10 Staff Report - Community Vitality Streamline
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Community Development Director, Town
Attorney, 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: 10/01/2019
ITEM NO: 10
DATE: September 25, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Provide Direction to Staff on the Next Steps for the Temporary Community
Vitality and Land Use Streamlining Resolutions Due to Sunset in December
2019
RECOMMENDATION:
Provide direction to staff on the next steps for the temporary community vitality and land use
streamlining resolutions due to sunset in December 2019.
BACKGROUND:
The Town Council has an adopted strategic priority that promotes community vitality and
encourages land use streamlining efforts. Since the adoption of this priority, staff has been
working with the Town Council and Council Policy Committee to identify and streamline many
of the business-related processes to reduce the associated time and cost.
Attachment 1 provides a timeline and synopsis of the adopted streamlining efforts to date.
Those highlighted in yellow are temporary resolutions adopted by the Council that are due to
sunset in December of 2019.
DISCUSSION:
Since the adoption of the streamlined items outlined in Attachment 1, staff has done a large
amount of outreach to interested stakeholders, including businesses, property owners,
commercial brokers, and property managers. These connections have not only p rovided the
opportunity to update the business community on the adopted resolutions, they have also
afforded the opportunity to share the story of Los Gatos, the positive efforts of the Council, and
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SUBJECT: Provide Direction on Community Vitality and Land Use Streamlining
DATE: September 25, 2019
DISCUSSION (continued):
encourage business retention, expansion, and attraction. To date, staff has received positive
feedback on the Council’s support of businesses and the opportunities these regulatory
changes provide. Due to the time and cost associated with obtaining a new or modifying an
existing Conditional Use Permit (CUP), many businesses historically have not applied for the
process and have appreciated the opportunity to do so under the streamlined process.
To provide context for the Council’s discussion, below are high-level summaries of how the
temporary streamlining efforts that have been adopted since June 5, 2018 have been utilized.
Formula Retail in Downtown (resolution adopted 6/5/18): The Town Council adopted a
temporary resolution allowing up to five new formula retailers over an 18-month period in
spaces downtown that do not have a current CUP in place for Formula Retail. To date, there
have been three new formula retailers that have leased spaces downtown that were formerly
occupied by a use other than a formula retailer. It is important to note that some formula
retailers have left downtown whom had a valid CUP for formula retail, thus the replacement
businesses do not count towards the five new formula uses.
Restaurant CUP modifications at the Development Review Committee (DRC) (adopted
6/19/18): The Town Council adopted a temporary 18-month resolution to allow current
restaurants to modify their use permits at the DRC level. Nine restaurants have completed a
modification, five are currently in the process, and another thre e are anticipated to apply
before the end of the year. Many of these businesses chose to modify their use permit to allow
them to participate in the pilot parklet program as the former language in the ir CUP prohibited
outdoor dining in many cases.
New restaurant CUPs to be heard at the DRC and suspension of Ordinance 2021 (adopted
3/5/19): The Town Council adopted a temporary resolution valid through 12/31/19 allowing
new restaurants, Town-wide, to be heard by the DRC. To make this possible, Ordinance 2021
was also suspended for the same period. Two restaurants have been approved at the DRC
since its adoption.
Allow Minor Exterior Modifications to Commercial Buildings to be Processed a s Building
Permits (adopted 3/5/19): The Town Council adopted a temporary resolution valid through
12/31/19 allowing minor exterior modifications to commercial buildings to be processed a s
building permits, rather than having to go to the DRC. Since the adoption of the resolution,
staff has processed seven applications for exterior modifications. The types of modifications
include swapping doors for windows, windows for doors, parking lot reconfigurations, window
awnings, pedestrian walkways, changes to exterior materials, and other similar items.
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SUBJECT: Provide Direction on Community Vitality and Land Use Streamlining
DATE: September 25, 2019
DISCUSSION (continued):
Group Classes to be heard by the DRC in the C-2 and permitted by-right outside of the C-2
zone (adopted 3/19/19): The Town Council adopted a temporary resolution valid through
12/31/19 allowing CUPs for group classes within the C-2 to be heard by the DRC, and those
outside of the C-2 to be allowed with over the counter permits (Business license and Certificate
of Use and Occupancy). One new CUP for group classes has been approved by the DRC.
Following the DRC approval of the application, it was appealed by a community member to the
Planning Commission whom ultimately upheld the DRC’s approval and approved the group
class use. Additionally, one new group class use outside the C-2 has been approved.
While the streamlined processes are helpful for businesses, there are still many other factors in
play when it comes to retaining and attracting businesses. Staff has found that since the time
and costs have been reduced, businesses are generally much more satisfied with the CUP
process. For many though, this is just the first step in a lengthy road to opening their business.
Building permits may not be applied for or issued until the CUP is obtained, and often outside
agencies have requirements and processes of their own that take weeks to months to
complete. Thus, reverting to the longer and more expensive process for CUPs could have a
negative impact on the Town’s business attraction and retention efforts.
CONCLUSION:
Staff has observed several successes with the temporary streamlining processes and recognize
that memorializing the streamlining processes on a more permanent basis would likely
continue to create opportunities to strengthen the businesses in Town. Each application is still
fully reviewed and vetted with the streamlining, and staff recommends conditions of approval
for the deciding body as in any discretionary CUP process. The reduction in time and costs is a
product of the streamlining and allowing decisions to occur at a lower level while retaining all
appeal rights.
Should the resolutions pertaining to CUPs sunset and the application process revert, the fees
for a new CUP would be $8,976.14 for Planning Commission applications and $15,383.52 for
Town Council applications. If minor exterior modifications to commercial buildings were
required to once again be approved by DRC, the application fee would be $5,743.02.
Time and cost are typically the two biggest concerns the staff hears from businesses and
property owners. The streamlined processes provide a reduction in both while maintaining
staff and discretionary oversight.
As the Council discusses the resolutions outlined in this report (Attachments 2 - 6), staff is
recommending the Council provide direction on next steps for each of the temp orary
resolutions as follows:
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SUBJECT: Provide Direction on Community Vitality and Land Use Streamlining
DATE: September 25, 2019
CONCLUSION (continued):
• Recommend memorializing one or more of the streamlining efforts through Town Code
amendments. Staff will draft language and present it to the Planning Commission for
discussion and recommendations to the Town Council;
• Extend the sunset date of one or more of the temporary resolutions; or
• Allow the resolutions to sunset and the processes to revert to the current Code
language.
COORDINATION:
This staff report was prepared in coordination with the Town Managers Office, Town Attorney’s
Office, and Community Development Department.
FISCAL IMPACT:
Fees paid for by applicants cover the cost of the applicant’s process thus there is no fiscal
impact.
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation
of the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with
certainty that there is no possibility that the proposed amendments to the Town Code will have
a significant effect on the environment.
Attachments:
1. Economic Vitality and Land Use Streamlining Summary
2. Temporary resolution suspending the CUP requirement for formula retailers
3. Temporary Resolution allowing restaurants to modify their CUP at the DRC
4. Temporary Resolution suspending Ordinance 2021 and allowing new restaurants to obtain a
CUP at the DRC
5. Temporary Resolution allowing for minor exterior modifications to commercial buildings to
be made at building permit
6. Temporary Resolution allowing group classes without a CUP in commercial zones outside of
downtown, and those within downtown to obtain a CUP at the DRC