Los Gatos Bar & Grill representatives came before the town council last week to seek modifications to the restaurant's conditional use permit. Bar owner Jason Farwell wanted to extend operational hours from 11 p.m. to 1 a.m. on Thursdays. The request is inconsistent with town policy that alcohol not be served after 11 p.m. Sunday through Thursday, except on holidays or evenings before holidays.

"We don't want to leave; we need some help from the council," said Farwell, who described the past two years as a difficult time for his business. The bar and grill has been in downtown Los Gatos eight years, and those working for the company want to ensure it remains a viable business.

Farwell also requested approval for a 40-seat cafe area where patrons could order alcoholic beverages independent of meal orders. Representatives of the bar and grill agreed to continue closing off the patio area at 9 p.m. and to provide additional lighting and uniformed security in the parking lot.

Two men who recently graduated from the Santa Clara University law school said Los Gatos needs to provide a place for young professionals in Silicon Valley. Otherwise, young professionals are forced to go to other cities, such as Palo Alto or San Francisco, where bars are open later, they said.

Nearby residents and business owners view the situation differently.

Tait Avenue resident Chris Potter said his family is awakened at night by the noise and complained that they can hear bottles breaking when bar employees dump trash into the garbage can at the end of the night.

Los Gatos Village Inn Motel manager Bill Sumpter said his establishment, which is across the street from the bar, loses business to the tune of six rooms per month, or about $6,000 per year, due to rowdy behavior and an intolerable noise level from the parking lot.

The council ended up approving the request for a cafe in a 3-2 vote, then unanimously chose not to extend the bar's Thursday night hours in order to uphold the town's alcohol policy.

The council approved the cafe area, with conditions that Farwell wait until morning to dump bottles in the garbage can, that he set up a hotline for residents to phone in with concerns and that he provide security.

Mayor Sandy Decker said she feared extending the hours beyond what the town's policy allows would set a precedent. "The modifications that I see here tonight simply exacerbate the problem," she said, referring to the noise problem in the parking lot behind the Los Gatos Bar & Grill, Mountain Charley's and Pizza My Heart, where people congregate throughout the night.

Los Gatos­Monte Sereno Police Chief Scott Seaman said he anticipated that extending the hours could impact the number of people leaving the area between 1 and 2 a.m., given the combined activity of patrons leaving Mountain Charley's simultaneously. The Los Gatos Bar & Grill has not generated as many complaining calls to the police as other establishments, nor does it have a history of not complying with police officers, Seaman said.

Even without extending the hours, the Los Gatos Bar & Grill can still move forward with the other suggestions, such as providing lighting and security, said Councilman Joe Pirzynski. The parking lot situation is a problem that extends beyond the bar and grill, said Pirzynski, who thanked Farwell for working to be a part of the solution.

Farwell has been working with Mountain Charley's and Pizza My Heart in hopes of addressing the issue.

Vice Mayor Steve Glickman voiced frustration "that we fail so miserably to provide a place for our youths that they're chased out of parking lots."

Jolie Houston, who represents the bar and grill, said the situation required overall downtown improvement and that the restaurant was taking the lead. "This parking lot issue isn't just the bar and grill's; it is a community issue," she said.