The developer of the Los Gatos Business Park, the location that Netflix could possibly expand into, presented a largely scaled back project Monday evening to the Town Council.  

However, the Council asked John R. Shenk to return Aug. 1 with further revisions to his latest plan that calls for 168 multi-family or senior units, 70 percent less than the original 500-plus proposed and an agreement to not pull a building permit for any residential units until 2016.

The project's residential component would be an addendum to its main part, two high-rise office buildings for Netflix that would be erected at the park located at 90-160 Albright Way and 14600 Los Gatos Blvd. The land is owned by Mike White with Huettig & Schromm Inc., who wants town officials to approve a 20-year development agreement giving him certain rights to the land.

The height of the buildings was significantly lowered by the Los Gatos Planning Commission June 1 from 85 feet, or the proposed five stories, to 55 feet, or three stories.

On Monday evening, Shenk proposed a wedding-cake approach to the buildings, meaning taller structures would be built further away from the front to lessen impact.

Los Gatos Town Manager Greg Larson strongly urged the council to rezone the land to make way for the year-old project as a so-called "Class A" high-tech campus for the town.

Larson and Wendie Rooney, Los Gatos Community Development director, explained the town needs to increase such types of buildings, considered to be the highest quality and with the best locations and tenants in municipalities.

Shenk had also agreed to limit housing built on the property to no more than seven of the 21 acres contained in the park as well as to increase the minimum amount of new office/research and development space from 200,000 square feet to 250,000 square feet.

Netflix Chief Financial Officer David Wells encouraged the Council to approve the project on the merits of the use of the land and not on the merits of Netflix.

But he admitted that the company, one of the leading Internet subscription service providers for movies and TV shows in the world, has outgrown its space.

Netflix currently occupies three buildings and employs 900 employees in Los Gatos at its 100 Winchester Circle campus. Netflix's lease on that property expires in 2017, Wells said.

More than 40 speakers addressed the Council Monday evening, both in favor and against the project, some insinuating that Netflix was holding the town hostage with the threat of a possible move out of town if Shenk is not allowed to proceed as desired.  

Kevin P. Dincher and Charles P. Born, who own a home at 105 Stratmore Place, wrote a letter opposing the previous height proposed for the buildings. 

"Will Netflix and the developer exploit that fear to grow in a way that depreciates our property values and quality of life—rather than be good corporate citizens who work to meet their growth needs in a way that supports the value and quality of out town and neighborhood?" they said in their missive.

Other residents expressed concern about traffic and school impacts, fearing that if residential units are built it would overwhelm already-full schools in the 3,000-plus student Los Gatos Union School District.

The company is the town's highest sales tax contributor, generating more than $3 million a year in such revenue.

After more than three hours of mulling the issue, the Council voted to hear the proposal again on Aug. 1.

Prior to postponing a vote on the matter, Councilwoman Barbara Spector, backed by Councilman Steven Leonardis, proposed to allow up to 550,000 square feet of office/research and development on the property, excluding housing. 

That motion, however, failed by a 3-5 vote, with Los Gatos Mayor Joe Pirzynski, Vice Mayor Steve Rice and Councilwoman Diane McNutt voting against.

After Spector's motion was seconded, Shenk told the Council that eliminating housing from the plan "is not something we can work with," and suggested a "continuance" on the matter to "bridge some gaps."

Spector and Leonardis' motion also called for limiting building heights to 55 feet or three stories.

However, Councilwoman Diane McNutt asked for the motion to be withdrawn to study other options that could include building housing for seniors. Such dwelling units are in short supply in town, she said.

"This is too important to rush to make a decision," McNutt said, in making a motion to continue the matter. Her motion passed by a 4-1 vote with Vice Mayor Steve Rice casting the dissenting vote. 

Rice compared the issue to "sausage being made ... you don't want to be there."

Mayor Joe Pirzynski said he was disappointed at the issue's continuance since he thought the Council could have moved forward with the project Monday evening. "I'm looking for a large degree of ... trust ... that says we don't have to always be suspicious of the motivations of those people who are making recommendations to develop in our community."