COUNCIL AGENDA REPORT 001, ZONING CODE AMENDMENT Z , AND ENVIRONMENTAL

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wno< V+ 4 1pS A` ps COUNCIL AGENDA REPORT MEETING DATE: 02/ 03/ 15 ITEM NO: b ADDENDUM DATE: JANUARY 30, 2015 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER ROBERT SCHULTZ, TOWN ATTORNEY SUBJECT: NORTH FORTY SPECIFIC PLAN, GENERAL PLAN AMENDMENT GP -14-001, ZONING CODE AMENDMENT Z -14-001, AND ENVIRONMENTAL IMPACT REPORT EIR -10-002. PROJECT LOCATION: THE PLAN AREA COMPRISES APPROXIMATELY 44 ACRES LOCATED AT THE NORTHERN EXTENT OF THE TOWN OF LOS GATOS, BORDERED BY STATE ROUTE 17 AND STATE ROUTE 85 FREEWAYS TO THE WEST THROUGH 037, 052 THROUGH 054, 060, 063 THROUGH 065, 070, 081 THROUGH 086, 090, 094 THROUGH 096, 099, 100, 424-06 -115, 116, AND 129. PROPERTY OWNERS: THOMAS & MIYOKO YUKI, HERBERT & BARBARA YUKI, ETPH LP, WILLIAM MATTES, PETER BRUTSCHE, WILLIAM FALES. WILLIAM HIRSCHMAN, ELIZABETH DODSON, PATRICIA CONNELL, HANS MATTES, TAK PETROLEUM, DEWEY VENTURA, ALEXANDER & BETTY MOISENCO, LUCY, DAGOSTINO, ROBERT & GEORGIANNA SPINAZZE, MARIANNE EZELL, LOS GATOS MEDICAL OFFICE CENTER, LLC. APPLICANT: TOWN OF LOS GATOS. A. CONSIDER ADOPTION OF THE NORTH FORTY SPECIFIC PLAN. B. CONSIDER ADOPTION OF GENERAL PLAN AMENDMENTS. C. CONSIDER ADOPTION OF AN ORDINANCE EFFECTING A ZONING CODE AMENDMENT. D. ADOPTION OF A MITIGATION MONITORING AND REPORTING PROGRAM, AND ADOPTION OF FINDINGS OF FACT AND STATEMENT OF OVERRIDING CONSIDERATIONS. REMARKS: The attached correspondence ( Attachment 49) was received after distribution of the staff report. PREPARED BY: LAUREL R. PREVET 144 v ' Assistant Town Manager erector of Comminity Development Reviewed by: N/A Assistant Town Manager Town Attorney in 11S N/A Finance N:\ DEV \TC REPORTS\ 2015 \N40 TC 2-3 -15 Addendum.doe Reformatted: 5/ 30/02

PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14-001 /Z -14-001 /EIR -10-002 January 30, 2015 Attachment (Previously received on April 4, 2014): 1. Draft Environmental Impact Report ( http : / /www.losgatosca. gov /N40DEtR) Attachments (Previously received on July 11, 2014): 2. Final Environmental Impact Report with the Mitigation Monitoring and Reporting Program http: / /www.los a osca.gov /N40FEIR) 3. Public Hearing Draft North Forty Specific Plan ( Note: The complete Specific Plan including appendices is also available online at: http : / /www.losgatosea.gov /N40SP) Attachments (Previously received on August 22, 2014): 4. Report to the Planning Commission for the meeting of July 23, 2014 (excluding Exhibits 5 & 6) 5. Desk Item Report to the Planning Commission for the meeting of July 23, 2014 6. Desk Item 2 Report to the Planning Commission for the meeting of July 23, 2014 7. Report to the Planning Commission for the meeting of August 13, 2014 8. Desk Item 3 Report to the Planning Commission for the meeting of August 13, 2014 Attachments ( Previously received with Staff Report on August 28, 2014): 9. Verbatim minutes from the August 13, 2014 Planning Commission meeting ( 141 transcribed pages) 10. Public Comment received through 11: 00 a.m. Thursday, August 28, 2014 11. Detailed Planning Commission recommendations on the North Forty Specific Plan from their August 13, 2014 meeting (six pages) 12. Draft findings (one page) 13. Memorandum from the Town Attorney (four pages) 14. Draft Resolution certifying the Environmental Impact Report ( EIR -10-002), adopting the Mitigation Monitoring and Reporting Program, and adopting the Findings of Fact and Statement of Overriding Considerations, including Exhibit A. 15. Draft Resolution for the adoption of the North Forty Specific Plan 16. Draft Resolution adopting General Plan Amendments of the Town' s General Plan ( GP -14-001), including Exhibit A. 17. Draft Ordinance effecting a Zoning Code Amendment of the Town Code ( Z -14-001), including Exhibit A. 18. Planning Commission Recommendations for Text Changes to the North 40 Specific Plan four pages) Attachments ( Previously received with Addendum on August 29, 2014): 19. Resolution 2010-091: Resolution of the Town Council of the Town of Los Gatos Recommending Certification of the Environmental Impact Report and Adoption of the 2020 General Plan ( includes Exhibit A)

PAGE MAYOR AND TOWN COUNCIL SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14-001 /Z -14-001 /EIR -10-002 January 30, 2015 20. Public Comment received from 11: 01 a.m. Thursday, August 28, 2014 through 11: 00 a.m. Friday, August 29, 2014 Attachments ( Previously received with Desk Item on September 2, 2014): 21. Map of the Los Gatos Union School District Boundary and school site options within the North 40. 22. Letter from the Los Gatos Union School District received Friday, August 29, 2014 after 11: 00 a.m. 23. Public Comment received from 11: 01 a.m. Friday, August 29, 2014 through 11: 00 a.m. Tuesday, September 2, 2014. 24. Additional Limitations for Commercial ( Exhibit 8 from the August 15, 2012 Advisory Committee meeting. Attachments (Previously received with September 16, 2014 Staff Report): 25. Grosvenor exhibit displayed at the September 2, 2014 Town Council meeting. 26. Letter from the Los Gatos Union School District, dated September 5, 2014. 27. Public Comment received from 11: 01 a.m. Tuesday, September 2, 2014 through 11: 00 a.m. Thursday, September 11, 2014. 28. Fehr & Peers letter dated September 10, 2014. 29. Table of Planning Commission recommendations and proposed responses for Council consideration. Attachments ( Previously received with September 16, 2014 Addendum): 30. Letter from A. Don Capobres, Linda Mandolini, and Wendi Baker dated September 12, 2014 7 pages) 31. Public Comments received from 11: 01 a.m. Thursday, September 11, 2014 through 11: 00 a. m. Friday, September 12, 2014 Attachments ( Previously received with September 16, 2014 Addendum #2): 32. Public Comments received from 11: 01 a.m. Friday, September 12, 2014 through 11: 00 a.m. Monday, September 15, 2014 33. Highland Oaks Existing Traffic Calming Attachment (Previously received with September 16, 2014 Desk Item): 34. Public Comment received from 11: 01 a.m. Monday, September 15, 2014 through 11: 00 a.m. Tuesday, September 16, 2014 Attachment (Previously received with September 16 2014 Desk Item # 2): 35. Traffic analysis information

PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: NORTH 40 SPECIFIC PLAN /GP -14-001/ Z -14-001 /EIR -10-002 January 30, 2015 Attachments ( Previously received with December 16, 2014 Staff Report): 36. Agricultural Resources information 37. Alternative to ITE Traffic Information Analysis by Fehr and Peers ( " Trip Generation Rate Comparison ") 38. Additional Proposed Projects by Fehr and Peers ( "Additional Future Year Information ") 39. TJKM Peer Review of Fehr and Peers Reports contained in Attachments 37 and 38 40. Draft School District Demographic Study dated October 8, 2014 41. Additional Economic Analysis 42. Revised Findings of Fact and Statement of Overriding Considerations 43. Letter from Superintendent Diane Abbati dated December 8, 2014 with School District Student Population Projections dated November 3, 2014 44. Public Comment received from 11: 01 a.m. Monday, September 16, 2014 through 11: 00 a.m. Thursday, December 11, 2014 Attachments ( Previously received with December 16, 2014 Desk Item): 45. Public Comment received from 11: 01 a.m. Thursday, December 11, 2014 through 11: 00 a.m. Tuesday, December 16, 2014 Attachments ( Previously received with February 3. 2015 Staff Report 46. Updated Table of Planning Commission recommendations and proposed responses for Council consideration 47. North 40 Specific Plan Area Property Ownership Map 48. Public Comment received from 11: 01 a.m. Tuesday, December 16, 2014 through 11: 00 a.m. Thursday, January 29, 2015 Attachments received with this Addendum: 49. Correspondence received from 11: 01 a.m. Thursday, January 29, 2015 through 11: 00 a.m. Friday, January 30, 2015 Distribution cc: Grosvenor Americas, Attn: Steve O' Connell, 1 CA 94111 California Street, Suite 2500, San Francisco, Summerhill Homes, Attn: Wendi E. Baker, 3000 Executive Parkway, Suite 450, San Ramon, CA 94583 LRP:JSP: cg

GROSVENOR January 291", 2015 EDEN HOUSING CDM CDM MUN MUN IF IF IS IS or or DISTINCTION DISTINCTION Town Town of of Los Los Gatos Gatos Honorable Honorable Mayor Mayor Jensen Jensen and and Council Council Members Members c/ c/ oo Laurel Laurel Prevetti, Prevetti, Assistant Assistant Town Town Manager Manager and and Community Community Development Development Director Director 110 110 E. E. Main Main St. St. Los Los Gatos, Gatos, California California 95031 95031 Honorable Honorable Mayor Mayor Jensen Jensen and and Council Council Members: Members: We We have have reviewed reviewed the the Town Town of of Los Los Gatos Gatos Draft Draft North North 40 40 Specific Specific Plan. Plan. As As aa potential potential future future implementer implementer of of this this plan, plan, there there are are several several items items of of concern concern that that are are important important to to raise raise as as they they would would pose pose challenges challenges for for future future development development of of the the property property and and the the successful successful implementation implementation of of the the document' document' ss vision. vision. These These points points are are summarized summarized below. below. Parking Parking requirements. requirements. oo Table Table 2-2- 4. 4. Senior Senior affordable affordable housing housing has has much much lower lower parking parking needs needs than than traditional traditional affordable affordable housing, housing, especially especially when when it it pertains pertains to to guest guest parking. parking. For For example, example, Eden Eden Housing Housing constructs constructs.. 50 50 spaces spaces per per unit unit in in their their senior senior housing housing projects projects throughout throughout the the Bay Bay Area. Area. To To incentivize incentivize development development of of senior senior affordable affordable housing, housing, we we request request lowering lowering this this ratio ratio to to aa blended blended.. 50 50 per per dwelling dwelling unit unit for for residents residents and and guests guests for for only only senior senior affordable, affordable, but but retaining retaining the the.. 50 50 space space plus plus 50 50 guest guest for for non non - - senior senior designated designated affordable affordable housing housing as as is is shown shown in in the the current current draft. draft. Height Height measurement. measurement. Page Page 22 - - 26, 26, Section Section 2. 2. 6. 6. 6. 6. e., e., 2. 2. 7. 7. 4. 4. d., d., Glossary. Glossary. Since Since the the North North 40 40 will will require require aa large large - - scale scale cut cut and and fill fill grading grading operation operation to to implement implement infrastructure infrastructure and and cross cross - - drainage, drainage, we we request request consideration consideration be be given given to to measuring measuring from from finished finished grade grade rather rather than than existing existing grade. grade. The The property' property' ss existing existing grade grade along along the the Los Los Gatos Gatos Boulevard Boulevard frontage frontage is is as as much much as as 10' 10' below below the the right right - - of of - -way, way, and and throughout throughout the the property property there there are are minor minor variations variations in in topography. topography. Measuring Measuring from from finished finished grade grade provides provides additional additional opportunity opportunity for for superior superior architecture architecture and and aa diversity diversity of of roof roof lines. lines. To To ensure ensure that that this this is is not not taken taken advantage advantage of, of, we we recommend recommend aa 4' 4' maximum maximum or or any any fill fill in in excess excess of of 4' 4' to to be be included included in in the the overall overall height height measurement. measurement. Page Page 66 - - 18 18 Definition Definition of of Story, Story, treatment treatment of of podium podium in in Lot Lot Area Area Coverage Coverage on on page page 3022 3022 Section Section 2. 2. 2. 2. 2. 2. e e ( ( and and elsewhere), elsewhere), and and definition definition of of " " cellar" cellar" on on page page 66 - - 12. 12. Because Because of of the the differences differences in in site site slope, slope, we we request request that that all all references references to to basements" basements" and and " " podium podium parking" parking" are are consistent consistent and and that that average, average, rather rather than than absolute, absolute, measurements measurements are are allowed. allowed. The The existing existing six six foot foot average average that that applies applies to to podiums podiums should should also also be be applied applied to to the the definition definition of of basements. basements. Residential Residential Open Open Space Space oo Page Page 22 - - 27, 27, Section Section 2. 2. 7. 7. 2. 2. Because Because the the unmet unmet needs needs buyer buyer desires desires private private open open space space for for their their outdoor outdoor entertaining entertaining and and pets, pets, aa diversity diversity of of private private open open space space configurations configurations should should be be offered. offered. For For example, example, 200 200 square square feet feet should should not not include include utilitarian utilitarian areas areas such such as as private private access access / / walkways walkways / / breezeways, breezeways, but but more more usable usable ATTACHMENT 4 9

4' contiguous private open space. Private yard space in excess of 200 square feet should be considered through the use of a conditional use permit to ensure the space is consistent with targeting this unmet need and considered as a complement to the diversity of housing types that will be designed for the Millennial and Move -Down buyer. Once a design is proposed through a CUP, the Town would be able to determine if it satisfies the goals of the Specific Plan rather than eliminating the opportunity entirely. Page 3-24, Section 3. 3.4. Loosening of private open space requirements should be considered for Senior Affordable units, as many of these types of buildings have common open space in lieu of private open space. Not only is the cost and maintenance of these spaces better utilized in common open spaces for the residents, such as podium -level gardens, but there are psychological benefits from encouraging seniors to socially interact rather than isolate themselves. Lot Area Coverage Page 2-24, Section 2. 6. Maximum building coverage is noted to be considered per application or group of applications for Non - Residential /Mixed Use Development. For consistency, this should be added in the Residential Standards as well. Much like the Non - Residential /Mixed Use portion of the Project, using a Tentative Map' s definition of lots as the requirement for residential building coverage would not allow the application to meet this 50% requirement. This is because buildings, roads, parks, and paseos are typically on individual lots on Tentative Maps, which can result in lots with either 0% coverage or near full lot coverage. Adding this language that coverage would be per application rather than per lot in the residential area would meet the intent due the challenges of the individual lot Tentative Mapping process. Please see below for a hypothetical subdivision that satisfies an overall application 50% residential lot coverage but not individual residential 50% lot coverage. VY, Lf LLi [ V,LFNa: GLMA' IT Flwlk. l i i Lmi WFe i ' I6AE ; verven ulkrl 6 E] a LR R IeT a lef e ' ek 1N 1N 1. CSIIF foyfrmi: - SJ+ 11018 1 8. A, B. MC LI, BiPLLFYRL MG C1. Pmk MIA TiYI,1k. LLLfY 4AIF

Retail Tenant Space o Page 2-26, Section 2. 6. 7. Consistent with the Urban Decay analysis and previous economic analysis produced by the Town of Los Gatos which identifies larger format retail as an unmet need, we are requesting that retail tenant size above 50, 000 square feet be allowed with a CUP. If a 51, 000 square foot tenant were to appeal to the Town, a Specific Plan Amendment would be necessary. A CUP would continue to provide discretionary review without losing a tenant opportunity. Residential Height in the Transition District o Page 2-28, Section 2. 7.4. b. We understand additional height could be proposed and approved with a CUP in the Transition District. The vagueness of ultimate height allowances has caused some concern in the community. We are seeking up to 55' be allowed in the Transition District, with the exception of elevator and stairwell shafts. We believe this will allow future developers to provide for a variety of housing types to meet unmet needs - specifically cater to those older adults seeking a move -down home in Los Gatos. Those residents seek higher floor to ceiling volumes, will require elevators which create mechanical height issues, and the building will feature structured parking on which the residential will be built upon. A copy of a letter addressed to the North 40 Specific Plan Advisory Committee outlining the height issues is attached for your reference. Reimbursement Opportunities for Infrastructure o Page 5-4, Section 5.3. 2., Page 5-7, Section 5. 3.2. b, Page 6-5, Section 6. 3. 3. It is likely that infrastructure costs for the overall site may be incurred by a primary/master developer. There is no defined vehicle in the Specific Plan for reimbursement or fee credits for the significant infrastructure and offsite costs that are for public benefit. We recommend language be included that refers to fair share reimbursement. We appreciate your consideration on the above, and we are prepared to discuss these points further at tonight' s meeting. Sincerely, A. Don Capobres Linda Mandolini Senior Vice President President Grosvenor Eden Housing Wendi Baker Vice President of Development SummerHill Homes

11 LAW OFFICES OF BRENT N. VENTURA P. O. Box 320847 LOS GATOS, CA 95032 408) 354-6725 dan 9 0 2015 January 26, 2015 Mayor Jensen and Los Gatos Town Councilmembers 110 East Main Street Los Gatos, CA 95030 JO: rxy G Cl, lrl, RE: Draft North Forty Specific Plan Dear Mayor Jensen and Los Gatos Town Councilmembers, At the last public hearing in this matter I commented on the advisability of using the land use tool of a conditional use permit as a enforcement mechanism to regulate minimum retail square footages that the Council might allow in the commercial areas of the proposed North Forty Specific Plan. After having an opportunity to further consider these comments, I would offer the following: If the Council is inclined to limit the minimum square footage of commercial retail space in the proposed North Forty Specific Plan area, I would recommend specifying the terms with unequivocal, unambiguous, prohibitive /mandatory language in the proposed Specific Plan, as well as any Planned Development or other Zoning approvals that may be granted for the area, and, in addition, also including such language in any conditions related to any Site and Architecture approvals. I would not recommend using the conditional permit as an enforcement mechanism, given the legal issues that arise with vested use permit holders. Given that the Council is currently contemplating legislative enactment of the ground rules for the North Forty Specific Plan, I believe your legislation {which could also be duplicated in any Planned Development Overlay or other Zoning or as a requirement of a Site and Architecture approval), would be the better course for enforcing any such retail floor area mandates rather than attempting to enforce via the conditions on a use permit. II- v

In my opinion this would result in a more viable enforcement mechanism if the Council elects to place any restrictions in this regard. Thank you for your courteous consideration of the foregoing. Very truly yours, BRENT N. VENTURA BNV/ bt ZI2