Courtside Club, located on Winchester Boulevard, applied to use the empty space for employee parking. The club claimed that insufficient parking at its facility created problems for its neighbors, by pushing extra cars down the surrounding streets.

The club currently owns the three lots.

Residents, however, saw the parking development as a precursor to increased membership, traffic and activity in the area.

In letters to the commission, residents argued against the proposed development, citing earlier changes at the club as reasons for increased parking space.

Courtside has come before the commission twice in the last eight years; first, when the club requested a permit to serve alcohol, and later when the club converted an indoor tennis facility into a gymnasium.

At the time, the club did not need extra parking and promised to limit membership, neighbors said. The club also promised that it would not hold league basketball play in the gymnasium, due to insufficient parking.

Extra parking would allow the club to hold such activities, neighbors charged.

"The noise potential is very great, and we worry the actual change and growth of Courtside would ruin the peace and quiet in our neighborhood," said Carol Shultz, a resident who lives in the area.

Despite their opposition, many residents said that Courtside had been a good neighbor in the past and respected the concerns of the club.

Representatives from Courtside said they had no plans to expand membership at this time, but that they would not cap membership due to financial considerations.

Some commissioners leaned toward granting the request, but the motion to accept required four of five votes on the board. It received only two.

Jeanne Drexel voted to accept the measure on the grounds that the parking lots were the least obtrusive development for those three lots. Because of constraints, the lots cannot support residential housing.

"If the neighbors want nothing to happen on that lot, they're dreaming," Drexel said.

If Courtside appeals the final decision, the matter will go to the Los Gatos Town Council for further consideration.