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Exhibits 4-9 of Attachment 1MEETING DATE: 06/02/14 ITEM NO: 16 DESK ITEM COUNCIL AGENDA REPORT DATE: June 2, 2014 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER AA - W�1 R013ERT SCHULTZ, TOWN ATTORNEY SUBJECT: REPORT FROM THE COUNCIL PLANNED DEVELOPMENT AD HOC COMMITTEE AND DISCUSSION AND DIRECTION FOR PROPOSED TOWN CODE AMENDMENTS TO THE PLANNED DEVELOPMENT OVERLAY ZONE REMARKS: After the June 2 Town Council meeting agenda packet and subsequent Addendum were distributed, staff received additional Council questions which are presented and responded to below: L What action is being requested of the Council this evening as there has been minimal public notice for a significant change in Town policy direction? The action before the Council this evening is simply to receive the report and recommendations from the Council Planned Development Ad Hoc Committee and to decide whether or not to direct staff to proceed with the subsequent staff work for Town consideration of the proposed change in policy direction. Tonight's action cannot legally be approval of, or advance approval of, forthcoming policy changes which will need to be considered as required with full public noticing. Z What will be the process forward ifthe Council's direction is to proceed with consideration of theproposedpolicy changes? Full consideration of the Ad Hoc Committee's recommendations will likely require simultaneous development and consideration of General Plan amendments, Zoning Ordinance modifications, and Council adopted policy changes. Reviewed by: (-`S J Assistant Town Manager WTown Attorney Finance C : "U =*ba WwktOM6.2 -14 P1nndD,, DESK 1TEM.d. EXHIBIT 4 10/8/14 PC Staff Rpt PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: PLANNED DEVELOPMENTS JUNE 2, 2014 General Plan amendments must first be heard by the General Plan Committee and then the Planning Commission before they can be considered by the Town Council. Zoning Ordinance modifications must first be considered by the Planning Commission before they can be heard by the Town Council. If the Council directs consideration of these policy changes, staff would recommend scheduling the required hearings before the General Plan Committee and the Planning Commission such that all required actions (General Plan amendments, Zoning Ordinance modifications, and policy changes) come as a single package before the Town Council. 3. WWW public notice and outreach is anticipated for these future actions? Staff is currently developing an extensive public outreach and notification program for the Planning Commission and Town Council public hearings, if directed to proceed by the Town Council. If possible, this notification will include all current planned development property owners or interests; otherwise, it may be necessary to provide Town -wide notification as has been done on selected other matters (e.g., Alcohol and Entertainment Policy). Attachments 1 -3 (previously received with Staff Report) 1. Excerpt from Town Code regarding Planned Development Overlay Zones 2. Draft Planned Development Overlay Zone Amendments 3. Hillside Development Standards Guidelines Area Map Attachments 4- 5(nreviouslyreceived with Addendum) 4. Zoning Ordinance PD Survey 5. Planned Development List (includes map) RESOLUTION 1993 -62 RESOLUTION OF THE TOWN COUNCIL . OF THE TOWN OF ADOPTING A DEVELOPMENT OL COYS OR IN-FILL O PROJECTS WHEREAS, the Town is primarily built out and the balance of undeveloped land consists predominantly of in -fill parcels; and. WHEREAS, it is important that these in -fill parcels are development compatible with surrounding neighborhoods. RESOLVED: the Town Council 'hereby adopts a development policy for in -fill projects attached to this resolution as E.rhibit A. PASSED AND ADOPTED at a regular meeting of the Town Council held on the 3rd day of May, 1993, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Joanne Benjamin NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Joanne Benjamin MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA I .l C3J%RVWS\fR -FILL EXHMff 5 10/8/14 PC Staff Rpt DEVELOPMENT POLICY FOR IN -FILL PROJECTS 1. In -fill projects should contribute to the further development of the surrounding neighborhood (i.e. Improve circulation, contribute to or provide neighborhood unity, eliminate a blighted area, not detract from the existing quality of life). 2. An in -fill project should be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, provide comparable lot sizes and open space, consider garage placement, setbacks, density, provide adequate circulation and on- street parking. In -fill development should blend rather than compete with the established character of the area. 3. Corridor lots may be considered if it decreases the amount of public street and is consistent with objects #1 and #2. It must be demonstrated that a benefit to surrounding properties Is being provided. 4. The Planned Development process should only be used to accomplish objects #1 and #2. The applicant shall demonstrate the benefit of a Planned Development through excellence in design. 5. Approval of an in -fill project shall demonstrate a strong community benefit and findings of benefit shall be part of the record. 6. Recommend that any new development proposal be reviewed by the Conceptual Development Advisory Committee. C32\KX3C \IL -F1Lc EXHIBIT A RESOLUTION 2002 -175 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING THE TOWN'S COMMUNITY BENEFIT POLICY WHEREAS, that the Town of Los Gatos Town Council has determined that a written policy clarifying the requirement for a community benefit offering is necessary (General Plan Implementing Section L.I.1.8); and WHEREAS, the Town of Los Gatos does not currently have a written policy clarifying the Town Resolution 1991 -174 and Resolution 1993 -62, requirements for a community benefit offering, and WHEREAS, the Resolution 1991 -174 (Traffic Impact Policy) and Resolution 1993 -62 (Development Policy for Infill Projects) require a community benefit offering for certain projects: and WHEREAS, adoption of such policies will help provide clear direction to developers processing development applications (General Plan Implementing Section L.I.1.8); and WHEREAS, the Planning Commission recommended approval of the draft Community Benefit Policy on September 25, 2002, and THEREFORE BE IT RESOLVED: the Town Council of the TOWN OF LOS GATOS does hereby adopt the Community Benefit Policy attached hereto as Exhibits A. 10/8/14 PC Staff Rpt PASSED AND ADOPTED at a regular meeting of the Town Council held on the 4" day of November 2002, by the following vote: COUNCIL MEMBERS: AYES: Steven Blanton, Sandy Decker, Joe Pirzynski, Mayor Randy Attaway NAYS: Steve Glickman ABSENT: None ABSTAIN: None �) SIGNED: MAYOR OF TOWN OF OS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF I.OS GATOS LOS GATOS, CALIFORNIA 2 TOWN COUNCIL POLICY TOWN OF LOS GATOS Subject: Community Benefit Policy Page 1 of 3 Approved: Recommended By Planning Commission on 9/25/02 Enabling Action: 2002- 175 Effective Date: November 4, 2002 The intent of the Community Benefit Policy is to provide the Town a means to support projects that are beneficial and desirable to the community, but may have certain negative impacts. These impacts are generally unavoidable or unintended consequences of new development, such as traffic, that cannot be entirely avoided through standard conditions of approval. Negative impacts may be overridden by benefits offered to the Town by an applicant. A community benefit offering is intended to add to the merits of a project. It is not intended to create a means for applicants to transform undesirable projects into projects that appear to be desirable due to their community benefit. Rather, it is intended to provide applicants, who are already proposing projects that are generally beneficial to the Town, a means of offsetting the negative impacts of these projects. A community benefit offering shall be something that otherwise would not have been required by law or as a condition of approval for a project. A specific community benefit offering cannot be compelled by the Town. It must be proposed by the applicant in addition to the standard conditions of approval and any required mitigation measures for a project. Mitigation measures such as fees, dedications, or easements required by the Town do not qualify as a community benefit. The following policy shall be used by the deciding body when reviewing any application that: (1) causes an increase of 5 peak hour trips per Resolution 1991 -174; or (2) is considered an infill project per Resolution 1993 -62. GENERAL POLICY: The applicant shall propose the community benefit offering, and is responsible for demonstrating that the community benefit being offered is appropriate to offset a project's impacts. The applicant shall submit a letter of justification and any other supporting documentation necessary to clearly outline the proposed community benefit. Subject: Draft Community Benefit Policy September 25, 2002 Paget of 3 2. The community benefit shall be offered in addition to the standard mitigation measures required in the conditions of approval and in excess of any Town's codes and regulations including California Environmental Quality Act (CEQA). However, a specific community benefit cannot be compelled by the Town. 3. The community benefit offering does not need to correlate directly with the project or with the project's impacts. The benefit may be off -site or unrelated to the project. 4. The deciding body shall determine whether or not the community benefit being offered sufficiently outweighs the cumulative impacts caused by the project. Both tangible impacts (quantitative) and the intangible impacts (non - quantitative) will be considered. 5. The deciding body shall weigh the value of the proposed community benefit based on the desirability of the benefit at the time the project is being proposed or based on perceived future value or need. 6. The Town's values, economy, and character may change over time, therefore a previously accepted community benefit does not set a precedence or guarantee that the same community benefit will be accepted in the future. A previously accepted benefit may be drawn upon as an example, but might not be accepted as a benefit in the future if the Town determines that the benefit is no longer necessary, valuable, or desirable. Applicants should refer to the Town's official needs assessment list or to a list of previously accepted community benefits. (Please see attached lists) Tax revenue generation resulting from the proposed project cannot be used as the project's sole community benefit. Tax revenue generation may be used as a community benefit in addition to another proposed benefit. It may also be used in the context of increasing the overall value of the project to the Town if it contributes to the Town's long term financial stability. SPECIFIC POLICY: The following is a partial list of examples that an applicant may draw upon when seeking to create community benefit for a project: • additional BMP units or equally affordable housing units • improved traffic circulation or reduction of traffic • street or neighborhood improvements • historic preservation or restoration • public art • open space, conservation, or scenic easements and other dedications Subject: Draft Community Benefit Policy September 25, 2002 Page3 of 3 • bike/walking trails 0 mitigation or elimination of an existing problem • restoration of a riparian habitat or water course • a demonstrated unique or desirable use for the Town DEFINITION: Community Benefit: An offering of benefit to the Town proposed by an applicant, in addition to the standard mitigation measures required by the Town, that overrides certain negative impacts resulting from an infill project or a project that generates more than five (5) peak hour trips. S.w 11402.aam.. N This Page Intentionally Left Blank Excerpted 2020 General Plan Goals and Policies Relevant to Planned Development or In -rill Projects Goal LU -1: To preserve, . promote, and protect the existing small -town character and quality of life within Los Gatos. Policy LU -1.2: Ensure that new development preserves and promotes existing commercial centers consistent with the maintenance of a small - scale, small -town atmosphere and image. Policy LU -1.4: Infill projects shall be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, and should blend rather than compete with the established character of the area. Goal LU-4: To provide for well - planned, careful growth that reflects the Town's existing character and infrastructure. Policy LU -4.3: Only approve projects for which public costs can be justified by the overall benefit to the community. Goal LU -6: To preserve and enhance the existing character and sense of place in residential neighborhoods. Policy LU -6.1: Protect existing residential areas from the impacts of non- residential development. Policy LU -6.2 Allow non - residential activity in residential areas only when the character and quality of the neighborhood can be maintained. Policy LU -6.4 Prohibit uses that may lead to the deterioration of residential neighborhoods, or adversely impact the public safety or the residential character of a residential neighborhood. Policy LU -6.5 The type, density, and intensity of new land use shall be consistent with that of the immediate neighborhood. Goal LU -7 To use available land efficiently by encouraging appropriate infill development. Policy LU -7.2 To ensure compatibility with surrounding neighborhoods, infill projects shall demonstrate that the development meets the criteria contained in the Development Policy for In -Fill Projects and the deciding body shall make findings consistent with this policy EXHIBIT 7 10/8/14 PC Staff Rpt Policy LU -7.3 Infill projects shall contribute to the further development of the surrounding neighborhood (e.g. improve circulation, contribute to or provide neighborhood unity, eliminate a blighted area) and shall not detract from the existing quality of life. Policy LU -7.4 Infill projects shall be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, and should blend rather than compete with the established character of the area. Goal CD -1 Preserve and enhance Los Gatos's character through exceptional community design. Policy CD -1.2 New structures, remodels, landscapes, and hardscapes shall be designed to harmonize and blend with the scale and rhythm of the neighborhood and natural features in the area. Policy CD -1.4 Development on all elevations shall be of high quality design and construction, a positive addition to and compatible with the Town's ambiance. Development shall enhance the character and unique identity of existing commercial and/or residential neighborhoods. Policy CD -1.5 Town staff shall evaluate projects to assess how build characteristics, including scale, materials, hardscape, lights, and landscape, blend into the surrounding neighborhood. Goal CD -2 To limit the intensity of new development to a level that is consistent with surrounding development and with the Town at large. Policy CD -2.3 A maximum total floor area for new subdivisions and planned developments shall be set as part of the approval process. Goal CD -7 To preserve the quality of the private open space throughout Los Gatos. Policy CD -7.1 Maximize quality usable open space in all new developments. Policy CD -7.2 Multi - family residential developments shall include common open space suitable for group gathering. Policy CD -7.3 All residential developments shall include private open space in proportion to the building size. 2 Goal CD -17 To conduct careful review of new projects and provide clear direction to property owners, neighbors, and potential developers Policy CD -17.4 Development proposals on parcels greater than 40,000 square feet may be processed as a planned development. Goal OSP -2 To preserve open space in hillside areas as natural open space Policy OSP -2.3 In all hillside subdivisions, the dedication of open space in fee or as an easement shall be required to protect unique natural features, habitats, and migration corridors, and to preserve the rural atmosphere. Goal OSP -6 To consider the provision of open space in all development decisions within the Town. Policy OSP -6.1 Promote private open space in all planning decisions for new development. Policy OSP -6.2 New development shall include conditions to preserve open space. Policy OSP -6.5 Provide permanent common open space in high- density developments. Policy OSP -6.8 Encourage the use of innovative development techniques which will provide open space within individual developments, public or private. Policy OSP -6.9 Town staff shall evaluate all development projects to determine the benefit of requiring open space dedication. N1DEV\PC REPORTS\2014\PD Ordinance Rpt Ex 7.10- 8 -14.dm 3 This Page Intentionally Left Blank Town of Los Gatos 110E Main Street Los Gatos, CA 95030 You are welcome to share your ideas regarding Planned Development Zoning at the Planning Commission meeting of October 8, 2014. P� sa .PZ PYU Permf.l5RB1 SMJ�, CP The Town of Los Gatos Planning Commission will be taking public testimony and discussing potential changes to the Town Code ton me establishment and use of Planned Development Overlay Zoning Designations. This discussion may include the Town's Community Bene- fit end Infill Policies. On June 2, 2014, the Town Council discussed this topic and referred it to the Planning Commission for considera- tion and recommendation. if you are interested in the materials discussed by the Town Council and/or would like to view the archived video of the June 2 meeting, please visit: http: / /wnvw.lmgatos .gm/2148/Tom-Co cil-Agenda- Minums The intent of the October 8 meeting is for the Planning Commission to receive input and comments from the public, review the Town Council referral and related materials, and return a recommendation to the Town Council. This is not a public hearing on a specific amendment to the Town's Zoning Code. you are welcome to review the Planning Commission agenda and report materials at: We IAwsysv .Josgatoscg.gov/2148/rovm-Cmncil-Aunda-M nmas EXHIBIT 8 10/8/14 PC Staff Rpt This Page Intentionally Left Blank The Honorable Margaret Smith, Esq., Chair Los Gatos Planning Commission Members of the Los Gatos Planning Commission 110 E. Main Street Los Gatos, CA 95030 Dear Ms. Smith and Members of the Los Gatos Planning Commission: October 1, 2014 This letter is in response to the request for public input on the Planned Development Overlay Zone issue. I am writing this letter as a Los Gatos resident, and from the perspective of someone who has worked closely with the Town over the past three years to create what I believe will be an excellent infill development of 33 new homes on blighted land in the northern part of our community. Planned development is an effective and important tool that Los Gatos has successfully used to ensure orderly development and quality design in a community that is largely "built out." The 75 planned developments approved and executed since 1964 include single - family housing units, condominiums, recreational facilities, senior residential communities, corporate centers, retail stores and medical facilities. Each has blended in with the character of the surrounding area, and has contributed to our vibrant and active community. The Council Ad Hoc Subcommittee proposal limits the use of Planned Development as a planning tool by restricting PD Zoning to hillside property, riparian areas, and historic preservation zones. These proposals will severely curtail the Town's ability to redevelop areas that are run -down, underutilized, and in need of upgrading and change. Los Gatos will be unable to create innovative possibilities for business and residential development, much of which is driven by consumer demand for small lots and shared open space. Finally, there is a concern about the future of Planned Developments that have already received Town approval. With a restricted Planned Development ordinance, will changes ever by able to be made in these areas? Will future buyers have conditions put on their mortgages because they are purchasing property in a zoning designation is no longer approved by Town code? As a potential solution to these issues, we ask that the Planning Commission: (1) Carefully consider and review the current Planned Development ordinance with the mindset that it need not be changed, but instead that new criteria be added to bring it up to date; (2) return the issue to the Town's General Plan Committee for its review and input; (3) and, finally, make recommendations to the Town Council. Thank you for your consideration of my requests. With my best regards, i Mark Senior Vice President Ki PUP[H ➢[S 21710 Slovens NO Huuleueid. Suite 100, Cupertino, Celiimnia 95014 400/2572 09 • r& 400 /255 H020 EXHIBIT 9 10/8/14 PC Staff Rpt P R 0 P E R T I E S The Honorable Margaret Smith, Esq., Chair Los Gatos Planning Commission Members of the Los Gatos Planning Commission 110 E. Main Street Los Gatos, CA 95030 Dear Ms. Smith and Members of the Los Gatos Planning Commission: October 1, 2014 This letter is in response to the request for public input on the Planned Development Overlay Zone issue. I am writing this letter as a Los Gatos resident, and from the perspective of someone who has worked closely with the Town over the past three years to create what I believe will be an excellent infill development of 33 new homes on blighted land in the northern part of our community. Planned development is an effective and important tool that Los Gatos has successfully used to ensure orderly development and quality design in a community that is largely "built out." The 75 planned developments approved and executed since 1964 include single - family housing units, condominiums, recreational facilities, senior residential communities, corporate centers, retail stores and medical facilities. Each has blended in with the character of the surrounding area, and has contributed to our vibrant and active community. The Council Ad Hoc Subcommittee proposal limits the use of Planned Development as a planning tool by restricting PD Zoning to hillside property, riparian areas, and historic preservation zones. These proposals will severely curtail the Town's ability to redevelop areas that are run -down, underutilized, and in need of upgrading and change. Los Gatos will be unable to create innovative possibilities for business and residential development, much of which is driven by consumer demand for small lots and shared open space. Finally, there is a concern about the future of Planned Developments that have already received Town approval. With a restricted Planned Development ordinance, will changes ever by able to be made in these areas? Will future buyers have conditions put on their mortgages because they are purchasing property in a zoning designation is no longer approved by Town code? As a potential solution to these issues, we ask that the Planning Commission: (1) Carefully consider and review the current Planned Development ordinance with the mindset that it need not be changed, but instead that new criteria be added to bring it up to date; (2) return the issue to the Town's General Plan Committee for its review and input; (3) and, finally, make recommendations to the Town Council. Thank you for your consideration of my requests. With my best regards, i Mark Senior Vice President Ki PUP[H ➢[S 21710 Slovens NO Huuleueid. Suite 100, Cupertino, Celiimnia 95014 400/2572 09 • r& 400 /255 H020 EXHIBIT 9 10/8/14 PC Staff Rpt This Page Intentionally Left Blank