The council, however, allowed for the possibility of a retail component in the future through the language of the zoning ordinance.

Under the town's designs for the North 40, an orchard property on Los Gatos Boulevard at Highway 85, buildings in the area must contain some type of retail component. Known as the North 40 Specific Plan, the requirements were never adopted by the town council, providing for some latitude in accepting or denying projects.

The planning committee initially denied the application because some committee members didn't feel they had enough direction regarding developments in the area, former commission chairman Paul Dubois told the council March 17.

"We seem to be chipping away at the edges of the North 40 without a specific direction as to what we want to do," he said. "Do we even want retail there? Then why are we not building retail? Why are we building offices?"

Council members felt the need for the medical office was compelling, unanimously voting to approve the project without retail.

Mayor Steve Glickman later said that developments in the North 40 would be evaluated on a case-to-case basis, under the loose guidelines of the plan but also with consideration of the use of and necessity for the project.

"Every time one of these projects comes up, we are going to scratch our heads and say, 'Well, we don't have a plan in place, but is this something we are going to be comfortable with in the future?' " he said.

The next town council meeting will be held March 22 at 7 p.m. in council chambers, 110 E. Main St.