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Staff Report PREPARED BY: Sean Mullin, AICP 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: 06/20/2017 ITEM NO: 11 DATE: JUNE 15, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: ARCHITECTURE AND SITE APPLICATION S-17-013. PROJECT LOCATION: 106 E. MAIN STREET. APPLICANT: MEHDI DALVAND, THE MIDGLEN STUDIO. PROPERTY OWNER: TOWN OF LOS GATOS. CONSIDER A REQUEST TO CONSTRUCT A CANOPY OVER AN EXISTING PATIO ON A PROPERTY ZONED C-1:PD. APN: 529-34-108. RECOMMENDATION: Adopt a Resolution (Attachment 7) approving a request to construct a canopy over an existing patio. BACKGROUND: On June 6, 2017, the Town Council considered a request to construct a canopy over an existing patio at 106 E. Main Street. After opening the hearing and asking questions of st aff, the public, and the applicant, the Town Council continued the matter to a date certain, and directed staff to return with the following: 1. Lease Agreement between the Town of Los Gatos and Los Gatos Museum Association (Attachment 5); and 2. Town Facilities Use Policy, revised February 7, 2017 (Attachment 6) In addition to the requested documents, the Town Council directed staff to revise a Condition of Approval to clearly provide the Town with discretion over whether the canopy is to remain or be removed in the event that the lease with NUMU were discontinued (Exhibit A of Attachment 7, Condition 6). PAGE 2 OF 4 SUBJECT: 106 EAST MAIN STREET/S-17-013 JUNE 6, 2017 S:\COUNCIL REPORTS\2017\06-20-17\106. E. Main NUMU\Staff Report - NUMU FINAL.docx 6/15/2017 1:15 PM DISCUSSION: During its June 6, 2016 meeting, the Town Council sought clarification on the space included in the NUMU lease. Staff has reviewed NUMU’s Lease Agreement (Attachment 5), the Town Facilities Use Policy (Attachment 6), and the Conditional Use Permit for NUMU (Attachment 2) and determined the following: • Under “Section 1 Premises” of the Lease (Attachment 5), premises is described as “106 East Main Street (herein the "Premises") and more particularly described in Exhibit A attached hereto and incorporated herein by reference . The Premises consists of approximately eleven thousand six hundred and four (11,604) square feet of space for museum exhibits, Town offices, storage, educational lab, kitchen facilities, bathrooms, and a deck.”  Under “Section 3.1 Base Rent” of the Lease, base rent is “based on 11,604 square feet not including the conference room, Town office space, and exterior decks as shown on Exhibit A.”  Under “Section 5.1.2 Use of Premises” of the Lease, use of premises is described as “4,335 square feet of space on the upper level and 7, 260 square feet of space on the lower level of the old Town of Los Gatos Library located at 106 E. Mai n Street, Los Gatos, CA, as shown on Exhibit A”.  Under “Section 9.3 Maintenance of Common Areas” of the Lease, common area is described as “the exterior grounds, exterior shared deck, and the parking lot adjacent to the Premises. If Lessee uses the shared deck for activities or a special event, Lessee shall promptly remove all structures, accessories, decorations, and trash associated with the activity or event.” This provision in the NUMU lease is the same provision found in the Friends of the Library lease. In addition, the Friends of the Library lease states that it “may request to reserve the conference room in the new public library and the outdoor Town deck adjacent to Lessee's space”.  Section B of the Town Facilities Use Policy (Attachment 6) dictates uses allowed on the “civic center deck and stairs.” This policy speaks to the area of the primary deck around the fountain and the adjacent stairs to the west, north, and east. This policy is silent as to the deck area located to the north of the NUMU building.  The Conditional Use Permit for NUMU (Attachment 2) permits a sculpture garden between the west parking lot and the west entrance. This area is shown on Exhibit A of the lease agreement (Attachment 5) and is the area in which the proposed canopy would be constructed. Based upon the above, it is the Town Attorney’s position that NUMU has access and use of the deck area but the deck area is not part of the lease premises and is not for the exclusive use of NUMU. The deck area is considered common area that can also be used by the Friends of the Library pursuant to their Lease with the Town and the deck area can also be used by the Town. The determination that the deck area is common area does not prevent NUMU from proposing PAGE 3 OF 4 SUBJECT: 106 EAST MAIN STREET/S-17-013 JUNE 6, 2017 S:\COUNCIL REPORTS\2017\06-20-17\106. E. Main NUMU\Staff Report - NUMU FINAL.docx 6/15/2017 1:15 PM DISCUSSION (cont’d): improvements to this area. Staff has determined that NUMU’s request to construct a canopy over an existing patio would not interfere with the use of the deck area by either the Friends of the Library or the Town. CONCLUSION: It is recommended that the Town Council determine that the deck/patio area north of the NUMU building is not included as part of the premises in the NUMU lease and is instead considered part of the common area that can be used by NUMU, the Friends of the Library , and the Town. Staff recommends that the Council adopt a Resolution approving the request for installation of a canopy over the existing patio (Attachment 7), subject to the conditions of approval included in Attachment 7, Exhibit A, and development plans included as Exhibit B. ALTERNATIVES: Alternatively, the Council may: 1. Adopt a Resolution to approve the application with modified or additional conditions of approval (Attachment 7, Exhibit A); or 2. Adopt a Resolution to deny the Architecture and Site application (Attachment 8). COORDINATION: The Community Development Department coordinated with the Town Attorney, Parks and Public Works Department, and the Santa Clara County Fire Department in the review of the application. FISCAL IMPACT: If the application is approved, NUMU would be responsible for all costs associated with the permitting, fabrication, installation, and maintenance of the canopy. In the event that the lease with NUMU was discontinued, retention of the canopy is at the discretion of the Town Manager. Should the Town Manager determine that the canopy is to be removed, NUMU is responsible for removal of the canopy and remediation of the existing building, to the satisfaction of the Town Manager pursuant to the existing lease agreement. PAGE 4 OF 4 SUBJECT: 106 EAST MAIN STREET/S-17-013 JUNE 6, 2017 S:\COUNCIL REPORTS\2017\06-20-17\106. E. Main NUMU\Staff Report - NUMU FINAL.docx 6/15/2017 1:15 PM ENVIRONMENTAL ASSESSMENT: The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of California Environmental Quality Act, Section 15303: New Construction or Conversion of Small Structures. Attachments received with June 6, 2016, Staff Report: 1. Location Map 2. Town Council Resolution 2015-004 approving Conditional Use Permit (CUP) application U- 13-017 3. Draft Resolution to approve the project (includes Exhibit A – Conditions of Approval, and Exhibit B – Development Plans) 4. Draft Resolution to deny the project Attachments received with this Staff Report: 5. Lease Agreement between the Town of Los Gatos and Los Gatos Museum Association 6. Town Facilities Use Policy, revised February 7, 2017 7. Draft Resolution (revised) to approve the project (includes Exhibit A – revised Conditions of Approval, and Exhibit B – Development Plans) 8. Draft Resolution (revised) to deny the project 9. Public comment received by 11:01 A.M., Thursday, May 25, 2017 and 11:00 A.M., Thursday, June 15, 2017 Distribution: Mehdi Dalvand, The Midglen Studio, 831 Midglen Way, Woodside, CA 94062 Los Gatos Museum Association (NUMU)