Tired of seeing corporate stores like the Gap and Starbucks in the area, the planning commission denied an application Feb. 11 for a proposed Cold Stone Creamery on S. Santa Cruz. Cold Stone, a franchise operation, is best known for letting customers make their own ice cream concoctions.

The store would have taken over a portion of the old Swenson's ice cream parlor in the Lyndon Plaza.

In a 6-1 decision, members of the commission cited the need to preserve the small-town atmosphere of the area. Several commissioners thought that another franchise store was not consistent with this vision of downtown.

"I guess it's concerning me that the character and integrity of our town is going to franchise operations and I would like to stop that," said Commissioner Phil Micciche.

Commissioner Jeanne Drexel agreed.

"We don't want to make Los Gatos a mall," she said.

Only Commissioner Lee Quintana dissented, arguing that the decision placed franchise owners at a distinct disadvantage to other businesses.

"We would not be looking at all applicants with the same objective criteria," she said.

The commission's decision comes at a time when many local business owners have also been clamoring for protection against increased competition. Last year, the town passed a personal-services moratorium, to limit the number of beauty and hair salons on Santa Cruz Avenue. The town also recently placed restrictions on businesses serving alcohol, after restaurants and bars complained of decreasing profits.

But the commission has hesitated to regulate competition in town. Earlier this year, the planning commission allowed a women's gym to open in an area with several existing fitness centers, saying that the body didn't consider increased competition in its decisions.

Still, owners of existing ice cream stores encouraged the commission last week to stop an influx of similar stores. Caleb Yi, who owns a TCBY frozen yogurt store at 13 N. Santa Cruz Ave., told the commission that he was already struggling to make ends meet and that a Cold Stone just blocks away would only make matters worse.

"It's been a losing battle for me," he said.

Another owner asked the commissioners to think about the precedent their decision could have.

"There doesn't need to be two Cold Stones in town. It's like having two Starbucks in town," said Tima Nczarah, owner of Yogurt Delight at 464 N. Santa Cruz Ave. "We should help the small businesses that are here already, instead of letting another Cold Stone in."

Applicant Catherine Azbun already owns another Cold Stone Creamery in town, at 1604 Los Gatos Blvd. She said the downtown store would attract a different type of clientele, such as tourists and visitors to the area.

Azbun also countered charges that her store would compete with existing ice cream stores in the area.

"I want to work with the businesses of the community," she said. "I'm not here to put anyone out of business."

The next planning commission meeting will be held Feb. 25, 7 p.m., in council chambers, 110 E. Main St.