{"id":26182,"date":"2025-01-22T14:40:19","date_gmt":"2025-01-22T22:40:19","guid":{"rendered":"https:\/\/losgatan.com\/?p=26182"},"modified":"2025-01-26T12:26:38","modified_gmt":"2025-01-26T20:26:38","slug":"this-developer-bonanza-has-been-brought-to-you-by-new-state-laws-town-inertia","status":"publish","type":"post","link":"https:\/\/losgatan.com\/this-developer-bonanza-has-been-brought-to-you-by-new-state-laws-town-inertia\/","title":{"rendered":"This developer bonanza has been brought to you by new State laws, Town inertia"},"content":{"rendered":"\n

In case you didn\u2019t know, 1887 was the year Los Gatos was established upon a vote of 126-44. Since then, this community has been no stranger to change. Back in the day, the local economy thrived thanks to milling, logging and orchard cultivation\u2014and now largely because of multinational technology companies.<\/p>\n\n\n\n

Sure, the community has gone through major shifts, both large and small. The 1989 Loma Prieta earthquake dismantled many structures, for one. But now, the community is set to grow taller than ever before. This change, which doesn\u2019t exactly feel comfortable to many residents, has been ushered in by new State laws.<\/p>\n\n\n\n

Senate Bill 330 was approved by Governor Newsom in 2020 as \u201cThe Housing Crisis Act of 2019.\u201d The law is designed to force changes to zoning to spur affordable housing in areas that\u2019ve been more reluctant to allow housing in.<\/p>\n\n\n\n

Along with SB 330 comes the Builder\u2019s Remedy, which allows developers to overstep the Town\u2019s ordinances to further Sacramento\u2019s aim of creating affordable housing. In layman\u2019s terms, the State has determined the Town did not create its fair share of housing to satisfy demand from people across the income spectrum, so this legal tool (Builder\u2019s Remedy) lets developers to overstep traditional barriers to generate living options for a broader audience.<\/p>\n\n\n\n

The professor + the mayor<\/span><\/strong><\/h2>\n\n\n\n

The Los Gatan reached out to Kelly Snider<\/a>, a professor of urban and regional planning at San Jos\u00e9 State University, to better understand the interplay between SB 330 and Builder\u2019s Remedy.<\/p>\n\n\n\n

\u201cSB 330 was passed because a majority of California\u2019s legislators observed that towns and counties were taking unethical votes with the purpose of avoiding new housing and residents,\u201d she said. \u201cSo, SB 330 was specifically put in place to correct poor behavior, statewide.\u201d<\/p>\n\n\n\n

Snider<\/a>, who is also a developer, explains that, because the government doesn\u2019t have enough money to just build all the affordable housing that\u2019s needed, it chose to incentivize the marketplace with carrots and sticks.<\/p>\n\n\n\n

\u201cDevelopers can build, and with that, they are creating 20% of their development to be affordable for people who make less than 80% of the median income of the town,\u201d she said.<\/p>\n\n\n\n

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Key dates in history:<\/span><\/strong><\/h5>\n\n\n\n
\"train\"<\/a>
Read about the arrival of the railroad here<\/a>.<\/figcaption><\/figure>\n<\/div>\n\n\n\n
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<\/p>\n\n\n\n

1878<\/span><\/strong>  Railroad begins service to the community
1883<\/span><\/strong>  John Bean invents his pump sprayer
1887<\/span><\/strong>  The Town of Los Gatos is established
1910<\/span><\/strong>  The Los Gatos Telephone Co. founded
1911<\/span><\/strong>  The First National Bank of Los Gatos opens
1912<\/span><\/strong>  Sept. 30. Bond passed for Town Hall on Main St.
1913<\/span><\/strong>  Snow fell in Los Gatos on Jan. 15
1937<\/span><\/strong>  Ground broken on Vasona Dam
1938<\/span><\/strong>  John Steinbeck’s Grapes of Wrath<\/em> published
1962<\/span><\/strong>  Los Gatos Community Hospital built
1963<\/span><\/strong>  Population: 13,450
1989<\/span><\/strong>  Loma Prieta Earthquake
2020<\/span> <\/strong> Coronavirus pandemic begins<\/p>\n<\/div>\n<\/div>\n\n\n\n

Mayor Matthew Hudes<\/a> says he\u2019s concerned about the trajectory of State legislation. \u201cWhat I am interested in is the quality of this community,\u201d he said, adding he wants teachers, police and firefighters to be able to continue living in Los Gatos\u2014but doesn\u2019t think Sacramento\u2019s approach will work. \u201cI think there\u2019s a balance between local control and measures to try and encourage housing. I am skeptical of the current process of using inclusionary requirements to create affordable housing.\u201d<\/p>\n\n\n\n

Hudes says he isn\u2019t a fan of a one-size-fits-all approach imposed by the State. \u201cInclusionary requirements don\u2019t necessarily take into factors the evacuation routes,\u201d he said. \u201cSo, if you have housing developments with parking capacity, then you are going to have those cars parked on potential evacuation routes. Fire safety, public safety and health are important considerations for evaluating plans like the Housing Element.\u201d<\/p>\n\n\n\n

He added that SB 423, which was passed last year, allowed developers to lower the percentage of affordable units that allow the suspension of local rules\u2014from 20% down to as low as 7%.<\/p>\n\n\n\n

But from Snider\u2019s standpoint, Sacramento\u2019s approach has already borne fruit. \u201cSB 330 just says read the zoning code, put a proposal in, and if it complies, the city must say yes<\/em>,\u201d she said, adding SB 330 is on a stronger legal footing than the Builder\u2019s Remedy provision at this point. \u201cBuilder\u2019s Remedy projects are ones that do not comply with the zoning code or the law, so therefore they can be taller. Builder\u2019s Remedy is not settled law. SB 330 is settled law.\u201d<\/p>\n\n\n\n

\"map<\/a>
PROJECT SITES – This map shows all the formal SB 330 housing applications the Town has received (that were currently active at press time) and where in Los Gatos they\u2019re slated to sprout. (Illustration by \nSaoirse Alesandro)<\/figcaption><\/figure>\n\n\n\n

Many Los Gatos residents have been blindsided by the arrival of dozens of proposals for housing\u2014much of it larger than anything built before in town\u2014that have landed on the Planning Department\u2019s desk in the past couple years. Snider sees an ongoing tussle between local height and density limits and State codes, such as Builder\u2019s Remedy. \u201cThere are two laws that are in conflict,\u201d she said. \u201cThe question is, who is going to win in that battle?\u201d<\/p>\n\n\n\n

For Snider, the LA wildfires<\/a> have shone a light on what happens when you don\u2019t build enough homes. \u201cThe housing shortage in California is so bad,\u201d she said. \u201cWe aren\u2019t even keeping up with the destruction of them.\u201d More than 10,000 houses burned down in the LA fires this month alone. \u201cI believe that the State is correct in forcing cities to accept projects that they don\u2019t want\u2026and Builder\u2019s Remedy is an extreme way to force these small towns and counties to allow these projects to succeed. Otherwise, we are going to collapse even more upon ourselves.\u201d<\/p>\n\n\n\n

As development renderings have popped up at the locations in town, people scurried to Town Hall, developer meetings and social media platforms like Nextdoor to voice their concerns. Will Los Gatos change to the point that it\u2019s no longer recognizable?<\/p>\n\n\n\n

Los Gatans have already begun to get a glimpse of projects already in the works, as they walk past official signage at 14849 Los Gatos Blvd., 101 S. Santa Cruz Ave., 143-151 E. Main St., 178 Twin Peaks Dr., 647 N. Santa Cruz Ave., 980 University Ave., 14789 Oka Rd., 50 Los Gatos-Saratoga Rd. and 15495 Los Gatos Blvd.\u2014just to name a few.<\/p>\n\n\n\n

\"Matthew<\/a>
HOUSING ELEMENT PROCESS – Matthew Hudes, as Vice Mayor, argued that wording updates to the Housing Element plan were anything but trivial. (Drew Penner \/ Los Gatan)<\/figcaption><\/figure>\n\n\n\n

The architect speaks<\/span><\/strong><\/h2>\n\n\n\n

Some of these addresses may ring a bell as they currently house existing businesses. 15300-15330 Los Gatos Blvd., for example, is home to one of two Ace Hardware locations in town. But if Kurt Anderson, of Anderson Architects<\/a>, has his way, it will soon be known as \u201cThe Arya.\u201d The potential eight-story apartment complex\u2014with a commercial podium with seven stories of residential above (175 units)\u2014is one of four SB 330 projects he has in the works. The others are: 14288 Capri Dr., \u201cVista Capri\u201d (120 units, 24 affordable); 14849 Los Gatos Blvd., \u201cThe Luxe\u201d (117 units); and 101 S. Santa Cruz Ave. (58 units, 12 affordable).<\/p>\n\n\n\n

\u201cSB 330 was enacted to encourage all the municipal counties to have higher densities,\u201d he said, pointing to how including 20% affordable housing opens up development possibilities\u2014and how Los Gatos\u2019 slow-growth approach to residential construction opened the door to the current bonanza for developers. \u201cThe jurisdiction didn\u2019t have the RHNA (regional housing needs allocation) numbers. They are the numbers that are established by the state of California for the next eight years.\u201d<\/p>\n\n\n\n

According to Anderson, because the Town didn\u2019t enact a \u201chousing compliance plan\u201d\u2014known as its Housing Element\u2014fast enough, that gave the go-ahead to developers to essentially do what they thought was best. \u201cBasically, the Town didn\u2019t work fast enough. They had several reiterations,\u201d he said, referring to how the Town kept turning in draft after draft Housing Element that wasn\u2019t up to Sacramento\u2019s demands. \u201cIt went on for months.\u201d Also managed by Anderson is 101 S. Santa Cruz Ave., home of the USPS building that so many visit each week. The proposed mixed-use development is seven stories, including 58 condominium units.<\/p>\n\n\n\n

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Standing Tall: Los Gatos has seen many phases…<\/a><\/p>\n<\/div><\/div>\n\n\n\n

Local voices<\/span><\/strong><\/h2>\n\n\n\n

By law, only 20% of the total units built under Builder\u2019s Remedy need to be affordable housing. Or, 100% of the units need to be sold or rented to moderate or middle-income households. For instance, 151 E. Main St.\u2014sited right beside Los Gatos High School\u2014is a four-story development under SB 330. This development consists of 30 units, 24 market rate and six affordable units. The ground level would be for retail shopping and restaurants, with a parking garage underground.<\/p>\n\n\n\n

As the possibility of welcoming new neighbors into the town is on the horizon, Los Gatos native Annette Seaborn<\/a> shares her perspective on the changes ahead. Seaborn is a Los Gatos real estate area specialist, and has been living on the same street in Los Gatos since she was born.<\/p>\n\n\n\n

\u201cI actually don\u2019t mind the heights, because I care more about the land\u2014like fruit trees and walking our dogs,\u201d she said. \u201cI care about the aesthetics and how it looks. So, I don\u2019t mind keeping the traditional look while also bringing in a modern feel. (I’d) much rather go up, even if others think that\u2019s more city-like.\u201d<\/p>\n\n\n\n

Seaborn says, in the early 1900s, Los Gatos was a vacation destination. \u201cVery wealthy San Francisco residents came to town to camp and holiday,\u201d she said. \u201cOne day, they realized they needed more housing, so they built low-income housing across from the DMV. Los Gatos has always had housing issues.\u201d<\/p>\n\n\n\n

Meanwhile, Lee Fagot, a 29-year resident of Los Gatos who runs the civic discussion group called Democracy Tent, prefers a more cautious approach to growth. \u201cThese developments don\u2019t fit the character of the town,\u201d he said. \u201cA minimum of 1,993 units have to be allowed to build. The Town failed in five attempts to get their Housing Element approved; therefore we have what is called Builder\u2019s Remedy\u2026The Town failed to make its submission on time.\u201d<\/p>\n\n\n\n

\"Margaret<\/a>
MODERATOR – Democracy Tent facilitator Lee Fagot asks Margaret Smith, who now owns Domus, about the future of Los Gatos during a municipal election event.
(Drew Penner \/ Los Gatan)<\/figcaption><\/figure>\n\n\n\n

Fagot says these projects were only able to emerge because Los Gatos\u2019 elected officials didn\u2019t form a united front. \u201cThe Council was divided 3-2 in developing that new Housing Element document,\u201d he said. \u201cWith that, we now have these proposals with 7-12 stories. Whereas the town only allows 45-foot height in downtown, and in some mixed-use residential neighborhoods.\u201d<\/p>\n\n\n\n

Fagot says he doesn\u2019t believe overbuilding will solve the housing crisis. \u201cThere is also no consideration for the architectural style to fit the character of the current housing in town, and no consideration for the densities that the Town has mandated\u2026for what it could do for safety and clogging the infrastructure,\u201d he said. \u201cIt\u2019s beyond disappointing. It\u2019s scary as hell.\u201d<\/p>\n\n\n\n

Down the road from Los Gatos Boulevard is another SB 330 development at the location of 980 University Ave. Current owner of the land, James Rees, describes his journey of arriving upon this agreement to sell, considering this land has been in the family for over 25 years.<\/p>\n\n\n\n

“We first leased it to Netflix in the early 2000s\u2014before the company had even gone public,\u201d he said. \u201cShortly after, Cryptic Studios leased it for their headquarters and are the current tenants until their lease ends. We think that the building has reached (the end of) its lifetime, and the land is ready for a new start.\u201d<\/p>\n\n\n\n

\"AFFH
FAIR HOUSING SECTION – Los Gatos’ Housing Element<\/a> is available in hard copy format at the Los Gatos Library<\/a>. This map is in portion that deals with providing housing options to people of all income levels.
(Drew Penner \/ Los Gatan)<\/figcaption><\/figure><\/div>\n\n\n\n

Sanctuary Real Estate founder Ed Dee, who has been in Los Gatos since the 1970s, embodies the complexity of the current housing market. \u201cPeople want to live in Los Gatos,\u201d he said. \u201cAs a realtor, I want inventory to sell. As a resident of the town, I don\u2019t like the density.\u201d He says he\u2019d like to see more planning around public safety, education and traffic issues.<\/p>\n\n\n\n

\u201cYou can add all these units, but where are all these kids going to go to school? Are the police going to keep the peace? That\u2019s where Builder\u2019s Remedy feels like a ramrod,\u201d he said. \u201cYou can\u2019t just kick the can down the road until the streets are gridlocked. Los Gatos is a very unique place. It\u2019s a town, not a city. One of the most economic and affluent places in the world. Los Gatos has always had the charm of a small town. And although the change has been constant, at the same time, people need to live somewhere.\u201d<\/p>\n\n\n\n

Formal SB 330 applications received by the Town of Los Gatos (that were active at press time):<\/em><\/span><\/strong><\/p>\n\n\n\n