The development is one of Los Gatos' largest to date.

With the approved modifications, Sobrato will be able to increase the number of apartments in the complex and reduce the square footage of office and research-and-development space. The new plan also consists of more affordable-income apartments.

Sobrato initially approached the council two years ago to build an office and residential development on the property. The original plan called for 135 apartments and a 288,000-square-foot research building in the complex. The council accepted this proposal in February 2002.

Just over a year later, the company decided to modify its plans, bumping up the number of apartments to 290 and reducing the size of the research building to 120,000 square feet.

John Shenk, Sobrato's senior vice president, told the council last week that the decision to modify the development plan was not based on financial considerations. Shenk said that the original plan was economically superior to the modified project.

"We had the opportunity to go in and generate a new plan which was not as financially rewarding, but we believe it achieves other goals," he said. "We think there is a huge need for housing in the valley."

The decision to approve the project was not reached without some concessions to neighbors and other opponents of the plan. Council members asked to place several restrictions on the approval, including a measure to push up the number of affordable-housing units from a proposed 49 to 51. The final conditions also allow for the possibility of retail stores or a day-care center in the designated research and office space.

"There has been a lot of talk tonight about what word to use, what noun to use to describe this complex. Is it an apartment complex, is this a neighborhood—but for me that noun is 'neighborhood,'" said Councilwomen Diane McNutt, who voted for the approval.

Councilwoman Sandy Decker and Vice Mayor Mike Wasserman both dissented. In a comment before the final vote, Wasserman stated that he was unhappy with the increase of residential density of the project. He also noted that the project could become a financial drain on town resources, since the town would have to provide service to approximately 600 new residents but may not receive enough compensation in the form of property taxes to account for that increase.

"That's why I hoped there would be an added community benefit," he said. Wasserman wanted to add more affordable-income housing to the proposed 51 units.

Decker also voted against the project, opposing the scale of the project and the impact on the community.

"This does not speak to Los Gatos," she said. "If we are creating a neighborhood, we could have created a transition that would have brought our neighbors on the north end into town, and we didn't." Decker voted no on the original proposal in 2002.

During the public hearing, community members offered a wide spectrum of opinions, from rejecting the project to endorsing it wholeheartedly.

A few residents argued that the development was inconsistent with the general style of Los Gatos. "This is not a cute European building," said Carla Dougher, a Los Gatos resident. "The density is way out of control. This is apartment hell."

Others took issue with building more apartments instead of homes in the area. "People will not move to Los Gatos for apartments," said Clark Cochran, another Los Gatos resident. "They will move to Tracy for homes."

Some just simply wanted their new neighbor to be more considerate to their concerns. A group of neighbors from the Charter Oaks neighborhood, at the intersection of Charter Oaks Drive and Lark Avenue, filled up several rows as a representative from their complex spoke about the influx of traffic the area would see from the development.

Supporters of the project were almost equal in number to the opponents, speaking on just-as-varied themes. Jim Derryberry, vice president of the Los Gatos Chamber of Commerce, addressed the council about the economic vitality of the community and how the Sobrato project offered a chance to do something positive for the town.

"We believe that the modified plan meets the needs of our town more closely than the proposed development of two years ago," he said.

Supporters, like opponents, also confronted the issue of how the development fit in with the rest of Los Gatos.

"In terms of not being the essential Los Gatos, well maybe the essential Los Gatos has to change from time to time," said Dale Hill, a representative from the League of Women Voters.

The next town council meeting will take place Feb. 2 at 7 p.m. in council chambers, 110 E. Main St.