PLANNING COMMISSION STAFF REPORT Meeting Date: …€¦ · dated June 22, 2016 and Council Agenda...

TOWN OF LOS GATOS ITEM NO: 5 PLANNING COMMISSION STAFF REPORT Meeting Date: September 14, 2016

PREPARED BY:

APPLICATION NO:

LOCATION:

APPLICANT/ CONT ACT PERSON:

PROPERTY OWNER:

APPLICATION SUMMARY:

RECOMMENDATION:

PROJECT DATA:

North

East South West

CEQA:

Sally Zarnowitz szarnowi tz@l osgatosca. gov

Conditional Use Permit Application U-16-005

140 S. Santa Cruz Avenue (West side of S. Santa Cruz Avenue northerly of Wood Road)

LG Hotel LLC D.B.A. Toll House

Michael Mohr- Coo MetWest Properties, LLC

Requesting a modification to an existing Conditional Use Permit to allow entertainment before 10:00 p.m. on property zoned C-2:PD. APNs 510-45-064 and -065.

DEEMED COMPLETE: August 19, 2016 FINAL DATE TO TAKE ACTION: February 19, 2017

Forward a recommendation to Town Council for approval of the modification to the Conditional Use Permit.

General Plan Designation: Central Business District Zoning Designation: Planned Development, C-2:PD Applicable Plans & Standards: General Plan Parcel Sizes: 1.8 acres Surrounding Area:

Existing Land Use General Plan Zoning Commercial Central Business District and C-2 and

Medium Density Residential R-lD:LHP Commercial Central Business District C-2 Commercial Central Business District C-2 Residential Medium Density Residential R:PD and

R-lD:LHP

The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Quality Act, Section 15301: Existing Facilities. No significant effect on the environment will occur since the project uses an existing structure with no increase in floor area.

ATTACHMENT 1

Planning Commission Staff Report - 140 S. Santa Cruz Avenue/U-16-005 September 14, 2016

FINDINGS:

ACTION:

EXHIBITS:

BACKGROUND:

• As required, pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, this project is Categorically Exempt, Section 15301: Existing Facilities.

• As required by Section 29.20.190 of the Town Code for Conditional Use Permit modification.

Forward a recommendation regarding Conditional Use Permit application U-16-005 to the Town Council.

1. Location Map 2. Findings (one page) 3. Recommended Conditions of Approval (one page) 4. Existing Conditions of Approval (two, pages) 5. Project Description and Letter of Justification, received June

30, 2016 (two pages) 6. Plans and photos, received June 30, 2016 (seven sheets) 7. Policy Number 1-03 Regulating Late Night Entertainment,

dated June 22, 2016 and Council Agenda Report, dated June 13, 2016 (seven pages)

8. Public comment received by 11 :00 a.m. , Thursday, September 8, 2016

The applicant is requesting a modification to the existing Conditional Use Permit (CUP) for the restaurant (Verge) at the hotel (Toll House) (Exhibit 4). The restaurant includes outdoor dining until 10:00 p.m. on the patio, overlooking the hotel 's central outdoor courtyard. The applicant is requesting the following:

• Removal of the condition in the existing CUP, which prohibits music, entertainment, or amplified sound on the courtyard; and

• Addition of a condition stating that entertainment before 10:00 p.m. in conformance with the Town Policy Regulating Late Night Entertainment is allowed.

Late Night Entertainment Policy

At a series of Study Sessions in late 2015, the Council received public testimony regarding alcohol beverage service and entertainment, directed staff to explore and bring back a variety of economic vitality and business related topics including a framework for an ordinance or operational permit for alcohol and entertainment.


The Policy Committee reviewed the work completed over the last several years for alcohol and entertainment, noting that the complexity that continues to arise during these discussions is due to the difference between issues associated with alcoholic beverage consumption versus those regarding entertainment. As a result, the Policy Committee recommended that the two topics be separated and that the Council consider only a policy on entertainment.

In June of 2016, the Town Council adopted, at the recommendation of the Policy Committee, a Late Night Entertainment Policy allowing entertainment complying with the currently adopted noise ordinance by right before 10:00 p.m., and allowance for late night entertainment after 10:00 p.m. with the approval of a separate Late Night Entertainment pennit. This action is consistent with the Town Council's adopted Strategic Priority to strengthen the Town' s economic vitality and provide businesses with greater opportunity for customer attraction and retention.

Those establishments with existing CUPs that do not have conditions specifically allowing entertainment fall into three categories: those with a CUP that is silent on entertainment; those with a CUP that states they must comply with the Town's provisions on entertainment; and those with a CUP that denies the ability to have entertainment and/or amplified sound. For the first two categories of CUPs, the businesses are able to observe the new regulations with the adoption of the proposed policy. Businesses that are not allowed to have live entertainment and/or amplified sound, such as the subject restaurant, are required to submit applications for modification to their existing CUPs.

The Policy specifically states that an application to amend an existing CUP for the express purpose of adding permitted entertainment will not open the remainder of the CUP to .amendment or alteration unless specifically requested by the applicant. In this case, the applicant is not requesting any amendment beyond removal of the condition prohibiting entertainment on the courtyard and addition of a condition allowing entertainment before 10:00 p.m. in conformance with the Town Policy Regulating Late Night Entertainment.

PROJECT DESCRIPTION:

A. Location and Surrounding Neighborhood

The project is located at 140 S. Santa Cruz A venue, on the west side of S. Santa Cruz A venue, one lot north of Wood Road. Residential and commercial uses border the property to the north; and commercial uses border the property to the south, east, and west.

B. Conditional Use Permit

The restaurant is open seven days a week, with outdoor dining allowed until 10:00 p.m. consistent with the existing CUP (Exhibit 4). The applicant provided a letter of justification describing the proposal which includes music at reasonable volume (Exhibit 5), and is

Planning Commission Staff Report - 140 S. Santa Cruz A venue/U-16-005 September 14, 2016

requesting modifications to the existing CUP in the form of removal of a condition prohibiting music, entertainment, or amplified sound on the courtyard. The following represents the proposed modifications:

Existing Condition of Approval No music, entertainment or amplified sound shall be allowed in the courtyard.

Proposed Condition of Approval Entertainment before 10:00 p.m. in conformance with the Town Policy Regulating Late Night Entertainment is allowed.

C. Zoning Compliance

The existing restaurant is allowed in the existing zoning district, in conformance with the conditions of the existing Conditional Use Permit.

ANALYSIS:

A. Conditional Use Permit Findings

In order to grant approval of a modification to an existing CUP, the deciding body must make the following findings:

(I) The proposed use of the property is essential or desirable to the public convenience or welfare; and

(2) The proposed use would not impair the integrity and character of the zone; and (3) The proposed use would not be detrimental to public health, safety or general welfare;

and (4) The proposed use of the property is in harmony with the various elements or

objectives of the General Plan and the purposes of the Town Code.

In regards to the first finding, the proposed modification is desirable to public convenience because it allows entertainment before I 0:00 p.m. for the restaurant patrons. As required by finding two, the proposed modification would not impair the integrity of the zone, because the proposed use is a commercial use and is located in a commercial zone. In regards to the third finding, the modification would not be detrimental to public health, safety or general welfare, in that the modification would comply with the Town's Entertainment Policy which allows entertainment that complies with the currently adopted noise ordinance by right before I 0:00 p.m. In regards to the final finding, the proposed use is in harmony with the General Plan, and Town Code.


B. General Plan

The goals and policies of the 2020 General Plan applicable to this project include, but are not limited to:

• 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 preserve the smalltown atmosphere.

• 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.

• 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 vitality.

C. Environmental Review

The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of California Environmental Quality Act, Section 15301: Existing Facilities. No significant effect on the environment will occur since the project uses an existing structure with no increase in floor area.

PUBLIC COMMENTS:

Public comment received prior to 11 :00 a.m. on September 8, 2016 is included in Exhibit 8.

CONCLUSION AND RECOMMENDATION:

A. Conclusion

The Town Council adopted the Town Policy Regulating Late Night Entertainment in 2016 which allows entertainment by right before 10:00 p.m. and the applicant's request is consistent with the adopted policy.

B. Recommendation

Based on the analysis above, staff recommends approval of the requested modification to the existing CUP application. If the Planning Commission finds merit with the proposed modification, it should take the following actions to recommend approval of CUP application U-16-005 to the Town Council.


1. Find that the proposed project is categorically exempt, pursuant to Section 15301 of the California Environmental Quality Act as adopted by the Town (Exhibit 2); and

2. Make the required findings as required by Section 29 .20.190 of the Town Code for granting approval of a CUP (Exhibit 2); and

3. Recommend approval of CUP application U-16-005 to the Town Council with the conditions contained in Exhibit 3 and the plans contained in Exhibit 6.

ALTERNATIVES:

If the Commission has concerns with the proposed modification, it can:

1. Recommend that the Town Council approve the application with additional and/or modified conditions of approval; or

2. Recommend that the Town Council deny the application; or 3. Continue the application to a date certain with direction.

~{; Prepared by: Sally Zarnowitz, AIA Planning Manager

JP:SZ:cg

t pproved by: / Joel Paulson, AICP

Community Development Director

cc: LG Hotel, LLC, D.B.A. Toll House, 140 S. Santa Cruz Avenue, Los Gatos, CA 95030 Michael Mohr - Coo Met West Properties, LLC, 11100 Santa Monica Blvd., Ste. 1700, Los Angeles, CA 90025

N:\DEV\PC REPORTS\20 16\SSC 140.docx

140 S. Santa Cruz Avenue

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PLANNING COMMISSION - September 14, 2016 REQUIRED FINDINGS FOR MODIFICATIONS TO CONDITIONAL USE PERMIT:

140 S. Santa Cruz Avenue Conditional Use Permit Application U-16-005

Requesting a modification to an existing Conditional Use Permit to allow entertainment before 10:00 p.m. on property zoned C-2:PD. APNs 510-45-064 and -065. PROPERTY OWNER: Michael Mohr - Coo MetWest Properties, LLC APPLICANT: LG Hotel LLC D.B.A. Toll House

FINDINGS:

Required finding for CEQA:

• The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, Section 15301: Existing Facilities.

Required findings for a Conditional Use Permit:

• As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit:

The deciding body, on the basis of the evidence submitted at the hearing, may grant a conditional use permit when specifically authorized by the provisions of the Town Code if it finds that:

( 1) The proposed use of the property is essential or desirable to the public convenience or welfare because it allows entertainment before 10:00 p.m. for the restaurant patrons; and

(2) The proposed use will not impair the integrity and character of the zone because it is a commercial use and is located in a commercial zone; and

(3) The proposed use would not be detrimental to public health, safety, or general welfare, in that it would comply with the Town' s Late Night Entertainment Policy which allows entertainment that complies with the currently adopted noise ordinance by right before l 0:00 p.m.; and

(4) The proposed use of the property is in harmony with the various elements or objectives of the General Plan and Town Code.

N:\DEV\FI DINGS\20 16\SSC 140 CUP.DOCX

EXHl9m' 2

PLANNING COMMISSION -September 14, 2016 DRAFT MODIFIED CONDITIONS OF APPROVAL:

140 S. Santa Cruz Avenue Conditional Use Permit Application U-16-005

Requesting a modification to an existing Conditional Use Permit to allow entertainment before 10:00 p.m. on property zoned C-2:PD. APNs 510-45-064 and -065.

PROPERTY OWNER: Michael Mohr - Coo MetWest Properties, LLC APPLICANT: LG Hotel LLC D.B.A. Toll House

l. ALCOHOLIC BEVERAGES: So long as this establishment serves alcoholic beverages it shall be subject to the following: A. Uniformed privately provided security guards may be required in or around the

premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner.

B. At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department for on-going employee training on alcoholic beverage service to the general public.

C. This establishment shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association.

D. The licensed operator shall have and shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated drivers.

E. Taxicab telephone numbers shall be posted in a visible location. 2. TOT AL SEATING. Total seating shall not exceed 130. 3. OUTDOOR SEATING. Outdoor seating shall not exceed 36. 4. ALCOHOLIC BEVERAGES. Alcoholic beverages may be served. 5. OUTDOOR SEATING USE. The outdoor seating shall not be used for banquet,

reception or conference purposes. 6. OUTDOOR MEAL SERVICE HOURS. Meal service outdoors shall be limited from

7:00 a.m. to 10:00 p.m. 7. ENTERTAINMENT. No music, entertainment or amplified sound shall be allowed in the

courtyard. 7. ENTERTAINMENT. Entertainment before 10:00 p.m. in conformance with the Town

Policy Regulating Late Night Entertainment is allowed.

N:\DEV\CON DITIONS\S. Santa Cruz 140_CUP Mod.DOC

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- - .. _·u,-.·~~:!.: ,.:·,<~~,.!:,~ ~'J~.·~;ii~~)~\iJ~~fo~i~~;..: .. ~i.\ ~~::{:: On February 22, 1994 the Los Gatos Town Counc1l aaopteil 'the Alcofuihc,Bevera e:Pohc 1aJJil "'< ··" an ordinance requiri11g alt restill.~a~i's and birj't"9 b~.1~_co:UpJ\rri~t~!E~~.rtt"' ,, . .., ;;'.'. .. Alcoholic Beverage Policy . ln'"aCidition ·10 ihe 'eiiisiiifa clt~Qjti~~j;)he;~O'n'ditto ",., "''""" effecrive on Febniaiy 22, ! 99S.

This permit issued to The Toll House Hotel Restaurant at 140 S. Santa Crut Avenue allows operation of your establishment subject to the following cond1ions: · ·

t. So long as this establlshment serves alcoholic beve~nges ii. shall be s11bj~t to the rollowing: , . .

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b.

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d.

~ UniC'ormeii prlvaccly provided security _gun'ids ·may'1tie re'ijufred ·in or • · . . ' '.- . ~·· ·. ' ; ~: • •.' ,;::e'•:t.. . • . · JP.':'-'-'.' .... y ...... ~_,, •:\'"' '::. <.:ti'·• •ol';·<:>l';io'" " ~ ....

aroui:?. ~.~.~.p~J~J~.e~.,~Yi~~e.~~~J.ft~~!),~~)!,~.L~~~!;{~!!!S4.:~r,oblems recur thot are not resolved by tile 11.c!!~~~g;H~T'tr· ·? 'r

{ ... :::~;.:~~;:-~ ~. At the discretiOn of the Chief of conducted ::;ith·:;;p~~~~tati~~~· going.~mpJ~y~e trninlrig an 3lcoho IC'

public. · '

; • .. :· i • • • •• ; .... l ; . This establishment shal\luse 11n employee.training manual .that

. adilresse~ ~icnholic 'b~~hage ~e'i::i~e 1fo~'lii'te'fu":m;Jh'e~ia"ri~'~tds or the California Rest11urant·Associ11tio_n. ·

The liceas'ed operator sh11IHiave und sh11JI OftJ.~ejy_ prg'ffi!f.t~. !l designated driver program such as complimeiiiiny noii~atcohollc bevemges for designnled drivers. ·

e. Taxknb telephone numbers shall be posted in a visible location.

2. Total seating shall not exceed 110.

3. Outdcor seating shall not exceed 36.

4. Alcoholic beverages may be served.

EXKIBR' 4

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~ TOLL HOUSE

6/30/16

Ladies and Gentlemen of the Town Council and Planning Commission,

RECEIVED

SEP - 8 2016

TO'l.fN OF LOS GATOS PLANf~ING DI'JlS:ON

I am writing you today to ask for a modification to our Conditional Use Permit for the Restaurant at the

Toll House Hotel. As I understand it, this process was.started under previous ownership, but then

abandoned before ratified at the decision of the property owner at the time. LG Hotel LLC, d. b. a. Toll

House Hotel has owned the property since early 2012, and I have been the Hotel Manager here since

June of 2014.

Prior to 2012, The Toll House hosted 15-20 weddings on site. Post 2012, our number has dwindled to 5-

7 per year. Most, if not all of the wedding and social event inquiries we receive request light

background music, a harpist during a ceremony, or reception for example. Toll House would like to be

able to honor these requests, rather than lose the business to competing venues. Music and amplified

sound are necessary when giving graduation speeches, wedding introductions and toasts, addresses at

corporate retreats, etc. In addition, music adds a life and vibrancy to a Sunday Brunch or Happy Hour.

We are committed to the continued revitalization of the Toll House. Our restaurant, Verge, has recently

undergone an expansive floor to ceiling renovation, and our courtyard received a full makeover earlier

this year. The attached photos depict many of our upgrades and redesigned courtyard features such as

living plant walls, renovated fountain, sun shades and curtains. Many of these elements were added to

offer additional sound dampening and soft surfaces for noise absorption.

Verge, the restaurant at the Toll House, serves breakfast and dinner 7 days a week, with dinner service

ending at 10pm nightly. Our outdoor dining and service never extends beyond lOp, thus any outdoor

entertainment would not extend beyond that hour. Currently Verge has 90 seats inside. In addition we

have 16 seats (four tables) on our upper patio used for a Ia carte restaurant seating only. Total seating

for the restaurant is currently 106. The square footage of the restaurant patio does not allow for more

than 20 diners.

Our singular goal is to do our best for every guest every day, delivering on a promise of a warm and

welcoming environment for our guests to enjoy. Because of this goal, and who we are as a company,

any entertainment that is provided will be of good taste, at a reasonable volume, and will be added to

enhance the overall customer experience.

Toll House would like to be able to further cater to our guests who are already utilizing our outdoor

space. We would like to provide another reason for our corporate guests to stay and have dinner with

lollhouseholel.com 140 Soulh Sanla Cruz Avenue I Los Galos, California 95030 1 T 408.395.7070 1 F 408.395.3730

~ TOLL HOUSE

us, or our social guest to book rooms with us. In addition to our physical neighbors, with 115 guest

rooms adjacent to our outdoor space, we have 115 potential"neighbors" that stay with us every night.

We wish to provide something that is complimentary to the environment we have created, not detract

from it.

We are asking that we are able to compete on a level playing field with the other businesses in town.

On June 21st, Los Gatos Town Council adopted an entertainment policy that allowed businesses in Los

Gatos to have live music and amplified sound until 10pm, and the ability to request a modification of

any condition within their permit prohibiting entertainment. This is a desirable use of our property and

certainly will not impair the integrity and character of the zone. Our location, at the end of S. Santa

Cruz Ave. is in the Core Downtown/Central Business District which attracts visitors and residents ~)ike to

enjoy shopping, dining, entertainment, and all of the wonderful things that Los Gatos is known for. '

We request that our current condition related to entertainment be modified to allow entertainment in

our courtyard.

In closing, this CUP was most recently modified in early 1994, a different time in Town, with different

owners of the hotel. As we look to stay relevant and solvent as a property and as small part of the

community that we love to serve, the ability to offer entertainment options to our guests is paramount.

We look forward to an affirmative reply as soon as possible. Thank you in advance for your

consideration.

With Hospitality,

~c_~ Jason C. Bogan

lollhousebolel.com 140 South Santa Cruz Avenue I Los Gatos, California 95030 1 T 408.395.7070 1 F 408.395.3730

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Title: Policy Regulating Late Night Entertainment

Effective Date: 6/22/16

Enabling Actions: Revised Date: (

' Apprn.ved: ., .

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Entertainment contributes to Los Gatos' vibrancy and adds to the richness of events and gatherings. and shall not be regulated other than by Town Code. However, entenainment occurring after 10 p.rn. ( .. late night entertainment'") can compromise the quality of life for Town residen ts. Therefore, this pol icy has been created to establish a permitting process and regulations for late night entertainment.

For the purposes of this policy, entertainment means any activity conducted for the primary purpose of diverting or ente11aining persons in a premises open to the general public . Such entertainment may include, but shall no t be limited to, liYe musica l performances, instrumental or vocal, dance acts, concerts, live shows. amplified music or sound, dancing, DJ , karaoke, jam sessions, and/or other similar activities.

Late night entertainment is a discretionary privilege and is not to be construed to be a right of development nor run with the land. The following provisions are intended to maintain and enhance the continuing vibrancy and viability of the Town's public and commercial centers while providing reasonable protections to residential neighborhoods .in close proximity to those areas.

POLICY AND PROCEDURES

J. Review Processes for Establishments with Late Night Entertainment

I. A late night entertainment permit shall be issued be the Town Manager. The Town Manager may refer any application for a permit to the Development Review Committee for its consideration and determination. which may be appealed to Planning Commission and Town Council. The Town Manager or o ther deciding body retains the right of approval or denial of each application based on its merits.

2. In determining whether to approve or deny an application for a late night ente1tainmcnt permit the following factors will be considered:

a. The proposed use of the property is essential or desirable to the public convenience or welfare;

b. The proposed use will not impair the integrity and character of the zone;

EXHIB!flf 7.

Title: Policy Regulating Late Night Entertainment 1

Page: Policy Number: of 2 , 1-03 _ ___ ! _ _______ _

c. The proposed use would not be detrimental to public health, safoty or general welfare: and

d. The propos~d use of the property 1s m ha nnony with the applicHble guidelines. zoning ordinances. and/or provisions of the general plan.

3. An application and pennit for late night entertainment shall be subj ect to all applicable requirements of the Town Code. and any pennit issued pursuant to this policy shall include the following conditions:

a. The applicant shall be responsible for ensuring that noise resulting rrom the entertainment meets all applicable provisions of the Town· s noise ordinance. If noise complaints are received by Town Stafl: the Town reserves the right to require the applicant/permittee to hire a consultant to monitor noise levels to ensure that noise levels are within the parameters established by Town Code for the zone in which entertainment is occurnng.

b. Security measures, which may include the requirement that the applicant employ private security personnel. shall be unde11aken and established in and around the ente11ainment venue to deter unlawful conduct or disturbance to adjacent residential neighborhoods.

c. Additional appropriate conditions may be included in any permit as may be detennined necessary to protect the public health, satety or general welfare.

4. Any venue with a Conditional Use Permit (CUP) that expressly prohibits entertainment will be required to obtain an amendment to its CUP in order to offer entertainment pursuant to this policy. An applicant's request to amend an existing CUP for the express purpose of adding permitted entenainment will not open the remainder of the CUP to amendment or alteration unless specifically requested by the applicant.

5. Any permit issued pursuant to this policy may be suspended, modified or revoked by the body that approved the permit following a public hearing if it is determined that sufficient evidence exists that the pennitted entertainment is operating, or bas operated. in a manner inconsistent with the requirements of its pennit. or in a manner that constitutes a public nuisance.

APPROVED AS TO FORM: ·;-·

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COUNCIL AGENDA REPORT

DATE: JUNE 13, 201 6

TO: MAYOR AND TOWN COUNCIL

FROM: LAUREL PREVETT!, TOWN MANAGER

MEETING DATE: 06/21/16 ITEMNO. 19

SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE'S RECOMMENDATION FOR AN ENTERTAINMENT POLICY ALLOWING ENTERTAINMENT BY RIGHT BEFORE 10:00 P.M. GIVEN COMPLIANCE WITH THE CURRENTLY ADOPTED NOISE ORDINANCE IS MET AND ALLOWANCE FOR LA TE NIGHT ENTERTAINMENT AFTER l 0:00 P.M. WITH AN APPROVED PERMIT.

RECOMMENDATION:

Discuss and adopt the Policy Committee's recommendation for an Entertainment Policy allowing Entertainment by right before I 0:00 p.m. given compliance with the currently adopted noise ordinance is met and allowance for late night entertainment after l 0:00 p.m. with an approved permit.

BACKGROUND:

On October 6, 2015, the Council received public testimony at a Study Session regarding alcohol beverage service and entertainment, and continued the item to a Study Session on November 3, 20 15 to discuss next steps. At that meeting, Town Council directed staff to explore and bring back a variety of economic vitality and business related topics including framework for an ordinance or operational permit for alcohol and entertainment.

The Policy Committee began to review and explore the work that has been completed over the last several years for alcohol and entertainment, noting that the complexity that continues to arise during these discussions is due to the difference between issues associated with alcoholic beverage consumption versus those regarding entertainment. As a result, the Policy Committee is recommending that the two topics be separated and that the Council consider only a policy on entertainment at this time (Attachment l ).

PREPARED BY: MONICA RENN Economic Vitality Manager

Reviewed by: _ _ Assistant Town Manager __ Town Attorney _ _ Finance

S:\COUNC IL REPORTS\20 16\06-2 I- I 6\Ente1tainment Policy\Staff Report - Entertainment Policy FINAL.rlocx

MAYOR AND TOWN COUNCIL SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITIEE' S RECOMMENDATION

FOR AN ENTERTAINMENT POLICY JUNE I3, 2016

DISCUSSION:

Ente1tainment is often desired by restaurants, cafes, retailers, and other merchants as an enhancement of the environment for their patrons while within the confines of their location. When responsibly executed, entertainment may provide merchants with the opportunity to attract customers, create a more desirable experience, build return customer base, and market the products and services provided. Especially in the setting of downtown or shopping centers, entertainment can provide a draw for customers who then park once and patronize multiple merchant locations.

Staff commonly receives requests from merchants for the ability to provide entertainment including poetry readings; open microphone nights; live music for brunch and/or evening dinner service; and grand openings or anniversary sales. The merchants have requested entertainment to occur during the businesses' normal operating hours and within the confines of their merchant location. Given that these requests are not directly associated with alcohol beverage consumption, staff concurs with the Policy Committee' s recommendation to separate ly regulate entertainment and alcohol beverage consumption, and adopt a policy addressing entertainment at this time to allow businesses to enhance their operations during the upcoming summer and subsequent warmer weather months. This action is consistent with the Town Council ' s previously adopted Strategic Priotity to strengthen the Town's economic vitality and providing businesses with greater opportunity for customer attraction and retention.

For the purpose of this report and the proposed policy, entertainment is defined as follows:

Entertainment means any activity conducted for the primary purpose of diverting or entertaining persons in a premises open to the general public. Such entertainment may include, but shall not be limited to, live musical performances, instrumental or vocal, dance acts, concerts, live shows, amplified music or sound, dancing, DJ, karaoke, jam sessions, and/or other s imilar activities.

In addition, this proposed policy also identifies any entertainment occurring after 10:00 p.m. as late night entertainment, and describes it as a discretionary privilege and is not to be constrned to be a right of development nor run with the land.

The Policy Committee recommends that the Town Council to adopt a policy that is simple for businesses and staff to implement, monitor, and enforce. In the attached draft policy, ente1tainment that is in compliance with the currently adopted noise ordinance defined in Section 16.20.25 of the Town Code regulating Commercial and Industrial zones would be allowed by right before l 0:00 p.m. (Attachment 2). Any establishment intending to have any entertainment or amplified noise after l 0:00 p.m. would be required to obtain an entertainment pe1mit as outlined in Attachment 1.

MAYOR AND TOWN COUNCIL SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE' S RECOMMENDATION

FOR AN ENTERTAINMENT POLICY JUNE 13, 2016

DISCUSSION (Continued):

With the recommended separation of entertainment from late night entertainment, the Policy Committee discussed how these regulations could be implemented and enforced as they relate to the following:

Existing Conditional Use Permits (CUPs)

Those establishments with existing CUPs that do not have conditions specifically allowing entertainment fall into three categories: those with a CUP that is silent on entertainment; those with a CUP that states they must comply with the Town's provisions on ente1tainment; and those with a CUP that denies the ability to have entertainment and/or amplified sound.

For the first two categories of CUPs, the businesses would be able to observe the new regulations upon the adoption of the proposed policy. In contrast, the last category, those with disallowances of live entertainment and/or amplified sound would need to come through the public process for a CUP modification.

The Council may elect to direct staff to allow such businesses to do one or both of the following:

• Offer businesses the option to modify their CUPs as a group, which would allow them to be heard with other businesses, reducing the processing time and cost.

• Offer businesses wishing to modify this condition, the opportunity to have only the condition pertaining to entertainment and/or amplified sound considered and not open their entire CUP for review or modification.

The deciding body for the modification would be the same as what was required for the original CUP approval (i.e., establishments with alcohol would require a Town Council hearing for consideration and approval of a CUP modification while minor restaurants may be heard at either the Development Review Committee or Planning Commission levels).

Late Night Entertainment Permit

When considering a late night entertainment permit for businesses, Section I of the attached draft policy outlines the review process. The Policy Committee recommends that the Development Review Committee be the deciding body for late night ente1tainment permits with appeal rights to the Planning Commission and Town Council. If it is the desire of the Council, an alternative approving body could be identified such as

MAYOR AND TOWN COUNCIL SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE'S RECOMMENDATION


DISCUSSION (Continued):

the Planning Commission. Fees for tis process would be the same as any application that is heard at these levels. The DRC application is currently $3,982.23, the Planning Commission application fee is $6,545 .46

Permit Review and Renewal

The Policy Committee and staff recommend that any late night entertainment permit expire immediately upon the change of ownership and not run with the land as CUPs do. The Council may also elect to include a mandatory review cycle or renewal period for each late night entertainment permit issued. Review and renewal could be processed at a staff level with Town Manager approval for applications without code compliance complaints on file.

Enforcement

With both entertainment and late night entertainment, the Code Compliance Division and/or the Police Department would follow up on concerns and investigate possible violations. Multiple founded violations could result in suspension or revocation of a late night entertainment permit, and/or review and possible revocation of the establishment's CUP.

CONCLUSION/NEXT STEPS:

The Council is asked to discuss and adopt the Policy Committee' s recommendation for an Entertainment Policy allowing entertainment by right before l 0:00 p.m. given compliance with the currently adopted noise ordinance is met, and allowance for late night entertainment after l 0:00 p.m. with an approved permit.

Should the Town Council choose to adopt the attached draft policy as written, or with modifications, consideration and direction should also be given on the following:

• The allowance for multiple CUP modifications to be brought forward to the deciding bodies together, rather than each business being required to file separately. Businesses would still have the option to file separately, and in both instances, provide direction that businesses may have only the condition pertaining to entertainment reviewed and modified.

• The review and renewal periods for late night entertainment permits including the deciding body for initial approval and review/renewal cycles.

PAGES MAYOR AND TOWN COUNCIL SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE' S RECOMMENDATION


COORDINATION:

This report was coordinated with the Town Attorney's and Town Manager's Offices and the Community Development Department.

ENVIRONMENTAL ASSESSMENT:

The adoption of the proposed policy is not a project under the California Environmental Quality Act.

Attachments: I . Draft Entettainrnent Policy 2. Section 16.20.025 of the Town Code pertaining to noise in Commercial and Industrial

zones.

Sally Zarnowitz

From: Sent: To: Subject:

Sally,

Patti & Tim Perry <[email protected]> Sunday, September 04, 2016 8:26 AM Sally Zarnowitz Toll House Live Entertainment

My wife Patricia and I both support the Toll House request for a modification to their CUP that will allow Live Entertainment.

We live directly behind the Toll House at 37 Broadway and enjoyed the live entertainment in their courtyard in years

past.

We understand that many of our neighbors are opposed to live music downtown, however we feel that live music helps make Downtown Los Gatos a place to be happy and have fun.

We wish to see our Downtown businesses thrive and feel this CUP modification will be a benefit for the Toll House and our Downtown.

We will be away on vacation on 9/14 and therefore unable to attend that hearing.

We hope that our support for Live Entertainment will be noted.

Thank you,

Tim and Patricia Perry 37 Broadway Los Gatos, CA

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EXHIBIT 8

Sally Zarnowitz

From: Sent: To: Subject:

MikeV <[email protected]> Tuesday, September 06, 2016 3:51 PM Sally Zarnowitz; BSpector; Marice Sayoc; Marcia Jensen; Steven Leonardis; Rob Rennie TollHouse

Hi my name is Michael Verga, my wife Gillian and I reside at 46 Broadway Ave Los Gatos.

Back in the summer of 2011, I became aware of the Toll House violating its Conditional Use Permit by having outdoor music in its cou~yard area. (the noise could be heard all over the neighborhood). The Toll House was requesting a change to its CUP, to allow outdoor entertainment, and that summer the town permitted it to hold outdoor live entertainment during the review process.

After literally hundreds of e-mails, numerous trips to city hall, numerous council meetings and collecting signatures from over 60 neighbors, the town denied a change to the CUP and the Toll House was required to stop holding outdoor entertainment, consistent with the original CUP.

This was a huge relief to the neighborhood, who had spent an entire-~um mer l_istening tb loud, distorted noise that drifted over the Toll House back wall, that made conversation difficult and penetrated even closed windows on houses along Broadway.

Now I find the Tollhouse is once again attempting to change the CUP to bring back the noise.

Frankly, I don't feel ·I should have to fight this fight again. Nothing has changed, the Tollhouse is still surrounded by residences. The neighbors are still here, we have not left.

The current CUP effective February 22, 1995 reads very clearly, and i quote:

The outdoor seating shall not be used for banquet, reception, or conference purposes. No music, entertainment, or amplified sound shall be allowed in the courtyard Outdoor seating shall not exceed 36

The current very specific, and restrictive CUP was put into place specifically to address the fact that the Tollhouse was surrounded by a neighborhood. The Tollhouse was allowed to build its hotel and move in only on certain CONDTIONS. That's the whole point of a conditional use permit. They would not even be there if these very specific conditions were not met. (I have personal documentation of this as one of our current neighbors, Gail Randolph, was around when the Tollhouse first attempted to move in to the residential neighborhood.)

Again. nothing has changed. The residential neighborhood is still here.

I urge you to reject this application for change outright!

Thank You

Michael and Gillian Verga 46 Broadway Ave Los Gatos

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408 930-2761

FYI

An article in the Patch dated June 25 2011 reads in part:

(you can read the whole article here: http ://losgatos. patch. com/articles/toll-house-hotel-too-loud ?ncid=M255)

A group of residents who live near the Toll House Hotel in downtown Los Gatos is opposing its plan to offer live entertainment in its outdoor courtyard such as weddings and fundraisers. Hotel representatives appeared before town planners Wednesday evening to seek changes to its socalled "conditional use permit" to offer such services to its clients. The Los Gatos Planning Commission continued the Toll House Hotel's application to offer live entertainment in its outdoor courtyard until Sept. 14. Planners directed hotel representatives to work and meet with the neighbors to mitigate their concerns and address the noise issue, according to Planning Manager Sandy Baily. Residents who live on Broadway, about 350 feet away, are fighting its application saying the noise generated from the establishment is unbearable. They're also asking town officials to make the hotel comply with its current permit, which prohibits such entertainment. On Monday, they expressed their frustration before the Los Gatos Town Council. Kim Karloff confirmed more than 60 people have signed a petition opposing the hotel's plans. "We're at our wits' end due to the sound terrorism, drunken persons and litterers we've been subjected to on Friday nights for the past few years," Karloff said. • Residents can no longer tolerate the hotel's "exceedingly loud concerts, parties and after-parties," Karloff continued . And despite the neighbors' many complaints, the hotel "is and has been blatantly violating its conditional use permit." The hotel has been operating with a permit granted in 1994, which restricts its use of music in the courtyard.

2

Sally Zarnowitz

From: Sent: To: Cc: Subject:

Sally,

Mark Regoli <[email protected]>

Tuesday, September 06, 2016 4:41 PM Sally Zarnowitz Marice Sayoc Toll House Conditional Use Permit Application U-16-005

As a neighbor of this applicant, I am reaching out to you to support this Conditional Use Permit.

This outdoor music was a great event that I enjoyed attending and hearing from my backyard. It was unfortunate that this ended a few years ago because of a vocal effort by a few people. The hotel provides a great service to our neighborhood and the town, and should be supported in the effort to return this program to Los Gatos.

I also believe that the majority of the residents support live music, but do not have the time to attend every planning meeting. Please support this application, despite the fact there will be a loud faction at the meeting.

Please let me know if there is anyone else I should reach out to in this process.

Sincerely,

Mark

SOUTH BAY -ve .~ r 1 __

MARK REGOLI ·1690 Dell Aver1ue, Campbell . CA, 95008 0 408.796.0044 l c 408.313.3587

SOUTHBAY.US

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PLANNING COMMISSION STAFF REPORT Meeting Date: …€¦ · dated June 22, 2016 and Council Agenda...

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