Los Gatos planning commission forwards Restoration Hardware gallery and restaurant to council after debate over preservation standards

The Los Gatos Planning Commission on Aug. 27 unanimously forwarded a conditional use permit and, by a 4–1 vote, recommended that the Town Council approve amendments to a Planned Development ordinance that would allow exterior changes for a Restoration Hardware (RH) gallery and an integrated restaurant with alcohol in an existing Old Town commercial building.

The project, submitted by RH representatives and described in staff materials as Planned Development modification p d-25-001, architecture-and-site application s-25-004, and conditional use permit application u-25-001, would remodel Building E in the town’s adopted historic district to a cohesive Mediterranean-inspired facade, replace sidewalk sections, and remove two trees. Staff noted the Historic Preservation Committee had recommended denial of the proposed exterior modifications but issued a clarification that the CUP review falls outside HPC purview and recommended the CUP for approval as the process moves forward to Council.

Gary Friedman, RH chairman and chief executive officer, opened the applicant presentation by framing the company’s design approach and investment record: “We’re here to do something spectacular,” he said, describing RH’s past adaptive reuses and saying the company invests substantially in its locations. Friedman told commissioners RH treats the site as three integrated businesses — a gallery, interior design services and a full-service restaurant — and that the proposed interior and exterior changes reflect that integrated program.

Speakers from the Los Gatos Chamber, local residents and the owner-developer of the Old Town property spoke in favor of the project. Jennifer Lin, CEO of the Los Gatos Chamber of Commerce, urged commissioners to recommend approval, citing projected sales tax revenue and downtown activation: “This project creates a vibrant corner, strengthens our tax base and reinforces Los Gatos’ identity as a destination,” she said. Multiple residents and Federal Realty representatives described the proposal as a way to fill a long-vacant storefront and attract foot traffic that would benefit surrounding small businesses.

Commissioners questioned design and operational details during a substantial Q&A. The applicant said the building facade would measure about 131 feet across and would be articulated into five breaks; the exterior would use hand-troweled Venetian plaster (the applicant said this gives variation despite a single color), and two of the site’s trees would be removed as part of the work. On operations, the applicant said the restaurant’s last seating runs into evening hours (roughly 8–9 p.m. seasonally) and that most large storefront windows would not be operable; the restaurant is designed with enclosed, glass-roofed pavilions intended to give an “outdoor” experience year-round.

Discussion among commissioners focused on whether the PD requirement that Building E appear as a collection of smaller storefronts still serves the town’s goals. Supporters on the commission said the proposed design achieves articulation, reduces height compared with previous plans and advances general-plan objectives for economic vitality and pedestrian-oriented frontage. Commissioner Burnett (functional label used per meeting record) said the proposed single-color, symmetrical composition departs from the layered textures, varied parapets and storefront articulation that the PD originally required and urged caution about changing a three-decade-old standard. Other commissioners noted the building’s current condition and the long vacancy at the site, arguing the RH design would enhance downtown vibrancy.

Commissioner (mover) made a motion to forward a recommendation to Town Council to amend the PD and to include the architecture-and-site application in that recommendation; the motion passed 4–1. The commission then moved separately to forward approval of the conditional use permit for formula retail over 10,000 square feet and a restaurant with alcohol; that motion passed unanimously. The commissions’ recommendations are advisory; the item will next be considered by the Los Gatos Town Council.

Staff provided clarifying background during the hearing, explaining the distinction between “contributing” and “noncontributing” properties inside the town’s adopted historic district and why exterior modifications for a noncontributing structure are evaluated for how they support district character. The record includes staff’s statement that the project was found categorically exempt under CEQA Guideline section 15301 for existing facilities.

The Planning Commission also heard brief administrative reports and adjourned. The Council hearing date was not set on the record at the close of the commission meeting.