A large townhome development will replace a decades-old iconic Los Gatos hotel.
The Los Gatos Town Council unanimously approved a 155-townhome development Tuesday to replace the Los Gatos Lodge. Councilmember Mary Badame recused herself because of her home’s proximity to the site. San Ramon-based SummerHill Homes will develop the project at 50 Los Gatos-Saratoga Road on 8.8 acres. The three-story development includes 26 affordable homes and 330 parking spaces.
Vice Mayor Rob Moore supported the project because of the diverse housing options it could provide for residents like him.
“I’m one of the one-third of renters that lives in the town of Los Gatos who, as it currently stands, does not have a pathway to home ownership in this town,” he said at the meeting. “When I see this sort of development where these units are likely to go for less than a single family home goes for in Los Gatos, I see a place where I could see myself potentially living one day.”
The development will also include a pedestrian path from the road to Los Gatos High School just south of the project, along with an added emergency exit for students and future residents. SummerHill Homes could have invoked builder’s remedy — a controversial state law that gives municipalities less control over housing projects by allowing developers to bypass local zoning and development standards — but didn’t in an effort to work with the town. Construction will begin later this year, with model homes expected to be built by spring or summer 2027.
Mayor Matthew Hudes said he voted yes because the council was compelled by state housing mandates to add homes, but he cited multiple concerns about the project.
“I do see a project where the architectural deficiencies have not been addressed, one where we haven’t figured out the safety profile of traffic that could be exiting onto Los Gatos-Saratoga Road, a lack of clarity about how pedestrians will magically appear on this property to use the pedestrian path that’s occurred, how 20 guest spaces will be sufficient for 155 units,” he said at the meeting.
The vote comes after the Planning Commission unanimously recommended the project’s approval last month. The Los Gatos Lodge, a town icon since opening in 1958 and common meeting space for community service organizations, will be demolished as part of the project. The development is one of the first Senate Bill 330 projects the council has reviewed out of about 15 in the pipeline. SB 330 can be enacted when municipalities are late receiving state approval on mandated housing plans, making it easier to build affordable and moderately priced housing.
John Hickey, vice president of development at SummerHill Homes, said the project’s amenities will help its future residents, as well as the surrounding neighborhood. SummerHill Homes has also built the homes at Bellaterra @ North 40 as part of one of the larger housing projects in town.
“We believe that the project will be a valuable asset to the community, helping the town provide housing so that it can continue to sustain a thriving, multi-generational community,” Hickey said at the meeting.
Residents are split over the project, with some citing traffic and safety concerns and others pointing to the need for affordable housing. A traffic study found the project won’t generate much more traffic than the hotel does now.
Los Gatos resident Steve Piasecki said he’s concerned about how the “cookie-cutter” project will fit in with Los Gatos’ charm. He said the developer could’ve put in single-family homes to keep with the town’s character.
“One of the fundamental principles of any new development coming into this town or any town is to be a good neighbor and complement and integrate with the fabric of the community,” Piasecki said.
Los Gatos identified the site as a prime development location in its state-mandated housing plan. The town must create at least 1,993 homes by 2031 to comply with the state, 847 of which must be deemed affordable to low-income residents.
The development will likely leave some of the lodge’s employees looking for a job.
Cecilio Reyes, general manager of the lodge, said he and most of the workers haven’t thought much about what would happen with the development’s approval — it’s been a slow-moving process since SummerHill Homes submitted plans in 2023. He said there is room for some employees to move to different positions under the hotel owner.
“A lot of people just have fond memories, especially if they got married here, had high school reunions,” he previously told San Jose Spotlight. “It’s just the history that it has.”
Moore said despite it not being a perfect project, it fits the community.
“We’ll be seeing a variety of applications in a year or two and I think some of them will not be this thoughtful in how they choose to develop,” he said.
This story originally appeared in San Jose Spotlight and was provided to NBC Bay Area via the Bay City News network.
