The Los Gatos Town Council is set to take up a number of issues affecting downtown businesses and property owners at its next meeting, including a proposal to increase the number of chain stores allowed in the downtown business district. Specialty retail and outdoor restaurant seating will also be part of the Oct. 6 discussion.

Several downtown business owners addressed those issues during the Sept. 1 town council meeting.

For example, Pastaria & Market owner Donna Novi said, “People ask us all the time if they can sit outside in our little outdoor waiting area.”

The town’s economic vitality manager, Monica Renn, brought the downtown issues forward at the request of the town council. “We’re seeing more hybrid businesses coming in. We’re seeing the availability of people shopping online, so the brick and mortar places are really challenged with finding innovative ways to bring people into their shops.”

A hybrid business can be defined as a business that uses multiple channels to reach customers, such as a brick and mortar retailer that also has an online sales presence.

The town defines specialty retailers as “walk-in, impulse businesses such as juice bars, coffee shops, yogurt shops and doughnut shops which do not sell meals.”

Formula retail, from the Los Gatos perspective, is any chain with seven or more stores. Renn said when she looked at other California cities’ formula retail definitions she found “we were the very most restrictive. Most are 10, 11 or 12.” Renn suggested the council consider increasing the number allowed from seven to 10.

Romantiques owner Susan Testa doesn’t oppose allowing more formula retailers downtown, but she warned that in her experience rents go up when chains move in.

Downtown property owner Jason Farwell had a warning, too. “When that North 40 is developed, I see Apple leaving downtown. I see Apple leaving to go to the North 40,” Farwell said. “I know [North 40 developer] Grosvenor is talking to a lot of tenants downtown to try to get them to swing out to the North 40 once they’re ready for that.”

Town officials have been concerned for years that the North 40’s shopping and dining components could ruin the downtown business environment.

That said, the goal of the Oct. 6 town council discussion is to improve the town’s processes to help ensure a diverse mix of independent and national businesses downtown.

The Oct. 6 town council meeting starts at 7 p.m. in the town council chamber, 110 E. Main St.