Decision on North 40 development moratorium expected Wednesday night

The Los Gatos Town Council will meet Wednesday to decide if the moratorium on new North 40 development applications should be continued. The special meeting was called because the moratorium that was approved a year ago expires this week.

If approved, the moratorium could be extended for up to a year, Town Attorney Rob Schultz said.

The moratorium came after a contentious battle over the first phase of North 40 development that will see 320 homes and more than 66,000 square feet of commercial and retail space built on approximately 21 acres.

That means there are just over 20 acres that can still be developed in Phase 2.

Grosvenor Americas has floated a preliminary concept to build 294 homes, a town square, and a hotel on 15.5 of those acres.

So, many are wondering what what can be built on the remaining acreage if Grosvenor gets 294 homes and a hotel.

“There’s over 200,000 square feet of commercial square footage available for those remaining parcels,” said Los Gatos Community Development Director Joel Paulson. “The residential is a little trickier. Residential could be as few as a handful of units.”

Attorney Brent Ventura, who represents one North 40 property owner, said “that leaves nothing” for the other property owners.

“So, whatever (Grosvenor) is asking for you should add another 15 percent on top of that because, to be equitable, everybody gets to build out,” Ventura said. “Otherwise, it’s a taking — it’s inverse condemnation.”

Ventura, who spoke at the Aug. 7 town council meeting, opposes the moratorium.

The moratorium was approved to give the town time to amend the Specific Plan that sets down rules for North 40 development. The Town Council has yet to approve any Specific Plan amendments, Town Manager Laurel Prevetti said recently.

Councilwoman Marcia Jensen thinks the moratorium should be allowed to expire.

“Right now we have this amorphous process where a developer is giving us a proposal and saying it’s really not an application,” Jensen said. “But we’re treating it like an application and then we’re considering amending a specific plan to go with it. Let’s have an application and if it’s under the current specific plan, fine.”

But others say the moratorium is the only way Los Gatos residents will have a say in future development plans.

“So, the game has begun. (Grosvenor) is trying again to have their parameters that ensure profitability added to the amendments that you approve,” former Mayor Sandy Decker said.

Grosvenor says the 294-homes and hotel would only pencil out if they can be built in two, 55-foot tall buildings.

Los Gatos has a 35-foot building height limit. But the Town Council has considered allowing 45 feet for the hotel.

Wednesday’s Los Gatos Town Council meeting begins at 8 p.m. at 110 E. Main St.

In addition to the moratorium question, the council will discuss the equity issue that was raised by Ventura.