Developer Files Lawsuit Against Los Gatos

The town of Los Gatos is being sued by a developer over its application requirements for a builder’s remedy project.

The Vista Capri development, owned by Los Gatos LLC, is at the center of the dispute, the East Bay Times reported. Los Gatos LLC is based in Fullerton with an address listed as an international mailbox, according to the California Secretary of State’s Business Search dashboard.

Los Gatos LLC is in active settlement negotiations with the town of Los Gatos, according to the East Bay Times. The developer claims that it was unlawful for its application to be considered incomplete based on the town’s submittal requirement checklist.

“We have attempted to work with the town, but due to the town’s continued resistance to new housing, we have had to file a suit to bring the town into compliance with the state housing laws,” Los Gatos LLC told the publication.

Los Gatos LLC alleges in its lawsuit that the town has so far approved less than 6 percent of the low-income units required by the Los Gatos Housing Element. Under Los Gatos’ Housing Element, the town is required to make approximately 850 units affordable to low-income residents.

“The town’s continued improper designation of ‘incomplete’ status on this project application appears to simply be carrying out the town’s attempts to block builder’s remedy projects that bring much-needed low-income housing to the town,” Richard Jacobs, an attorney representing Los Gatos LLC, wrote in a May letter to local officials.

Los Gatos town officials told the East Bay Times that the government is within its rights to request a conditional-use permit for the site to build a residential development when it’s zoned as a commercial space. Los Gatos LLC has submitted applications three separate times over the past year, prompting a lawsuit in April from the South Bay town seeking to clarify if builder’s remedy projects can repeatedly be resubmitted for consideration.

The Vista Capri application is still pending as the town reviews Los Gatos LLC’s lawsuit.

Plans for Vista Capri include an eight-story apartment building at 14288 Capri Drive consisting of 119 units, 24 of which would be designated as lower-income units. In Santa Clara County, lower-income is generally defined as one person making a maximum annual income of $111,700. Studios, one-, two- and three-bedroom units are being marketed, as well as a covered barbecue area, a community outdoor roof deck and a basketball court.— Chris Malone Méndez