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Attachment 4 LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 1 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 A P P E A R A N C E S: Los Gatos Planning Commissioners: D. Michael Kane, Chair Matthew Hudes, Vice Chair Mary Badame Kendra Burch Melanie Hanssen Tom O'Donnell Town Manager: Laurel Prevetti Community Development Director: Joel Paulson Town Attorney: Robert Schultz Transcribed by: Vicki L. Blandin (619) 541-3405 ATTACHMENT 4 LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 2 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 P R O C E E D I N G S: CHAIR KANE: We move to the Public Hearings portion of our agenda and consider Item 2, which is Conditional Use Permit Application U-18-004. Project location is 21 College Avenue. Property owner is Shari Flick. The Applicant is Nicholas Difu. We have a Staff Report tonight from Mr. Mullin. SEAN MULLIN: Thank you, Chair Kane. Before you tonight is a request for a Conditional Use Permit for a restaurant with alcohol service at 21 College Avenue in the C-2 zone. Pursuant to the Town Code, a restaurant use in conjunction with alcoholic beverage sales for consumption on premises is allowed with a Conditional Use Permit in the C-2 zone. The Applicant is proposing the service of alcohol with the purchase of a qualified meal pursuant to the Town’s Alcoholic Beverage Policy. The Applicant has provided a project designation and additional operational information, which has been included with your Staff Reports. The Town’s Alcoholic Beverage Policy requires any new service of alcohol to be reviewed by the Planning LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 3 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 Commission with final review authority resting with the Town Council. Pursuant to the discussion in the Staff Report, the proposed application meets the purpose, general policies, and specific policies of the Town’s Alcoholic Beverage Policy. An Addendum and Desk Item have been provided that provides public correspondence, which was received after the publication of the Staff Report. Staff recommends that the Planning Commission forward a recommendation of approval to the Town Council based on the evidence and discussion provided in the Staff Report and subject to the conditions attached to the Staff Report. This concludes Staff’s presentation, and we’re available to answer any questions. CHAIR KANE: Thank you, Mr. Mullin. May I see a show of hands of the Commissioners who have visited the property? Are there any disclosures for this item? Commissioner O'Donnell, you had your hand up. COMMISSIONER O'DONNELL: I just have a question of Staff. Is the restaurant next door, Nick’s restaurant, also open on Friday and Saturday till 12:30am? LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 4 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 SEAN MULLIN: I will defer to the Applicant to answer that question; I don’t know that answer. COMMISSIONER O'DONNELL: And you’re recommending approval and you don’t know whether… That’s kind of an unusual late time for a restaurant and a bar. I just thought maybe somebody took a look at that, no? SEAN MULLIN: I appreciate that, and it’s something I looked into very early on and I don’t want to misspeak to it. We did encourage the Applicant, as we do with most Conditional Use Permits, to look at and consider a wider range of hours they intend to operate to avoid having to come back for an amendment to a Conditional Use Permit later on, which would save the Applicant time and cost. COMMISSIONER O'DONNELL: Thank you. CHAIR KANE: Commissioner Hanssen. COMMISSIONER HANSSEN: I just had one question. One issue that was discussed in the Staff Report was about the noise level, because I guess part of the building is open and some of the noise can… But the conclusion that was in the Staff Report was that there is sufficient distance to let the noise attenuate. Did I get that right, or do you have any more details? I mean how much distance is there? I LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 5 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 looked at the drawings and saw the site, but it wasn’t clear to me how you came to that conclusion. SEAN MULLIN: The conclusion is that there have been previous uses there, and I did measure rough measurements to the residents uphill and across College Avenue, and the attenuation wasn’t measured or calculated, if that’s the question you’re asking, but it was thinking that there was sufficient space for it and that any noise issues would be handled on an enforcement basis. COMMISSIONER HANSSEN: Okay, good. My follow up question, then, is they’re subject to the Noise Ordinance anyway, regardless of the conditions of the CUP? SEAN MULLIN: That is correct. COMMISSIONER HANSSEN: All right, thank you. CHAIR KANE: So this CUP would be new insofar as alcohol being served in the restaurant. SEAN MULLIN: Correct. CHAIR KANE: When I visited the site today there were a number of alcoholic bottles up on the counter. Did they have a CUP for alcohol or some exemption under some private club consideration? SEAN MULLIN: I believe the private club allows the patrons to bring in their own alcohol, so it’s not for LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 6 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 sale; it’s provided by themselves to themselves and their guests. CHAIR KANE: All right, thank you. Any other questions? Seeing none, I’ll open the public portion of the public hearing and give the Applicant an opportunity to address the Commission for ten minutes, and we will be hearing from Mr. Nick Difu. NICK DIFU: Good evening, Commission, how are you? I will give you a brief history about me before I tell you about what we’re going to do. I grew up here in Saratoga. Since I know Saratoga, I moved here in 1992 and I started working as a dishwasher over at Great Bear, went back to college, came back, and went to culinary school. At culinary school I went to I Gatti, worked in I Gatti and with the Los Gatos Brewing Company while I was going to school and to get my experience. In doing that I got another job over in San Jose, 71 Saint Peter. Moved away to Carmel, worked at Roy’s restaurant, spent a lot of time with Roy, spent a lot of time working at that restaurant, got my bones, really got some great experience, about two years, but always knew that I was going to come back here. Got a job at Café Marcella as a sous chef. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 7 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 (Aside) Can I get some water, please? Sorry. And got a job at Café Marcella as a sous chef, became a chef, and then spent five years there learning from a great owner, a great person, Alain Martine Staebler. (Takes water.) Thank you. I’m not good at public speaking. My wife is probably laughing at me right now, or embarrassed, one of the two. But anyway, so yeah, I worked at Café Marcella for a long time, and then worked at 180, worked at Wine Cellar, worked at a lot of restaurants in town, stayed in town once I started at Café Marcella. Took a brief three- month hiatus, because of the craziness that was going on at 180, took a brief hiatus, worked at Los Altos Country Club with a former general manager of Los Gatos Brewery, Rennie Pateo (phonetic). He needed somebody to help him out. I worked at Los Altos Country Club. Got a phone call. He said, “Hey, we got a spot open on Main Street. Do you want to open a little restaurant?” I went by it. It was 900 square feet. I said, “I gotta do it. Let’s just do it.” And having zero experience about signing a lease, having zero experience about owning a restaurant, but knowing how to treat people and knowing how to cook, I did it, and it was a success LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 8 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 from day one. We’ve been doing this for five years. We did it for five years over there. I got a call from Mr. Flick, Dave Flick, and he said, “Hey, we really want somebody over here. The time has run out on Tapestry. They had their run, it was a great run, but the time has come for us to get some fresh blood in here.” “No problem, Dave, I’ll do whatever I can,” and I did get counsel from some other people: Mr. Del Grand, Jim Goetz, some people who live in town, Ken Robinson. They counseled me about doing this move, what it would mean for me to do this, how much more work I would have to do, and if it was a good idea or not. They all agreed that Nick, you gotta do it. It’s a great location. It’s a great spot. It’s way bigger; we can do much more. And so I did it, and tragedy a little bit happened with Mr. Flick, but Shari and the family stuck behind me, and they let me in, and they did tons of work for that property before I moved in. She’s been a great landlord. She’s been somebody who has cared about not only the business, but the property itself, and so now this opportunity comes up… Whereas in the Cigar Lounge, who I have had no problems with them personally, but with the smoking ordinances, with the cigar, it’s time for them to LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 9 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 maybe move on, because the lease might be up, or the lease is up, and I’ve got a call that hey do you want this spot? And I said, Yes, I do want this spot. I think we can make this happen.” It’s adjacent to my restaurant, I don’t have to go outside and open another restaurant somewhere else or do something else like that. I can stay right here and just control both spots. This new restaurant that I plan on doing, it’s going to be a raw bar, it’s going to be a full liquor raw product. There won’t be a hood, there won’t be a grease trap needed. Just a little bit of construction inside with code as far as doing bathrooms, water, piping, and that’s it, but that’s pretty much it. We’ll set up a walk-in refrigerator, freezer, and we’ll do raw items: sushi, tar- tars, pokes, and oysters. All the raw product that we can do safely, we will do, and we will do there, and we will supply it to our customers, just like I do at Nick’s on Main, or Nick’s Next Door, excuse me. We are number one on TripAdvisor, and we are number one on Yelp. It’s a little emotional, because I never thought this would happen. I never thought I would get to this point where people would actually come and eat at my restaurant. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 10 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 But anyway, they do, and it means a lot to me, and so that’s kind of the idea that we’re going for, and I apologize for getting emotional, but it is kind of an emotional thing, because cooking and serving the public is emotion for me. It’s not an ego thing. It’s not about having another restaurant and saying hey look at me, it’s about serving the public, serving the Town that I pretty much grew up in and want to be in. Even though I don’t live here personally, I’m still part of this town, and I don’t live here for a reason, but I’m part of this town because of where my home is in my restaurant. So I ask the Commission to forward me to the Town Council on an approval to do this, and I’d be open to any questions. That’s pretty much my story. Again, I’m sorry. CHAIR KANE: With a presentation like that, your wife shouldn’t be embarrassed; she should stand up and cheer. Questions for the Applicant? Commissioner O'Donnell. COMMISSIONER O'DONNELL: Nick, I respect your work; I’ve admired you for a long time. NICK DIFU: Yes, I know. COMMISSIONER O'DONNELL: I only have one question, and that was the question I asked previously. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 11 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 You’ve asked for closure on Friday and Saturday at 12:30, I think it was. So you’d be serving alcohol, and… NICK DIFU: I’ll do whatever the… COMMISSIONER O'DONNELL: I just want to ask you, why do you want to be that late? Is your restaurant next door that late? NICK DIFU: Like we discussed, it was you ask for a little bit more and see what happens, and then we move back. I don’t want to stay there till 12:30 at night. I mean, I personally don’t. I don’t think any of my staff wants to stay there till 12:30 at night. It was just one of those things where let’s just ask for that and see, and then we can back it down. We’ll back it down to the night that we know the 11:00 o'clock hour when the restaurant is pretty much closed. COMMISSIONER O'DONNELL: Just out of curiosity though, your very successful Next Door restaurant, what time do you close on the weekend? NICK DIFU: Our kitchen closes at 10:00. Our last customers we ask to start quieting it down about 11:00 o'clock; that’s where the Town Code is that… We have to stop serving, I believe, at 11:00 o'clock, but we stop serving at 10:00, because we shut down the kitchen at 9:45. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 12 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 So we’re probably just going to ask for let’s keep the other place open, the kitchen open, till maybe 10:00, and then we go open till 11:00 and be done, and just do it that way and slowly get everybody out of there by 11:00-11:30. That would be the idea. The best scenario for me, because we are going to be open for dinner, we’re not going to be open for lunch, even though we’ve asked for, and we’d like to keep that in there, asking for lunch in case we have to do parties or something like that, but out of respect to Purple Onion and the other restaurants over there, I don’t want to be open for lunch. I don’t think it’s right for me to personally be open for lunch, because I don’t want to monopolize everybody’s lunch time in my area in my spot, and I’ve let them know that already, and I guarantee that I’m not going to be open for lunch unless it’s a private event. COMMISSIONER O'DONNELL: Okay, thanks very much. CHAIR KANE: Commissioner Hudes. VICE CHAIR HUDES: Thank you for your presentation, and for helping to develop economic vitality in a part of town that could use some more vitality on Main Street, and I think it’s really important for businesses to be able to succeed, particularly in that area. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 13 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 I had really a more informational question for me, and that is it seems as though some of the successful restaurants in town have another location or another type of restaurant that may be complementary to their first location; it’s my impression that that’s the case. Is that the case, and how does that affect your business model in terms of the way you would operate with more than one location? NICK DIFU: I personally don’t know about any other restaurant in town, that they’re doing, I just know what I do. It’s not that I don’t care about them, I just concentrate on my business and what I’m doing, and I try to stay out of that realm of what they’re doing. As far as how I’m doing it, I’m just providing a different culinary experience at that location than they’re experiencing in mine. My restaurant, as many of you might know, you get a lot of food. I mean, I’m the only owner, there are no investors, I don’t have anybody looking over my shoulder, and I’m allowed to do that. At this other location, it won’t be the big meals that you’re getting. It will still be meals; it will still be just like where they’re doing it… I mean, what I’ve heard, actually, they’re doing it at Fights, they doing it at Manresa; small LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 14 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 portions. But it’s not going to be like that, it’s going to be portions that are going to be good enough to have a meal with. That’s the trend that everybody is doing, but I’m not following the trend, I’m just doing something that I think is a great idea. I think it’s a great business idea, because the cost of putting a restaurant in without a hood, without a grease trap, not having the expenses of doing that, and extra noise from a hood, I think is just a great business model on my end that I have a low amount of money to put in, my own money, to do this and still provide a great culinary experience, and a great cocktail experience, that people could have. VICE CHAIR HUDES: Thank you very much. CHAIR KANE: Other questions? Commissioner Burch. COMMISSIONER BURCH: I noticed on the condition of approval there was a note that you were to asking for outdoor seating. Currently doesn’t the cigar store have like couches and things that sit out on the little patio? NICK DIFU: Yes, they do. COMMISSIONER BURCH: So do you want to say you don’t want outdoor seating? LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 15 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 NICK DIFU: We’ve talked about that. Yes, I would like outdoor seating if things change with the seating situation that’s going on, but as the seating situation is going on in town right now before it’s become law, if it becomes law, then I’m not going to ask for outdoor seating. There will be people maybe outside, but there won’t be outdoor seating as far as that’s concerned. We’ve talked about it, and we’re kind of because of the limited amount of seating that I have right now, because it’s only 20 seats, it’s basically going to stay inside. CHAIR KANE: Question of Staff, Mr. Paulson, Mr. Mullin. If you put more seats outside that would affect his parking, but is that provision under review? SEAN MULLIN: Currently if they put more additional seats outside it would affect their parking. Outdoor seating is allowed by right; it would require review and approval by the Town, but it’s not a public hearing type of approval. The Applicant could actually apply for that with his 20 seats under the current rules, and then flex his seating and move some outside on a nice day or a nice evening, and move those 20 seats around, but they’d have to get approval by the Town for the outdoor seating, and then LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 16 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 any service of alcoholic beverages, the separation required would be reviewed under the ABC policies. JOEL PAULSON: The bottom line is that outdoor seating is now regulated separately from the CUP, so we won’t be bringing forward outdoor seating with any CUPs; they have that allowance by right. And this is specifically on private property, so there are some nuances of how private property versus public property is treated, but it is now basically a Community Development Director decision and it has to go through that process. CHAIR KANE: So what I’m hearing is he could keep his 20 and have some additional outside seats if you approved it? JOEL PAULSON: He could, but it wouldn’t be additional; it would still be under the 20 gap, however, as you mentioned, next week the Council will be considering for the second time… Last week the Council introduced an ordinance to decouple seats from parking, and so if that second reading goes through 30 days from next Tues, we will no longer have a seats parking requirement, which will open up options for this instance. CHAIR KANE: Thank you. Commissioner Burch, were you done? LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 17 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 COMMISSIONER BURCH: No, I just had one more question of Staff. Is there anything currently in his conditions of approval that limit him from being able to come back and ask for…like we said, it’s a nice night and move some of the seats outside? JOEL PAULSON: He doesn’t need to come back to the Planning Commission to ask that question. COMMISSIONER BURCH: Well, I know, to you. There’s nothing in here limiting him from going to you to get… JOEL PAULSON: There is not. COMMISSIONER BURCH: Okay, thank you. CHAIR KANE: Commissioner Badame. COMMISSIONER BADAME: Decoupling the seats with the parking has to do with the fire occupancy, so what is the fire occupancy for this location? Is it 20? JOEL PAULSON: It is not. We don’t have that information. CHAIR KANE: Thank you. CHAIR KANE: Commissioner Hanssen. COMMISSIONER HANSSEN: I wanted to thank you for all that you’ve done for the Town, and I was going to ask if you could clone yourself so we could have more Nicks. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 18 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 But my serious question was actually the CUP is for a restaurant use, and as you probably know CUPs stay with the land. NICK DIFU: Yes. COMMISSIONER HANSSEN: And I have no doubt that the raw bar would be really successful, but supposing something were to happen and the public got against raw seafood or something, some weird trend like that, what would you think about doing with that space? Would you try to come up with another concept? NICK DIFU: I think that would be something that the landlord and I would try to figure out together. I have a great relationship with her, and I think that would be something that we would try to figure out together if it didn’t work out. I think one thing that the Council and the Town has to understand is that Shari Flick is very conscious of what goes on and what happens on her properties, as most of you probably know, and I don’t think they picked me out of a hat when they asked me to move over there, and I think the same thing would be if, God forbid, when my time runs out as far as owning a restaurant and being a restaurateur, I have no fear and no doubt that she would pick somebody or LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 19 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 get somebody in there not only as qualified, but maybe even more qualified than me, to take over. I mean she’s that particular about that. And what she went through as far as getting that building ready for me to be in there on 11 College Avenue was unbelievable, and I dealt with some landlords, and I’ve gone through many processes of talking to landlords about building and about different restaurants and what they were willing to do and what they’re not willing to do, and nobody compares to what she’s willing to do for her property. Even after the fact that I’ve been there, and if something breaks or something goes wrong we have a clear communication. If something happens, she’s always there. “What can I do to help?” and, “What can I do to make it right?” I don’t think that’s a fear for the Town as far as that property is concerned. As you see, Purple Onion is thriving with their new owners now for almost ten years. CHAIR KANE: Thank you. COMMISSIONER HANSSEN: That answered my question. Thank you so much. CHAIR KANE: Thank you. I’m going to move on to some of our speakers. When they’re done you’ll have an LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 20 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 additional five minutes to supplement your remarks. Ms. Pozos. CARYL POZOS: I’m Caryl Pozos; I’ve been a resident of Los Gatos for over 20 years. I’m also a member of EMQ Auxiliary, which runs The Butter Paddle, and I just want to say I think we all know Nick runs a first class operation and we’re very proud of him; we’ve already discussed that tonight. But there are other sides of Nick that I don’t know that you’ve heard about. He’s a very charitable individual. He hosts two events for us each year, and he pays for all of the food and the expenses. One is a fundraiser for 80 people. His restaurant closes, we all come in, we raise money that goes to summer programs for the children at EMQ Uplift. The second one is where he invites children and their parents in, people that normally would never come to Los Gatos for dinner or have the caliber of food that Nick provides, and he invites them in and he serves them dinner in a very first class way. He invites the children into the kitchen, and they sit next to him, and they put the little swizzles on the desserts. I’ve had experiences where the kids come out and they say, “I want to work in a restaurant when I grow up.” He just is a LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 21 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 great role model, and we should all be proud of him. I wish there was more like Nick. Thank you. CHAIR KANE: Thank you very much. Questions for the speaker? Thank you. Rod Teague. ROD TEAGUE: Planning Commission, Staff, thank you for all your hard work and dedication. CHAIR KANE: Give us your name and address, please. ROD TEAGUE: My name is Rod Teague, Johnson Avenue. I’m just here to ask for your approval on this CUP. As we know, Nick and Shari are definitely pillars of the community. I’ve been frequenting his restaurants for many years. I notice he knows most of his clientele on a first name basis. After losing institutions like CB Hannegan’s, we have to expand. We have to keep the economic vitality going. I think that this is definitely a higher and better use than what was there, because it really was kind of a bar. I’ve been there. People bring their own alcohol. A lot of people that were frequenting the cigar shop were actually bringing in cigars and storing their cigars there LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 22 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 as well, so from a sales tax standpoint we probably weren’t generating a whole lot of revenue out of that. We know that Nick’s food is amongst the best in town, if not the best, and you can’t ever get enough of that. So please consider the CUP, and make it a simple process, and allow as much seating as possible, and to stay open as late as he possibly can. That’s it. CHAIR KANE: Thank you. Questions for the speaker? Thank you very much. Scott Canali. SCOTT CANALI: Thank you very much, I’m Scott Canali. I live at 20 East Main, so directly across the street and looking down at Nick’s and the cigar bar, and I would heartily agree with the last two speakers. Nick is a relationship builder, as you can all see, and one testament of that is in the five years that I’ve been aware of Nick’s Next Door, he has virtually the same staff. His wait staff is the same. He invests in people, and he’s all heart. In addition to that, living directly across the street I’m very aware of the environment, and I would just say that Nick’s is extremely appropriate for a downtown Los Gatos environment. I mean we couldn’t have a better tenant in the building next door than more Nick, so I strongly urge you guys to support Nick’s Raw Bar. I think he’s a LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 23 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 model of what we want to do in this town, and we’d be very fortunate to have more of him. Thanks very much. CHAIR KANE: Questions for the speaker? Commissioner Burch. COMMISSIONER BURCH: So you heard we had a little bit of dialogue about the hours, and living right there you do probably hear things. Do you feel any issue with pushing it to a later time, so there’s some flexibility for the restaurant? SCOTT CANALI: I don’t at all. I think what they said in their submission was that they were asking for that so that at times they might have private events, and I see that as the exception. I mean his other business right now is essentially closing at 11:00, so there would be no reason that he’d say let’s stay open till 1:00. So no, I don’t, and already right now whatever time people leave Nick’s, oftentimes they’re later at the Cigar Lounge. The Cigar Lounge is a popular place whenever there’s a sporting event on, which let’s see, is every Sunday, every Monday, et cetera. There are a lot of people sitting out on the patio watching sports, cheering, et cetera, and there is a lot of sound from that. And both of them are fine. I mean we live downtown. If we wanted it LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 24 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 absolutely quiet, then there are some beautiful hills, et cetera, but the sound is perfectly appropriate for there, and actually it’s really nice, because when people are at Nick’s they’re happy, and so what you hear are sounds of laughter and happy people and all of that, and all I have to do is close my sliding doors and I don’t hear a thing, if I want. COMMISSIONER BURCH: Thank you. CHAIR KANE: Mr. Canali, you wrote us a letter in support of the application. SCOTT CANALI: I did. CHAIR KANE: You’re one of the few who identifies yourself as a neighbor, and that’s really important to us, to get the advice of a neighbor as to how they feel about the establishment. Thank you. SCOTT CANALI: Absolutely. Thank you. Thank you all for the time you’re spending on this. CHAIR KANE: Mr. Lowery. State your name and address for us, please. TAYLOR LOWERY: Hi, I’m Taylor Lowery, and I actually live at 20 East Main as well, and it’s kind of a tough act to follow after Scott there, because I think he said everything I was going to say. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 25 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 I’ve lived there for about four or five years, and I’m on College as well, so I face the property, and I’ve got to say, in the four or five years that I’ve been there Nick has just been… And I should say I don’t really know Nick other than the brief conversations I have coming in and out of his restaurant, but he’s always been so attentive and sensitive to his neighbors, and I genuinely in four or five years don’t think I could think of an instance where there was any sort of egregious noise or whatever else everyone is concerned about. Of course everyone has already spoken to his character, which I can only say I get to see the manifestations of, and it all is kind of exciting, honestly, to have something new there that has Nick’s fingerprint on it. But yeah, certainly Nick is a great neighbor, and that’s really all that I can speak to as a neighbor. CHAIR KANE: Thank you. Questions for the speaker? Thank you very much. Mr. DiFu, you have five minutes to supplement, debate, or add to anything that you heard. NICK DIFU: Thank you very much for all your support, and all of the emails and letters that came, all LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 26 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 the support from friends and family that supported me and sent emails to Sean; I know there’s probably about 70 or 75 emails that got to Sean’s desk in the last two days, and I appreciate that. As far as summing it all up, I’m going to do the best I can to make that spot a better location than it is and have it be a part of Nick’s per se, my little stamp on that side of town, and I’m just going to do the best I can. Will I make mistakes? Of course, but I will own up to those mistakes and I will do the best I can to make that the best spot in Los Gatos and keep those ratings, and keep everybody coming from San Francisco, from Hong Kong, from Europe, to come and eat at the restaurant, because that’s where they’re coming from, not only Los Gatos, locals, who also support me big, but they are really coming from everywhere. They’re coming not only to the Michelin star restaurants that we have in this town, but they’re coming to my restaurant too, because of what I’ve built, and I’ve built with friends and built with the people that have been with me and supported me and staff. It’s not just about me, it’s about everybody together being on the same page, and creating this, not having an ego, not worrying about what LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 27 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 everybody else in town is doing as far as what the restaurants are doing; we’re just concentrating on ourselves, we’re concentrating on the customers. The customers have always come first in my book, and that’s why we’re successful, and that’s why this other place will be successful, because the number one job is to take care of the people that come in through that door and make sure they’re happy, and make sure that we provide a great service and a great product. I know I won’t let you down on the product and the service, so I will do my best for this town and I will do the best for everybody. CHAIR KANE: Questions? Commissioner Hudes. VICE CHAIR HUDES: Thank you. As you know, there were many, many letters of support. There was one from a neighbor who was concerned about noise. Without getting into the specifics, have you had any ongoing problems with noise, being cited for the Noise Ordinance, or not living up to the terms of the CUP in terms of hours of operation or anything of that kind? NICK DIFU: I have not. I’ve complied to my CUP, and as far as the noise complaint, I know of that person, not the person herself, but I know that the complaint started… I kind of got looped in, I think, a little bit LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 28 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 with the cigar situation, I kind of got mixed into that, from what I’ve been told. Yes, there was a traffic person coming by and checking on us, but we’ve always complied and tried to shut it down, or at least told our customers hey you have to be quiet. But in the almost six years now that I’ve been there, we’ve had one complaint, and this person moved in in July, from what I understand. In the very beginning we got a phone call, and it was told to you guys or told to the Town, but we got a phone call, hey you know what, your hood is too loud or something like that. It’s like okay, I understand you might have been used to the other restaurant closing down a little bit earlier, because they weren’t as busy. We’re going to be busy, but we’ll do whatever we can to shut it off at a certain time and comply with that, and we have, and we haven’t gotten a complaint, and I don’t think you guys have heard of a complaint. I will do whatever I can to minimize that within my business model. If they come to me and they talk to me, I would love to talk to them about it, or try to figure something out that works well for both of us. VICE CHAIR HUDES: Thank you very much. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 29 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 CHAIR KANE: Thank you. In my count, the hearing received exactly 101 letters, and one was unhappy—that’s the one I’m holding, that has to do with noise and late night—and 100 were in full support. Despite the percentage of support, I’m concerned about late night noise. I’m guessing that it may be coming from the apartment building across the street, the Penthouse, and I’m going to make a suggestion to the Commission that we put in a condition asking for signage that would help keep the noise down, something like, “Please respect our neighbors. Keep noise to a minimum when leaving the premises.” Would that be acceptable to you? NICK DIFU: Yeah, just so you know, at Nick’s we’ve let our patrons know that… Because most of this stuff is coming outside, so when they leave the restaurant and they’re talking outside on the walkway, while they’re waiting for their cars or while they’re waiting for Ubers, we’ve asked them to have the Uber cars pick them up in the parking lot so they’re not picking up on the street, on College Avenue, so we’ve tried to do that. I have no problem doing that at all. CHAIR KANE: So the answer to my question is yes? NICK DIFU: Yes, of course. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 30 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 CHAIR KANE: I’m going to ask the Town Attorney to come in on the noise considerations. ROBERT SCHULTZ: I think that would be an excellent idea. I’ll confirm, in my five years, the first four years I don’t think we got a single complaint from either the cigar or from Nick’s shop. In the last year we had an uptick, I would say we probably had seven to ten complaints; primarily most of them were about the smoke. We actually were in code enforcement to enforce the provisions of making sure the doors were closed, that the outside patio wasn’t used, and we were even in the process of maybe putting other requirements on that building, but with this issue coming up, obviously the smoke issue is no longer a problem. As to the noise complaints, when we do get those we do go out. I think as Nick mentioned, when we do go out to do the noise reading, the noise is coming from a patron that’s leaving the business, and by the time they get there, there’s no one there. But we are able to go and we do noise readings. Even if it’s all inside, sometimes we’ll get a noise complaint at 9:00pm and we’ve gone out and they were not violating their Noise Ordinance from the noise coming within, so I would certainly recommend that also as LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 31 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 approval, because it might help. If patrons come out and see that sign, it might be one extra little bit to say, oops, let’s keep it down. NICK DIFU: One thing is I could mention really quick, if you don’t mind? CHAIR KANE: Go ahead. NICK DIFU: The hotel next door to us, that’s closer to us than the Penthouse apartments, the Garden Inn. CHAIR KANE: Marilyn Monroe’s Garden Inn. NICK DIFU: Yes. From as far as I know, and their hotel is one fence over, their clients have never called and complained on us, so we’re directly to them and the noise coming out. CHAIR KANE: Thank you. And Nick’s restaurant has a bar? NICK DIFU: Yes, it does, full liquor. CHAIR KANE: Will the raw bar have a bar? NICK DIFU: Yes. CHAIR KANE: You’ll have bar seating there? NICK DIFU: Yes. CHAIR KANE: I didn’t see that on the… Well, I probably missed it if you say yes. NICK DIFU: It’s on the plans. LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 32 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 CHAIR KANE: I thought it was just 20 chairs at the tables. NICK DIFU: No, it should be on the plans that there is a full bar there, and so there are ten seats there and there are ten seats in the main area. CHAIR KANE: And you’re up on the Alcohol Policy regarding soft drinks for the designated driver, posting the phone number for the cabs, and educating staff on the Alcohol Policy? NICK DIFU: Yes. CHAIR KANE: Thank you. Questions for the speaker? Seeing none, thank you very much. NICK DIFU: Thank you. CHAIR KANE: I’ll close the public portion of the public hearing and ask if any Commissioners have questions for Staff, wish to comment on the application, or wish to make a motion? Commissioner Badame. CHAIR KANE: I’ll provide my comments in that I would be supporting a motion to forward a recommendation of approval, based on a number of things. You’ve got the close proximity of his existing restaurant; it’s almost an extension of his existing restaurant. The small size of this new oyster LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 33 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 bar/restaurant at 20 seats. The reputation and character of the owner, and the long-term establishment of his existing business. You’ve got elimination of cigar smoke, which seems more offensive to residents than alcohol. It’s subject to the Noise Ordinance, and the cigar shop has a history of alcohol use anyway, so I don’t see the use as being much different. CHAIR KANE: Commissioner Badame, why don’t you make that into a motion and see what happens. CHAIR KANE: I’ll make it a motion. I move to forward a recommendation of approval of Conditional Use Permit Application U-18-004, requesting approval for a major restaurant, Nick’s Raw Bar, with alcohol sales, on property zoned C-2-LHP. I can make the findings based on Exhibit 2, but I would add to the CUP that we add signage with regard to keeping the noise down for the neighbors. CHAIR KANE: Do I have a second? Commissioner Burch. COMMISSIONER BURCH: I’ll second. CHAIR KANE: Comments? Seeing none, I’ll call the motion. All those in favor? Passes unanimously, 6-0. Thank you very much. Mr. Paulson, are there appeal rights for this matter? LOS GATOS PLANNING COMMISSION 3/28/2018 Item #2, 21 College Avenue 34 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 JOEL PAULSON: There are not appeal rights, since this is specifically a recommendation to the Council. CHAIR KANE: Thank you.