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Posted inLocal News

Los Gatos moves ahead with housing project near high school, bringing safety concerns

by Annalise Freimarck, San Jose Spotlight June 7, 2025

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Cafe Dio, across the street from Los Gatos High School at 151 E. Main St., will be demolished to make way for a 30-home, mixed-use housing development. (Annalise Freimarck/San Jose Spotlight)

A CONTROVERSIAL LOS GATOS housing project next to the town high school is moving forward, despite residents raising safety concerns.

The Los Gatos Town Council voted 3-2 last month to approve a 30-home, mixed-use development located at 143-151 E. Main St. across from Los Gatos High School. Mayor Matthew Hudes and Councilmember Mary Badame voted no. Plans from owner CSPN LLC include a 4-story project with six affordable homes and ground-floor retail on nearly half an acre. Plans are to demolish the existing buildings where Cafe Dio and A & G Construction are located on Church Street — a prime drop-off and pick-up location for the roughly 1,900 students attending the high school.

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The development, which will provide between 37 and 49 parking spots, is the first builder’s remedy project reviewed by the council. The state law allows developers to bypass local zoning requirements when a town is late getting a state-certified housing plan, meaning there’s limited capacity to deny these types of proposals. It’s unclear when construction will start and if Cafe Dio will lease the 2,416 square feet of retail space.

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Los Gatos High School Principal Dave Poetzinger is glad the council’s approval included requiring the development team to meet regularly with school staff until the project is completed, along with a restriction on construction vehicles entering or exiting the project during peak traffic times.

But Poetzinger worries about the safety of his students and staff because he’s already seen two students sent to the hospital this school year due to car collisions. Even if the project only adds an average of 17 new car trips and lessens trips during peak pick-up and drop-off times, according to the traffic study, Poetzinger said the streets are already congested.

“We want to take care of our people and make sure that they’re safe every day,” he told San José Spotlight.

Raising safety concerns

Hudes agreed with Poetzinger and wanted to use the provision of builder’s remedy that allows jurisdictions to deny proposals that will harm the community’s well-being. Hudes said he’s observed the site for about six hours during peak times and seen how dangerous it is.

“The builders have a right to do what their rights are under state law, but they, as far as I can tell, don’t have the right to create health and safety issues,” Hudes told San José Spotlight.

CSPN LLC did not respond to requests for comment.

Kenneth Rodrigues, founder of KRP Architects, said his client wants to use the highest quality materials and make it a special project.

“We have a big problem because we’re all a part of this community. This traffic that (they’re) bringing into this spot is going to contribute to greater unsafe conditions.” Dave Poetzinger, Los Gatos High School principal

Councilmember Rob Rennie sided with the majority, saying future residents will likely use their cars less because the project is in the heart of town. The developer could also sue the town if it denied the project wrongfully under builder’s remedy.

“I think it would help the vitality of downtown by having more people that can easily get there without driving,” Rennie told San José Spotlight.

Los Gatos must accommodate building at least 1,993 new homes by 2031 to comply with state housing mandates. The development spike across town has stirred controversy among residents, including plans for more than 100 homes where Ace Hardware is located.

Poetzinger said the developer needs to understand the effect of additional traffic around the high school. He looks forward to working with them in the coming months.

“We have a big problem because we’re all a part of this community,” he told San José Spotlight “This traffic that (they’re) bringing into this spot is going to contribute to greater unsafe conditions.”

Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.

This story originally appeared in San Jose Spotlight.

Tagged: builder's remedy, businesses, development, housing, land use, Los Gatos, Los Gatos High School, los gatos town council, Rob Rennie, safety, San Jose Spotlight, Santa Clara County, traffic

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