Cities Index.
Agenda packet, first session

Los Gatos City Council
October 4, 2022

Document
Agenda packet, first session
Meeting
October 4, 2022
Body
Los Gatos City Council
Pages
332
Original file
37.2 MB
Text extracted from the city's file for reading and search. Open the original on mccmeetings.blob.core.usgovcloudapi.net. That file is the official record.

PAGE 2 OF 2
SUBJECT: Final Draft Theatre Lease Agreement
DATE: September 28, 2022
DISCUSSION (continued):

Hundred Thousand Dollars ($100,000) (“Minimum Net Income”) of Theatre for the contractual Rent and Monetary Obligations to be fully obligated and payable.

Therefore, the parties may agree to modify the annual Rent and Monetary Obligations to ensure a Minimum Net Income of $100,000 annually. Failure of CineLux to achieve this dollar amount of Minimum Net Income shall constitute adequate grounds for Termination of this Lease under Section 15.

The $100,000 Minimum Net Income was derived from a review of proforma financial statements utilizing historic attendance levels. In the event the Minimum Net Income isn’t achieved the parties agree to review the established annual rent at the time and the Town’s 5% Gross Revenue share.

CONCLUSION:

Adopt final Lease Agreement with CineLux Theatres Co. LLC for the operation and program management of the Los Gatos Theatre.

COORDINATION:

This staff report has been coordinated with the Town Manager and Town Attorney.

FISCAL IMPACT:

Income derived from this agreement will be deposited to a Special Revenue Fund and would be utilized for the ongoing capital needs of the Theatre.

ENVIRONMENTAL ASSESSMENT:

In accordance with CEQA Guidelines Section 15301, this lease is categorically exempt from CEQA because it is a lease of an existing structure and will involve negligible expansion of an existing structure.

Attachments:

1. June 28 2022 Staff Report

2. Final Draft Theatre Lease Agreement

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PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, Economic Vitality Manager, 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: 06/28/2022
ITEM NO: 3
DATE: June 21, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Negotiate and Execute a Lease Agreement with CineLux Theatres Co. LLC for the Operation and Program Management of the Los Gatos Theatre in Substantially the Form Presented RECOMMENDATION:

Authorize the Town Manager to negotiate and execute a Lease Agreement with CineLux Theatres Co. LLC for the operation and program management of the Los Gatos Theatre in substantially the form presented.

BACKGROUND:

On November 16, 2021, the Town Council authorized the Town Manager to negotiate and execute a Donation Agreement for the Los Gatos Theatre Donation Property and issue a Request for Proposals (RFP) for the management and programming of the theatre. On December 30, 2021, the Town completed the transfer of the Los Gatos Theatre property to the Town’s ownership.

On February 4, 2022, staff released a RFP for the Operation and Program Management of the Los Gatos Theatre (Attachment 1). The RFP sought qualified individuals or firms to operate and manage the Los Gatos Theatre (Theatre) on behalf of the Town. The RFP stressed that respondents should advance the theatre’s long-term financial viability while advancing the following goals:

1. Preservation of the Theatre as one of the most significant historical, cultural and architectural resources in the Town of Los Gatos;

2. Enrichment of the community through the promotion and presentation of highquality entertainment, cultural events, and community education programs of interest to all segments of the community;
ATTACHMENT 1 Page 232
PAGE 2 OF 4
SUBJECT: Los Gatos Theatre Lease Agreement
DATE: June 21, 2022
BACKGROUND (continued):

3. Identification of the Theatre as a central destination point for cinematic and performing arts which drives economic activity in downtown Los Gatos and the broader region; and

4. Long-term financial sustainability.

By the March 4, 2022 RFP submission deadline, staff received proposals from the following three respondents:
• Guggenheim Entertainment
• Pruneyard Cinemas LLC
• CineLux Theatres Co. LLC
The RFP review panel consisted of the Assistant Town Manager, Economic Vitality Manger, and Director of Parks and Public Works. After careful consideration of the RFP responses, the review panel selected CineLux Theatres Co. LLC as the best option for the management and operation of the Theatre. CineLux has over 55 years of theatre experience and is the largest independent regional theatre operator in the South Bay. CineLux currently operates seven locations with 53 screens. In addition, CineLux has demonstrated the successful acquisition and operation of seven previously closed or failed motion picture theatres.

DISCUSSION:

Provided below are the salient elements of the draft Lease Agreement (Agreement) staff is utilizing as the basis of agreement between the Town of Los Gatos and CineLux Theatres Co. LLC (Attachment 2).

Agreement Elements Comments
Term Five (5) year initial agreement with two (2) five-year options.

Theatre Management CineLux would operate and manage the Theatre independently of Town in compliance with agreed upon
performance expectations and Town, state, and federal
rules, regulations, and laws. The nature of this
relationship is that of an independent contractor.

Theatre Programming Professional film programming shall be a prioritized use in the Theatre.

Profit Sharing Town shall receive 5% of the Theatre’s gross revenue annually.

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PAGE 3 OF 4
SUBJECT: Los Gatos Theatre Lease Agreement
DATE: June 21, 2022
DISCUSSION (continued):

Agreement Elements Comments
Monthly Rent - For the first (1) year after the Delivery Date, Cinelux shall pay no Rent for the Premises. The Delivery Date is the date that CineLux assumes responsibility for the
Theatre under the Agreement.
- For the second (2) year after the Delivery Date, Cinelux will pay base rent of $5,000 per month.
- In year three (3) after the Delivery Date, Cinelux will pay monthly rent of $10,000 per month.

Annual Reporting - An annual financial report for Cinelux’s previous fiscal year.
- An annual narrative report on the operations of the
Theatre for the previous fiscal year.
- A report assessing the status of physical condition of the Theatre, preventive maintenance activities
completed, and any needed Capital Replacements.
- Cinelux’s proposed budget for the Theatre operations
and maintenance for the current fiscal year.

Town, Non-profit, and CommunityBased Organization Theatre Use - Not less than 6 times per year, Cinelux shall make the Theatre available for rental to Los Gatos community-based organizations and non-profit
organizations at no cost.
- Cinelux shall maintain a tiered fee structure that
includes discounted rates with specified eligibility criteria for Los Gatos community-based organizations and nonprofit organizations. - Not less than 2 times per year, Cinelux shall make the Theatre available to the Town at no cost.

Maintenance & Repairs - Cinelux shall be responsible for all routine daily maintenance of the interior shell of Theatre Facility.
- Cinelux shall be responsible for the routine and
preventive maintenance services of all building systems. - As stated in Exhibit D, Maintenance Matrix, to the Draft Agreement (Attachment 2), Town shall be responsible for the structural foundation, bearing and exterior walls, and subflooring among other items

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PAGE 4 OF 4
SUBJECT: Los Gatos Theatre Lease Agreement
DATE: June 21, 2022
CONCLUSION:

Staff recommends that the Council authorize the Town Manager to negotiate and execute a Lease Agreement with CineLux Theatres Co. LLC for the operation and program management of the Los Gatos Theatre.

COORDINATION:

This staff report was coordinated with the Town Manager, Town Attorney, Economic Vitality Manager, Director of Parks and Public Works, and Finance Director.

FISCAL IMPACT:

Income derived from this agreement will be deposited to a Special Revenue Fund and would be utilized for the ongoing capital needs of the Theatre.

ENVIRONMENTAL ASSESSMENT:

In accordance with CEQA Guidelines Section 15301, this lease is categorically exempt from CEQA because it is a lease of an existing structure and will involve negligible expansion of an existing structure.

Attachments:

1. Los Gatos Theatre RFP

2. Draft Lease Agreement

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Lease Agreement - 1 ATTACHMENT 2

LEASE AGREEMENT BETWEEN

TOWN OF LOS GATOS
AND
CINELUX THEATRES LOS GATOS. LLC
THIS AGREEMENT (“Use Agreement”) is made and entered into this ___ day of ___, 2022, by and between the TOWN OF LOS GATOS, a California municipal corporation (herein “Town”) and CINELUX THEATRES LOS GATOS LLC, a California limited liability company (herein “CineLux”). Town and CineLux may be referred to individually as a “Party” or collectively as the ''Parties” or the “Parties to this Lease Agreement.” The Town Manager serves as Contract Administrator for this Lease Agreement (“Agreement”) on behalf of the Town Council.

RECITALS
A. Whereas, The Goetz family purchased the Los Gatos Theatre (“Theatre”) in 2011 as a philanthropic project and completely renovated the Theatre between 2012 and 2014; and B. Whereas, on April 18, 2021, the Goetz family provided the Town with a proposal for the donation of the Theatre to the Town; and
C. Whereas, on November 16, 2021, the Town Council formerly accepted the donation and directed staff to negotiate and execute a donation agreement and issue a Request for Proposal (“RFP”) for the management and programming of the Theatre; and
D. Whereas, on December 30, 2021, the property transfer was recorded with Santa Clara County and the Town became the sole owner of the Theatre; and
E. Whereas, on February 4, 2022, the Town released an RFP seeking qualified vendors to submit proposals to operate the Theatre on an exclusive basis; and F. Whereas, on March 4, 2022, the Town received three (3) submissions and after extensive review deemed the CineLux proposal worthy of award; and
G. Whereas, the Town and CineLux now wish to enter into this Agreement which meets or exceeds the objectives stipulated in the RFP.

In consideration of the above recitals, the parties mutually agree as follows:

SECTION 1. Definitions.

Except as otherwise provided in this Agreement, the terms set forth below have the following meanings, unless the context clearly otherwise requires.

A. “CineLux” means CineLux Theatre Los Gatos LLC whose manager is CineLux Theatres Co., LLC, Paul Gunsky, Manager.

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Lease Agreement - 2 ATTACHMENT 2
B. “Capital Repair” means the repair of items which is made necessary either by some unusual or unforeseen occurrence which renders the item unsuitable for its intended use or causes it to perform in an inadequate manner.

C. “Capital Replacement” means the full replacement of building system assets or its components, such as HVAC systems, that have reached the end of their useful life.

D. “Capital Replacement and Repair Plan” is defined in Section 10.3.C.

E. “FF&E” means furniture, fixtures and equipment furnished by Town or CineLux for installation or use in the Theatre and any replacement furniture, fixtures and equipment required due to obsolescence or normal wear and tear.

F. “Material Alterations” is defined in Section 11(A).

G. “Ordinary Maintenance and Repairs” means the work that is required to keep the Theatre in a safe, clean, and sanitary condition and which is made necessary due to the day to day operation of the Theatre, as determined by the Town’s Director of Parks and Public Works or designee.

H. “Permanent Improvement” means any building, monument, or statue that is installed at the Theatre.

The term “Permanent Improvement” also includes any other structure constructed or installed at the Theatre in such a manner that it is affixed to the real property.

I. “Replacement Cost” means the cost to replace property at its then current price, without deduction for depreciation.

J. “Term” is defined in Section 3.

K. “Theatre” is defined in Section 2. B.

SECTION 2. Location and Description of the Los Gatos Theatre.

A. The Theatre is located at 43 North Santa Cruz Avenue, Los Gatos, CA 95030. As shown in Exhibit A, the leased Premises consists of approximately eleven thousand six hundred and four (11,604) square feet of space for the screening of films (the “Premises”). CineLux accepts the Premises “as-is” on the date of execution of this Use Agreement.

B. The Theatre was fully reconstructed during 2012-2014, is currently in good condition, and is comprised of the following improvements:
(1) The main theatre has inclined stadium-style seating for up to 244 in rocking, vinyl –covered loungers rising up 14 rows. At the top, an intimate balcony offers two additional rows of premium seating for 21 in oversized velour-upholstered rocking chairs and loveseats. A state-of-the-art Barco 4K digital cinema projector, with 3D capability, can show films and presentations on a 38-by-19 foot screen;
(2) Downstairs lobby/reception area, administrative office area, food and beverage area, green room, and storage areas;

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Lease Agreement - 3 ATTACHMENT 2
(3) The lounge theatre is located on the second floor and offers an 18’ x 10’ screen. The smaller theatre, while more intimate with vinyl reclining and other seating for 38, has a total room capacity of 100. The space also offers an outdoor balcony and a full caterer’s kitchen; (4) One restroom core is located on each floor;
(5) Town-owned furniture, fixtures, and equipment as described in Exhibit B.

SECTION 3. Term.

3.1 Original Term. The term of this Agreement will commence as of Jun 28, 2022, regardless of the date of execution (“Commencement Date”) and will expire on June 30, 2027 (“Expiration Date”), unless sooner terminated as provided elsewhere in this Agreement. CineLux shall, at the expiration of the term of this Agreement, or upon its earlier termination, surrender the Premises in good condition except for reasonable wear and tear.

3.2 Option to Extend. Provided CineLux is not in default hereunder, either at the time of exercise or at the time the extended term commences, Town and CineLux may elect to extend the term of this Agreement for two (2) additional terms (“Extended Terms”) of five (5) years each. No Extended Term shall commence unless an Extended Term is requested by either party by providing a written notice of the party’s intent to extend the term, delivered not less than six (6) months prior to the expiration of the initial term or any Extended Term, and an agreement is executed by both parties.

3.3 Delivery Date. The Town and CineLux will undertake initial improvements to the Theatre as determined by mutual agreement. At the completion of those improvements, the Town will establish a delivery date of the Premises to CineLux on which the Term, and rent and monetary obligations of this Agreement will begin (“Delivery Date”).

This Agreement will not be amended, changed, or extended except by written agreement signed by both parties hereto.

SECTION 4. Facility Operations.

CineLux shall operate the Theatre in accordance with the Town’s Request for Proposals distributed on February 4, 2022 and incorporated by reference into this Agreement and the following objectives and parameters:

1. CineLux, in conjunction with the Town, shall preserve the Theatre as one of the most significant historical, cultural and architectural resources in the Town of Los Gatos.

2. CineLux, with input from the Town as necessary, will enrich the community through the promotion and presentation of high-quality cinematic entertainment, cultural events, and community education programs.

3. CineLux recognizes the Theatre is a central destination point for cinematic and performing arts which drives economic activity in downtown Los Gatos and the broader region, and as such will maintain an evolving and sustainable programming and operational model that emphasizes the cinematic arts.

4. CineLux and Town understand that the long-term financial sustainability of the Theatre is paramount to both CineLux and the Town and as such programming and the operational model will be

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Lease Agreement - 4 ATTACHMENT 2
developed along the following elements: financial sustainability, robust programming, full facility activation, and a management system for facility maintenance.

5. CineLux understands that Town’s continued ownership of the Theatre is contingent upon availability, as scheduling permits, for use by community-based organizations at reasonable but preferential rental rates.

6. CineLux and Town understand that long-term financial sustainability will be dependent on both building and maintaining a pipeline of future audiences and future facility rentals.

SECTION 5. CineLux’s Responsibilities to Operate the Theatre

5.1. Theatre Uses.

A. Town and CineLux agree that CineLux will operate and manage the Theatre independently of Town in compliance with agreed upon performance expectations and Town, state and federal rules, regulations, and laws. The nature of this relationship is that of a contract counter party and independent contractor and shall not be considered to be an agency, joint venture, partnership, or subsidiary relationship. Town and CineLux agree further that CineLux shall not hold itself out as, act as, or be the agent of Town without Town’s express written authority. It is the intent of the parties that CineLux will be delegated actual authority by Town over the day-to-day operation of the Theatre.

B. CineLux shall have the obligation and the exclusive right to provide the programs and services at the Theatre in general accordance with this Agreement.

C. CineLux shall have full responsibility for managing, monitoring and supervising all use of the Theatre pursuant to this Section 5.

D. All use of the Theatre shall be subject to the terms and conditions of this Agreement.

E. CineLux shall have exclusive right to operate the Theatre and to conduct activities at the Theatre in accordance with this Agreement in a prudent and business-like manner, with due concern for the safety of the public, and in compliance with all applicable laws, governmental regulations and the terms and conditions of this Agreement. Without limiting the generality of the foregoing, CineLux shall comply with all laws related to Hazardous Materials utilized by or under the direction, control or management of CineLux in the operation of the Theatre, including without limitation, laws related to the disposal of Hazardous Materials. As used in this Agreement, “Hazardous Materials” shall include, but not be limited to, hazardous, toxic, and radioactive materials and those substances defined as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or other similar designations in any local, state, or federal regulation.

F. CineLux shall have exclusive right to operate the Theatre so as to provide the fullest use of the Theatre over the widest time period consistent with good administrative practices for like facilities and within its available resources.

5.2. Community Use of Theatre Facility and Fee Schedules.

A. Professional film programming shall be a prioritized use in the Theater.

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Lease Agreement - 5 ATTACHMENT 2
B. When not utilizing the Theatre for core programming needs, but not less than 6 times per year, CineLux shall, with reasonable notice, make the Theatre available to Los Gatos community-based organizations (Lions, Rotary, Kiwanis, etc.) and non-profit organizations at no cost.

C. CineLux shall maintain and provide, pursuant to Sec 5.2B above, a commercially reasonable fee structure that includes discounted rates with specified eligibility criteria for Los Gatos community-based organizations (Lions, Rotary, Kiwanis, etc.) and non-profit organizations.

D. CineLux, in conjunction with the Los Gatos community-based organizations, shall be responsible for and shall manage and supervise all use of the Theatre pursuant to this Section 5.2. Without limiting the generality of the foregoing, CineLux expressly agrees and acknowledges that CineLux shall bear the sole and full responsibility for monitoring and supervising all use of the Theatre pursuant to this Section 5.2, and that its indemnification set forth at Section 14 hereof and its maintenance obligation set forth at Section 10 hereof include indemnification for and maintenance related to such community use of the Theatre.

E. All use shall be subject to the terms and conditions of this Agreement including without limitation Section 14.

5.3. Town Use of Theatre
A. Professional film programming shall be a prioritized use in the Theater.

B. When not utilizing the Theatre for core programming needs, but not less than 2 times per year, CineLux, with reasonable notice, shall make the Theatre available to the Town at no cost.

5.4. Operating Procedures.

CineLux will establish such reasonable rules and regulations to govern the public's use of the Theatre in order to assure the level, quality and character of the Theatre operations as required by this Agreement (“Theatre Rules).

SECTION 6. Rent and Monetary Obligations.

6.1 Monthly Rent. Subject to Section 6.9 below, for the first (1) year after the Delivery Date, CineLux shall pay no Rent for the Premises. For the second (2) year after the Delivery Date, CineLux will pay base rent of $5,000 per month. In year three (3) after the Delivery Date, CineLux will pay monthly rent of $10,000 per month. In no event shall rent exceed Ten Thousand Dollars ($10,000) per month during the initial 5-year period. Prior to any extension of the Term of this Agreement, if an Extended Term is sought by the Parties, the Town reserves the right to review the accounts and financial records of CineLux and open negotiations for a potential adjustment in rent.

6.2 Gross Revenue Sharing. Subject to Section 6.9 below, in addition to the Monthly Rent referenced in Section 6.1 above the Town shall receive 5% of the Theatre’s gross revenue annually. Gross revenue includes, but is not limited to, revenue from ticket sales, event rentals, concession sales of food and alcohol and other sources.

6.3 Revenue and Taxation Code Section 107.6. CineLux specifically acknowledges that, in accordance with Revenue and Taxation Code Section 107.6, the Premises may be subject to possessory interest tax and that CineLux is responsible for any possessory interest tax levied on CineLux’s leasehold interest in the Premises.

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Lease Agreement - 6 ATTACHMENT 2

6.4 Personal Property Taxes. CineLux shall pay before delinquent, or if requested by Town, reimburse Town for, any and all taxes, fees, and assessments associated with the Premises, the personal property contained in the Premises and other taxes, fees, and assessments regarding any activities which take place at the Premises. CineLux recognizes and understands in accepting this Lease that its interest therein may be subject to a possible possessory interest tax that Town or County may impose on such interest and that such tax payment shall not reduce any rent due Town hereunder and any such tax shall be the liability of and be paid by CineLux.

6.5 Payment Date/late Charge. Rent shall be payable on the first day of each and every month commencing on the Delivery Date, at Los Gatos Town Hall, Finance Department, or a place as may be designated in writing from time to time by Town. CineLux acknowledges late payment of rent may cause Town to incur costs not contemplated by this Agreement, the exact amount of such costs being extremely difficult and impracticable to fix. Such costs include, without limitation, processing. accounting and late charges that may be imposed on Town. Therefore, if Town does not receive any installment of rent due from CineLux within ten (10) days after the date such rent is due, CineLux shall pay to Town an additional sum of five percent (5%) of the overdue rent as a late charge. The parties agree this late charge represents a fair and reasonable estimate of the costs Town will incur by reason of late payment by CineLux. Acceptance of any late charge shall not constitute a waiver of CineLux's default with respect to the overdue amount, nor prevent Town from extending any of the other rights and remedies available to Town.

6.6 Payment Procedures. CineLux's obligation to pay rent shall commence one year from the Delivery Date. If the term commences or terminates on a date other than the first of any month, monthly rent for the first and last month of this Agreement shall be prorated based on a 30-day month. Payments shall be effective upon receipt. Town may apply any payment received from CineLux at any time against any obligation due and owing by CineLux under this Agreement regardless of any statement appearing on or referred to in any remittance from CineLux or any prior application of such payments.

6.7 Partial Payment. The receipt by Town of a partial payment of any amount due to Town endorsed as payment in full will be deemed to be a partial payment only. Town may accept and deposit said check without prejudice to its right to recover the balance. Any endorsements or statements on the check or any letter accompanying the check shall not be deemed an accord and/or satisfaction. CineLux's obligation (without prior notice or demands) to pay rent and all other amounts due hereunder shall be absolute and unconditional, and not subject to any abatement, set off, defense, recoupment or reduction.

6.8 Utilities at the Theatre.

CineLux shall be responsible for the cost of all utilities at the Theatre, including but not limited to:
(1) Electrical and gas services
(2) Telephone services
(3) Water services
(4) Trash services
(5) Data and internet services.

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Lease Agreement - 7 ATTACHMENT 2
Town shall be responsible for the utility costs associated with the retail tenants based on a pro rata proportion of square footage to be deducted from the Town’s annual profit share.

6.9 Minimum Profitability of Commercial Theatre Operations. Both CineLux and Town recognize that the long-term financial stability and profitability is required for the success of Theatre operations. CineLux requires minimum annual net income of One Hundred Thousand Dollars($100,000) (“Minimum Net Income”) of Theatre for the contractual Rent and Monetary Obligations to be fully obligated and payable. Therefore, the parties may agree to modify the annual Rent and Monetary Obligations to ensure a Minimum Net Income of $100,000 annually. Failure of CineLux to achieve this dollar amount of Minimum Net Income shall constitute adequate grounds for Termination of this Lease under Section 15.

SECTION 7. Books, Records and Accounts.

A. CineLux shall maintain any and all ledgers, books of account, invoices, vouchers, cancelled checks, and other records or documents evidencing or relating to the operation of the Theatre (“Theatre Records”) for a minimum period of three (3) years, throughout the Term of this Agreement.

B. CineLux shall maintain all Theatre Records which demonstrate performance under this Use Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.

C. Any Theatre Records required to be maintained pursuant to this Agreement shall be made reasonably available with adequate notice for inspection or audit at no cost to Town, at any time during regular business hours, upon written request by the Town Attorney, Town Manager, or their designees. Copies of such documents shall be provided to Town for inspection at Town Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at CineLux's address indicated for receipt of notices in this Agreement.

D. Where Town has reason to believe that Theatre Records may be lost or discarded due to dissolution, disbandment or termination of CineLux’s business, Town may, by written request by any of the above-named officials, require that custody of the records be given to Town and that the records and documents be maintained by the Town. Access to such Theatre Records shall be granted to any party authorized by CineLux, or CineLux’s representatives.

SECTION 8. Budgets, Audits and Reporting Requirements.

8.1 Budget Review.

Both parties acknowledge the need and the intent to work together in a cooperative and supportive manner in Town's and CineLux’s budgetary processes. CineLux shall provide to Town, upon Town's request, timely and accurate information to support estimated and actual revenue share revenues under this Agreement.

Such information may include draft budgets, revenue projections, proposed fee schedules, capital and special funding needs and any other information that Town deems useful. Town will likewise provide CineLux with timely and accurate information on Town's budgetary schedule and processes and other information that CineLux can show is relevant to carry out this Agreement.

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Lease Agreement - 8 ATTACHMENT 2

8.2. Annual Reporting.

Within ninety (90) days following the end of CineLux’s fiscal year during the Term, CineLux shall provide Town with the following:

A. An annual financial report for CineLux’s previous fiscal year.

B. An annual narrative report on the operations of the Theatre for the previous fiscal year. The report shall also contain milestones and metrics achieved relative to the Principles set forth in Section 4 of this Agreement. Such milestones and metrics shall include, but not be limited to, the following:

1. Number of cinematic and other cultural offerings provided;

2. Number of rentals by community groups and other Non-profit organizations, including number of days facility was rented by community groups and other organizations at discounted rates;

3. Number of outside corporate/private organizations that accessed the Theatre;

4. Total audience in Theatre for all ticketed events;

5. Total income and expenses from Theatre operations; and C. A report assessing the status of physical condition of the Theatre, preventive maintenance activities completed, and any needed Capital Replacements.

D. CineLux’s proposed budget for the Theatre operations and maintenance for the current fiscal year.

E. Anticipated program outreach and event schedule to the extent available for the current fiscal year.

F. In conjunction with Section 6.9 above, the parties mutually agree that the annual review and reporting processes established within Sections 8.1 and 8.2 provide an opportunity for the Town and CineLux to discuss the relevant business terms of Section 6 if warranted.

8.3. Additional Reporting Requirements.

CineLux shall also furnish to the Town Manager any additional financial statements, reports, documents, and other information as the Town Manager may reasonably require for the development of an annual presentation to the Town Council or a subcommittee thereof regarding the progress of the development of the financially sustainable and diverse programming model for the Theatre. If requested, CineLux shall send a representative to the annual presentation to assist in responding to questions from Town Council or a subcommittee thereof.

Furthermore, during the Term of this Agreement, CineLux shall make available its financial information provided to the Town for inclusion with similar Town reports. The financial information submitted to Town by CineLux is submitted for purposes of this Agreement only and does not alter or change any other Town requirement to which CineLux is subject that is not directly required by this Agreement. Furthermore, review by Town of CineLux’s financial information shall be for the purpose of protecting Town’s interest as owner of the Theatre. CineLux is solely responsible for management of its own fiscal resources, and any indebtedness incurred by CineLux to a third party shall be the responsibility of CineLux. Nothing in this Agreement shall be construed so as to render Town responsible for any debts, liabilities or obligations of CineLux.

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Lease Agreement - 9 ATTACHMENT 2

8.4. City's Right to Audit.

Town reserves the reasonable right at its own expense to conduct audits of CineLux's operations under this Agreement. All accounting records, basic or secondary, used in the ordinary course of business and all banking deposit tickets, statements and any other banking records, purchase invoices, and all records of sales, excise or other taxes paid or payable by CineLux for sales, fees and charges from the operation of the Theatre shall be made available, upon reasonable notice and request, to Town's Manager, Town's Attorney, Town's Director of Finance, and/or the Town’s Director for inspection and/or auditing purposes upon Town's request.

SECTION 9. Ownership of Furniture, Fixtures and Equipment.

A. All furniture, fixtures, and equipment purchased by Town or by CineLux with Town funding (“Town FF&E”) shall be and remain the property of Town, which shall have sole right to possession upon expiration or sooner termination of this Agreement. CineLux shall have the right to use Town FF&E during the term of this Agreement at no charge.

B. The Town owns FF&E that is sited throughout the Theatre. Town-owned FF&E is listed in Exhibit B and includes furniture, theatre equipment, furnishings, electronics, and stages. The Town acknowledges that the items of FF&E will depreciate over time and will need replacement.

C. As part of the annual facility assessment and prioritization of capital maintenance, CineLux and the Town will conjunctively prioritize the repairs to fixed assets over the replacement of equipment.

CineLux is encouraged to develop an FF&E replacement plan.

D. CineLux will perform an initial inventory of all CineLux FF&E in the Theatre and an annual inventory thereafter. It is the responsibility of CineLux to track new FF&E purchased by CineLux.

Surplus Town-owned FF&E is to be returned to the Town and disposed of according to Town policy. Town FF&E shall remain in the Theatre at all times and may not be used in other CineLux facilities. If Town FF&E items are not in the Theatre at the time of expiration or sooner termination of this Agreement, CineLux shall reimburse the Town for the missing items at the then fair market value.

E. Specifically identified FF&E that is affixed to the Theatre, including theatrical lighting, sound, stage rigging and associated control panels, becomes property of the Town upon expiration or sooner termination of this Agreement. For FF&E that is not fixed to the Theatre, upon expiration or sooner termination of this Agreement, Town shall have the right to purchase at the then fair market value, all FF&E purchased by CineLux from sources other than Town (“CineLux FF&E”) that is essential to the operations or programming of the Theatre. If Town and CineLux are unable to agree on the fair market value of the Theatre FF&E, CineLux shall be allowed to remove the Theatre FF&E from the Theatre. CineLux will perform an annual inventory of all CineLux FF&E in the Theatre and shall provide the Town with an accounting of all Town and CineLux FF&E at the end of this Agreement.

SECTION 10. Maintenance, Repair and Security of the Theatre.

10.1. Ordinary Maintenance and Repairs.

A. CineLux agrees to maintain the Theatre at a reasonably high level of quality, , at the level received, acknowledging that the maintenance level shall be significantly higher than that of a typical municipal facility. This shall include maintaining interior wall and window surfaces, flooring, and

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paint, in a good working condition, as determined in the reasonable discretion of the Town’s Director of Parks and Public Works. All damages shall be promptly repaired such that the repairs are indistinguishable from adjacent like finishes in material type, texture, color, and quality.

Maintenance activities shall retain all facility elements in their existing style and quantity in order to continue to enhance the cultural aspects of the Theatre.

B. As stated in Exhibit D, Maintenance Matrix, Town shall be responsible for the structural foundation, bearing and exterior walls, and subflooring among other items. With the exception of new or replacement signage, Town shall further be responsible for exterior shell including roofing, external wall assemblies, knife marquee, and exterior doors. Finally, Town shall be responsible for any ADA non-compliant area of the Theatre, interior or exterior, unless CineLux modifies any formerly ADA-compliant area of the interior so that it becomes non-compliant with the ADA.

C. CineLux shall be responsible for all routine daily maintenance of the interior shell of Theatre Facility. CineLux shall keep the Theatre in a neat, clean and orderly condition at all times during the term hereof and shall not permit refuse or debris to accumulate at any time nor commit, suffer or permit any destruction of any portion of the Theatre Facility.

D. CineLux shall be responsible for the routine and preventive maintenance services of all building systems to include, Custodial, Fire Life Safety, Electrical, HVAC, Plumbing, and other building systems such as rigging and stage equipment and provide reports of its annual preventive maintenance activity to the Town as requested. Subject to Section 10.1B above, CineLux shall be responsible for preventive maintenance activities of the Theater in accordance with all local, State or Federal regulations, equipment manufacturer recommendations and industry standards. The Town, through a preventive maintenance oversight program, will monitor the performance of preventive maintenance work.

E. Should the Town determine, at its reasonable discretion, that ordinary maintenance and/or repairs are not being performed as required by this Agreement, Town shall promptly notify CineLux in writing and if no action is taken within thirty (30) days, the Town may cause the reasonably necessary maintenance and/or repairs to be completed and shall be reimbursed by CineLux.

10.2. Janitorial Services/Maintenance of FF&E.

CineLux shall provide at its sole cost and expense janitorial services to the Theatre necessary to maintain the Theatre in a clean, safe and serviceable condition for the public and staff. CineLux shall maintain all FF&E in use at the Theatre in accordance with any applicable manufacturer's warranty requirements, manuals and records. CineLux shall promptly notify City's Director of Parks and Public Works in the event that any of the Town FF&E is lost, stolen or damaged.

10.3 Capital Repairs and Capital Replacements.

A. Except for Section 10.1B above, CineLux and Town shall be responsible for the cost of Capital Repairs and Replacements as specified in Exhibit D, Maintenance Matrix. All work performed in connection with Capital Repair or improvements shall be authorized by the Town, agreed to and supervised by CineLux and performed by duly licensed, qualified, contractors agreed to by Town and CineLux. To the extent that any of the work to be performed with Town Funds constitutes a “public works project,” Town shall observe all public bidding requirements associated with such projects as prescribed in Town’s Purchasing Policy and the Town’s Municipal Code, and all applicable local, state, and federal laws, rules and regulations, and policies regarding public works construction shall be adhered to, including but not limited to the payment of prevailing wages.

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B. Only where reasonable, CineLux and the Town will prioritize the repairs to fixed assets over the replacement of assets. CineLux and Town’s Department of Parks and Public Works staff shall meet to discuss and monitor the Theatre’s Capital Replacement and Repair Plan.

C. The Town shall coordinate with CineLux the development of a Capital Replacement and Repair Plan in the following manner:
(1) Prior to January 15 of each year, CineLux shall submit to Town’s Director a proposed Capital Repair and Replacement Plan for the Town’s next fiscal year which shall describe the work anticipated to be performed and projected costs. (2) Town shall review the proposed Capital Repair and Replacement Plan in order to determine whether public bidding will be required, to determine the reliability of cost estimates, to review the budget in the proposed Capital Repair and Replacement Plan in light of available funding, and to prioritize proposed expenditures. Town may make any revision to such Capital Repair and Replacement Plan as Town, in its sole reasonable discretion, deems is consistent with both CineLux’s duties and the Applicable Standard and, prior to the start of that next fiscal year, shall approve a Capital Repair and Replacement Plan for that next fiscal year.
(3) Once the Capital Repair and Replacement Plan is approved, CineLux shall inform Town in writing of any work of Capital Repair or Capital Replacement to be performed during that fiscal year which is contained in the approved Capital Repair and Replacement Plan prior to commencing such work but in such event no further approvals of such work are required from Town.
(4) For items of Capital Repair and Capital Replacement which are not included in the approved Capital Repair and Replacement Plan and do not involve any emergency work, CineLux shall first request Town approval from the Assistant Town Manager or designee for such work prior to commencing such work. The request shall be in writing, describe the work, the justification for it and the projected costs thereof. Within sixty (60) days of the request, Assistant Town Manager or designee shall either approve such request, as may be modified or shall provide a written statement in reasonable detail describing why such request has been denied. Town may make emergency capital repairs and replacements consistent with established Town procedures for handling emergencies. Town shall provide CineLux with the names and telephone numbers of the Town Manager’s Office to contact in the event of an emergency involving the Theatre. If CineLux reasonably determines that any delay would present a material risk to human life or the structural integrity of the Theatre, or would prevent the holding of a scheduled event, CineLux may immediately commence emergency capital repairs and replacements. In all other events, CineLux shall notify the Town Manager’s Office at the emergency number provided to CineLux, and shall either receive the Assistant Town Manager or designee’s prior approval or wait 48 hours without receiving a response before commencing emergency capital repairs and replacements. The Maintenance Matrix, Exhibit D, shall indicate the responsible party for the costs of repairs.

10.4. Security.

CineLux shall maintain at its sole cost and expense the monthly costs associated with a security system and electronic fire protection at the Theatre. CineLux shall have sole responsibility and bear all expense related

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to the system and responding to any and all alarm calls from the electronic system. CineLux shall provide the Town’s Parks and Public Works Director or his or her designee, the current access code.

CineLux shall also provide Town a copy of all exterior and interior keys for the Theatre.

The Town’s Police Department is solely responsible for responding to any Police incidents at the Theatre.

SECTION 11. Alterations to the Theatre.

A. “Material Alterations” shall mean any Permanent Improvement at the Theatre; structural changes; changes to the exterior appearance of the Theatre, including signage referring to the name or branding of the Theatre; changes in permanent floor and wall surfaces; changes in the interior of Theatre structures (excluding changes in exhibits); and changes in major components of electrical, HVAC and other building systems.

B. CineLux shall not make any Material Alterations to the Theatre without the prior written consent of Town, which shall not be unreasonably withheld. The approval of the Town Manager is required for Material Alterations covered by Section 10, and the approval of Town's Parks and Public Works Director is required in all other instances. Any alteration to the Theatre approved by Town shall be done with materials of an equal quality and durability to those in which the Theatre was originally constructed or renovated, shall be consistent with the design of the Theatre as originally constructed or renovated and shall be accomplished in accordance with any reasonable conditions imposed upon Town's consent.

C. Notwithstanding Subsection B, CineLux may make nonstructural alterations for exhibits or programs so long as such alterations are temporary in nature and reviewed in advance by the Town’s Chief Building Official or designee. CineLux shall give Town thirty (30) days advance notice before commencing such alterations, unless it is impossible to foresee the need for the alteration thirty (30) days in advance, in which case CineLux shall give Town notice as soon as practically possible. Town has the right to require CineLux to repair and take all actions to return the Theatre to substantially its pre-existing condition at the end of such temporary period.

D. CineLux acknowledges and agrees that all Material Alterations constructed by CineLux shall become the property of Town upon installation at the Theatre.

E. CineLux shall not alter the marquee signage of the Theatre, which identifies the Theatre as the “Los Gatos Theatre.” CineLux may use other corporate branding and non-marquee signage for other elements of the Theatre.

SECTION 12. Alteration and Construction Requirements.

12.1. Application.

The provisions of this Section are in addition to any requirements for alterations or construction set forth elsewhere in this Agreement.

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12.2. Plans and Specifications.

A. The plans and specifications (the “Plans”) for any Material Alteration to the Theatre (collectively, “Construction Work”) shall be in conformance with Town's Standard Specifications then in effect. The Plans must set forth CineLux’s proposed schedule for completion of the Construction Work.

B. The Plans for the Construction Work shall be subject to the prior review and approval of the Town’s Community Development Director. Town's approval of the Plans shall not release CineLux of the responsibility for the correction of mistakes, errors or omissions contained in the Plans, including any mistakes, errors or omissions which may be the result of circumstances unforeseen at the time the Plans were developed or approved. If, during the course of construction of the Construction Work, the Town’s Community Development Director determines in her/his sole discretion that the public safety requires modification of, or the departure from, the Plans, the Town’s Community Development Director shall have the authority to stop the construction and to require such modification or departure and to specify the manner in which the same may be made. The parties acknowledge that the Plans, once approved by the Town’s Community Development Director, shall be final and that, except as expressly provided in this subsection, no revisions to the Plans shall be permitted unless the Town’s Community Development Director approves the proposed revision in writing.

12.3. Inspection of Construction Work.

The Town’s Chief Building Official shall, at all times during the progress of work on the Construction Work, have free access to the Construction Work site for inspection purposes. If the Town’s Chief Building Official determines that all or any portion of the work done on the Construction Work is not in compliance with the Plans, the Town’s Community Development Director shall notify CineLux of the same and CineLux shall promptly cure such defect to the Town’s Community Development Director's satisfaction.

12.4. Bidding Requirements.

In the event, and to the extent, that any of the Construction Work constitutes a “public works project,” as defined in the Town Purchasing Policy or Municipal Code, CineLux shall observe all public bidding requirements associated with such projects.

12.5. Approvals.

All applicable local, state, and federal laws, rules and regulations, and all necessary and required approvals of plans and specifications, including review by the Town Engineer of the Town’s Parks and Public Works Department, permits and all other approvals and documents required, shall be fully applicable to, and obtained by CineLux for Construction Work carried out by CineLux under this Use Agreement.

12.6. Prevailing Wages.

Tenant understands that any improvements to the Premises paid for in whole or in part out of public funds will require the payment of prevailing wages in accordance with California Labor Code Sections 1720 et seq. and that, in the event that improvements are paid for in whole or in part out of public funds, Tenant or Town will be responsible for compliance with state prevailing wage laws.

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12.7. Costs.

Subject to Section 10.1B above, all costs associated with Construction Work, including without limitation, Town's charges for Plan review and inspection, shall be the sole responsibility of CineLux, or Town, or both.

12.8. Bonding Requirements.

CineLux shall comply with the bonding requirements as a condition of the Town’s Parks and Public Works Director's approval of the Plans for any Construction Work.

12.9. Notice to Proceed.

CineLux may not begin the Construction Work unless and until the Town’s Community Development Director gives CineLux a written notice to proceed (“Notice to Proceed”). The Notice to Proceed may specify additional conditions related to the prosecution of the Construction Work. The Notice to Proceed will not be issued unless and until the following conditions are met:

A. The Town Manager is satisfied that CineLux has or will have sufficient funds, donated services or both to complete the Construction Work in a timely manner.

B. The Town’s Community Development Director has issued a written notice to CineLux approving the Plans for the Construction Work.

C. The insurance requirements and bonding requirements have been met.

12.10 Alternative Procedures.

Notwithstanding Sections 12.2 and 12.3 and 12.9 above, with the prior approval of the Town’s Community Development Director and the Department of Parks and Public Works Director, may review the Plans for the Construction Work where appropriate, provide any approvals related thereto as applicable, and inspect the finished Construction Work for State Building Code compliance. CineLux shall submit all applications, Plans, and pay all fees required by Town as applicable. However, CineLux shall not commence Construction Work unless and until the Town’s Community Development Director has issued the Notice to Proceed specified in Section 12.9. In such case, the parties agree that the provisions of Section 12.9B shall not apply.

SECTION 13. Pre-existing Theatre Tenants.

The parties acknowledge that the Theatre is adjacent to two retail tenants leasing space from the Town.

The parties further acknowledge that CineLux as the operator of the Theatre requires good relations with the adjoining tenants. As such, CineLux agrees to maintain any day-to-day relations with the adjoining tenants necessary to maintain effective Theatre operations.

The Town is solely responsible for responding to any tenant requests. In addition, per Section 6.8 the Town will reimburse CineLux for the pro rata share of tenant utility costs.

SECTION 14. Hold Harmless/Indemnification.

14.1 Indemnification.

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CineLux shall indemnify, protect, defend (at CineLux’s sole cost and with legal counsel acceptable to Town) and hold harmless, Town, its elected or appointed officials, employees, and agents, from and against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, and expenses, including all court costs and attorney fees, arising at any time during or after the Term, as a direct result of or in connection with (i) material default in the performance of any obligation on CineLux’s part to be performed under the terms of this Agreement, or (ii) CineLux’s use of the Premises, the conduct of CineLux’s business or any activity, work or things done, permitted or suffered by CineLux or CineLux’s employees, agents, customers, visitors, invitees, licensees, contractors, assignees, or subtenants (individually, a “Tenant Party” and collectively, “Tenant’s Parties) in or about the Premises, except as provided by law or for claims caused solely by Town’s gross negligence or willful misconduct. CineLux’s indemnity is not intended to nor shall it relieve any insurance carrier of its obligations under policies required to be carried by CineLux pursuant to the provisions of this Agreement to the extent such policies cover the results of negligent acts or omissions of Town, its elected or appointed officials, employees, and agents, or the failure of Town to perform any of its obligations under this Agreement. The obligations of CineLux under this Section shall survive the termination or earlier expiration of this Agreement for a period of two (2) years.

14.2 Waiver of Claims.

CineLux waives any claims against Town for injury to CineLux's business or any loss of income there from, for damage to CineLux's property, or for injury or death of any person in or about the Premises or the Town Property, from any cause whatsoever, except to the extent caused by Town's active negligence or willful misconduct.

SECTION 15. Damage, Destruction and Termination.

15.1 Nontermination and Nonabatement.

Except as provided herein, no destruction or damage to the Premises by fire, flood or other casualty, whether insured or uninsured, shall entitle CineLux to terminate this Agreement. Town and CineLux waive the provisions of any statutes which relate to termination of a lease when leased property is destroyed and agree that such event shall be governed by the terms of this Agreement.

15.2 Force Majeure.

Prevention, delay or stoppage due to strikes, lockouts, labor disputes, Acts of God, inability to obtain labor, inability to obtain materials or reasonable substitutes, governmental restrictions, governmental regulation, governmental controls, judicial orders, enemy or hostile governmental actions, civil commotion, pandemic, epidemic, fire or other casualty, and other causes beyond the reasonable control of CineLux (financial inability excepted), shall excuse all performance under Section 6 by CineLux for a period equal to the prevention, delay, or stoppage, pursuant to this Agreement. However, in the event work performed by CineLux or CineLux's contractors results in a delay due to a strike, lockout, and/or labor dispute, then such event shall delay rent and monetary obligations under Section 6 above for the period of time of such strike, lockout, and/or labor dispute.

15.3 Restoration of Premises by Lessee.

15.3.1 Destruction Due to Risk Covered by Insurance. If during the term, the Premises are totally or partially destroyed from a risk covered by the insurance described in Section 20 (Insurance), rendering the Premises totally or partially inaccessible or unusable, CineLux shall restore the Premises to substantially the same condition as it was in immediately

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before destruction, whether or not the insurance proceeds are sufficient to cover the actual cost of restoration. All obligations under Section 6 shall be suspended from the partial or total destruction of the Premises until restoration and permitted occupancy. Such destruction shall not terminate this Agreement. If the laws existing at that time do not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party.

15.3.2 Destruction Due to Risk Not Covered by Insurance. If during the term, the Premises are totally or partially destroyed from a risk covered by the insurance described in Section 20 (Insurance), rendering the Premises totally or partially inaccessible or unusable, CineLux shall restore the Premises to substantially the same condition as it was in immediately before destruction, whether or not the insurance proceeds are sufficient to cover the actual cost of restoration. Such destruction shall not terminate this Agreement. If the laws existing at that time do not permit the restoration, either party can terminate this Agreement immediately by giving notice to the other party.

If the cost of restoration exceeds ten percent (l0%) of the then replacement value of the Premises totally or partially destroyed, CineLux can elect to terminate this Agreement by giving notice to Town within sixty (60) days after determining the restoration cost and replacement value. If CineLux elects to terminate this Agreement, Town, within thirty (30) days after receiving CineLux's notice to terminate, can elect to pay to CineLux, at the time Town notifies CineLux of its election, the difference between ten percent (10%) of the replacement value of the Premises and the actual cost of restoration, in which case CineLux shall restore the Premises. On Town's making its election to contribute, each party shall deposit immediately the amount of its contribution with such institutional lender or title company as may be jointly selected by the parties (“the Insurance Trustee”). If the destruction does not exceed ten percent (10%) of the then replacement value of the Premises, CineLux shall immediately deposit the cost of restoration with the Insurance Trustee. This Agreement shall terminate if CineLux elects to terminate this Agreement and Town does not elect to contribute toward the cost of restoration as provided in this Section.

If the Premises are destroyed from a risk not covered by the insurance described in Section 20 (Insurance), and CineLux has the obligation to restore the Premises as provided in this Section 15.3, both parties shall deposit with the Insurance Trustee their respective contributions toward the cost of restoration. All sums deposited with the Insurance Trustee shall be held for the following purposes and the Insurance Trustee shall have the following powers and duties:

The sums shall be paid in installments by the Insurance Trustee to the contractor retained by CineLux as construction progresses, for payment of the cost of Restoration. A 10% retention fund shall be established that will be paid to the contractor on completion of restoration, payment of all costs, expiration of all applicable lien periods, and proof that the Premises are free of all mechanics' liens and lienable claims.

Payments shall be made on presentation of certificates or vouchers from the architect or engineer retained by CineLux showing the amount due. If the Insurance Trustee, in its reasonable discretion, determines that the certificates or vouchers are being improperly approved by the architect or engineer retained by CineLux, the Insurance Trustee shall have the right to appoint an architect or an engineer to supervise construction and to make payments on certificates or vouchers approved by the architect or engineer retained by the Insurance Trustee. The reasonable expenses and charges of the architect or engineer

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retained by the Insurance Trustee shall be paid by the insurance trustee out of the trust fund.

Both parties shall promptly execute all documents and perform all acts reasonably required by the Insurance Trustee to perform its obligations under this Section.

If the sums held by the Insurance Trustee are not sufficient to pay the actual cost of restoration, CineLux shall deposit the amount of the deficiency with the Insurance Trustee within fifteen (15) days after request by the Insurance Trustee indicating the amount of the deficiency. Any undisbursed funds after compliance with the provisions of this Section shall be delivered to Town to the extent of Town's contribution to the fund. and the balance, if any, shall be paid to CineLux. All actual costs and charges of the Insurance Trustee shall be paid by CineLux.

If the Insurance Trustee resigns or for any reason is unwilling to act or continue to act, Town shall substitute a new trustee in the place of the designated insurance Trustee. The new trustee must be an institutional lender or title company.

15.3.3 Procedure for Restoring Premises. When CineLux is obligated to restore the Premises, within sixty (60) days CineLux at its cost shall prepare final plans, specifications, and working drawings complying with applicable laws that will be necessary for restoration of the Premises. The plans, specifications, and working drawings must be approved by Town.

Town shall have thirty (30) days after receipt of the plans and specifications and working drawings to either approve or disapprove the plans, specifications, and working drawings and return them to CineLux. If Town disapproves the plans, specifications, and working drawings, Town shall notify CineLux of its objections and Town's proposed solution to each objection. CineLux acknowledges that the plans, specifications, and working drawings shall be subject to approval of the appropriate governmental bodies and that they will be prepared in such a manner as to obtain that approval. The restoration shall be accomplished as follows:

A. CineLux shall use best efforts to complete the restoration within 60 working days after final plans and specifications and working drawings have been approved by the appropriate governmental bodies and all required permits have been obtained (subject to a reasonable extension for delays resulting from causes beyond CineLux's reasonable control).

B. CineLux shall retain a licensed contractor that is bondable. The contractor shall be required to carry public liability and property damage insurance, standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements, during the period of construction in accordance with Section 20 (Insurance). Such insurance shall contain waiver of subrogation clauses in favor of Town and CineLux in accordance with the Provisions of Exhibit C.

C. CineLux shall notify Town of the date of commencement of the restoration at least ten ( I0) days before commencement of the restoration to enable Town to post and record notices of nonresponsibility. The contractor retained by CineLux shall not commence construction until a performance bond and a labor and materials bond have been delivered to Town to insure completion of the construction.

D. CineLux shall accomplish the restoration in a manner that will cause the least inconvenience, annoyance, and disruption at the Premises.

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E. On completion of the restoration, CineLux shall immediately record a notice of completion in the county in which the Premises are located. The restoration shall not be commenced until sums sufficient to cover the cost of restoration are placed with the Insurance Trustee as provided in this Section.

15.4 CineLux annual Minimum Net Income shall be determined and delivered to Town within sixty (60) days of calendar year end for each calendar of this Lease. If the Minimum Net Income specified in Section 6.9 has not been attained in any calendar year, CineLux and Town shall meet within thirty (30) days of delivery of profit and loss statements to Town by CineLux to determine if there are acceptable adjustments to Rent and Monetary Obligations due from CineLux to Town for the prior calendar year to obtain Minimum Net Income of theater operations for CineLux. In the event the parties cannot agree on adjustments to Rent and Monetary Obligations and Tenant has not attained the Minimum Net Income, grounds shall exist to CineLux to terminate this Lease. Termination shall occur no sooner than sixty (60) days from the meeting between Town and Cinelux to discuss adjustments to Rent and Monetary Obligations.

SECTION 16 Assignment and Subletting.

16.1 Town's Consent Required. CineLux shall not assign this Agreement, nor any interest therein, and shall not sublet or encumber the Premises or any part thereof, nor any right or privilege appurtenant thereto, nor allow or permit any other person(s) to occupy or use the Premises, or any portion thereof, without the prior written consent of Town. This Agreement shall be binding upon any permitted assignee or successor of CineLux. Consent by Town to one assignment, subletting, occupation or use by another person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. No assignment, subletting, or encumbrance by CineLux shall release it from or in any way alter any of CineLux's obligations under this Agreement. CineLux may have the Premises delivered to a subsidiary or affiliated company of CineLux, but such arrangement shall in no way alter CineLux's responsibilities hereunder with respect to the Premises. Any assignment, subletting, encumbrances, occupation, or use contrary to the provisions of this Agreement shall be void and shall constitute breach of this Agreement.

Town may assign any of its rights hereunder without notice to CineLux.

16.2 No Release of CineLux. No subletting or assignment as approved by Town shall release CineLux of CineLux's obligation or alter the primary liability of CineLux to pay the rent and to perform all other obligations by CineLux hereunder. The acceptance of rent by Town from any other person shall not be deemed to be a waiver by Town of any provision hereof.

In the event of default by any assignee of CineLux or any successor of CineLux in the performance of any of the terms hereof: Town may proceed directly against CineLux without the necessity of exhausting remedies against said assignee.

SECTION 17 DEFAULTS; REMEDIES.

17.1 Defaults by CineLux. The occurrence of any one or more of the following events shall constitute a material default, or breach of this Agreement, by CineLux:

17.1.1 Abandonment of the Premises by CineLux as defined by California Civil Code section 1951.3;

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17.1.2 Failure by CineLux to make any payment of rent or any other payment required to be made by CineLux hereunder, as provided in this Agreement, where such failure shall continue for a period of ten ( 10 ) business days after written notice thereof from Town to CineLux. In the event Town serves CineLux with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph; Failure by CineLux to observe or perform any of the covenants, conditions or provisions of this Agreement in any material respect where such failure shall continue for a period of thirty (30) days after written notice thereof from Town to CineLux, provided. however, that if the nature of CineLux's default is such that more than thirty (30) days are reasonably required for its cure, then CineLux shall not be deemed to be in default if CineLux commenced such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion;

17.1.3 Making by CineLux of any general arrangement or assignment for the benefit of creditors; CineLux's becoming a “debtor” as defined in 11 U.S.C. §IO I or any successor statute thereto (unless, in the case of a petition filed against CineLux, the same is dismissed within sixty (60) days): the appointment of a bankruptcy trustee or receiver to take possession of all or substantially all of CineLux's assets located at or on the Premises or of CineLux's interest in this Agreement where possession is not restored to CineLux within thirty (30) days; or the attachment. execution or other judicial seizure of all or substantially all of CineLux's assets located at or on the Premises or of CineLuxs interest in this Agreement, where such seizure is not discharged within thirty (30) days.

17.2 Remedies. In the event of any material default or breach by CineLux, Town may at any time thereafter, following any notice required by statute, and without limiting Town in the exercise of any right or remedy which Town may have by reason of such default or breach:

17.2.1 Terminate CineLux's right to possession of the Premises by any lawful means, in which case this Agreement shall terminate and CineLux shall immediately surrender possession of the Premises and Improvements to Town. In such event.

Town shall be entitled to recover from CineLux all reasonable damages incurred by Town by reason of CineLux default, including but not limited to: the cost of recovering possession of the Premises and improvements; commercially reasonable expenses of reletting, including reasonably necessary renovation and alteration of the Premises and improvements; reasonable attorneys' fees; the worth at the time of the award of the unpaid rent that had been earned at the time of termination of this Agreement, and the worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of such award exceeds the amount of such rental loss for the same period that CineLux proves could be reasonably avoided.

17.2.2 Maintain CineLux’s right to possession. in which case this Agreement shall continue in effect whether or not CineLux shall have abandoned the Premises. In such event, Town shall be entitled to enforce all of Town's rights and remedies under this Agreement. including the right to recover rent and other payments as they become due hereunder.

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17.2.3 Pursue any other remedy now or hereafter available to Town under the laws or judicial decisions of the State of California. Town shall have all remedies provided by law and equity.

17.3 No Relief from Forfeiture After Default. CineLux waives all rights of redemption or relief from forfeiture under California Code of Civil Procedure sections 1174 and 1179, and any other present or future law, in the event CineLux is evicted or Town otherwise lawfully takes possession of the Premises by reason of any default or breach of this Agreement by CineLux.

17.4 Disposition of Abandoned Personal Property. If CineLux fails to remove any personal property belonging to CineLux from the Premises after forty-five (45) days of the expiration or termination of this Agreement, such property shall at the option of Town be deemed to have been transferred to Town. Town shall have the right to remove and to dispose of such property without liability to CineLux or to any person claiming under CineLux, and the Town shall have no need to account for such property.

SECTION 18 INTEREST ON PAST-DUE OBLIGATIONS.

Except as expressly provided herein, any amount due Town when not paid when due shall bear interest at the lesser of five percent ( 50%) per year or the maximum rate then allowable by law from the date due.

SECTION 19 HOLDING OVER.

If CineLux remains in possession of the Premises or any part thereof after the expiration of the Term or Option Terms hereof, such occupancy shall be a tenancy from month to month with all the obligations of this Agreement applicable to CineLux and at a monthly rental obligation of the Base Rent in effect at the time of expiration. Nothing contained in this Agreement shall give to CineLux the right to occupy the Premises after the expiration of the Term, or upon an earlier termination for breach.

SECTION 20 INSURANCE.

CineLux's responsibility for the Premises begins immediately upon the Delivery Date and CineLux, at its sole cost and expense, and at no cost to Town, shall purchase and maintain in full force and effect during the entire term of this Agreement insurance coverage in amounts and in a form acceptable to Town as set forth in Exhibit C attached hereto and incorporated herein by reference. Said policies shall be maintained with respect to CineLux's employees and contractors, if any, and all vehicles operated on the Premises. The policies shall include the required endorsements, certificates of insurance and coverage verifications as described in Exhibit C. CineLux also agrees to secure insurance coverage for the Premises, its contents, and personal property maintained on the Premises.

In the event that CineLux opts to require its contractor to provide the insurance required by the Town for construction, the contractor will provide an endorsement or rider, in a form to be approved by the Town Attorney, stating that the insurance policy insures performance of this Agreement and that the Town is an additional insured.

CineLux shall deposit with the Town Manager, on or before the effective date of this Agreement, certificates of insurance and endorsements in conformance with this Agreement and keep such insurance in effect and the certificates therefore on deposit with Town during the Term of this Agreement. Should CineLux not provide evidence of such required coverage at least five (5) business days prior to the

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expiration of any existing insurance coverage, Town may purchase such insurance, on behalf of and at the expense of CineLux to provide six months of coverage.

Town shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. It in the opinion of the Town's Risk Manager (or comparable official), the insurance provisions in this Agreement do not provide adequate protection for Town and for members of the public using the Premises, the Town Manager may require CineLux to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by the Risk Manager. Town's requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk that exists at the time a change in insurance is required.

The Town Manager shall notify CineLux in writing of changes in the insurance requirements. If CineLux does not deposit copies of acceptable insurance policies with Town incorporating such changes within sixty (60) days of receipt of such notice, or in the event CineLux fails to maintain in effect any required insurance coverage, CineLux shall be in default under this Agreement without further notice to CineLux. Such failure shall constitute a material breach and shall be grounds for immediate termination of this Agreement at the option of Town.

The procuring of such required policy or policies of insurance shall not be construed to limit CineLux's liability hereunder nor to fulfill the indemnification provision and requirements of this Agreement.

Notwithstanding the policy or policies of insurance, CineLux shall be obligated for the full and total amount of any damage, injury, or loss caused by or connected with this Agreement or with use or occupancy of the Premises.

SECTION 21 DISPUTE RESOLUTION.

21.1 Unless otherwise mutually agreed to, any controversies between CineLux and Town regarding the construction or application of this Agreement, and claims arising out of this Agreement or its breach shall be submitted to mediation within thirty (30) days of the written request of one Party after the service of that request on the other Party.

21.2 The Parties may agree on one mediator. lf they cannot agree on one mediator, the Party demanding mediation shall request the Superior Court of Santa Clara County to appoint a mediator. The mediation meeting shall not exceed one day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Agreement.

21.3 The costs of mediation shall be borne by the Parties equally.

21.4 Mediation under this section is a condition precedent to filing an action in any court.

SECTION 22 NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE TOWN.

No official or employee of Town shall be personally liable for any default or liability under this agreement, except for gross negligence or willful misconduct.

SECTION 23 NON-DISCRIMINATION

23.l Non-discrimination. CineLux agrees that in the performance of this Agreement and in connection with all of the activities CineLux conducts on the Premises, it shall not discriminate against any employee or person because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic

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Lease Agreement - 22 ATTACHMENT 2
information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or veteran or military status of such person. CineLux acknowledges that is familiar with the provisions set forth in Section 2.30.985 of the Los Gatos Municipal Code relating to nondiscrimination in employment.

SECTION 24 INDEPENDENT CONTRACTOR.

It is agreed that CineLux shall act and be a contract counter party and independent contractor and not an agent nor employee of Town.

SECTION 25 CONFLICT OF INTEREST.

CineLux shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. CineLux warrants and covenants that no official or employee of Town nor any business entity in which any official or employee of Town is interested: (1) has been employed or retained to solicit or aid in the procuring of this Agreement; or (2) will be employed in the performance of this Agreement without the divulgence of such fact to Town. In the event that Town determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of Town, CineLux upon request of Town shall immediately terminate such employment. Violation of this provision constitutes a serious breach of this Agreement and Town may terminate this Agreement as a result of such violation.

SECTION 26 MEMORANDUM OF AGREEMENT.

Following execution of this Agreement, Town shall be entitled to record a Memorandum of Agreement in the official records of Santa Clara County, to be reviewed by CineLux prior to recordation.

SECTION 27 ESTOPPEL CERTIFICATE.

CineLux shall, from time to time, upon at least thirty (30) days prior written notice from Town, execute, acknowledge and deliver to Town a statement in writing: (i) certifying this Agreement is unmodified and in full force and effect, or, if modified, stating the nature of the modification and certifying that the Agreement, as modified, is in full force and effect, and the date to which the rental and other charges, if any, have been paid; and, (ii) acknowledging that there are not to CineLux's knowledge, any defaults, or stating if any defaults are claimed, any statement may be relied upon by any prospective purchaser or encumbrance of the Town Property.

SECTION 28 LIENS.

CineLux agrees at its sole cost and expense to keep the Premises free and clear of any and all claims, levies, liens, encumbrances or attachments.

SECTION 29 VACATING.

Upon termination of this Agreement, CineLux shall completely vacate the Premises, including the removal of any and all of its property. Before departure, CineLux shall return keys and personal property listed on the inventory to Town in good, clean and sanitary condition, reasonable wear and tear excepted. CineLux shall allow Town to inspect the Premises to verify the condition of the Premises and its contents.

SECTION 30 ABANDONMENT.

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Lease Agreement - 23 ATTACHMENT 2
CineLux's absence from the Premises for thirty (30) consecutive days, without prior notice, during which time rent or other charges are delinquent, shall be deemed abandonment of the Premises. Such abandonment will be deemed cause for immediate termination without notice. Town shall thereupon be authorized to enter and take possession and to remove and dispose of the property of CineLux or its invitees without any liability whatsoever to Town.

SECTION 31 NOTICES.

All notices to the Parties shall, unless otherwise requested in writing, be sent to Town addressed as follows:

Town of Los Gatos
Attention: Town Manager
110 E. Main Street
Los Gatos, CA 95030
E-Mail: [email protected]
And to CineLux addressed as follows:

CineLux Theatres Co. LLC
Attention: Paul Gunsky
P.O. Box 541000
San Jose, CA 95154
E-Mail: [email protected]
Notices may be served upon CineLux in person, by first class mail, or by certified mail whether or not said mailing is accepted by CineLux. If notice is sent via facsimile or e-mail, a signed, hard copy of the material shall also be mailed. The workday the facsimile was sent shall control the date notice was deemed given if there is a facsimile machine generated document on the date of transmission. A facsimile transmitted after 1:00 p.m. on a Friday shall be deemed to have been transmitted on the following Monday. These addresses shall be used for service of process.

SECTION 32 TIME.

Time shall be of the essence in this Agreement.

SECTION 33 AMENDMENTS.

It is mutually agreed that no oral agreements have been entered into and that no alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the Parties to this Agreement.

SECTION 34 INTEGRATED DOCUMENT.

This Agreement, including any exhibits attached hereto, embodies the entire agreement between Town and CineLux. No other understanding, agreements. conversations or otherwise, with any elected or appointed official, agent or employee of Town prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Any such verbal agreement shall be considered as unofficial information and in no way binding upon Town. All agreements with Town are subject to approval of the Town Council before Town shall be bound thereby.

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SECTION 35 WAIVER.

Waiver by Town or CineLux of one or more conditions of performance or any breach of a condition under this Agreement shall not be construed as a waiver of any other condition of performance or subsequent breaches. The subsequent acceptance by a Party of the performance of any obligation or duty by another Party shall not be deemed to be a waiver of any term or condition of this Agreement. The exercise of any remedy, right, option or privilege hereunder by Town shall not preclude Town from exercising the same or any and all other remedies. rights. options and privileges hereunder and Town's failure to exercise any remedy. right, option or privilege at law or equity, or otherwise which Town may have. shall not be construed as a waiver.

SECTION 36 INTERPRETATIONS.

In construing or interpreting this Lease. the word “or” shall not be construed as exclusive and the word “including” shall not be limiting. The Parties agree that this Lease shall be fairly interpreted in accordance with its terms without any strict construction in favor of or against any other Party.

SECTION 37 SEVERABILITY CLAUSE.

If any provision of this Agreement is held to be illegal, invalid or unenforceable in full or in part. for any reason, then such provision shall be modified to the minimum extent necessary to make the provision legal. valid and enforceable, and the other provisions of this Agreement shall not be affected thereby.

SECTION 38 GOVERNING LAW.

This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California.

SECTION 39 VENUE.

In the event that suit shall be brought by any Party to this Agreement, the Parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara.

SECTION 40 COMPLIANCE WITH LAWS.

The Parties hereto shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments in the performance of their rights, duties and obligations under this Agreement.

SECTION 41 BROKERS.

Each party represents that is has not had dealings with any real estate broker, finder, or other person, with respect to this Agreement in any manner. Each Party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person with whom the Indemnifying Party has or purportedly has dealt.

ATTACHMENTS TO AGREEMENT.

The following exhibits are attached to and made a part of this Agreement:
“A” - Description of Subject Premises

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Lease Agreement - 25 ATTACHMENT 2
“B” - Town-Owned Furniture, Fixtures, and Equipment
“C” - Insurance Requirements
“D” - Maintenance Matrix

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PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Assistant Town Manager, Town Attorney, and Interim 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: 10/04/2022
ITEM NO: 14
DATE: September 29, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Confirm Suspension of the 2040 General Plan Land Use and Community Design Elements and Provide that the 2020 General Plan Land Use and Community Design Elements Govern During the Period of Suspension.

RECOMMENDATION:

Adopt a Resolution to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use and Community Design Elements govern during the period of suspension.

BACKGROUND:

On June 30, 2022, the Town Council approved the 2040 General Plan. On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the approved 2040 General Plan. The referendum proposes that the Land Use and Community Design Elements of the 2040 General Plan be repealed.

Once the referendum signatures are verified by the County Registrar, the 2040 General Plan Land Use and Community Design Elements are suspended in accordance with Elections Code Section 9237.

Subsequently, the Town Council will need to decide if it wants to place the proposed referendum on the ballot for the November 5, 2024, municipal election, a special election in 2023, or rescind the two Elements. This discussion and potential action will be scheduled for a future Council meeting.

Between now and the election or a rescission, the Town should have Land Use and Community Design Elements in place to allow for building permits, subdivisions, and other land use

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PAGE 2 OF 3
SUBJECT: General Plan Land Use and Community Design Elements DATE: September 29, 2022
BACKGROUND (continued):
activities to continue within Los Gatos. The proposed Resolution would provide that the 2020 General Plan Land Use and Community Design Elements would govern during the period of suspension.

DISCUSSION:

The Land Use Element of the General Plan is one of the Elements required by State Law. The Community Design Element is considered an optional Element, and it is a chapter that the Town has included for many years. To document the Town’s compliance with State Law, the attached Resolution (Attachment 1) has been prepared to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use Element (Attachment 2) and Community Design Element (Attachment 3) will govern during this period of suspension.

Some of the language in the Community Design Element adopted as part of the 2040 General Plan was prepared in coordination with the California Board of Forestry, for compliance with State law. To ensure that the Town stays in compliance with these requirements associated with updates to the Safety Element to address the risk of fire for land classified as very high fire hazard severity zones (VHFHSZ’s) [Gov. Code, § 65302, subd. (g)(3)], Town staff will be preparing amendments to replace the fire safety language that was originally included in the 2040 Community Design Element. These modifications would be reviewed by the General Plan Committee (GPC) and Planning Commission before going to Town Council for adoption.

CONCLUSION:

Staff recommends that the Town Council approve the Resolution (Attachment 1) to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period.

COORDINATION:

This report was prepared by the Community Development Department, Town Attorney’s Office, and Town Manager’s Office.

FISCAL IMPACT:

There is no fiscal impact as a result of the recommended action except that staff time will be needed for the required amendments to replace the fire safety language that was originally included in the Community Design Element.

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PAGE 3 OF 3
SUBJECT: General Plan Land Use and Community Design Elements DATE: September 29, 2022
ENVIRONMENTAL ASSESSMENT:

The project falls within the range of alternatives considered under the 2040 General Plan Environmental Impact Report, and therefore no additional environmental review is required.

NEXT STEPS:

General Plan amendments to replace the fire safety language that was originally included in the 2040 Community Design Element will be reviewed by the GPC and Planning Commission to provide a recommendation to Town Council. At a future meeting the Town Council will consider whether to place the proposed referendum on the ballot for the November 5, 2024, municipal election, a special election in 2023, or rescind the two Elements.

Attachments:

1. Draft Resolution

2. 2020 Land Use Element

3. 2020 Community Design Element

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DRAFT RESOLUTION 2022-____

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

CLARIFYING APPLICABLE GENERAL PLAN ELEMENTS PENDING SUSPENSION OF EFFECTIVE DATE OF 2040 LAND USE AND COMMUNITY DESIGN ELEMENTS WHEREAS, the Town of Los Gatos (“Town”) adopted the 2040 General Plan by Resolution 2022-047 on June 30, 2022; and
WHEREAS, proponents of a referendum to rescind the Land Use Element and the Community Design Element of the 2040 General Plan (the “Referendum Proponents”) have circulated a petition; and
WHEREAS, the Referendum Proponents gathered a sufficient number of signatures on the petition to warrant certification of the signatures by the County Registrar of Voters; and WHEREAS, the County Registrar of Voters has certified the petition signatures; and WHEREAS, accordingly, the referendum has qualified for inclusion on an upcoming ballot; and
WHEREAS, Elections Code Section 9237 provides that, when a referendum has qualified for inclusion on the ballot, the effective date of the referended legislation is suspended until the election; and
WHEREAS, the referendum does not provide which Land Use Element and Community Design Element apply during the period of suspension; and WHEREAS, the Town wishes to clarify that, while the 2040 Land Use Element and Community Design Element are suspended, the previously adopted Land Use Element and Community Design Element will apply.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE:

1. While the 2040 Land Use Element and Community Design Element are suspended, the previously adopted Land Use Element and Community Design Element from the 2020 General Plan will apply.

2. The remaining Elements of the 2040 General Plan remain in effect.

3. The environmental impacts of the previous Land Use and Community Design Elements were previously analyzed in the Environmental Impact Report (EIR) prepared for the 2020 General Plan. In addition, the environmental impacts of the ATTACHMENT 1

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2 of 2

4. 2040 General Plan were analyzed in an EIR prepared for the 2040 General Plan.

Both the impacts of the 2020 Land Use Element and Community Design Element and the remaining General Plan Elements are addressed in the EIR prepared for the 2040 General Plan.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 4
th day of October 2022, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

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3 LAND USE ELEMENT
LU-1
A. Introduction
Los Gatos is a mature, predominantly built-out community. While there is little room for growth or change in the physical environment, land use is dynamic and change is constant from within and outside the community. Managing change in an effort to maintain our quality of life is a priority of this General Plan and the Community.

The Land Use Element is the framework of the General Plan and is intended to inform and shape the future physical development of Los Gatos. This Element sets forth the patterns of development activity and land uses that will support and enhance the character of the Town. Although all General Plan Elements are of equal importance, the Land Use Element is the most frequently used and referenced section of the General Plan.

Planning for neighborhood preservation and protection is one of the most important purposes of the Town’s General Plan. Preserving the small-town heritage, natural setting, and architectural diversity are also important to this community. One of Los Gatos’s most outstanding assets is the visual diversity of its individual neighborhoods. Existing development represents a variety of architectural styles from various eras, embodying a variety of sizes, design features, and building materials, resulting in neighborhoods with their own unique identity. For example, Downtown Los Gatos is the historic heart of Town with a pedestrian-scale setting of mixed land uses and architecturally historic buildings. It is a unique area that sets the spirit and style of the entire Town.

Maintaining neighborhood quality suggests conservation of existing housing, good street design, traffic control in residential neighborhoods, and development review that adheres to quality design. Factors such as new or excessive traffic, aging or inadequate infrastructure, and even economic pressures may cause disruption of neighborhoods. Neighborhood preservation also includes balancing the intensity of land uses with the existing residential density.

ATTACHMENT 2

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2020 GENERAL PLAN

LAND USE ELEMENT
LU-2
Los Gatos also focuses on maintaining a “full-service” town that provides a range of goods and services that support the economic vitality of the Town.

The commercial centers of Los Gatos are therefore also important to the community. Under the Los Gatos Boulevard Plan, the community expressed interest in creating a shopping experience and destination that complements but does not compete with the Downtown.

Residential and non-residential uses produce different impacts on the community. The impacts on traffic, noise, schools, open space, and other qualityof-life issues will vary, depending on the final mixture of residential and nonresidential uses approved within the area. The overall planning for the area needs to limit the adverse impacts on the quality of life of all of the residents of Los Gatos and to provide for open space.

The Land Use Element describes land use designations, special planning areas, and existing land uses in Los Gatos. The Land Use Element is divided into the following sections:
♦ Introduction: A description of the requirements and contents of the Land Use Element.
♦ Existing Land Uses: A description of existing land uses in Los Gatos. ♦ General Plan Land Use Designations: A description of the characteristics and intensity of the different land use designations in Los Gatos, including a map identifying the location of these land use designations. ♦ Special Planning Areas: A description of special planning areas, including Historic Districts and Specific Plan Overlays. ♦ Goals, Policies, and Actions: A list of goal, policy, and action statements that provide guidance to Los Gatos on land use decisions.

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LU-3
B. Authority for the Element
California Government Code Section 65302(a) and Public Resources Code Section 2762(a) require that the Land Use Element provide the following information:
♦ Distribution, location, and extent of land uses for categories of public or private uses. Such categories include, but are not limited to housing, business, industry, open space, natural resources, recreation and enjoyment of scenic beauty, education, and public buildings and grounds. ♦ Population density and building intensity standards for land use designations.

The Land Use Element has the broadest scope of any of the State-required components of the General Plan. In addition to the State’s requirements set forth in the Government Code, it has also been legally established that, while the location of a particular land use may be expressed in general terms, a property owner must be able to identify the General Plan Land Use Designation for his/her parcel from the land use diagram contained in the Land Use Element.

Among the important implementation mechanisms for the Land Use Element are Specific Plans and the Town Code. The California Government Code requires that the Town Code and zoning map be consistent with its General Plan Land Use Element and land use map, and that all provisions of Specific Plans adopted by the Town must be consistent with the General Plan that they implement.

C. Relationship of Land Use Element to other Elements and Plans Because the Land Use Element sets the framework of the General Plan, the Land Use Element relates directly to all goals and policies of the other Elements and unifies the General Plan by providing the overall policy context

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LAND USE ELEMENT
LU-4
for the other Elements. The relationship of the Land Use Element to other elements and plans is described below.
♦ The Land Use Element addresses circulation by setting out, in its map and policies, the location and size of all roadways in the Town coordinated with the land uses the roads will serve. It also notes the planned capacities of all other infrastructure systems that will be necessary to protect the health and welfare of the Town’s citizens. ♦ The location, type, and density of residential units are key components of the Land Use Element. The Housing Element uses the density ranges specified in the Land Use Element to identify sites to meet the Town’s housing needs.
♦ The mandates of the Safety Element are reflected in the designation and location of land use, the permitted activities within designated areas, and the patterns of land use that support defensible space, the Town’s contingency plan, and fire and other hazard mitigation. ♦ The Land Use Element addresses buffers between noise sensitive uses and noise sources.
♦ The Town conserves resources through policies for the wise use of land, water, and energy.
♦ Air quality is improved by land use patterns that minimize vehicle travel within the Town.
♦ The Conservation Element goals address protecting and enhancing the natural environment. Programs that retain natural features such as tree preservation, limited grading, and water conservation maintain the natural character of Los Gatos. ♦ The Open Space Element refers to the location, character, and use of parks, recreational facilities, and preserved, unimproved land. ♦ Land use designations protect and preserve open spaces. ♦ The Land Use Element reflects the Town’s high priority for quality design.

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♦ The Land Use and Community Design Elements preserve historical buildings and historic areas, limiting the size of houses, while careful design of new infill developments protects the character of Los Gatos. ♦ California State law requires that all Specific Plans and zoning regulations be consistent with the General Plan. The Hillside Specific Plan, the North Forty Specific Plan, the Redevelopment Plan, and other plans that may be adopted as necessary will be consistent with this General Plan.

D. Existing Land Uses
This section contains qualitative and quantitative descriptions of existing land uses in the Town of Los Gatos and Los Gatos’s Sphere of Influence (SOI). “Existing land uses” refers to the existing built environment, regardless of the General Plan land use designation or zoning designation applied by the Town. This initial assessment is based on data from the Santa Clara County Office of the Assessor. Existing land uses are illustrated in Figure LU-1 and listed in Table LU-1.

1. Residential – Single Family
Approximately 3,183 acres of land in Los Gatos are dedicated to parcels that contain a single, detached residence and related structures. Single-family residential land use is located throughout the Town, with the exception of the public and open spaces in the southern area of the Town and along commercial corridors immediately adjacent to Los Gatos Boulevard and Santa Cruz Avenue. In the SOI, approximately 2,728 acres of land are dedicated to single-family residential land.

2. Residential – Multi-Family
This land use category refers to parcels that contain more than one housing unit. It includes duplexes, triplexes, fourplexes, condominiums, and apartment buildings. This residential land use totals approximately 407 acres in the Town. There is no multi-family housing in the SOI. Multi-family uses are largely clustered in and around the Highway 17 corridor, either between

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UNION AVENUE

LOS GATOS BOULEVARD

CURTNER AVENUE

SHANNON ROAD

LARK AVENUE

FOXWORTHY AVENUE

MAIN STREET

CAMDEN AVENUE

SAMARITAN DRIVE

HARWOOD ROAD

WESTMONT AVENUE

LOS GATOS-SARATOGA ROAD

WINCHESTER BOULEVARD

BLOSSOM HILL ROAD
N. SANTA

CRUZ BOULEVARD

LOS GATOS-ALMADEN ROAD
FIGURE LU-1

EXISTING LAND USE
City of
Campbell
City of
San Jose
City of
Monte Sereno
Source: Santa Clara County Office of the Assessor, 2006; DC&E, 2008.

Unincorporated
Santa Clara County
0 0.5 1 Miles
Lexington
Reservoir
Vasona Lake
County Park
Ross Creek
Smith Creek
San Thomas Aquino Creek
Almendra Creek
City of
Saratoga
·|}þ8 5
·|}þ17
Existing Land Use
Single Family Residential
Multi-Family Residential
Commercial
Office/Professional
Light Industrial
Public Utilities
Public/Quasi-Public
Agricultural
Open Space/Recreation
Vacant
Los Gatos Creek
Town Boundary
Sphere of Influence
Water Body
Highway
Creek
Guadalupe Creek

TOWN OF LOS GATOS
2020 GENERAL PLAN

LAND USE ELEMENT

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2020 GENERAL PLAN

LAND USE ELEMENT
LU-7
TABLE LU-1 EXISTING LAND USES
Land Use Category
Number of
Acres
Percent
of Town
Acreage
Percent
of SOI
Acreage
Residential – Single Family 5,911 51.2% 51.9%
Residential – Multi-Family 407 6.5% 0%
Commercial 164 2.6% 0%
Office Professional 126 2% 0%
Light Industrial 37 0.6% 0%
Public/Quasi-Public 440 4.7% 2.8%
Public Utilities 39 0.5% 0.1%
Agricultural 112 1% 1%
Open Space/Recreation 3,841 26.2% 42.2%
Vacant 399 4.7% 2%
Total 11,476 100% 100%
Source: County of Santa Clara, Office of the Assessor, 2006.

Los Gatos Boulevard and Highway 17 or in the area south of Vasona Lake County Park. A significant pocket of multi-family housing is also located in the northwest corner of the Town, just south of the City of Campbell.

3. Commercial
Commercial land refers to parcels that contain either retail businesses—those offering specific products for sale—or businesses that provide day-to-day services such as grocery stores, restaurants, spas and salons, dry cleaners, and nurseries. There are approximately 164 acres of commercial uses in Los Gatos and 1 acre in the SOI. Most commercial parcels in Los Gatos are located along the Santa Cruz Avenue or Los Gatos Boulevard corridors.

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LU-8

4. Office Professional
Office Professional land use refers to parcels that contain offices for medical, legal, insurance, consulting, and similar contracted services. Office and professional uses account for 125 acres in Los Gatos. Like commercial parcels, office professional parcels are concentrated along the Town’s primary commercial corridors. An additional cluster of office and professional uses is located near the Highway 17/85 interchange.

5. Light Industrial
The Light Industrial land use category refers to parcels used primarily for production, manufacturing, and research and development. Additional uses include self-storage and automobile service garages. There are approximately 37 acres of light industrial land uses in Los Gatos. Light industrial uses are concentrated in two small pockets, one just south of Highway 85 and east of Winchester Boulevard, and another along University Avenue, north of Blossom Hill Road.

6. Public/Quasi-Public
Public/Quasi-Public land uses include schools, libraries, police and fire stations, faith communities, and hospitals. These uses are distributed throughout Los Gatos, mostly in single parcels or small groups of parcels. Public/Quasi-Public land uses comprise approximately 291 acres of land in the Town and approximately 149 acres in the SOI.

7. Public Utilities
Public Utilities refer to uses related to communications and energy production and distribution. There are approximately 37 acres in the Town devoted to utilities divided between parcels scattered throughout Los Gatos. Many of these parcels are owned by San Jose Water Company and PG&E and are sites of communications infrastructure.

8. Agricultural
Agricultural land is used for raising and harvesting crops, breeding livestock, and/or housing equipment used for agricultural purposes. According to the Santa Clara County Assessor’s Office, about 64 acres of land scattered

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LU-9
throughout Los Gatos, and approximately 48 acres in the SOI, are devoted to existing agricultural uses. One of the largest areas of agricultural land is the North Forty site, which contains orchard trees, including walnut and fruit trees. Wine grapes can be found in the Santa Cruz Mountains hillside areas.

The California Land Conservation Act of 1965, better known as the Williamson Act, works to preserve agricultural and open space lands through restrictive use contracts administered by counties and cities under State regulations.

Private landowners voluntarily restrict their land to agricultural and compatible open space uses under minimum 10-year rolling term contracts, with counties and cities also acting voluntarily. In return, the property tax on a Williamson Act parcel is assessed at a rate consistent with its actual use, rather than potential market value.

Figure LU-2 shows the location of all Williamson Act lands and their designation as well as farmland not covered by the Williamson Act. Approximately 136 acres of land within the Town limits and 358 acres of land within the SOI are designated Williamson Act land.1
Of these, only 3.85 acres are considered
“prime agricultural lands” under the definition of the Land Conservation Act.

All of these lands occur in the Town’s SOI. In addition to Williamson Act lands, approximately 32 acres of Unique Farmland are located within Town limits and 8 acres within the SOI. “Unique Farmland” is a designation applied by the State Department of Conservation to land that is capable of producing specific high value crops. In Los Gatos, it is applied to the orchards on the North Forty site.

9. Open Space/Recreation
Open Space/Recreation refers to indoor and outdoor recreational facilities, including public open spaces such as regional parks, community centers,

1 This number is higher than the number of acres in existing Agricultural use because Williamson Act include parcels that are classified by the Assessor as Agriculture, Open Space, and Single Family Residential. Single Family Residential may be considered an acceptable classification by the Assessor since Williamson Act contracts may include provisions for a limited number of dwelling units on the property.

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HARWOOD ROAD

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LOS GATOS-SARATOGA ROAD

WINCHESTER BOULEVARD

BLOSSOM HILL ROAD
N. SANTA

CRUZ BOULEVARD

LOS GATOS-ALMADEN ROAD
FIGURE LU-2

WILLIAMSON ACT AND UNIQUE FARMLAND
Town Boundary
Sphere of Influence
Water Body
Creek
City of
Campbell
City of
San Jose
City of
Monte Sereno
Source: State of California Department of Conservation 2006.

Unincorporated
Santa Clara County
0 0.5 1 Miles
Lexington
Reservoir
Vasona Lake
County Park
City of
Saratoga
·|}þ8 5
·|}þ17
Williamson Act Lands
Prime Agricultural Land
Non-Prime Agricultural Land
Non-Prime/Non-Renewal Agricultural Land
State Farmland Designation
Unique Farmland
Ross Creek
Smith Creek
San Thomas Aquino Creek
Almendra Creek
Los Gatos Creek
Guadalupe Creek

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playgrounds and neighborhood parks, country clubs, and natural open spaces.

After Residential – Single Family land use, Open Space/Recreation comprises the second highest percentage of total land in Los Gatos. There are approximately 1,624 acres of open space in the Town and approximately 2,218 acres in the SOI. Much of this acreage is contained in four large facilities: St. Joseph’s Hill and Sierra Azul Open Space to the south of Los Gatos, and Vasona Lake County Park and La Rinconada Country Club to the north.

10. Vacant
Approximately 292 acres within the Town are vacant parcels of varying sizes that are scattered throughout the Town. Most of the vacant acreage in Los Gatos is located in the single-family residential area on the eastern side of the Town. Parcels here are generally larger than they are elsewhere in Los Gatos, and a number of significantly sized parcels are vacant. Generally, vacancies are more common in residential areas of Los Gatos than in commercial areas, although a few small, isolated commercial vacancies exist. Additionally, the SOI contains approximately 107 acres of vacant property.

E. General Plan Land Use Designations
The Land Use Element is the basis for physical development in Los Gatos.

The land use map and designations identify the general location, density, and extent of land available for residential and non-residential uses. Land use designations do not necessarily reflect the existing land use of each parcel. Figure LU-3 presents a map of the land use designations in Los Gatos. Each land use designation is listed and described below.

1. Residential Land Use Designations
This section provides a brief description of each residential land use designation and the desirable range of density for each designation.

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CURTNER AVENUE

SHANNON ROAD

LARK AVENUE

FOXWORTHY AVENUE

MAIN STREET

CAMDEN AVENUE

SAMARITAN DRIVE

HARWOOD ROAD

WESTMONT AVENUE

LOS GATOS-SARATOGA ROAD

WINCHESTER BOULEVARD

BLOSSOM HILL ROAD
N. SANTA

CRUZ BOULEVARD

LOS GATOS-ALMADEN ROAD
FIGURE LU-3
2020 GENERAL PLAN LAND USE
City of
Campbell
City of
San Jose
City of
Monte Sereno
Source: Town of Los Gatos, 2008; Santa Clara County Office of the Assessor, 2008.

Unincorporated
Santa Clara County
0 0.5 1 Miles
Lexington
Reservoir
Vasona Lake
County Park
Ross Creek
Smith Creek
San Thomas Aquino Creek
Almendra Creek
City of
Saratoga
·|}þ8 5
·|}þ17
General Plan Land Use
Hillside Residential
Low Density Residential
Medium Density Residential
High Density Residential
Mixed-Use Commercial
Central Business District
Neighborhood Commercial
Service Commercial
Office Professional
Light Industrial
Public
Agriculture
Open Space
North Forty Specific Plan Overlay
Los Gatos Creek
Town Boundary
Sphere of Influence
Water Body
Highway
Creek
Guadalupe Creek

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a. Hillside Residential: 0-1 dwelling units per net acre Up to 3.5 persons per acre
The Hillside Residential designation provides for very low density, rural, large lot or cluster, single-family residential development. This designation allows for development that is compatible with the unique mountainous terrain and vegetation of parts of Los Gatos. b. Low Density Residential: 0-5 dwelling units per net acre Up to 17.5 persons per acre
The Low Density Residential designation provides for single-family residential properties located on generally level terrain. It encourages single-family residential development in either the standard development established by traditional zoning or by innovative forms obtained through planned development. c. Medium Density Residential: 5-12 dwelling units per net acre Up to 24 persons per acre
The Medium Density Residential designation provides for multiple-family residential, duplex, and/or small single-family homes.
d. High Density Residential: 12-20 dwellings per net acre Up to 40 persons per acre
The High Density Residential designation provides for more intensive multifamily residential development. Its objective is to provide quality housing in close proximity to transit or a business area.
e. Mobile Home Park: 5-12 dwellings per net acre
Up to 24 persons per acre
The Mobile Home Park designation provides for mobile home parks. The intent is to provide and preserve Mobile Home Parks as a source of affordable housing. This designation is described in this Element; however, it is not represented on the accompanying General Plan Land Use Map.

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2. Non-Residential Land Use Designations
For non-residential land uses, the specific uses mentioned are illustrative, and other compatible uses, including those authorized in any other Zoning District within the Town, may be permitted where authorized by a Conditional Use Permit or Planned Development Overlay Zone. In a mixed-use project residential uses may be permitted in conjunction with other permitted uses in non-residential Zoning Districts with the exception of the Commercial Industrial and Controlled Manufacturing Zoning Districts. For non-residential land uses, building intensity limits are indicated by either allowable land coverage or floor area ratio(FAR) and a maximum height limit.
♦ Office Professional: Up to 50 percent land coverage with a 35-foot height limit
The Office Professional designation provides for professional and general business offices. This designation applies to various locations throughout the Town, often in close proximity to neighborhood- or community-oriented commercial facilities, or as a buffer between commercial and residential uses.

The intent of this designation is to satisfy the community’s need for general business and professional services and local employment. ♦ Central Business District: 0.6 FAR with a 45-foot height limit The Central Business District designation applies exclusively to the downtown and accomplishes the following:
♦ Encourages a mixture of community-oriented commercial goods, services and lodging unique in its accommodation of small-town style merchants and maintenance of small-town character.
♦ Maintains and expands landscaped open spaces and mature tree growth without increasing setbacks.
♦ Integrates new construction with existing structures of historical or architectural significance and emphasizes the importance of the pedestrian. ♦ Mixed-Use Commercial: Up to 50 percent land coverage with a 35-foot height limit
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rants. Projects developed under this designation shall maintain the smalltown, residential scale and natural environments of adjacent residential neighborhoods, as well as provide prime orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties.

This designation should never be interpreted to allow development of independent commercial facilities with principal frontage on the side streets. d. Neighborhood Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Neighborhood Commercial designation provides for necessary day-today commercial goods and services required by the residents of the adjacent neighborhoods. This designation encourages concentrated and coordinated commercial development at easily accessible locations.
e. Service Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Service Commercial designation provides for service businesses necessary for the conduct of households or businesses. These include auto repair, building materials sales, paint suppliers, janitorial services, towing businesses, contractors offices and yards, launderers and dry cleaners, as well as wholesaling and warehousing activities.
f. Light Industrial: Up to 50 percent land coverage with a 35-foot height limit
The Light Industrial designation provides for large-scale office developments and well-controlled research and development, industrial-park-type and service-oriented uses subject to rigid development standards. These uses should respond to community or region-wide needs.
g. Public
The Public designation identifies public facilities in the Town such as the Civic Center, courthouse, schools, parks, libraries, hospitals, churches, and fire stations.

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h. Agriculture
The Agricultural designation identifies areas for commercial agricultural crop production.
i. Open Space
The Open Space designation identifies the location of public parks, open space preserves, private preserves, and stream corridors.

F. Special Planning Areas
Development in Los Gatos can be targeted to achieve a more specific outcome by designating specific overlay zones and special planning areas. These areas have more detailed development guidelines that remain consistent with existing policies. Los Gatos has three overlay zones that implement land use policies through the Town Code, five Historic Districts, three Specific Plans, and one Redevelopment Project Area.

1. Overlay Zones
There are three overlay zones in the Town Code, the Landmark and Historic Preservation, Planned Development, and Public School Overlay Zones. ♦ Landmark and Historic Preservation (LHP) Overlay Zone. This zone is designated by Town Council and is applied to individual sites and structures or small areas deemed of architectural and/or historical significance.

The structure(s) in LHP overlays are subject to special standards regarding their appearance, use, and maintenance. ♦ Planned Development (PD) Overlay Zone. The PD overlay zone is intended to ensure orderly planning and quality design that will be in harmony with the existing or potential development of the surrounding neighborhood. The Planned Development Overlay is a specially tailored development plan and ordinance which designates the zoning regulations for the accompanying project, sets specific development standards, and ensures that zoning and the General Plan are consistent. Commercial,

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residential or industrial property or a mixture of these uses may be considered for a Planned Development Overlay. ♦ Public School (PS) Overlay Zone. The PS overlay zone is intended to allow school buildings to be used, without extensive exterior modifications, in ways which will make it unnecessary to sell school facilities.

The overlay permits a variety of community-related and educationrelated uses, including, but not limited to, museums, community centers, playgrounds, and nursery schools. Any land owned by a public school district (regardless of underlying zone) may be zoned PS.

2. Historic Districts
The Town has established five historic districts to preserve neighborhoods deemed significant to the history of Los Gatos.
♦ Almond Grove Historic District. An approximately 40-acre area that constitutes the largest subdivision following incorporation of the Town of Los Gatos. This District was established by ordinance in 1980. ♦ Broadway Historic District. An approximately 100-acre area that is the site of the first residential subdivision and first residential street in the Town of Los Gatos. This District was established by ordinance in 1985. ♦ Los Gatos Historic Commercial District. Bounded by Elm Street to the north, Main Street to the south, Los Gatos Creek to the east, and North Santa Cruz Avenue to the west. The Town’s only concentration of intact historic commercial buildings. It was established by ordinance in 1991.
♦ Fairview Plaza Historic District. Limited to the cul-de-sac termination of Fairview Plaza, part of an historic subdivision originally surveyed in 1885 known as the “Fairview Addition.” The District retains the same configuration as originally mapped and contains a rare collection of Victorian and Craftsman homes, unique in their compact scale and proximity to one another. This District was established by ordinance in 1992. ♦ University/Edelen Historic District. Bounded by Saratoga Avenue to the north, Main Street to the south, Los Gatos Creek to the east, and the

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former Southern Pacific Railroad right-of-way to the west. The District is composed of five subdivisions that predate 1900 and contain a number of residential and commercial structures of mixed architectural styles.

This District was established by ordinance in 1991.

All of Los Gatos’s historic districts are defined by structures that contribute to the District. In every District, the transformation of these structures is tightly regulated. Demolition of contributing structures is strictly prohibited.

In addition, all restoration, rehabilitation, and new construction of principal units must adhere to a series of guidelines for preserving architectural heritage and conforming to existing style. Any modifications to the original design are either restricted or prohibited.

3. Overlay Designation
The North Forty Specific Plan Overlay is applied to the approximately 40-acre property bounded by Los Gatos Boulevard to the east, Highway 17 to the west, Lark Avenue to the south, and Highway 85 to the North. This Overlay requires the preparation and adoption of a specific plan that will determine the mix of uses, dimensional standards, architectural standards, phasing, and infrastructure to support the development of the property prior to approval of any entitlements. Drawing on the draft North Forty Specific Plan prepared in 1999, the General Plan overlay designation is intended to help guide the future development of this property. The 2020 General Plan Environmental Impact Report assumed a maximum capacity of 750 mixed residential units and 580,000 square feet of retail and offices uses for the purposes of assessing environmental impacts associated with the development of the property. While this is the maximum development capacity under this General Plan, the specific plan may be approved with lower densities and square footage of residential and commercial uses, respectively. The North Forty Specific Pan will be based on the following general guidelines:
♦ Include a mixture of uses that will complement the Downtown and the rest of the community.
♦ Be based on sustainable and “smart” development practices.

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♦ Include public gathering spaces such as a plaza and park. ♦ Provide for a variety of residential housing types, both rental- and owneroccupied. A minimum of 20 percent of the units shall be affordable to households at the moderate income level or below.
♦ Include high-quality architecture and design that reflects the rural and agricultural history of the site. ♦ Provide pedestrian-oriented buildings along the Los Gatos Boulevard frontage, with minimal parking oriented to the street.
♦ Take advantage of the grade change across the site.
♦ Continue the “boulevard treatment” along Los Gatos Boulevard, with interconnections from one parcel’s drive aisle to the next. ♦ Include connections to existing intersections along Los Gatos Boulevard and Lark Avenue.
♦ Develop gateway or landmark features at Los Gatos Boulevard and Lark Avenue and at Los Gatos Boulevard and the Highway 85 off-ramp. ♦ Provide an easily accessible, fully connected street network that encourages walking. ♦ Provide a vegetative buffer and screening along Highways 17 and 85. ♦ Preserve Town character and views.

4. Other Plans
The Hillside Specific Plan and Los Gatos Boulevard Plan areas are each developed according to separate land use goals and in different areas of the Town.

In addition to these approved Specific Plans, the Town will be developing a North Forty Specific Plan.
a. Hillside Specific Plan
The Hillside Specific Plan establishes land use policy for the Hillside Study Area, an area of mountainous terrain in the southeastern portion of the Town designated for Hillside Residential development. Adopted by Town Council in 1978, the Specific Plan establishes a series of policies and standards related

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to land use, facilities, services, circulation, fire protection, safety, and open space. These policies and standards are intended to prevent deficiencies in access to water and sewer services, ensure conservation of the sensitive natural environment, and address differences in Town and County land use regulations.

Development in the Hillside Specific Plan area is prohibited outside of designated “least restrictive development areas” (LRDAs) unless it is compliant with conditions established in the Plan.
b. Los Gatos Boulevard Plan
Adopted by Town Council in 1997, the Los Gatos Boulevard Specific Plan is a policy framework for meeting a series of short, medium, and long range goals related to the commercial revitalization of Los Gatos Boulevard. This Specific Plan is based on a land use concept for which higher density, mixeduse commercial development in the north of the Specific Plan area transitions into residential and community clusters, and then into existing residential neighborhoods just south of the Specific Plan area. This Specific Plan contains policies and design standards targeting safe, attractive public improvements; pedestrian-oriented activity nodes; vital, commercial land use; distinct gateways, and site-appropriate private improvements.
c. Central Los Gatos Redevelopment Project
The Central Los Gatos Redevelopment Project, which focuses on an area located around Downtown Los Gatos, contains a mix of residential and nonresidential land use designations. The Town of Los Gatos Redevelopment Agency has the authority to facilitate property acquisition and management, construction of public improvements, structural rehabilitation, and site assembly within the Project Area. The project was adopted in 1991, following the 1989 Loma Prieta earthquake. The main objectives of the project are to eliminate blight, assemble land parcels for improved development, strengthen the economic base of downtown, and improve undeveloped and underutilized areas.

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G. Goals, Policies, and Actions
The following goals, policies, and actions guide future physical development throughout Los Gatos.

Goal LU-1 To preserve, promote, and protect the existing small-town character and quality of life within Los
Gatos.

Policy LU-1.1 Encourage developers to engage in discussions as early as possible regarding the nature and scope of the project and possible impacts and mitigation requirements.

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-1.3 To preserve existing trees, natural vegetation, natural topography, riparian corridors and wildlife habitats, and promote high quality, well-designed, environmentally sensitive, and diverse landscaping in new and existing developments.

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.

Policy LU-1.5 Encourage private/public funding, development, and operation of cultural amenities, activities, and centers consistent with the small-town character of Los Gatos.

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Policy LU-1.6 Recognizing that our ability to preserve our small-town character is somewhat dependent on decisions in surrounding communities, continue and expand Town participation in planning processes in neighboring jurisdictions and regional bodies in order to develop innovative, effective, and coordinated land use, transportation, and hillside development plans and standards that will help preserve our small-town character.

Policy LU-1.7 Use task forces, ad hoc committees and other means as appropriate to involve residential and commercial interests in Town matters.

Policy LU-1.8 Commercial development of any type (office, retail, research and development, etc.) shall be designed in keeping with the small-town character of Los Gatos.

Goal LU-2 To maintain a balanced, economically stable community within environmental goals.

Policies
Policy LU-2.1 Minimize vehicle miles traveled for goods and services by allowing and encouraging stores that provide these goods within walking distance of neighborhoods in Los Gatos.

Policy LU-2.2 Promote telecommuting and home-based businesses by allowing live-work and work-live uses in existing and future residential development.

Goal LU-3 To coordinate with surrounding jurisdictions and other local and regional agencies that may affect Los
Gatos’s future development patterns and character.

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Policies
Policy LU-3.1 Cooperate with the County of Santa Clara to encourage the annexation of unincorporated islands into the Town.

The Town will not require the installation of curbs, gutters, sidewalks, or street lights as a condition of annexation nor will these improvements be imposed on annexed areas unless the residents of the area request such improvements and are willing to participate in the cost of such improvements. This does not prevent the Town from requiring such improvements as a condition of approval of any zoning or subdivision approval if such conditions are normally made on those items and the improvements would be in keeping with the neighborhood.

Policy LU-3.2 Work with Santa Clara County to ensure that projects developed in the County meet Town policies and standards, do not induce further development, and do not unduly burden the Town.

Goal LU-4 To provide for well-planned, careful growth that reflects the Town’s existing character and infrastructure.

Policies
Policy LU-4.1 Integrate planning for the North Forty area, Los Gatos Boulevard, Vasona Light Rail area, and Downtown so that development in each area takes into consideration the
Town as a whole.

Policy LU-4.2 Allow development only with adequate physical infrastructure (e.g. transportation, sewers, utilities, etc.) and social services (e.g. education, public safety, etc.).

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Policy LU-4.3 Only approve projects for which public costs can be justified by the overall benefit to the community.

Policy LU-4.4 Project applicants shall evaluate and provide appropriate mitigation measures to reduce impacts on urban services including schools, utilities, police, and fire.

Policy LU-4.5 Discourage corridor lots. Corridor lots shall only be allowed if the use of a corridor lot decreases the amount of public street required for the subdivision, contributes to the surrounding neighborhood, and is in context with the existing scale and established character of the neighborhood. The subdivider shall also demonstrate that the use of a corridor lot benefits surrounding properties.

Goal LU-5 To encourage public involvement in Town planning processes.

Policy
Policy LU-5.1 Use task forces, ad hoc committees, and other means as appropriate to involve residential and commercial interests in Town matters.

Action
Action LU-5.1 Utilize traditional communication tools and new media and technology to provide clear and current information on Town processes and decisions and to encourage public participation in Town government.

Goal LU-6 To preserve and enhance the existing character and sense of place in residential neighborhoods.

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Policies
Policy LU-6.1 Protect existing residential areas from the impacts of nonresidential 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-6.3 Protect existing residential areas from adjacent nonresidential uses by assuring that buffers are developed and 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.

Policy LU-6.6 In order to reduce landfill, conserve resources, and preserve neighborhood character, demolitions shall be discouraged in established residential neighborhoods and applicants shall submit structural reports to determine whether the demolition of any principal structure is justified. If allowed, the replacement house should be similar in size and scale to other homes in the neighborhood and maintain the neighborhood character.

Policy LU-6.7 Continue to encourage a variety of housing types and sizes that is balanced throughout the Town and within
neighborhoods, and that is also compatible with the character of the surrounding neighborhood.

Policy LU-6.8 New construction, remodels, and additions shall be compatible and blend with the existing neighborhood.

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Policy LU-6.9 The Housing Element assumes that sites designated medium and high density residential will be developed at the upper end of the density range. If the Town approves a
development at a lower density on one of these sites, staff shall identify one or more other sites to maintain the
Town’s capacity to meet its housing needs as identified in the Housing Element, subject to neighborhood compatibility and mitigation of traffic impacts.

Policy LU-6.10 Require applicants to submit letters of justification to show how new residential development contributes to the balance of types and sizes of housing available in Los
Gatos.

Actions
Action LU-6.1 Develop standards for traffic, noise, intensity, and overall size for non-residential uses in residential zones.

Action LU-6.2 The conditional use permit approvals for non-residential uses in residential zones shall be reviewed by the Planning Commission on an as-needed basis for any adverse impacts, nuisances, or any required modifications.

Goal LU-7 To use available land efficiently by encouraging appropriate infill development.

Policies
Policy LU-7.1 Allow redevelopment of unused school sites commensurate with the surrounding residential neighborhood and availability of services.

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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.

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 LU-8 To uphold and enforce adopted land use regulations.

Policies
Policy LU-8.1 Maintain a Code Compliance function to effectively enforce the land use regulations in the Town Code.

Policy LU-8.2 Town staff shall identify major violations (illegal units, sign violations, illegal uses, tree removals, grading violations, etc.) without waiting for public complaint. Town staff shall act on minor violations (illegally parked cars, boats, trailers and campers, etc.) based on public complaints. Additional violations that may be observed during investigation of a complaint shall also be acted on.

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Goal LU-9 To provide residents with adequate commercial and industrial services.

Policies
Policy LU-9.1 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-9.2 Maintain a variety of commercial uses, including a strong Downtown commercial area combined with Los Gatos
Boulevard and strong neighborhood commercial centers to meet the shopping needs of residents and to preserve the small-town atmosphere.

Policy LU-9.3 Encourage a mix of retail and office uses in commercial areas, except in the Central Business District designation, where retail should be emphasized and office should be
limited to upper floors and other areas as defined by the Town Code.

Policy LU-9.4 Encourage existing light industry and service commercial uses to remain or be replaced with similar uses.

Policy LU-9.5 Encourage the development and retention of locally owned stores and shops.

Policy LU-9.6 Encourage development that maintains and expands resident-oriented services and/or creates employment opportunities for local residents consistent with overall land use policies of the Town.

Policy LU-9.7 “Broadening the tax base” shall never be the sole reason for allowing new commercial development or approving a
change in a commercial land use.

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Policy LU-9.8 Retail sales tax “leakage” should be kept to a minimum by providing in-town convenience and comparative shopping
opportunities.

Policy LU-9.9 Buffers shall be required as conditions of approval for nonresidential projects that are adjacent to residential areas and may consist of landscaping, sound barriers, building setbacks, or open space.

Policy LU-9.10 Prohibit new commercial or industrial zoning adjacent to school sites and carefully consider the impacts of new
school sites in industrial and commercial land use designations.

Action
Action LU-9.1 The Town should identify those businesses that are needed in the Town and actively recruit those businesses.

Goal LU-10 To preserve Downtown Los Gatos as the historic center of the Town, with goods and services for local
residents, while maintaining the existing Town
identity, environment, and commercial viability.

Policies
Policy LU-10.1 Encourage the development and retention of small businesses and independent stores and shops Downtown that are consistent with small-town character and scale.

Policy LU-10.2 Recognize and encourage the different functions, land use patterns, and use mixes of the various commercial areas within the Downtown. These include:
a. The pedestrian scale and orientation of the Central
Business District.

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b. The neighborhood-serving commercial land use pattern of areas north of Saratoga Avenue to Blossom Hill Road.
c. The mixed use commercial activities along Santa Cruz Avenue and the service commercial activities along
University Avenue between Andrews Street and Blossom Hill Road.

Policy LU-10.3 Establish and maintain strong boundaries between the Central Business District designation and adjacent residential neighborhoods.

Policy LU-10.4 Encourage mixed uses to increase residential opportunities in commercial zones Downtown, taking into consideration potential impacts to loss of commercial opportunities.

Goal LU-11 To plan for development of a variety of uses in the North Forty area in a coordinated and comprehensive way.

Policies
Policy LU-11.1 Zoning shall be changed as part of development applications to provide consistency with the Vasona Light Rail Element and other elements of this General Plan and with any future specific plan prepared for this area.

Policy LU-11.2 The Town shall encourage uses that serve Town residents.

These include, but are not limited to, open space, playfields, office, retail, and other commercial uses. Residential uses may be permitted as part of mixed-use development and only with acceptable mitigation of adverse noise, air quality, and other environmental hazards.

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Policy LU-11.3 Provide coordinated infrastructure in the North Forty area.

Policy LU-11.4 Include a variety of regional destination and local-serving commercial uses in the North Forty area, following a logical land use pattern that takes advantage of the site opportunities while protecting adjacent uses.

Policy LU-11.5 Avoid negative effects on the long-term development potential of the area surrounding the North Forty area.

Policy LU-11.6 Incorporate multi-modal links from the North Forty area to the Vasona Light Rail station into the North Forty Specific Plan.

Action
Action LU-11.1 Prepare and adopt a specific plan for the North Forty area prior to development of the site.

Goal LU-12 To ensure an appropriate mix of land use types along Los Gatos Boulevard in order to maintain the
economic vitality of the corridor and continue to
serve the needs of Town residents.

Policies
Policy LU-12.1 Encourage redevelopment and assemblage of parcels that have experienced a high vacancy rate over a prolonged period of time, possibly including appropriate and compatible re-zoning.

Policy LU-12.2 Encourage a mix of uses along Los Gatos Boulevard, including, where appropriate, mixed-use parcels that are compatible with surrounding uses.

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Policy LU-12.3 New landscaping, streetscape improvements and new development along Los Gatos Boulevard shall incorporate pedestrian amenities, scale, and design.

Policy LU-12.4 Encourage mixed uses to increase residential opportunities in commercial zones.

Policy LU-12.5 Retain and enhance auto dealerships.

Policy LU-12.6 Neighborhood commercial, multi-family residential, and office uses shall be concentrated south of Los Gatos–
Almaden Road.

Policy LU-12.7 New and relocating auto-related businesses shall be located north of Los Gatos–Almaden Road, adjacent to existing
auto dealerships, or on a vacant site previously used for permitted auto sales.

Policy LU-12.8 Uses on Los Gatos Boulevard south of Roberts Road shall be residential or office; existing non-residential uses shall not be intensified; and existing vacant property and residential uses shall be developed as Single Family Residential.

Policy LU-12.9 Encourage replacement of vacated business south of Los Gatos–Almaden Road and north of Roberts
Road/Shannon Road with neighborhood commercial,
multi-family, or office uses.

Goal LU-13 To promote appropriate and compatible development along Los Gatos Boulevard that complements the whole Town and serves residents and families.

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Policies
Policy LU-13.1 Development shall transition from higher intensity uses at the north end of Los Gatos Boulevard to existing residential uses at the south end of Los Gatos Boulevard.

Policy LU-13.2 Commercial activity along Los Gatos Boulevard shall complement the whole Town and shall provide a dependable source of income, employment opportunities, goods, and services.

Policy LU-13.3 New projects along Los Gatos Boulevard shall incorporate a family and resident orientation.

Policy LU-13.4 New development along Los Gatos Boulevard shall be designed to minimize adverse impacts on adjacent residential areas.

Policy LU-13.5 Establish and maintain appropriate boundaries between the commercial uses along Los Gatos Boulevard and adjacent residential neighborhoods.

Policy LU-13.6 Provide more pedestrian/bike areas and links to adjacent residential areas to foster neighborhood use of commercial centers.

Policy LU-13.7 Allow auto dealers and other commercial property owners and merchants to conduct occasional promotional sales activities with a “festival” atmosphere with appropriate restrictions to reduce traffic congestion and impacts on neighboring commercial and residential uses.

Actions
Action LU-13.1 Work with existing auto dealers and other commercial property owners and merchants to develop an appropriate commercial image specifically for Los Gatos Boulevard.

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Action LU-13.2 Use the adopted Los Gatos Boulevard Plan and Commercial Design Guidelines to review development proposals and exterior improvements to existing buildings.

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4 COMMUNITY DESIGN ELEMENT
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A. Introduction
The Community Design Element is an optional element of the General Plan.

This Element is intended to address the small town character of Los Gatos through its physical design elements.

This Element is divided into the following sections. With the exception of the first section, each of the remaining sections has its own set of goals, policies, and actions:
♦ Key Features of the Los Gatos Community
♦ Town-Wide Design Principles
♦ Residential Neighborhoods
♦ Non-Residential Neighborhoods
♦ Downtown
♦ Historic Preservation
♦ Hillside Development
♦ Scenic Resources
♦ Design Review Process
B. Key Features of the Los Gatos Community
The Town’s history forms its existing character. Los Gatos was founded around the Forbes Mill, a flour mill built in 1854. Located in a heavily wooded area, the Town centered around the logging industry in the late 1800s and later became an agricultural town in the early 1900s. In the 1950s, the Town grew primarily as a suburb of the City of San Jose.

Today, Los Gatos maintains its small town residential character and suburban roots. The remains of Forbes Mill and its 1880 annex have been converted into the History Museum of Los Gatos, a landmark now located in the Main Street and Civic Center neighborhood. Los Gatos is also defined by its beautiful natural setting in the Santa Cruz Mountains, which is integrated into the Town’s fabric through its views of forested hillsides, mature trees, ATTACHMENT 3

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and creekside trails. Los Gatos is one of 152 communities in California to be designated a “Tree City USA” and has been in the Tree City USA Program since 1980. This program provides national recognition and technical assistance to towns and cities for preserving and maintaining trees in their jurisdictions.

The majority of Los Gatos is divided into single-family residential lots.

Mature trees cover much of the landscape, particularly in the hillside neighborhoods. The small, urban area of Los Gatos is more densely knit, particularly in the southwestern corner of the Town around Highway 17.

This area contains neighborhood and regional commercial corridors, as well as civic and cultural uses, and is generally referred to by residents as Downtown Los Gatos. Town-designated historic districts that include structures dating back to the early 1900s are also located within and around this Core Area. Development becomes less dense as it spreads south and east into the hillside areas.

Today, the Town is situated within one of the largest metropolitan areas of northern California and is closely tied to the fast-paced economy of Silicon Valley. Nevertheless, the Town of Los Gatos still retains its small town character and offers a rich community fabric composed of a varied mix of residential, commercial, and light industrial uses that serve the residents and attract visitors.

C. Town-Wide Design Principles

1. Background Information
In order to preserve Los Gatos’s unique character and high quality of life, new development must meet very high standards, not only in its appearance but also in its contributions to the social and economic life of the Town. The Town has created and maintained an attractively built environment through careful attention to the design of buildings, landscaping, public improvements, and the preservation of the natural environment.

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2. Goals, Policies, and Actions
This section describes overarching design principles that apply to the character of the Town.

Goal CD-1 Preserve and enhance Los Gatos’s character through exceptional community design.

Policies
Policy CD-1.1 Building elements shall be in proportion with those traditionally in the neighborhood.

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-1.3 Buildings, landscapes, and hardscapes shall follow the natural contours of the property.

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 built characteristics, including scale, materials, hardscape, lights, and landscape, blend into the surrounding neighborhood.

Policy CD-1.6 Town staff shall review properties next to community entry points when they are developed or redeveloped to
reflect the gateway concept.

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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.

Policies
Policy CD-2.1 Building setbacks shall increase as mass and height increase.

Policy CD-2.2 Limit the amount of increase in the floor area of a project when the number of units is reduced as part of the
development review process.

Policy CD-2.3 A maximum total floor area for new subdivisions and planned developments shall be set as part of the approval process.

Actions
Action CD-2.1 Conduct a study to consider amending the Below Market Price (BMP) program to set the required number of belowmarket-rate units based on the total square footage of a project, in addition to setting the requirement based on a percentage of the number of market-rate units.

Goal CD-3 To require utilities, landscaping and streetscapes to contribute to Los Gatos’s high-quality character.

Policies
Policy CD-3.1 Encourage the undergrounding of utilities on substantial remodels.

Policy CD-3.2 Street and structural lighting shall be required to minimize its visual impacts by preventing glare, limiting the amount of light that falls on neighboring properties, and avoiding light pollution of the night sky.

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Policy CD-3.3 Consider new street lighting only when required for safety.

Policy CD-3.4 Encourage the use of landscaping such as trees, large shrubs, and trellised vines to mitigate the effects of
building mass, lower noise, and reduce heat generation.

Policy CD-3.5 All landscaping shall be carefully reviewed to ensure that it is aesthetically pleasing, compatible with its neighborhood and natural environment, and water conserving.

Policy CD-3.6 Utility connections and meters shall be visually unobtrusive from the street.

Policy CD-3.7 Roof mounted mechanical equipment shall be screened and such screening shall be considered as part of the
structure for height limitations.

Policy CD-3.8 Solid fencing over 3 feet high shall be designed such that it does not isolate the structures from the street, or shall be set back and landscaped.

Policy CD-3.9 Parking structures and facilities shall have a low profile, be screened from view, and be aesthetically pleasing.

Actions
Action CD-3.1 Prepare and adopt environmentally sensitive landscape design standards using the Bay-Friendly Landscape
Guidelines. Encourage well-planned planting schemes that include appropriately-sized plant material, avoid the use of invasive and non-native plants, and require landscaping of a sufficient density to add to the beauty of the Town.

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Goal CD-4 To preserve existing trees, natural vegetation, natural topography, riparian corridors and wildlife
habitats, and promote high quality, well designed,
environmentally sensitive, and diverse landscaping
in new and existing developments.

Policies
Policy CD-4.1 Preserve the Town’s distinctive and unique environment by preserving and maintaining the natural topography,
wildlife, and native vegetation, and by mitigating and
reversing the harmful effects of traffic congestion,
pollution, and environmental degradation on the Town’s
urban landscape.

Policy CD-4.2 Maintain street trees, plant additional street trees, and encourage preservation and planting of trees on public and private property.

Policy CD-4.3 Trees that are protected under the Town’s Tree Preservation Ordinance, as well as existing native,
heritage, and specimen trees should be preserved and
protected as a part of any development proposal.

Policy CD-4.4 Street trees shall be required in new developments.

Policy CD-4.5 New development shall promote visual continuity through tree planting, consistent use of low shrubs, and ground cover.

Policy CD-4.6 Encourage mixtures of tree species, both deciduous and evergreen, to screen projects, add variety, create a more natural environment, and avoid future problems of insect infestation or other blights that might destroy the desired tree cover.

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Policy CD-4.7 Landscaping plans should maximize the use of trees for energy efficiency, climate control, screening, shading
(especially of parking lots), and aesthetics.

Policy CD-4.8 Landscaping plans shall maximize the use of local native plants and/or drought resistant plants.

Action
Action CD-4.1 Review and enforce any ordinances necessary to preserve trees on public and private property.

Goal CD-5 To design a built environment that keeps Los Gatos safe.

Policy
Policy CD-5.1 Street standards shall recognize the existing character of the neighborhood, safety, and maintenance.

Action
Action CD-5.1 Adopt an ordinance that establishes design parameters for buildings, streetscapes, and lighting which help prevent crime.

D. Residential Neighborhoods

1. Background Information
Los Gatos is a primarily residential community. The majority of Los Gatos is divided into single-family residential lots of varying densities from the Downtown area to the hillside neighborhoods.

In addition to the goals, policies, and actions listed below, Los Gatos has Residential Design Guidelines that promote safe, compatible, and welldesigned housing in Los Gatos.

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2. Goals, Policies, and Actions
Goal CD-6 To promote and protect the physical and other distinctive qualities of residential neighborhoods.

Policies
Policy CD-6.1 Reduce the visual impact of new construction and/or remodels on the Town and its neighborhoods.

Policy CD-6.2 Balance the size and number of units to achieve appropriate intensity.

Policy CD-6.3 Encourage basements and cellars to provide “hidden” square footage in lieu of visible mass.

Policy CD-6.4 New homes shall be sited to maximize privacy, livability, protection of natural plant and wildlife habitats and
migration corridors, and adequate solar access and wind conditions. Siting should take advantage of scenic views but should not create significant ecological or visual
impacts affecting open spaces, public places, or other
properties.

Goal CD-7 To preserve the quality of the private open space throughout Los Gatos.

Policies
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.

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Action
Action CD-7.1 Conduct a study to research increasing yard setback regulations to include considerations for building height, and update the Town Code as necessary.

E. Non-Residential Areas

1. Background Information
Los Gatos has several commercial and industrial areas that are important to the community. Downtown’s Santa Cruz Avenue corridor is pedestrianoriented with one- and two-story buildings housing various retail and restaurants. It is a local destination for Los Gatos residents and residents of neighboring communities in Silicon Valley. Los Gatos Boulevard is also a major commercial corridor with several older shopping centers. These older shopping centers are primarily commercial strip malls set back from Los Gatos Boulevard with ample front parking spaces. The malls are typically long, single-story structures with sidewalks and awnings. Near Blossom Hill Road, Los Gatos Boulevard has higher density shopping centers with major grocery anchor tenants.

In addition to the goals, policies, and actions listed below, Los Gatos has Commercial Design Guidelines that provide guidance for commercial property owners, promote well-designed commercial buildings, and encourage a cohesive sense of place.

2. Goals, Policies, and Actions
Goal CD-8 Promote, enhance and protect the appearance of the Los Gatos’s commercial areas.

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Policies
Policy CD-8.1 Encourage the preservation of the appearance and function of the industrial areas and the visible labor and products of labor that are evident there.

Actions
Action CD-8.1 Periodically inspect all commercial landscaping to ensure that approved landscaping is maintained.

F. Downtown

1. Background Information
The Downtown is the historic heart of Los Gatos. It encompasses the southwest section of Town and is generally bounded by Blossom Hill Road and Pine Avenue to the north; Glen Ridge Avenue to the west; Wood Road, College Avenue, and Cleland Avenue to the south; and Los Gatos Boulevard to the east. Downtown includes the Central Business District General Plan land use designation, shown on the General Plan land use map. Main Street includes a bridge that accommodates pedestrians and cars and connects West Main Street with East Main Street. Buildings along West Main Street near North Santa Cruz and University Avenues exhibit a range of styles, from Queen Anne and Richardson Romanesque to Art Deco. These buildings contribute to the Town-designated Historic Commercial District. Town Plaza Park—Los Gatos’s civic green space—and the History Museum of Los Gatos, housed in the Forbes Mill Annex, are both located in Downtown. For many years, Downtown Los Gatos has been voted “the Best Downtown of Silicon Valley” by readers of local newspapers.

2. Goals, Policies, and Actions
Goal CD-9 To preserve the character of Downtown Los Gatos and the quality of life for its citizens through highquality building design.

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Policies
Policy CD-9.1 Exterior building materials in the Central Business District should be consistent with those used in existing, tastefully executed surrounding buildings.

Actions
Action CD-9.1 Adopt controls to ensure that new buildings built on existing vacant parcels strengthen the form and image of the Central Business District.

Action CD-9.2 Adopt architectural design controls related to the rehabilitation of buildings within the Central Business District through consistency and compatibility of scale, massing, materials, color, texture, reflectivity, openings, and other details.

Goal CD-10 To maintain the historic character of the Downtown.

Policies
Policy CD-10.1 Encourage the preservation, restoration, rehabilitation, reuse, and maintenance of existing buildings Downtown.

Policy CD-10.2 Encourage outdoor seating for restaurants/coffee shops when the historic character and quality of the Downtown and adjacent neighborhoods can be maintained.

Actions
Action CD-10.1 Conduct an historic resources survey to identify valuable and historical architectural styles and features within the Central Business District.

Action CD-10.2 Adopt strengthened architectural design controls related to the rehabilitation of buildings within the Central Business District.

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Goal CD-11 Preserve and enhance the appearance of the Central Business District through design improvements to
streetscapes and landscapes.

Policies
Policy CD-11.1 Street, walkway, and building lighting should be designed to strengthen and reinforce Downtown’s character.

Policy CD-11.2 Downtown signs and graphics should maintain the Town's small scale appearance and be consistent with the Commercial Design Guidelines.

Policy CD-11.3 Public signs, directional signs, informational signs, and other signs within the Central Business District should be designed so as to easily communicate their message, and be distinctive enough in their form and color that the
observer will identify them with the Central Business
District.

Policy CD-11.4 Street furniture and equipment, such as lamp standards, traffic signals, fire hydrants, street signs, telephones, mail boxes, refuse receptacles, bus shelters, drinking fountains, planters, kiosks, flag poles, and other elements of the street environment, should be designed and selected so as to
strengthen and reinforce the Downtown character.

Policy CD-11.5 Trees and plants shall be approved by the Superintendent of Parks and Forestry for the purpose of meeting criteria, including climatic conditions, maintenance, year-round
versus seasonal color change (i.e. blossoms, summer
foliage, autumn color), special branching effects, and other considerations.

Policy CD-11.6 The area along Santa Cruz and University Avenues between Saratoga Avenue and West Main Street should

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receive special treatment to accent it as the Town's
commercial core or Central Business District and to
enhance user familiarity and enjoyment.

Actions
Action CD-11.1 Install treatments, including:
a. Continuation of the Town's Downtown paving and
tree planting system within the Central Business
District.
b. Specialized lighting and sign systems to distinguish this area, including orientation signs to guide those seeking access to the Town’s parking areas and other
destinations.
c. Modifications and improvements to the Town Plaza to
heighten its role as the southern visual anchor and
gateway to the Downtown area.

Action CD-11.2 Maintain design controls on private signage to enhance the commercial core area.

Action CD-11.3 Develop and adopt a landscaping plan that heightens user understanding of Downtown.

G. Historic Preservation

1. Background Information
This section provides an historical overview that illustrates land use and development patterns in Los Gatos from the historic period to the present.

Prior to California’s era of United States governance, Spanish and then Mexican authorities granted large tracts of land to those who rendered services to the government. These tracts, called ranchos, were extensive and contained vast natural resources. Rancho Rinconada de los Gatos was granted

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to Jose Hernandez and Sebastian Peralta by the Governor of Alta California in May 1840. Because of the Mexican-American War in January 1853, Hernandez and Peralta were forced to petition the United States Federal Court in San Francisco to recognize their claim. In March 1860, the United States government issued both men a patent to their 6,631-acre rancho. The Peralta and Hernandez Adobe, originally constructed for Claude Simond, was built in 1853 on Quito Road in the present Town of Los Gatos.

In 1850, Alexander Forbes, former Vice-Counsel in San Francisco for the British Government, purchased 3,000 acres in the vicinity of Los Gatos Creek on the Rancho Rinconada de Los Gatos, adjacent to the old Mission Trail between Santa Clara and Santa Cruz. Forbes constructed a flour mill on the east bank of Los Gatos Creek, which opened in 1854. The Town that grew around this building was initially called Forbes Mill, then Forbestown, and finally Los Gatos after the large wild cats that were so prevalent in the surrounding mountains.

In the mid-1850s, Old Santa Cruz Highway opened along with the Southern Pacific Coast Railroad (SPCRR), making Los Gatos an important Town for the logging industry in the Santa Cruz Mountains.

The completion of the SPCRR in 1878 set the framework for Los Gatos’s future prosperity. The rail line, which connected San Francisco to Santa Cruz, passed through the Town and allowed passengers to transit the fertile Santa Clara Valley. Many American and European families were drawn to Los Gatos’s mild climate and began purchasing property and planting orchards. In 1873, oil was discovered south of Los Gatos in an area known as Moody Gulch. Oil was produced there until 1922 and, although no longer in use, some oil rigs still remain. In 1958, the gulch was filled to make room for State Route 17.

During the mid-1870s, the Town expanded to the west side of Los Gatos Creek and land prices increased significantly. In 1877, Los Gatos was incorporated and census records list 1,500 inhabitants within the Town’s

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limits. During this period of expansion, the Downtown area of Los Gatos began to develop. The Los Gatos Hotel, originally built in the mid-1860s, was enlarged in 1878. The Los Gatos Gas Company was organized in 1885, at about the same time as the Los Gatos Ice Works, the Bank of Los Gatos, and the Los Gatos and Saratoga Wine Company. In 1886, the Los Gatos schoolhouse was built, and by 1881 the Town had at least two churches.

The railroad made it possible for Los Gatos farmers to ship their produce all over the country. In the late 19th and early 20th century, Los Gatos became a major agricultural area known for its apricots, prunes, grapes, and peaches.

Fruit orchards and logging, Los Gatos’s main industries through World War I, began to weaken during the Depression and through World War II. During the period after World War II, however, the Town experienced strong residential and commercial growth, which continues to the present day.

Today, the Town of Los Gatos has an Historic Preservation Code dedicated to preserving historic and architectural resources in Los Gatos. The Code establishes a Historic Preservation Committee and a Historic Preservation Program that includes a comprehensive series of standards and guidelines concerning the preservation and demolition of historic structures, design guidelines for rehabilitation and new construction, and guidance in the application of historic preservation standards. The Town recognizes an historic resource as follows: any structure/site that is located within an historic district; any structure/site that is historically designated; or any primary structure constructed prior to 1941, unless the Town has determined that the structure has no historic significance or architectural merit. The Town Council designates landmark sites and districts by ordinance. Los Gatos has five historic districts, described below and illustrated on Figure CD-1.
♦ Downtown Commercial Historic District. This district is bounded by Elm Street to the north, Main Street to the south, Los Gatos Creek to the east, and North Santa Cruz Avenue to the west. It is Los Gatos’s only surviving concentration of intact historic commercial buildings and

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FIGURE CD-1

HISTORIC DISTRICTS
Town Boundary
Sphere of Influence
Water Body
Creek
City of
Monte Sereno
Source: Town of Los Gatos, 2008.
0 250 500 Feet
Almendra Creek
Los Gatos Creek
·|}þ17
MAIN
MAIN
N. SANTA CRUZ

LOS GATOS - SARATOGA
N. SANTA CRUZ

UNIVERSITY

UNIVERSITY
TAIT

GLEN RIDGE

BROADWAY

HERNANDEZ

PERALTA

PENNSYLVANIA

BACHMAN

SAN BENITO

FAIRVIEW
Almond Grove
Broadway
Fairview Plaza
Downtown Commercial
University-Edelen
EDELEN

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includes the Town’s earliest commercial roadway intersection and onehalf of the 19th century commercial center. Architectural styles in this district include Queen Anne, Richardsonian Romanesque, and Art Deco, all in typical commercial styles with large display windows. None of the buildings exceed two and a half stories and the majority front directly on the sidewalk.
♦ Fairview Plaza Historic District. Fairview Plaza was the original name given to the cul-de-sac termination in the subdivision known as “Fairview Addition.” Fairview Plaza retains the same configuration as originally mapped, with houses oriented around a landscaped park. Approximately three quarters of the homes within the subdivision were built prior to 1900 and retain the character of that era. The pedestrian walk labeled “Turnstile Walk” on the original map remains essentially unchanged and is located at the eastern end of the cul-de-sac. Fairview Plaza is a rare and unique neighborhood because of the authentic, well-maintained Victorian and Craftsman houses in proximity to one another.

Almond Grove Historic District. This district is bounded by Bean Avenue to the south, Glen Ridge Avenue to the west, the lots facing Saratoga Avenue to the north, and the lots facing Santa Cruz Avenue to the east. The lots facing Saratoga and Santa Cruz Avenues bound, but are not included in, the district. Homes in this district represent the first and largest subdivision developed after the incorporation of Los Gatos. The land was once part of an almond orchard owned by John Mason and Edward Auzerais, two prominent Santa Clara County landowners.

Almond Grove was developed by four important figures in Los Gatos history: Alphonse Eli Wilder, Augustine Nicholson, Magnus Tait, and John Bean. Many important contributors to the Town’s development lived in this district.
♦ University/Edelen Historic District. This district is bounded by Saratoga Avenue to the north, Main Street to the south, Los Gatos Creek to the east, and the former SPCRR right-of-way to the west. It was originally part of the Mason Tract. Victorian architecture is predominant in this district, including informal wood frame cottages and

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impressive homes, intermixed with Craftsman/Bungalow-style cottages built somewhat later. Also present in smaller numbers are Colonial Revival buildings. Both residential and commercial building types comprise the district.
♦ Broadway Historic District. This district generally includes properties south of West Main Street and west of Santa Cruz Avenue. A 100-acre tract of land, including what is now the Broadway area, was purchased by Henry McCobb in 1863. McCobb planned to subdivide the land and name the new city Cobbsville, but ultimately sold it to John Lyndon, who subdivided the area into 48 lots in 1881, each selling for $125 and up.

In 1883, Broadway was opened up to provide access to the Lyndon Subdivision. Broadway was the first plotted residential street. The Broadway District was the first residential subdivision in what is now Los Gatos. Scattered houses and businesses, such as Forbes Mill, preceded Broadway, but this subdivision marked the beginnings of a formally laid-out town.

2. Goals, Policies, and Actions
Goal CD-12 To preserve significant historic and architectural features within the Town.

Policies
Policy CD-12.1 Avoid demolishing historic buildings, unless the Planning Commission finds, based on substantial evidence, that
there is no feasible means to ensure the preservation of the structure.

Policy CD-12.2 Encourage the preservation, maintenance, and adaptive reuse of existing residential, commercial, or public
buildings.

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Policy CD-12.3 Preserve and protect historic structures, including those that have been designated or are contributors to existing historic districts. Use special care in reviewing new
buildings or remodels in the vicinity of historic structures to address compatibility issues and potential impacts.

Policy CD-12.4 Continue the Town’s careful and proactive historic preservation programs, tempered with compassion and
understanding of property owners’ needs, desires, and
financial capabilities.

Policy CD-12.5 Zone changes, planned development applications and zoning approvals that may result in the demolition of
historic structures shall be referred to the Historic
Preservation Committee for review and recommendation.

Policy CD-12.6 New structures within historic districts shall be designed to blend and harmonize with the neighborhood.

Policy CD-12.7 All projects shall consider any adverse effect to historic landmarks and features on or in the vicinity of the
proposed project.

Policy CD-12.8 Require any development having potential adverse impacts on historical sites and/or features on or in the vicinity of historical sites:
a. Accommodate the historical structure or feature;
b. Mitigate potential adverse impacts to a level
acceptable to the Town; or
c. Relocate the historical feature to an appropriate site.

Policy CD-12.9 Encourage developers to use historic structures or, if not feasible, encourage their donation to the Town.

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Actions
Action CD-12.1 Establish public information programs designed to make owners of historic structures and the general public aware of the value of historic buildings and to encourage their maintenance.

Action CD-12.2 Periodically review historic landmark and preservation legislation and update the Town Code as necessary.

Action CD-12.3 Conduct a study and amend the Town Code to require proposed developments that are otherwise exempt from
historic review but that might have an impact on sites of designated or suspected historic significance to be referred to the Historic Preservation Committee for review and
recommendation.

Goal CD-13 To support and encourage thoughtful rehabilitation or reuse of historic structures.

Policies
Policy CD-13.1 Rehabilitation of damaged historic structures shall be consistent with the policies of the Safety Element and the State Historic Building Code.

Policy CD-13.2 Renovations or remodels of historic structures shall be architecturally consistent with the original structure.

Policy CD-13.3 Provide applicants and developers with information and staff time to assist in restoration projects.

Policy CD-13.4 Provide information about tax law benefits for rehabilitation of historic structures.

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H. Hillside Development

1. Background Information
The Hillsides comprise most of the southern portion of Los Gatos. Rural in character, hillside areas boast larger, wooded lots and private access roads. In January 2004, the Town adopted the Hillside Development Standards and Guidelines, which apply to all new hillside development and major hillside additions and renovations. The Hillside Development Standards and Guidelines and Hillside Specific Plan, as well as the following goals, policies, and actions, focus on the design and character of hillside development.

2. Goals, Policies, and Actions
Goal CD-14 To preserve the natural beauty and ecological integrity of the Santa Cruz Mountains and
surrounding hillsides by regulating new homes.

Policies
Policy CD-14.1 Minimize development and preserve and enhance the rural atmosphere and natural plant and wildlife habitats in the hillsides.

Policy CD-14.2 Limit hillside development to that which can be safely accommodated by the Town’s rural, two-lane roads.

Policy CD-14.3 Effective visible mass shall be reduced through such means as stepping structures up and down the hillside, following topographical contours, and limiting the height and mass of wall planes. A maximum of two stories shall be visible from every elevation.

Policy CD-14.4 Projection above the ridge view protection line is prohibited. All building plans shall indicate height in relationship to the ridge view protection line when viewed from specific vantage points and the valley floor.

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Policy CD-14.5 Staff shall require adequate environmental analysis for projects in the hillside area to ensure appropriate
consideration of potential environmental impacts
associated with projects.

Policy CD-14.6 Preserve and protect the natural state of the Santa Cruz Mountains and surrounding hillsides by discouraging
inappropriate development on and near the hillsides that significantly impacts viewsheds.

Policy CD-14.7 The Town shall continue to work with the County in updating the County’s Hillside Development Standards,
and shall encourage annexations within the Urban Service Boundary.

Actions
Action CD-14.1 Design and implement programs and procedures to mitigate the effects of past developments, and to review and prevent or mitigate the impacts of future development on community sustainability.

Action CD-14.2 Conduct a study to determine whether hillside properties should be downzoned to lower densities.

Action CD-14.3 Update the Hillside Development Standards and Guidelines.

Goal CD-15 To preserve the natural topography and ecosystems within the hillside area by regulating grading,
landscaping, and lighting.

Policies
Policy CD-15.1 Protect the natural ridge lines as defined in the Hillside Specific Plan and Hillside Development Standards and
Guidelines.

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Policy CD-15.2 Prohibit any grading that would alter the natural ridge line.

Policy CD-15.3 New construction shall be designed to follow natural land contours and avoid mass grading. When possible, flat pads should be avoided and houses should be designed to
conform to or step down the contours rather than be
designed for flat pads. Grading large, flat yard areas
should be avoided.

Policy CD-15.4 Hillside landscaping shall be designed with the following goals in mind:
a. Minimizing formal landscaping and hardscape.
b. Siting formal landscaping and hardscape close to the house.
c. Following the natural topography.
d. Preserving native trees, native plant and wildlife
habitats, and migration corridors.

Policy CD-15.5 Review all development proposals to ensure appropriate grading and landscaping and minimal disruption of
existing native plants and wildlife habitat.

Policy CD-15.6 Fences shall be of open design unless required for privacy.

A minimal amount of land shall be enclosed by fences over five feet high.

Policy CD-15.7 Review all new development proposals to ensure that:
a. Outdoor lighting shall be limited.
b. Permitted lighting shall be of low intensity and for safety purposes.
c. Lighted sports courts shall be prohibited.

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d. The effects of indoor lights should be studied and
reduced if found to be excessive.

Actions
Action CD-15.1 Determine maximum buildable slope and revise the Town Code accordingly.

Action CD-15.2 Revise the Town’s grading policy to be consistent with the General Plan, Hillside Specific Plan, and Hillside
Development Standards and Guidelines.

I. Scenic Resources

1. Background Information
Los Gatos is located at the base of the Santa Cruz Mountains and is surrounded by views of these mountains, particularly the Sierra Azul ridge.

Major streets heading north-south in Los Gatos have views of the ridge to the south. Because of the heavily-wooded nature of the Town, most views are blocked by trees. Some homes in the hillsides have views of the Town and the surrounding area. These views of and from the hillsides help orient residents and visitors within the Town. Because scenic resources are an important part of Los Gatos’s identity, the Town sets forth policies that are intended to preserve and protect them.

2. Goals, Policies, and Actions
Goal CD-16 Promote and protect viewsheds and scenic
resources.

Policies
Policy CD-16.1 Prevent development that significantly depletes, damages or alters existing landscape vistas.

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Policy CD-16.2 Encourage the use of scenic easements to preserve viewsheds.

Policy CD-16.3 New structures or remodels shall be designed to respect views from surrounding properties while allowing all
affected properties reasonable access to views.

Action
Action CD-16.1 Study the feasibility of establishing a program to acquire scenic easements through dedication or purchase.

J. Design Review Process

1. Background Information
Design review is conducted early during the development application process.

It ensures adherence to Town design standards, such as the Hillside Specific Plan, Hillside Development Standards and Guidelines, and Residential Design Guidelines.

2. Goals, Policies, and Actions
Goal CD-17 To conduct careful review of new projects and provide clear direction to property owners,
neighbors, and potential developers.

Policies
Policy CD-17.1 Achieve compliance with Town ordinances and regulations through education, incentives, and other
proactive measures in addition to issuing citations,
collecting fines, or other punitive measures.

Policy CD-17.2 Maintain the Town’s permit streamlining program.

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Policy CD-17.3 Design standards shall be considered for every project.

Staff reports shall include a design review section that analyzes the following:
a. Building architecture (in keeping with the
surrounding neighborhood)
b. Mass and scale
c. Utilities
d. Landscaping
e. Streets and sidewalks
f. Signage
g. Lighting
h. Historical significance
i. Accessibility to the disabled
j. Siting/Orientation
k. Materials and color
l. Functionality
m. Energy efficiency
n. Ridgeline preservation
o. Tree preservation
p. Open space preservation
Policy CD-17.4 Development proposals on parcels greater than 40,000 square feet may be processed as a planned development.

Policy CD-17.5 Applicants for projects with policy implications or large scale projects may submit applications to the Conceptual Development Advisory Committee prior to a formal
development application submittal.

Policy CD-17.6 Encourage developers to engage as early as possible in discussions regarding the nature and scope of the project and possible impacts and mitigation requirements.

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Policy CD-17.7 Require full public review for new commercial development to ensure compatibility with adjacent
neighborhoods and the Town.

Policy CD-17.8 Require the erection of story poles prior to the approval of new development.

Policy CD-17.9 When the deciding body’s decision on a zoning approval is based on assumptions derived from the applicant’s
proposal, those assumptions shall become conditions of
the approval.

Actions
Action CD-17.1 Establish community design guidelines that promote and protect the natural amenities in the Town.

Action CD-17.2 Periodically review architectural standards and design guidelines and update as necessary for completeness,
clarity, and effectiveness.

Action CD-17.3 Develop an education and outreach program to inform neighborhoods, realtors, developers, architects, and
designers about the Town’s design guidelines and
standards. Project application packages should include the relevant guidelines and standards.

Action CD-17.4 Prepare and distribute information describing guidelines for conducting neighborhood meetings and criteria for
reporting the results of neighborhood meetings with
project applications.

Action CD-17.5 Review and more clearly define the role of the Conceptual Development Advisory Committee.

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Action CD-17.6 Adopt guidelines for development review that protect:
a. Rare plants and wildlife and their habitats.
b. Natural watersheds.
c. Historic sites.
d. Aesthetically significant sites.

Goal CD-18 To update the Town Code to reflect current
conditions in the Town.

Actions
Action CD-18.1 Amend the Town Code to include a definition of “Community Benefit” that clearly differentiates it from exactions.

Action CD-18.2 Perform an audit of the Town Code to eliminate outdated sections and ensure that all regulations are consistent with this General Plan.

Action CD-18.3 Update the Conditional Use Permit Table to revise the list of uses. Considerations should include factors such as size of building and/or floor space occupied, traffic generation and whether the use would dictate a “trademark” style of building.

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PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Assistant Town Manager, Town Attorney, and Interim 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: 10/04/2022
ITEM NO: 14

DESK ITEM
DATE: October 4, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Confirm Suspension of the 2040 General Plan Land Use and Community Design Elements and Provide that the 2020 General Plan Land Use and Community Design Elements Govern During the Period of Suspension.

REMARKS:

Attachment 4 includes additional public comments received between 11:01 a.m., Thursday, September 29, 2022, and 11:00 a.m., Tuesday, October 4, 2022.

ATTACHMENTS:

Attachments previously with October 4, 2022 Staff Report:

1. Draft Resolution

2. 2020 Land Use Element

3. 2020 Community Design Element
Attachments with this Desk Item:

4. Public Comment received between 11:01 a.m., Thursday, September 29, 2022, and 11:00 a.m., Tuesday, October 4, 2022

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From: Amy Nishide
Sent: Monday, October 3, 2022 6:08 PM
To: Council <[email protected]>
Subject: Item 14 general plan

EXTERNAL SENDER
I strongly urge you all to vote No! The time for changes has come and gone. A lot of hard work and time was put into developing a plan, and there was a public process for providing input and making changes that has long passed. Additionally, people don’t seem to understand that the time frame for RHNA is 8 years, and the general plan is 20. So it is safe to assume the general plan would cover the next RHNA assignment from the county and state.

Regards
Amy Nishide
Sent from my iPad
ATTACHMENT 4

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