town Council. 8 Thank you for your time and consideration. Sincerely, A. Don Capobres Linda Mandolini Wendi Baker Principal President Vice President of Development Harmonie Park Development Eden Housing SummerHill Homes Representing Grosvenor Exhibit A TOWN OF LOS GATOS TOWN COUNCIL ARCHITECTURE AND SITE APPLICATION S-13-090 AND VESTING TENTATIVE MAP APPLICATION M-13-014 REPORTER'S TRANSCRIPT OF VIDEO RECORDING Date: Time: Tuesday,August 16,2016 7:00 p.m. Location:Council Chambers 110 East Main Street Los Gatos,CA Reported By:Noelia Espinola,CSR License Number #8060 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 2 A P P E A R A N C E S Town Council: Community Development Director: BARBARA SPECTOR,MAYOR MARICO SAYOC,VICE MAYOR MARCIA JENSEN,COUNCIL MEMBER STEVEN LEONARDIS,COUNCIL MEMBER ROB RENNIE,COUNCIL MEMBER JOEL PAULSON The Reporter:ADVANTAGE REPORTING SERVICES BY:NOELIA ESPINOLA, CSR #8060 1083 Lincoln Avenue San Jose,CA 95125 (408)920-0222 --o0o-- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 3 P-R-O-C-E-E-D-I-N-G-S MAYOR SPECTOR:We have one public hearing this evening.This is agenda Item 4.Architecture and Site Application S-13-090 and Vesting Tentative Map Application M-13-014.Property Location:Southerly Portion of the North 40 Specific Plan Area,Lark Avenue to South of Noddin Avenue.Applicant:Grosvenor USA Limited.Property owners:Yuki Farms,ETPH LP --LT [sic],Grosvenor USA Limited,Summerhill N 40 LLC and Elizabeth K.Dodson and Bill Hirschman. So before we --this is a continuing or continued hearing.So before we go forward, I just want to give some process.The way the process will begin this evening is I will ask Staff if they have anything further they wish to provide us,any information. I will then look to Council and ask Council if they have any questions of Staff.And after we get through those two steps, I will then explain to everybody how we will be proceeding. So starting with Staff. STAFF:Thank you,Madam Mayor.Staff has nothing to add. MAYOR SPECTOR:Do we have questions of Staff? I do have one question of Staff,but I have to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 4 find it here. I was reading the General Plan --that's what I do --the housing element.And one section of it states "If housing affordable to very low and low-income households is part of a mixed-use development,it will occupy at least 50 percent of the mixed-use development."The affordable housing will occupy at least 50 percent of the mixed-use development. So,to Staff,for the purposes of the application before us this evening,did the lower-income housing occupy at least 50 percent?And, if so,how was that percentage calculated? MR.PAULSON:Thank you,Mayor. So Staff looked at the mixed-use building which contains the affordable housing for the very low-income seniors.And those square footages were used to determine whether or not it was 50 percent of that commercial space. Additionally,there are --there is one other building that contains mixed-use development.Does not contain any affordable units.And that is Building A1, which has the eight apartments and the two live/work units above it,across from the market hall and senior housing. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 5 So the other calculation there is not giving credit for the nonaffordable residential but including the commercial for that component as well,and that also meets the 50 percent threshold. Staff did not include the three standalone commercial buildings as they're not mixed-use buildings. MAYOR SPECTOR:Thank you. And any questions on --for Staff on that issue? Seeing none,all right.Then the way I am asking the Council to proceed on this is for the purpose --well,first I'm going to talk to the community. You may be hearing things from the Council this evening that you like;you may be hearing things from the Council that you don't like.But I would ask you to give us all the respect that we have given you. And I would ask that there be no audible expressions of your liking or disliking of what we say.So that's the first thing. For the Council, I'm going to suggest that we begin with discussion,if there is any discussion, before we get to a motion. And also with regard to the Council,it may 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 6 be that somebody on the Council will say something. And if we were in a social setting,you would just like to ask them a question. "Mr.Rennie,what do you mean by that?"But,as our rules require,everything does go through the chair or the mayor.And so I will ask that --that we do it that way tonight. So,for example,if Mr.Leonardis makes a motion,you have a question about the motion,that's fine.But just state the question and then --not directly to him,but just state it and then we'll see if he wishes to respond or not. Any questions on that?Nothing unusual. That's how we do things. All right.So then let's get to the council discussion,motion,since we have no further questions. And Ms.Jensen. (Inaudible) And is this discussion or motion? COUNCIL MEMBER JENSEN:This is discussion -- it's going to be long.So maybe Ms.Lombardo can make that a little bit bigger. But at our last meeting on this item --and I stand up because I try cases,and I'm way more comfortable standing up.So that's why I'm doing it. The red outline portion is the --what I'm going to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 7 call the specific planned area. When I started getting involved in planning in Los Gatos in -- I'm not going to tell you because it's too long ago -- I was on the General P lanning C ommittee,and way back then we were discussing a specific plan for this North 40 area.We discussed it for many years. In 1999 we came up with a proposal,which we put together in a nice book,nice specific plan.It was presented to the Council at that time.It had commercial uses.It had office uses.It had no residential uses.It had limitations on traffic.It was pretty straightforward.And it was never adopted. So why would the Town want to do a specific plan?Because if you look at this parcel here,it's all trees.There's no infrastructure.There's no streets.If you look at the property around it,you see all the streets.You see how it's configured.It makes sense to plan for a particular area.That's what zoning is all about. The specific plan is a zone.It is zoned in different districts.Just like the almond grove is zoned residential,this specific plan is zoned for particular areas for particular uses,with the idea that it will be developed over time.When the almond 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 8 grove was zoned residential,no one dropped all the houses in at once.No one planned for the houses at once.Those houses get evaluated per the zone,and you have a right to build your house in that zone.So every time you hear "the buy right development,"it means,if I'm in a residential zone, I could build a house.So there's a specific plan area. And so if you can show me the next slide. That was --it's not the right one.Oh,no.That is the right one.Sorry.So that's why we did a specific plan as we have. People --and before we get to this,people have asked,Why aren't we seeing the rest of the plan? Just like we're not seeing the other houses in the almond grove,we're not seeing the rest of the plan because that property is not owned by everyone. And I think there's another picture there, Shannon,that you might have skipped which shows pretty --may not be there.There's a picture of the planned area,in any event,that shows the northern portion,which shows --that's it --if you look at the northern portion,the yellow and the red,those are all developed areas.So when you talk about,well,why don't we see it all?There's multiple property owners, multiple land uses.And so the specific plan was 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 9 developed with having to take those into account.So we're not starting with a blank slate and filling it in. So thank you.Now we'll go to the next one. So that's the general explanation of the specific plan and why we would do it.And I'm going to take the various issues that have been raised by the many meetings that we've had,the many e-mail communications we've gotten,in order. These represent --you're going to see slides that look like this.These are the minutes of the meeting where the specific plan was adopted in June of last year.And it highlighted specific areas.And then I put in pink at the bottom --which, unfortunately,doesn't show up very well.But this one is about infrastructure,traffic.And it indicates that the developer is going to pay for infrastructure improvements,it's all going to be funded by the developer and the developer has to pay school and impact --traffic impact fees.And that motion passed unanimously. So the next one.We did a --and this is -- these are tiny,so I apologize.As part of this development,all of you know an EIR was done.And part of that EIR was a traffic study.Traffic studies are 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 10 tricky things because traffic studies are done by charts and data. Traffic study in this particular instance was done by looking at charts that are put together in giant books by the international traffic engineers,and they take a particular use and they assign a number of trips to it.All of us that drive around say that can't possibly be right.And so we need to have more studies.So the Town did look at different things and did include different things in the studies.And I'll get back to the charts after I talk about this. But the Council looked at that EIR,and it said,You know what?We haven't talked about all the traffic impacts.We need to talk about Dell Avenue, Samaritan office building,Samaritan E.R.,and we need to talk about alternative ways of competing traffic because we might not trust the international traffic engineers.And also up there are other things that we want to have come back to us, a school demographic study and additional economic report.But staying with the traffic. So we did get that information back.It included Dell Avenue.It included Good Sam.It included office buildings.And it also included alternative traffic calculations.The fact is that 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 11 when all of that came back with what people had to do to make that work,the Council accepted that because that information was valuable and it was accurate, based on the means we used to calculate traffic. Many of you have said,That traffic study and that information is old.It's from 2014.Have you seen the traffic now?Of course. I drive in it. But the reason we used data,to get back to that,is --picture,if you will,something you're all familiar with.If I did a traffic study today --or actually,let's say on Tuesday,October 1 st,at 8:00 o'clock in front of the high school.The conclusion would be tear down the high school,widen the street to six lanes,and then perhaps you would achieve traffic mitigation for that.If I did the same study on Tuesday,June 15th,at 8:00 a.m.in front of the high school,the conclusion would be you can build five high schools.And,in fact,you can make this a lot narrower.Just have bike traffic. So traffic studies are a product of when they're done,how they're done,why they're done. That's why people end up using data.And it's uncomfortable.We don't like it because it's not --it doesn't necessarily reflect our experience.But that's what we have to go with,and that's what the Council 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 12 accepted. So we have the traffic study and we have requirements in the EIR and this specific plan for actual improvements to infrastructure that need to be made around any development that happens on the North 40,be it this application or any application that comes forward.So,actually,what this requires is infrastructure getting built in our town.It doesn't exist now.And I'm not here to say whether that's going to be good,bad or indifferent.But traffic engineers say it will make it better. The next issue that I've heard is with respect to schools.And we can't absorb the impact on the schools.There's a motion that the Council heard on June --in June 2015 regarding schools.Council Member Rennie asked to make sure that developers worked closely with the school district to project enrollment growth and address overcrowding.Again,you can't see it,but it passed unanimously. And so the next slide is --there's a letter from Superintendent Diana Abbati indicating that the school district and the developer reached an agreement independent of state law,which I'll discuss in a second,to contribute either two acres of land or $23,500 per house,market-rate unit,built on the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 13 application to the school,which ends up being about $6.5 million. So the school did actually engage in that agreement,and the developer actually did what the Town Council wanted them to do in working with the schools. We also had an extra demographic study,which you saw in the last slide,which indicated that there would not be particular impacts from this project.But we still have this agreement. And then going back to the state law,state law severely restricts what local jurisdictions can do with respect to schools.We can't consider the impacts.All we can do is collect a fee from a developer for any development that goes on.It's a set fee.That's required by state law.We can't do anything about that unless this legislature changes the law.It hasn't.So that's schools. The next issue that I hear about is housing. This one is very complicated.We had a -- I'm not even sure what that is.That's the school agreement.Okay. Never mind.We don't need to do those. Let's skip to Number 7.This is the motion with respect to mixed use and housing.And affordable housing in particular.We just had a question from the mayor regarding mixed-use housing.This is an 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 14 indication of when it can be built,what categories it needs to be in.And again,in the pink line that you can't see,it passed unanimously. So,again,we can't see it,but the implication is,well --that we have state requirements for regional housing needs assessments.We need to chip in.By state law,we need to do our part.Los Gatos needs to build 6 19 houses.We had a very dedicated Housing Element Advisory Board that was developers,business owners,citizens that worked really hard to figure out,Where could we plan for that?Not where we could build it.Where could we plan for it? And one of the things that we did was plan for it to occur on thirteen and a half acres on the specific planned area.Not this application.The specific planned area. What are the consequences if we don't have a certified housing element and we don't plan for it? Well,they're up there,and it's basically lawsuit.It could be a suspension of any right for any building permit in town.So if you wanted to redo your house, you couldn't if we didn't have a certified housing element.It could be challenges.It could be court-enforced housing elements or state-enforced or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 15 court-enforced decisions on land use,which we don't have now.So there are real significant consequences. What's another consequence if we don't do something here on this application or if we don't do something that we planned for that's in our certified housing element,we need to put it somewhere else.And what we discussed in the Housing Element Advisory Board is rezoning land on Los Gatos Boulevard,the rental place next to Classic Burgers.The Ace Hardware. There is other places that we discussed.But we'd have to put it somewhere else.We can't just bury our head and have it go away.So that's part of the housing. The other thing that I hear --and I think -- I'm going to look at the slides that you have.No. Not that one.We already did that one.But that indicates why the housing is hard to move.So,you know, I've heard,It's too d ense.It's too intense. Well,here's one about open space.This was a motion that was made on open space.Our specific plan calls for 30 percent open space;20 percent should be publicly accessible.And we actually opted to use communal open space rather than private.Again,that motion passed unanimously. As you heard -- I know you all are following this very carefully --at our last meeting,we have 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 16 limitations --again,state law limitations on what we can do,what we can't do.We can't require a park.We can't require more open space.We can require what's in our plan.Our plan requires 30 percent. And,finally, I'm going to get to the economic --that's for --this is one about a motion regarding drought.Many of you said,Well,we need green open space.And by that I think you mean lawns, et cetera.We made a motion that we need drought-tolerant plants and a water-efficient landscape ordinance.Lawn doesn't fit in there.And the trees do --again,that passed unanimously. And now our downtown economics.And,again, I've got pink.This is the only place where the Council disagreed.When we got to the end of the meeting,there was a motion made by now Mayor Spector to include a chart in our specific plan limiting the square footage of commercial space.And without specifying numbers,that motion failed.Another motion was tried.That motion failed. But the motion that did pass included not putting a table in,keeping a maximum number of commercial space,and requiring that any person that comes in and applies for commercial open space needs to present an individual economic study about the impact 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 17 of that space on the downtown. Vice Mayor Sayoc then added a condition that not only did it need to do that,but it needed to go back to our Conceptual Development Advisory Committee for public input on the impacts of that space.That passed 3 to 2,with Councilwoman Spector and Councilman Leonardis opposed. And then the only other motion on the economics was a comparison of initial use permits to the North 40 and downtown.Again,that passed --or the first one failed.The second one not to do that passed,again, 3 to 2,with Councilwoman Spector and Councilman Leonardis opposed. With respect to the economics of downtown, we've had three independent studies.One that was done for the EIR, a second that was done pursuant to a motion before the EIR was certified in 2014 and a third that was a supplement to the Planning Commission. And so where we are now is we have a specific plan,which was --we moved to adopt it on June --in June of 2015. A gain,that --that passed 3 to 2. And,as you saw from the motions that were made,the opposition was basically for downtown economics.And the split on the Council on downtown economics has gone beyond this motion to whether to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 18 retain former retail,whether to allow outdoor seating, whether to allow entertainment. And what I would say to the downtown business owners is competition is good.Rather than trying to build a wall off to other people,work with your council to make the downtown the best it can be.Work with us to deregulate so that you can compete on an even level and make our downtown great --greater than it already is. The next thing I wanted to talk about was look and feel.And the only thing I wanted to say that is beauty is in the eye of the beholder.Some of us might not think of three-story Mediterranean with -- white Mediterranean with red tile roofs would blend well in an orchard or look good from the freeway. I was actually in Yountville this weekend, and I visited a place that was built on a winery that was owned by an Italian family who had lived there forever.And the place that was built won all kinds of architecture awards,had a plaque up to honor the family.Its architecture looked like this.It was flat-roofed,using reclaimed wood and steel.It had a meandering path with,believe it or not,community gardens on the side of it.It had artwork.And it fit that space in Yountville. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 19 We can all disagree about that,but that's a subjective standard.So this council is going to have to decide whether that matches or not. And I only have --bear with me. I have two more things to say.Or three,actually. So litigation.Lots of you have said,Don't worry about litigation.We'll deal with that. Unfortunately,Mr.Schultz said we shouldn't worry about that. I happen to think it's irresponsible, being a lawyer myself,not to consider litigation and litigation risks and the cost of that litigation. I wouldn't do that as a steward of the town. I need to think about that.Litigation is expensive,and we need to know what the risks are. And,frankly,being a lawyer,coming from a family of lawyers,if I get a letter from a lawyer that says,We reserve our rights to do X, Y and Z,that's a lawyer doing their job.That's not a lawyer bullying. Bullying --and I'm sorry,but I'm going to have to do this.Bullying is being called a murderer in a town council meeting.Bullying is getting an e-mail that says you're going to be run out of town if you vote a certain way.Bullying is getting cars broken into and trashed.Bullying is tagging a sign next to your freeway.That's bullying. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 20 And for me to stand up here and say what I'm saying, I recognize that there are going to be personal consequences to it,but I have to be courageous enough to stand up to that and do what I think.Some of you have said you were hired to do X, Y and Z. I think I was hired to be a responsible steward for the Town. And I think that --where I'm going to end up on this is what I think that is. And where I'm going to end up is --many of the communications we've gotten are pitting developer versus town.And what we're forgetting is the Yuki family.Yuki family has lived in Los Gatos since the 1940s.In the 19- --in the 1930s and '40s,Takeo Yuki bought some land in the Salinas area and started an iceberg lettuce farm.He developed that into the most successful Japanese farming operation in the area. In 1942 Takeo Yuki and his family were interned during World War II.They were fortunate enough that they had a white male business partner who was able to keep that property for them during the three years that they were in a concentration camp. Mr.Yuki could not farm anymore,so he became a cook. When they got out of that concentration camp,they had property. But Salinas was not friendly to Japanese at 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 21 that time.So they bought land in Los Gatos, a welcoming community, a place where they could go and start their business and put down roots for their family.That was in 1945.They've been here since 1945. They have given property in 1956 to Highway 17 so that it could be built.Why?To circumvent the downtown,ironically. In 1960 --we heard a suggestion a couple of nights ago that the Yukis should donate six acres of their property for a school site,and we could name it after the Yukis.In 1960 the Yukis donated the land for Ralph O.Berry School.It wasn't named after the Yukis.It was named after Ralph O.Berry. I don't know who he is,but they have donated land for a school.It's now a community asset,as a JCC. In the late 1980s they donated land --thank you,Ms.Wideman [phonetic]. I never walked out on you.That's fine. MAYOR SPECTOR:Please. COUNCIL MEMBER JENSEN: I'm sorry.They donated land for Highway 85. So the Yukis have been a steward for this community.They have done a lot for this community. And to ask for them to give more at this time seems to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 22 me to be a bit unreasonable and a bit unfair. We all live in houses that probably were once an orchard.We all expect to be able to dispose of our property.We spend time in the Planning Commission and we spend time on the Town Council figuring out how property should be used,how it can be used.But we try to be fair.We don't really say,No,you can't. We figure out how to do it. That's why we spent time since 1999 figuring out how to do this specific plan.And I happen to think that it's the right thing to do for the Town.We are getting an infrastructure improvement.We are getting various other --the school is getting an agreement. But some of you have said,Well,what will your legacy be?And I don't know what my legacy will be after tonight.It's probably going to not be too pleasant. But for me and for my children --by the way, my son works in Los Gatos.He cannot afford to live here.He rents a house with four other people in Almaden because he can't afford it.Many of you read the letter from the planning commissioner in Palo Alto who moved because she's a lawyer,her husband is a tech professional.Couldn't afford to live there.It was 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 23 poo-poo'd on social media as not reality. Well,there are professionals --my child, who works in a tech startup --who cannot live here. And the fact is that a $900,000 house in Los Gatos is really cheap.My son still couldn't touch it,but at least it's something. And I want my legacy to be that Los Gatos is an inclusive community,it's a forward-looking community,it's a freethinking community and that it treats people fairly and goes through a process and then tries to do the right thing. So my motion would be to approve the application,and I probably won't get a second.But that's --that's my speech and that's my motion. MAYOR SPECTOR:Thank you. I have a motion. Is there a second? Seeing none,the motion dies for lack of a second. We w ill have -- I will be making a motion now,and I will ask the Council to please listen to it because it is going to begin with provisions from the specific plan before I get to the actual motion itself. And these --this motion is based on actual specific plan requirements.The specific plan requires smaller cottage cluster --the specific plan suggests 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 24 smaller cottage cluster in the Lark area.It speaks to lower-intensity residential envisioned for the Lark district.That's Paragraph 2.3.1. It anticipates lower-intensity shops, offices,residential land uses envisioned in the southern portion.That's Paragraph 2.4. Appendix 6C of the specific plan says that the specific plan development should address Los Gatos' unmet needs.And those unmet needs are identified as Generation Y and baby boomers. The development standards within the specific plan in Section 2 provide that we should ensure future development is comparable --is compatible with surrounding areas,complement the downtown and contribute to the small town charm of Los Gatos.The development standards of Paragraph --or Section 2 say that "the application project should be consistent with the land uses and vision of the" -- "as outlined in this chapter." This is an architecture and site application. Our architecture and site ordinance states, Paragraph 4, "We must examine site layout,including its appearance and harmony of the building with adjacent development." Paragraph 6,we must address exterior 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 25 architectural design of the building and structures. The effect of the height,width,shape and exterior construction and design must be examined.Our specific plan once again states the application,the development,must seamlessly fit,must complement,the existing town character and charm. Paragraph 3.4.It states in the specific plan,We must connect this part of Los Gatos to the rest of the town.Paragraph 3.4. Last time we had a meeting, I talked a little bit about the history of the vision statement. I like to think of this as its --you know,as legislative history,but that's because I too am a lawyer and we talk that way. And we had guiding principles.And on January 9 th,2012,that is actually considered in the Planning Department as a reset.So on January 9 th, 2012,this Town Council had a reset on its development of the specific plan.It --instead one of the council members said,It is unfair to the developer and the Town to go forward without a vision statement.We will have --if we go forward without a vision statement,we will have discomfort and dissension.We must decide -- and this is what we were saying on January 9 th.We must decide,will we have a continuation of what we -- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 26 currently exist in Los Gatos that will continue past Lark to 85 or will we have a distinct district? On the meeting of March 5 th,2012,this Council unanimously answered the question with a vision statement and guiding principles that continue the Los Gatos look and feel past Lark onto 85. That look and feel is identified --actually, this was -- I thought this was really helpful.Because lots of people talk about look and feel.This look and feel was identified in the A pplicant's Exhibit G to their Attachment 17, I believe it was.And they talk about a blend of elements,of variety.They have photographs of the look and feel.They identified the l ook and feel by pictures taken throughout the town of Los Gatos. And that look and feel is consistent with what I would identify as the look and feel based upon what I,throughout my history here in this Los Gatos, have seen what the town looks like.It's not a uniformity.We don't match.We don't have a uniformity.But we blend. What we have here in this application is a disconnect.Not a blending.We have a disconnect.We have a disconnect in the style and the size and the massing.It isn't that Los Gatos doesn't want modern 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 27 buildings,doesn't want,you know,flat-roof buildings. That's not the point. The point is that we have --we want an application -- a development that blends.We don't want to have a distinct district that Council,in 19- --in 2012,unanimously voted against. I actually am going to --it's my intent to address the specific plan,as it relates to residential,separately from economics.So based on those provisions of the specific plan and the other provisions and items which I just addressed, I am now going to move that,based on that information,we deny this application for failure to comply with the specific plan,as stated.This could be a long evening. All right.That motion dies.Ms.Sayoc. VICE MAYOR SAYOC:Just a question on the motion.You mentioned that you were --you were intending to discuss residential separate from commercial? MAYOR SPECTOR:Correct. VICE MAYOR SAYOC:So then this motion that is specific to this is just on the residential aspect of the application? MAYOR SPECTOR:It's based on failure to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 28 comply with the specific plan for the reasons stated. VICE MAYOR SAYOC:All right.Thank you. MAYOR SPECTOR:All right.Do we have a second? Seeing none,motion dies f or lack of second. Mr.Rennie. COUNCIL MEMBER RENNIE:Thank you,Mayor Spector.And I want to thank Councilwoman Jensen for the courageous going first and the history of the whole thing. So I'll frame my thoughts here but with a bit of a long story.But I want to start,actually,with a story.Shortly after I got elected, I met with supervisor and former state senator Simitian,and he asked me to lunch.It was kind of a give advice to a newly elected. And I told him I was looking forward to getting out into the community of Los Gatos,meeting people,learning about their problems and concerns. And,you know, I looked --and concerns that I could look for solutions and improve the quality of life. But I told him my biggest worry was how do I make a decision when there's many people on both sides of a passionate issue,and whatever decision I make will make some people unhappy? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 29 So his advice to me was to always lead with your values.So let me share some values with you. First,when I got elected I made myself a promise that I would always vote for what's good for the community and Los Gatos over what was best for my reelection.In this application there's been a lot of pressure and even bullying to just deny the application without even really looking at it carefully and doing a thorough analysis of the pros and cons in this case and also gaining a thorough understanding of the legal issues.It kind of felt like a siren song,trying to lure me into the political cover of a denial.So I'm resisting the siren s ong. From my analysis,it looks like a denial is actually worse -- a worse result for Los Gatos because --several reasons,but we'll start:State law requires us to approve this housing element site if it meets all the objective criteria. I listened carefully to Councilwoman Jensen and others who tried to poke, prod and beat on the legal requirements and t he objective standards,and I heard nothing that would give us any kind of chance to win a lawsuit. I think it's bad for Los Gatos to knowingly invite a lawsuit by not following state law.We heard Thursday night this could cost us a million dollars if we win or two or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 30 more if we lose. But beyond costs, I think it's even worse because we're going to lose --we're going to lose the ability to ask for changes to the proposal.If we lose the lawsuit,which I think strongly that we would,we get exactly what's there.We get an approval,which -- I believe there's many things we can change in the proposal to make it look and feel much more like Los Gatos.Thus, I believe a straight-out approval or a denial,which is the same as an approval,is not the best for Los Gatos. I would add that there are some that think it's worth millions --you know,it's worth the Town's millions to delay building anything.But there's laws that are coming that are going to make it even harder or impossible to play such games. I want to mention AB-2584 just passed the Assembly yesterday,is on the way to the Governor's desk,which will further strengthen the Housing Accountability Act.And two key points in that is the judicial review of lawsuits will now have to be done within 60 days.You can't draw it out for five years.And also it makes it easier for third parties,such as building associations or housing advocacy groups,to sue without the developer even being part of it.So the State is trying to tighten 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 31 this up even more. So let me go to another value of mine,which is compromise or meeting somewhere in the middle. Especially on contentious issues.Although the -- although the issue of not following state law is forcing us into a compromise in my analysis,this is -- this is where we should -- a compromise is where we should start anyway and see if there's -- a reasonably acceptable proposal can be created from it. What can we change in the proposal?Many do not like the density and the number of housing units, but these are both required by our state housing element.If a developer proposed less density,we'd have to reject it because it didn't meet our housing element. If we could wave a magic wand and make this developer go away,we could get --we would get another proposal that is the same density and potentially even more units since the current application doesn't ask for the maximum number of housing units.But we could be worse off on many standards we care about,because the current application does not push any of the limits.We could get in the Lark district 30 percent open space instead of the current 43 percent open space.We could get 15 percent two-story buildings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 32 instead of the current 29 percent.We could --we could get more residential square footage than the current proposal.It's only 62 percent of the maximum residential square footage allowed there.We could lose the bicycle improvements and amenities that have been added. We could lose the 6 million in extra payments to the school district.Maybe we should get more units not in the Los Gatos Unified School District,but maybe we would get more units not in the Los Gatos Unified School District but be forced to take the students anyway,as almost always happens when district lines split a neighborhood.But now Los Gatos Unified School District would not get the extra payment.They would not get the SB-50 payment.They would not get property tax.And they would be much worse off.And since we cannot make land use decisions based on schools,we'd be stuck with whatever situation --you know,worse situation for the schools without being able to deny it because it's worse for the schools. Another thing to remember is that this application is required to put in traffic improvements to offset the maximum possible build or at least most of the improvements for the maximum possible build in the North 40.Thus,if we approve Phase 1,there will 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 33 be significant net improvement in traffic. I know people won't believe it.But at least until Phase 2 or the rest of it is built,it will actually be a net positive in traffic. So,again, I think there are many things we can change to make this application much better without taking the high risk of getting no changes and paying dearly for it. So I'd like to give my list,if I could,take a little more time,if that's all right with the mayor. And I would add -- I would add one more value here. I --one --another value of mine is seniors. Service for seniors is very important,along with housing and even low-income housing.Some have belittled the low-income senior portion of the project. And if I could tell another story.When I was campaigning, I was knocking on doors in a neighborhood off of Los Gatos Almaden, b ounded by Carlton over there.And I -- I knocked on a door,and there was an older lady in a duplex.And she was telling me the story about how she lived in Los Gatos all of her life and,you know,she didn't have any family to help her,and she was running out of money. And she didn't know how much longer she could live there,and where she would have to move to -- I'm 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 34 sorry.This always breaks me up.So she --she cried for ten minutes on --while I stood in her doorstep. So I told her I was -- I would always remember her need.Let me recover from that story.Sorry. So let me go to my list of changes that I -- I would like to do.And these are all changes to the satisfaction of the planning director.So they're ministerial reviews that we can do without prompting a lawsuit,in my belief. First, I'd say views are a --views are an important value to Los Gatos.So I would say that down the streets,looking to the west,that we replace --so these are the streets that are running towards 17 --we replace a few of the trees in that Highway 17 screen with a shorter variety of tree.Again,this is to the satisfaction of the planning director to work this out so that there's a chance to keep some of those views. Second, I would change the Highway 17 screen type of t ree from the 65-foot trees to an evergreen that is something in the 40-to 45-foot maturity. Again,planning director to approve this. I would plant the Highway 17 and Lark screen trees --there are three here --screen trees as soon as possible and before the first building,as is feasible,ensuring that --the survival of the trees during the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 35 construction.So,basically,get these trees growing as soon as possible so that we can get the site in its --so all of these kind of go to --well,view quarters but also this value we have in Los Gatos that we drive down the highway;we want to see trees and we want to see ridges.So by lowering it from 65 to 45, we won't wipe out the ridges.And by getting trees planted sooner,we can see more trees and less of this project. So,Number 4, I would say that the applicant work with a consulting architect to change the architecture of market hall and the surrounding commercial buildings to choose materials that are less like this cold steel and glass and more --the words I've heard are materials that age or that kind of blend a little more with the farm setting and probably even blend better with the materials that have been used on the housing units,the wood and the metal. Number 5, I would say change the architecture and possibly materials on Buildings 24 and 25,which are the two on Los Gatos Boulevard,the two residences, to better blend between the existing commercial buildings.These are sitting between the gas station and the one building and then the Herschman building, those commercial buildings.To better blend with 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 36 those --to those and then also to blend to the rest of the site that is going to be behind them. Number 6, I would say change the flat-roof row house Elevation A style to the Spanish --Spanish or Mediterranean style that the developer showed us they have available.So we're getting some Spanish into this.What they showed seemed like it would also blend together with what's there. I would also change the buildings on Lark Avenue. I think Lark is important because this is where the houses blend with the neighborhoods across. And,again,they look --they look too modern.They maybe blend with the Netflix building but not really with the neighborhood.So I would say change Buildings 1, 6,12,18 and 21 to either Spanish or Craftsman.And,again,the applicants showed us that they had some --some ready-to-go architecture for those. And then,Number 8,going to my senior value, they also said that they could,without changing the bones of this,integrate ten more first-floor flats in the market-rate condominium clusters to provide an additional housing opportunity for seniors.These couldn't be --we can't require them to be age-restricted,but they would be more appealing to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 37 seniors because they would be single-floor flats on the first level. And I believe that is my list.So should I make that a motion or just -- MAYOR SPECTOR:That's --right now we do not have a motion on the floor.So -- COUNCIL MEMBER RENNIE: I'll go ahead and make that a motion. MAYOR SPECTOR:If we could --if you --so that we know what the motion is --because,obviously, this is very important --would you tell us what portions of that are the motion? COUNCIL MEMBER RENNIE:So my motion is to approve the items that I listed. I can list them again. MAYOR SPECTOR:If you would,please. COUNCIL MEMBER RENNIE:These would be to satisfaction of the planning director.So they would be to remove a few trees that block --the Highway 17 screen that block the view quarters down to the west. Change the Highway 17 tree screen to a 40-to 45-foot evergreen variety.Plant the Highway 17 and large screen trees as soon as possible without increasing danger or damage from construction. Work with a consulting architecture on the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 38 market hall and commercial building architecture.And change the architecture on Buildings 24 and 25,which are the two on Los Gatos Boulevard,to something that --there's still going to be housing units but something that blends a little better with the commercial buildings next to them. Change that --all of the flat-roof row house Elevation A styles to a Spanish or Mediterranean style. Change building architectures,Buildings 1, 6,12,18 and 21,to Spanish or Craftsman. And then Number 8,integrate ten more first-floor flats in the market-rate condominium clusters.Those are the big hookeys at the top up there.They had units that faced away from the highway.That would be ideal for that. That's my motion. MAYOR SPECTOR:We have a motion.Do we have a second?Ms.Jensen. COUNCIL MEMBER JENSEN: I'd be prepared to second the motion.However, I would like to ask the maker of the motion if he would consider making some changes to his motion. COUNCIL MEMBER RENNIE: I would consider. I'm all for -- MAYOR SPECTOR:Wait.This is what I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 39 mentioned at the beginning. COUNCIL MEMBER RENNIE:No questions.Sorry. MAYOR SPECTOR:So,Ms.Jensen,if you could just make your suggestions. COUNCIL MEMBER JENSEN: I will. So,as a potential seconder, I accept the replacement trees,the tree height and the planting of the trees prior to the buildings.Accept the changes to Buildings 24 and 25.And I accept the change proposing ten more first-floor flats for seniors. What I would propose be changed are those suggestions from Mr.Rennie or those things included in his motion that refer to architecture.And rather than specifying a particular style --for example,Spanish style or no flat roof or the other specifications that are listed -- I wonder if Mr.Rennie would consider making that change to be have the applicant work with the consulting architect to develop alternative styles to the satisfaction of the planning director. MAYOR SPECTOR:All right.Mr.Rennie,you have a motion.It's not seconded yet,but there are suggestions.Do you adopt those suggestions? COUNCIL MEMBER RENNIE:Yes, I'll adopt those suggestions. MAYOR SPECTOR:Do we have a second? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 40 COUNCIL MEMBER JENSEN:Then I'll second the motion. MAYOR SPECTOR:All right.We have a motion and a second. Now,discussion? Well, I will weigh in on this a little bit. When the maker of the motion was first discussing the --basically,the foundation for making this motion,he was talking about there are --what we -- what does one do when there are people on both sides. And it's difficult.And,quite frankly,there is almost always people on both sides. And so what you do when you have people on both sides is you look at your ordinances and your law, and you let that be your guide.And so,therefore, that was the reason,when I made my motion, I based it all on the provisions of the specific plan. With regard to lawsuits,the lawsuits or the threatened lawsuits have been raised several times during our hearing thus far this evening.And,quite frankly,lawsuits and threatened lawsuits have been raised in my history here on the Town Council.But lawsuits are not a basis for making a decision.The law and your standards and your plans are the basis for making a decision.Not lawsuits. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 41 Further discussion? Ms.Jensen. COUNCIL MEMBER JENSEN:Just some further discussion and then another request for an amendment -- I guess I can't request it,so I'll make it a second motion,depending on what happens with this. But lawsuits are no part of my decision. I think that we have complied with our specific plan, which is the ordinance now and general plan and zoning of our Town.And so,for that reason, I think that the motion to approve is also in compliance with our town ordinances. With that --and I have previously seconded the motion. MAYOR SPECTOR:Further discussion. All right.Ms.Sayoc. VICE MAYOR SAYOC:Okay.So this is a rather difficult decision, I think,for all of us,as you could probably guess by the many --many questions, many comments,many hearings that this has entailed. But I think what's particularly difficult is --based on what everyone has said, I find I agree with Council Member Jensen, I agree with Councilman Rennie, I agree with Mayor Spector.The issue is how you craft whether it's a motion or a decision that 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 42 encompasses the direction you want for us to move forward.Overall, I'm always trying to look for the compromise. So the difficulty I have in this particular motion is,when we have asked for these changes in the past as a planning commissioner,as a council member, I have always wanted to see what it is I'm approving. And with a project so large and so controversial and so visible as this, I have significant reluctance in just saying,Okay,and I'm going to hope for the best. I have utmost respect for our staff. I think they would do this,but I also don't think it's particularly fair to place the burden of all of these hearings onto their decision as this moves forward.That's my biggest impediment. You know,we talk about our values.We talk about our wish list. I --frankly, I wish I had more time to --because I do think there are some very positive attributes of this project that we have been able to reach based on the many years that we have been working on this.Whether you like it or not,this will be developed.And there's some very positive things. I think they have been enumerated. I think I need to mention it again.The traffic improvement on Lark and Los Gatos Boulevard has 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 43 not occurred,and this is a way for us to do that.The community gardens. I'm a big believer.And that's something that will significantly retain the agrarian history of that area. There's many areas that we can look towards, but unfortunately the sheer size and complexity of this project just makes it difficult for many people to look towards the positive.We talk about our values. I mentioned in the last one,this evolution of thinking. I am a big believer in that we need to help address the housing crisis in our area.That was the biggest reason that I approved --the housing element,one of the biggest reasons I approved the specific plan. I'm totally committed to that. But,again,as I mentioned last time, I just don't think that our commitment to build 270 units has to fall on the 20 acres.That's the biggest area where I'm stumbling at,and that's the biggest reason I can't support this,moving forward. Now,we talked about the --the --where is it in the specific plan that says that?Well,where does it say that the 20 acres have to be in the area for it? And if you were looking at the intent,which I also discussed,Public Policy 101,the intent --as 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 44 we are discussing housing element,as we were discussing specific plan,there was an intent,at least on my part,that this was going to be spread out in a fashion so that it would seamlessly blend with Los Gatos.Do I have the architecture and the plans to do that?No.But do I know that this is it?Also no. And so,with great reluctance, I can't support this current project.Again,there are so many attributes.And it's not a "he" --it's not an "us versus them."You know,this need to find a villain out of all these many years of working on this,it doesn't have to be there.We're trying to provide housing for people. And working on controversial projects -- I remember Netflix.And I remember so many people that said our community --our character is not --it's not --you know,we don't define it by the buildings. And that was a project that was looking at 85 feet.We define our character in our small town by ourselves. And so the fact that it has gotten so nasty, that's --that's an awakening that if we don't want for this project to fail from the outset,we have to do a little bit more to make sure it's something that we can stand behind. And at this time, I just don't think this is 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 45 it. MAYOR SPECTOR:Further discussion? Mr.Leonardis. COUNCIL MEMBER LEONARDIS:Thank you,Mayor Spector. By this time of the evening you're probably looking at me saying,Hey,that guy is the swing vote up there.And that's always a position that a council member may or may not want to be in. First of all, I want to thank everybody for their extensive writings and participation in this community process.As you can see,there are four council members up here who have spoken so far,and there's a lot of emotion.There's a lot of pressure on us to make a decision on behalf of the community. There has been talk about our legacy.There has been talk about what's best for the housing,the people of Los Gatos in the future,the traffic.All of these things.And this project can solve problems.It can create problems.We've heard from both sides. For me,the difficulty I have moving forward at this point in time is we've received significant feedback from the community.Some of that feedback that I want to bring to light was about the existing units on the property that were occupied by renters. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 46 There were 16 of those units.And they were available to low-income applicants --or low-income residents, I should say.And those don't appear to be replaced,per se,other than in the form of senior housing.That senior housing is limited to residents that are 55 and older.So I'm not sure of the direct replacement,even though there would be 49 low-income units --how that comes into play with other things that are tied to it, such as the density bonus. There's three individuals that spoke at our public hearing --also submitted written correspondence --that have brought up points that give me pause,going forward this evening with any kind of a decision until I get more information on these topics. One of them was a guy named Jeff Eisenbaum. He spoke about the grading.And I thought that his presentation was something very unique. Before --how can I say it?Not the kind of -- a lot of us come in with a lot of emotion. There's parents who worry about school overcrowding. There is people who worry about the traffic.Those kind of arguments.There is people that worry about the look of the property. But these are points that I'm bringing forward that if there were to be any kind of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 47 litigation,which I pray there isn't,moving forward -- but I want to get resolved on these things in a way to avoid a potential litigation.Because litigation isn't good,whether it's brought forth by the community or the developer. It just --as Mayor Spector mentioned,she's been a part of that ever since --you know,she's been on the Council.And I,in my career of six years,have witnessed it on a number of occasions already. So,you know,looking at some kind of a compromise,going forward, I think these points have to be clarified.So one was the grading issue.Another was a letter presented by a gentleman named Peter Dominick regarding the density bonuses.He brought up a lot of good points.And those points could affect the overall amount of units throughout the --the course of the project. And last but not least was Angelia Doerner brought up the existing rental units and how the elimination of those,with the replacement of --with the senior-only housing,might affect density bonus law and all of these things. Now, I know the developer and Mr.Faber,the attorney,presented a good case last time and what their interpretation of those laws were and the density 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 48 bonuses and the grading and such.But I'm still not satisfied,after receiving even more correspondence from the community,that we have all the answers on these things.This could adversely affect the number of housing units in this project.And,to me, I think we really need to nail down that number before we start talking about where the housing will go,what type of housing it will be,and who --what income levels would be in those housings and in those types of things. So I,at this point,want this to be very well vetted,because this could be the basis of litigation or something moving forward.And I don't think we have all the answers. I think,if we as a council voted this through this evening,in some form, without having this information,inevitably one side or the other could bring litigation,and these points can come up again.And it would --it would be either the basis of the litigation or it would be --how can I say it? I can't say it.It would be probably the basis of the litigation. So,for me, I need more information before I'm willing to move forward with a decision this evening.And that's where I lie on this particular motion. MAYOR SPECTOR:Thank you. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 49 With regard to the pending motion, I'll speak to some of the things raised when that motion was made. There are a number of items that the motion suggests be revised on the application.And those will be done by Staff on a ministerial level.Because this project is so large,because these issues are so significant,that would not be the kind of thing that I would be comfortable having vetted on a staff level as opposed to the Planning Commission and the Council. One of the reasons we are in that situation -- i.e.,the situation of having this vetted by the Staff as opposed to the Planning Commission and the Council --is because there is law that the developer is using that puts a time frame within which this Council must make its decision.And that deadline is now September 7 th.So there would be no way for any issues to go back to Staff,Planning Commission and Council.But to the extent that this motion is sending things back to the Staff, I think they are far too large and far too significant. With regard to the statements in the motion about how this project will --will have improvements for traffic and gardening and maybe even bicycling -- I can't remember all the things that were said --those are good things.And those are good things that will 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 50 happen with a future project.But for me it has to be a future project that is consistent with the specific plan.And this is not. And lastly,with regard to housing,yes, there is a -- a push by government entities at various levels that the Town and other cities provide affordable housing.But the reality is,in this application,we're getting 49 below-market-rate units for seniors.That's great.But the remainder of the units --the hundreds of the remainders of the units are going to cost,we are told today,somewhere between 900,000 and the one and a half million that the person who buys it is going to have to be able to put a 20 percent down payment and is going to have to have a salary of something like 1 30-to $200,000. So we are --we are asked to face a burden of density and intensity and traffic.But we're willing to do it --at least I'm willing to do it --if we could get more below-market-rate units.But we are getting relatively few,and we are getting a lot of expensive homes. Further discussion on this motion. All right.We have a motion.It is seconded.All in favor? (Two members responded Aye.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 51 MAYOR SPECTOR:Opposed? (Three members respond No.) MAYOR SPECTOR:All right. I'm going to have to have a show of h ands.All in favor. (Two members raise hands.) MAYOR SPECTOR:Okay.Mr.Rennie and Ms.Jensen,yes. And let's raise the hands on "No." (Three members raise hands.) MAYOR SPECTOR:Mr.Leonardis,Ms.Sayoc, mayor,no. May I have another motion,please. Mr.Leonardis. COUNCIL MEMBER LEONARDIS: I'm prepared to make a motion at this time.But I think what I'm hearing from the discussion is we have a council that has two different points of view or more.And we have a council that has brought up points about compromise, moving forward,changes to the specific plan.We have somebody who is looking for more information to make sure that we d ot all our i's and cross all our t's. Moving forward, I would like to see a third-party opinion of some of these things that could become legal issues.Because,again, I don't want this thing to end up --it's not beneficial to the community 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 52 or to the developer if this ends up in a protracted legal battle.Therefore, I think we need to get this information up front. So,for me, I hear compromise. I hear more information. I hear --that's what I hear. MAYOR SPECTOR:Thank you. Motion? I might as well try the second component of my first motion.The first one was so successful. I figure the second component will be equally successful. And,again,this motion will be based on the specific plan and express provisions of the specific plan.The specific plan Paragraph 2.4.2 requires an applicant to do an economic study to assess the economic competitiveness of the application vis-à-vis the downtown.The specific plan includes Appendix A,which is a marketing study. The applicant's Attachment 17,Exhibit 7, attempts to address the Planning Commission's motion. The Planning Commission,as part of its motion to deny this application,referenced the fact that the economic study provided by the applicant was inadequate. So the --when it came before the Council, a new Attachment 17,Exhibit 7,was provided.That economic study failed because,first of all,its center 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 53 opinion is that the North 40 does not have a leasing advantage.That leasing advantage opinion is not the kind of information our specific plan was addressing. What we were looking for --and also the specific plan --the application did not address what the 26,000 square foot of commercial will be other than the market hall.The economic study did not address the Town's identified commercial leakages,which included general merchandising.It does not address the identified need for 10,000 square feet or above of commercial units. It did not address the new office and hotel uses which were suggested.And it did not address the number of commercial units by square footage; i.e., X percentage at a certain square footage. So because of these deficiencies in a mandated requirement of the specific plan, I'm going to move that we deny the application. Is there a second? Mr.Leonardis. COUNCIL MEMBER LEONARDIS: I'm not prepared to second that motion.But what I hear you saying is that we are lacking information.And I'm looking for information. I don't believe -- MAYOR SPECTOR:Mr.Leonardis, I'm going to cut you off there.Because,if I don't have a second, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 54 we're not going to have discussion. So do I have a second? Seeing none,motion fails for lack of second. Now we can get into discussion. Mr.Leonardis. COUNCIL MEMBER LEONARDIS:Thank you,Mayor Spector. So I being one of the two that voted based on the economics,which was eloquently pointed out earlier in the presentation,not being exactly --we were trying to look at things like CEPs in the North 40,we were trying to look at square footages of businesses. That was where,when we were making the motions last time,it fell short for me and I voted "No"on one of the categories. So what Mayor Spector just brought forth was, in my opinion, a request for more information.And I would be in support of that request as well as the items I mentioned earlier. And I want to elaborate on that a little bit. Again,we hear the developer's point of view.We here the public's point of view about things like density bonus and how many units you're entitled to and who can live in those units,whether the units are occupied by persons 55 years or older,whether those count,whether 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 55 the existing below --or low-income rentals on the property should be applied towards below-market-price units and whether that meets the intent of the Town of Los Gatos's ordinance regarding the below-market-price units. And,for me, I would like to get an expert opinion on this from somebody as well as perhaps an opinion from somebody at the state level,somebody who would recognize --we've heard a lot of talk about our RINA (phonetic)numbers and how this could impact that and what would happen with our RINA numbers. Considering there might be potential --or information in this approval that,if it were errant and we made an assumption that our RINA numbers are all fine and this application was put forth but it really wasn't,then -- and it was challenged and it turns out that the citizens were correct,what would actually happen. I don't want to make any more assumptions about this. I want to get all the facts up front. I mean,for me, I would rather get a little bit of information now than spend the next two years wrangling over this thing in closed session and having everybody walk away with less than what they had wanted. I mean, to me,it is really important to get all the details up front,verified by a third party.Because we have a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 56 developer and we have the community --they do not see eye to eye on this --and we have a Council who is caught in the middle,trying to make a decision on this. But,for me,it's all about the facts. I need to have the facts. MAYOR SPECTOR:Ms.Jensen. COUNCIL MEMBER JENSEN: I'd like to,if I can,convert Mr.Leonardis's comments into a motion and try that. What I hear Mr.Leonardis saying is that we need answers on specific things.One is,have the density bonus units under the density bonus law been replaced,quote/unquote,adequately under that law. And that would be the 16-unit repla- --16 units replaced. I know that there is an argument that this plan and application was valid and filed in 2013,so this law doesn't apply.But we are -- I'm hearing a council person who remains unsure about that,and we need a legal opinion on that. Help me out,Mr.Leonardis. But also the question of how does the density bonus apply,as raised by Mr.Dominick.We have his communications on our record,both of the Planning Commission and by e-mail. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 57 We also have questions from Mr.Leonardis regarding litigation risks,as I understand it.That could either be a confidential memo from our town attorney or closed session so that we understand that depending upon which action we take,what does our town attorney believe the ramifications of that to be. The other piece of information is how does this application comport with our RINA requirements. Do we need to supply additional low income?Do we not? What gets credited?What does not get credited?How does it get credited? And finally,economics. I don't actually have a question about that,but I understand that there's a dispute about the three studies that we've had.And,to me,whether leasing is included,whether hotel is included,whether office is included,all of those were included in the original EIR. The Council just has a disagreement.That doesn't mean that there's a factual error on one side or the other.It means that there's a disagreement about how to proceed and how to best help our downtown and how to best --to create competition.But I hear Councilman Leonardis wants more information on economics,so I'm happy to include that in the information we get. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 58 In support of the motion,we have two more scheduled meetings on this -- I know you're all thrilled to hear this,as I'm thrilled to hear it --on September 1 st and September 6 th.Seems to me that we can get that information back by the September -- hopefully the September 1 st meeting. And so my motion is to for that information to come back and,if necessary, a closed session to be scheduled to discuss litigation. MAYOR SPECTOR:All right.We have a motion. Do we have a second?Mr.Leonardis. COUNCIL MEMBER LEONARDIS:Thank you,Mayor Spector. I will second the motion.And I would like to ask the maker of the motion if we can have the Town reach out to our representatives at the state level and find out what the ramifications are of previously submitted RINA numbers and if for some reason there is some kind of an error in the specific plan because of the information that was brought forth by the public or whatever --if the housing units do not add up to be what we thought they would be,what would the ramifications be. I'm sure this has happened before.So I don't want anyone's decision to be based on the fact or -- a potential ideology that you have to do 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 59 something because a mistake was made.So you just have to accept the mistake or an error. I want the public's information to be incorporated into our decision.And if,in fact,they bring forth information that is valid and if,in fact,that were to reduce the amount of units on this property,then we need to find out what the ramifications of that are. So I would like us to reach out to the State and find out that information. MAYOR SPECTOR:All right.We have a motion and a second. Question of Staff:Before I get into my discussion of these various elements of the motion,is Staff prepared to respond to us by September 1 st? STAFF:Yes. COUNCIL MEMBER JENSEN:Madam Mayor,before you begin your discussion, I heard Councilman Leonardis made his comments as a request to add to my motion.So I think that I need to accept or reject that. MAYOR SPECTOR:Yes. COUNCIL MEMBER JENSEN:And I do accept it, and I believe it's appropriately made to the State Housing --HCD -- I don't -- I forget what that stands for --to request information from them and an opinion from them with respect to our --and I would add to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 60 that our housing element,should we do something different.And all of those comments that were made by Mr.Leonardis. MAYOR SPECTOR:Further discussion? Mr.Rennie. COUNCIL MEMBER RENNIE:Thank you,Mayor Spector. I'll just add for Staff,in case they don't realize it,that Attachment 15,Page 7,there's a letter from the assistant deputy director from Housing Policy Division of HCD that addresses a lot of those questions. MAYOR SPECTOR:Further discussion? I'm not going to support the motion because there's one component in it with which I disagree,and that's the economics component. I don't believe we need any more information on economics. I believe that it is contained in the specific plan. When I made my motion, I must not have been clear.My motion was that the application failed to comply with the requirements,the specific plan requirements regarding economic analysis,not that there was not an economic analysis attached. Further discussion. Seeing none,all in favor? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 61 (Four members responded Aye.) MAYOR SPECTOR:Opposed? (One member responds No.) MAYOR SPECTOR:And the motion passes 4, 1. Mayor,no. I believe that is all we have.Staff, anything? No,thank you. MAYOR SPECTOR:All right.Meeting is adjourned. (End of video recording transcription.) -o0o- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER'S TRANSCRIPT OF VIDEO RECORDING 62 I,NOELIA ESPINOLA,do hereby certify: That the foregoing video file was taken down by me in shorthand,and thereafter reduced to computerized transcription under my direction. And I hereby certify the foregoing transcript is a full,true and correct transcript of my shorthand notes so taken. I further certify that I am not interested in the outcome of this hearing. Dated:August 22,2016 NOELIA ESPINOLA,NO.8060 Exhibit B 5.LG.7Lark District Lo s G a t o s B l o u l e v a r d - S t r e e t s c a p e & C o n t e x t I n f o r m a t i o n SITE PLAN (NTS)LOS GATOS BLVD. STREETSCAPEBENNETT WAY LA R K A V E EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G G A S S T A T I O N EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G C O M M E R C I A L B U I L D I N G EXISTING COMMERCIAL BUILDING 08.25.16 19 2 - 0 7 2 Scale: 1/16” = 1’-0” 5.LG.6Lark District Lo s G a t o s B l o u l e v a r d - S t r e e t s c a p e & C o n t e x t I n f o r m a t i o n SITE PLAN (NTS)LOS GATOS BLVD. STREETSCAPEBENNETT WAY LA R K A V E EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G G A S S T A T I O N EX I S T I N G C O M M E R C I A L B U I L D I N G EX I S T I N G C O M M E R C I A L B U I L D I N G EXISTING COMMERCIAL BUILDING 08.25.16 19 2 - 0 7 2 Scale: 1/16” = 1’-0” Exhibit C Exhibit D Exhibit E Exhibit F 08-23-16 NORTH FORTY LOS GATOS, CA 1GROSVENOR MARKET HALL ELEVATION STUDY DESIGN AS SUBMITTED POTENTIAL REVISIONS 08-23-16 NORTH FORTY LOS GATOS, CA 2GROSVENOR MARKET HALL ELEVATION STUDY DESIGN AS SUBMITTED POTENTIAL REVISIONS Exhibit G