Expansion of Riviera Terrace Apartments draws criticism from advisory committee
By Gloria I. Wang
When Sobrato Development recently purchased the Riviera Terrace of Los Gatos apartments in Los Gatos, residents were wary of the significant rent increase. Now, Sobrato says it has a strategy to keep some of the units affordable by building more housing on the site.
In theory, it's a good idea, town officials said, but the plan needs major reworking.
Sobrato's Senior Vice President John Shenk broached the idea of constructing 100 new housing units--in the form of apartments and townhouses--on the lot next to the existing complex and converting those 123 apartments to rent for less than market rates.
At the July 11 Los Gatos Conceptual Development Advisory Committee, the initial planning level for all building applicants, Shenk suggested that Sobrato could add more housing if they provided a significant town benefit. At 123 units, the current apartment complex is at a maximum density and would require what's known as a density bonus to build any more.
The existing 123-unit complex was built in 1961. Before Sobrato's purchase of the property in April, longtime residents were paying slightly more than $1,000 for a 700-square-foot, one-bedroom apartment. Since then, the rent for existing residents has gone up by approximately $400, and the going rate for vacancies is $1,800, Shenk said. The rent increase is legal, since the town's rent ordinance allows for new owners to pass along to their tenants improvement costs or part of the debt incurred from the purchase of the property.
Improvements are needed, tenants and others say. Conceptual development advisory committee member Jim Lyon said that, while he had not visited the complex in about 15 years, "My guess is that this property needs a whole lot of rehab." And Shenk agrees; Sobrato is planning to make some structural upgrades and renovations within the apartments.
Next to the apartments sits a vast parking lot that is, for the most part, empty. Sobrato proposed to build 100 new housing units and make parking more space-efficient. The new units would consist of one- to three-bedroom apartments and some 1,400-square-foot, three-story townhouses. After the construction, the old apartments would become below-market price--the town's program that ties rent with household income. Then, the benefit to the community of having 123 below-market-price apartments would allow the development to have a density bonus.
"I don't perceive really any impacts," Shenk said. As far as he could see, Shenk said, there were few cars leaving the Towne Terrace area during the day, and the nearby creek should not be affected. The only issue not yet examined was traffic.
Committee members were hardly enthusiastic about Sobrato's proposal.
"I think you would have an absolute nightmare trying to convince the neighborhood of adding potentially 250 more cars," Randy Attaway said. "I just don't see this happening at all."
"While I think it's a noble cause to add 123 units to the BMP pool," Lyon said, "the traffic impacts and the neighborhood impacts are not outweighed by the BMP units." Lyon pointed out that it was extremely difficult to turn left from Towne Terrace to University Avenue, and the new development would exacerbate the situation.
Director of Community Development Bud Lortz added that Towne Terrace was the only access road to get in and out of Riviera Terrace. Lortz suggested that Sobrato consider building just 10 housing units, and converting 15 to 20 of the existing apartments to below-market price--the same idea, but on a smaller scale.
Attaway said in reply, "I don't see it happening from a business perspective." Attaway said that building merely 10 units was most likely financially unprofitable.
Lyon also brought up the issue of making the space "livable" with the new housing--if there would be enough open space in the complex, and if there would be room for appropriate amenities such as another swimming pool.
The committee members were united and firm in their opposition to a development of such magnitude because of the neighborhood and traffic impacts. They advised Shenk to pursue the inclusion of below-market price units, but with different means.
Shenk explained, "This is a unique animal in Los Gatos, and so we thought, 'Since it's unique, let's do something creative with it."
Shenk concluded the meeting by saying he would take the committee's suggestions back to Sobrato. "Let's see," Shenk said.
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