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Staff Report PREPARED BY: Levi Hill Associate Planner Reviewed by: Town Manager, Town Attorney, Community Development Department Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 04/18/2017 ITEM NO: 12 DATE: APRIL 11, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: CONDITIONAL USE PERMIT APPLICATION U-16-008. PROJECT LOCATION: 91 AND 101 W. MAIN STREET. PROPERTY OWNER: VERMONT BUILDING, LLC. APPLICANT: TERI HOPE. CONSIDER A REQUEST FOR APPROVAL OF A MODIFICATION OF AN EXISTING CONDITIONAL USE PERMIT (LOS GATOS COFFEE ROASTING COMPANY) TO ALLOW ON-SITE AND OFF-SITE BEER AND WINE SERVICE AND ENTERTAINMENT BEFORE 10:00 P.M. ON PROPERTY ZONED C-2:LHP. APN 529-01-025. RECOMMENDATION: Adopt a resolution (Attachment 3) approving a request to modify an existing Conditional Use Permit for 91 and 101 West Main Street (Los Gatos Coffee Roasting Company) to allow on-site and off-site beer and wine service and entertainment before 10:00 p.m. BACKGROUND: The applicant is requesting a modification to the existing Conditional Use Permit (CUP) for Los Gatos Coffee Roasting Company (Attachment 1, Exhibit 4). The restaurant’s conditions of approval currently prohibit the service of alcohol and limit live entertainment to a predetermined number of special events. The applicant is requesting the following:  Removal of the condition which restricts alcohol sales and service;  Addition of a condition which allows on-site and off-site beer and wine service;  Removal of the condition which restricts entertainment;  Addition of a condition which allows entertainment before 10:00 p.m. pursuant to the Policy for Late Night Entertainment (Attachment 1, Exhibit 9); and PAGE 2 OF 4 SUBJECT: 91 AND 101 W. MAIN STREET/U-16-008 DATE: APRIL 11, 2017 BACKGROUND (cont’d):  Modification of a condition to allow hours of operation from 6:00 a.m. to 11:00 p.m., seven days a week. On March 8, 2017 the Planning Commission considered the application, received public comment (Attachment 2 includes verbatim minutes), and recommended approval of the application subject to draft conditions. In accordance with the Town Code, the Council is the final deciding body for any new request for alcohol service. DISCUSSION: A. Project Summary The applicant is requesting a modification to the existing CUP, which currently prohibits the service or consumption of alcohol on the premises. The applicant is proposing the service of beer and wine with the purchase of a qualified meal pursuant to the Town’s Alcoholic Beverage Policy (see Attachment 1, Exhibit 8). The applicant has provided a project description and sample menu detailing the meals that would be available for patrons wishing to purchase beer and wine (Attachment 1, Exhibit 5). Additionally, the applicant is proposing wine and beer tasting classes along with off-site beer and wine sales in the existing retail section of the restaurant. All beer and wine sales and service would cease by 10:00 p.m. The applicant is also requesting to modify the conditions of the existing CUP which currently limits live entertainment to a predetermined number of special events. The applicant is proposing poetry readings, literature readings, light comedy, and musical entertainment before 10:00 p.m. in compliance with the Policy for Late Night Entertainment (see Attachment 1, Exhibit 9). Additionally, the applicant is requesting to modify the restaurant’s hours of operation from 6:00 a.m. to 10:00 p.m., seven days a week to 6:00 a.m. to 11:00 p.m., seven days a week. B. Entertainment Policy The adopted Late Night Entertainment Policy allows entertainment that complies with the noise ordinance by right before 10:00 p.m., and allows for late nigh t entertainment after 10:00 p.m. with the approval of a separate Late Night Entertainment permit . The Policy is consistent with the Town Council’s Strategic Priority to strengthen economic vitality and provide businesses with greater opportunities for customer attraction and retention. PAGE 3 OF 4 SUBJECT: 91 AND 101 W. MAIN STREET/U-16-008 DATE: APRIL 11, 2017 DISCUSSION (cont’d): Those establishments with existing CUPs that do not have conditions specifically allowing entertainment fall into three categories: those with a CUP that is silent on entertainment; those with a CUP that states they must comply with the Town’s provisions on entertainment; and those with a CUP that denies or limits the ability to have entertainment and/or amplified sound. For the first two categories of CUPs, the businesses are able to provide entertainment before 10:00 p.m. in compliance with the Policy. Businesses with a CUP that denies or limits the ability to have live entertainment and/or amplified sound, such as the subject property, are required to submit applications for a modification to their existing CUP. The applicant is requesting a modification to the existing CUP which currently limits live entertainment to a predetermined number of special events. The applicant is proposing poetry readings, literature readings, light comedy and musical entertainment before 10:00 p.m. in compliance with the Town’s Policy for Late Night Entertainment. C. Planning Commission On March 8, 2017 the Commission considered the application, received public comment (Attachment 2 includes verbatim minutes), and recommended approval of the application subject to the draft conditions of approval (Attachment 3, Exhibit A). CONCLUSION: It is recommended that the Town Council adopt a resolution approving the request to modify an existing CUP to allow on-site and off-site beer and wine service, entertainment before 10:00 p.m., and operating hours from 6:00 a.m. to 11:00 p.m. subject to the recommended conditions of approval included in Attachment 3, Exhibit A. ALTERNATIVES: Alternatively, the Council may: 1. Adopt a Resolution to approve the application subject to modified or additional conditions of approval (Attachment 3, Exhibit A); or 2. Adopt a Resolution to remand the application to the Planning Commission with specific direction (Attachment 4); or 3. Adopt a Resolution to deny the Conditional Use Permit application (Attachment 5). COORDINATION: The evaluation of the application was coordinated with the Building Division, Economic Vitality, and the Parks and Public Works Department. PAGE 4 OF 4 SUBJECT: 91 AND 101 W. MAIN STREET/U-16-008 DATE: APRIL 11, 2017 ENVIRONMENTAL ASSESSMENT: This is a project as defined under CEQA but is Categorically Exempt (Section 15301: Existing Facilities). A Notice of Exemption will not be filed. Attachments: 1. March 8, 2017 Planning Commission Staff Report (with Exhibits 1-10) 2. March 8, 2017 Planning Commission Verbatim Minutes (17 pages) 3. Draft Resolution to Approve the project (includes Exhibit A – Conditions of Approval) 4. Draft Resolution to Remand the project to the Planning Commission 5. Draft Resolution to Deny the project 6. Public Comments received by 11:00 a.m., Thursday, April 13, 2017 Distribution: Teri Hope, 212 Bella Vista Ave, Los Gatos, CA 95030 Vermont Building, LLC, 113 Edelen Ave, Los Gatos, CA 95030