From a ‘Best of LG’ boutique to vaporizers and bongs?

Mystery “gift shop” tenant raises alarm across town

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Since the departure of women’s clothing boutique Jackie ‘O from what is considered prime retail space along North Santa Cruz Avenue, town residents, shop owners, Council members and the Los Gatos Chamber of Commerce have been wondering what might replace it.

The three-years-running Best of Los Gatos award-winner shuttered its physical store at the corner N. Santa Cruz Avenue and Elm Street July 31. Their Santa Cruz Ave.-side neighbor, East Kennedy, left around the same time as both businesses decided not to renew their leases. The others: Tassels and Forté did renew, and the American Italian Delicatessen chose to remain at the improved building.

After 28 years, the previous owner decided to sell this commercial building. The new owner, Mudfish LLC, purchased this property a year-and-a-half ago. At that time, significant property taxes were due, and the Americans with Disability Act restroom was ordered to be built. Mudfish LLC complied with the raised property taxes and began a lengthy improvement for the restroom to meet ADA standards.

Earlier this month, locals began to notice new activity at 48 N. Santa Cruz Ave., the former home of Jackie ‘O, including merchandise on shelves that appeared to be vape or smoke shop related. Bongs that could be used for smoking marijuana, as well as related paraphernalia was noticed by the adjoining businesses and the neighborhood.

The Los Gatan spoke with Mayor Matthew Hudes about this situation at last Thursday’s police recognition luncheon. Several citizens have already contacted his office about their concerns that this new shop might, in fact, be a “smoke shop.” 

“We’re aware of some of the activities that are leading up to opening the shop,” he said. “We’re limited in what we can do. But to be clear, the Town has regulations on uses and businesses—and what’s permitted, and what’s not.” Mayor Hudes added, “And the Town will fully enforce our regulations.”

Los Gatos has clear and concise codes concerning opening-up any drug-related businesses, even as marijuana was legalized in the state. In June 2022, Council decided not to pursue a ballot measure to tax cannabis businesses—meaning the ban on such companies remains in effect.

The upscale businesses in the vicinity have been dismayed to see the vape-smoke shop-style merchandise  appear in Jackie ‘O’s former spot. The new building owner leased out this space being assured by the new tenant on their lease that this was to be a gift shop. Mudfish Group LLC trusted this new tenant, until they learned what was being brought into this commercial space. Since learning of this deception Mudfish LLC team has made every effort to “make things right”.

‘We have requested 4 times that this merchandise be removed immediately’

A team member says they’ve been fully cooperating with the Town of Los Gatos, and says there will not be a smoke shop there—not now, or ever or any type of business that would violate Town code. This team member who wishes to remain anonymous also stated that they raised two children in this town who attended local schools and in no way would they have signed this lease knowing what they do now. 

The Mudfish team member told the newspaper in a phone interview this new tenant at 48 N Santa Cruz Ave. applied for occupancy with a business description of “gift shop.” The source says it wasn’t until after the renter began moving the paraphernalia in, that they realized this wasn’t going to be an ordinary gift shop, in the realm of established family-friendly locations like Domus, The Butter Paddle and AZUCA.

The Mudfish representative, who asked to remain anonymous, also stated, “Once we learned what was being brought into our commercial space we reached out to the new tenant. A vape and or a smoke shop would not be allowed per Town Code. We have requested four times that this merchandise be removed immediately. I will be going over there today (Monday) to see that this is done” he said. “We have cooperated with all of the inquiries from the Town and provided them with a copy of the new tenants lease and are making every effort to make this right. We raised two children in this town and realized the significance of this error.”

This new tenant, which the landlord confirmed is under a five-year lease, has now described a new business that will occupy this space as “exotic snacks.”

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