Council approves RH gallery and restaurant for Oldtown after divided public debate

The Los Gatos Town Council voted unanimously Oct. 7 to approve a multi-application project that will convert the former Gap/Steamer’s block at 31 University Avenue into a single Restoration Hardware (RH) gallery and rooftop restaurant with a unified Mediterranean-style facade. The approval included an amendment to the planned development ordinance, architecture-and-site approval for exterior changes and a conditional use permit for formula retail over 10,000 square feet with alcohol service.

Aaron Walters, the town’s senior planner, told the council the project would modify Building E at the Oldtown Shopping Center and that the Historic Preservation Committee had forwarded a recommendation of denial while the planning commission recommended approval. “Staff recommends approval,” Walters said, citing the project’s design materials and an addendum of public comments distributed the night of the meeting.

Jordan Brown, who leads RH’s architecture and design team, said the company planned to "reimagine a non-contributing commercial structure" and to "unify the unrelated storefronts to create a visually harmonious and stately facade." Brown described RH’s experience with gallery-restaurant combinations elsewhere and said the firm aims for a long-term presence in Los Gatos.

Supporters — including Oldtown’s owner, Federal Realty, the Los Gatos Chamber and many downtown merchants — said the project will reactivate a long-vacant anchor space, boost foot traffic and broaden the town’s sales-tax base. Jennifer Lynn, CEO of the Los Gatos Chamber of Commerce, told the council the gallery-and-restaurant model “advances that mission in every single way” and will “strengthen the entire small-business community.”

Opponents, including members of the Historic Preservation Committee and longtime residents, urged the council to preserve the planned-development ordinance’s intent for a broken-up facade that reads as several smaller storefronts. “Our small-town character is our brand,” said Alan Fineberg, a longtime resident and HPC member, urging a compromise that would better articulate rooflines and facade breaks. Planning-commission and HPC members described repeated efforts to require greater articulation.

Council members debated those trade-offs at length. Several cited the long vacancy and the difficulty of attracting a single large, high-quality tenant in that footprint; others said changes could be made at building detail level in the future. Vice Mayor Moore asked the applicant about offering plant-based menu options and was told RH already planned to include such dishes and was open to adding a plant-based entree.

Council Member Badami moved and Council Member Risto seconded the motion to follow the planning commission’s recommendation; the motion passed unanimously. The approval allows the town manager and applicant to proceed with final permit and design-review steps. The council also recorded that one of the project’s sponsors must comply with standard tree-replacement and right-of-way conditions in the staff report.

The council’s action means the large retail/restaurant conversion can move forward; the project will return to planning staff for the ministerial and ministerial-plus conditions listed in the staff report. Critics said they will continue to press for design refinements to break up the massing and retain Oldtown’s historic-feel cues. Proponents said the project will bring steady foot traffic and strengthen downtown businesses.

The council hearing lasted more than two hours, included more than a dozen public speakers on both sides and ended with a unanimous vote. The decision is procedural, pending final building-permit approvals and standard conditions of approval.