It's not because of the economy.

Asbun's plans to open an ice cream store in downtown Los Gatos have been on temporary hold since the planning commission denied her application in February. Concerned about the growing "mall" atmosphere in the area, the commission voted against Asbun's proposal for a Cold Stone Creamery on the corner of N. Santa Cruz Avenue and Main Street.

If the town council follows in the planning commission's footsteps April 5 when it considers Asbun's appeal, the item could open up a larger dialogue over what types of stores may call downtown Los Gatos home.

But Los Gatos Mayor Steve Glickman said that the issue is not over franchise or "formula retail" stores, but whether Cold Stone is the most appropriate business for that location. Asbun hopes to move into the old Swenson's ice cream shop in Lyndon Plaza, an attractive location in the heart of downtown and across from the town's bustling plaza.

"We want to be very careful that the community's interest is best served by the kind of business that goes in there," Glickman said. "The question is the nature of the proposal rather than if it is a chain or not."

Though the council considers each application on its individual merits, Glickman also said that members watch the growth of formula retail stores downtown carefully.

"We are sensitive to not wanting our downtown to become a mall," he said.

Other cities have recently come down on corporate or chain stores in an attempt to protect smaller businesses. Just last week, the San Francisco Board of Supervisors banned formula retail businesses from entering in a four-block region of Hayes Valley, an upscale shopping region in the city with many independent stores. San Francisco defines "formula retail" stores as operations with more than 11 branches.

Asbun argued that even though there is a similar look and feel to all Cold Stones, the franchise's parent company places an emphasis on blending in with the surrounding area.

"The whole idea of Cold Stone is that you walk into an atmosphere that you are very familiar with. If you are going to be a community store, then you want to have people from the community behind the counter," she said. Asbun currently owns another Cold Stone in town at 16004 Los Gatos Blvd.

To this end, Asbun, herself a native of Los Gatos and Campbell, predominantly employs students from local high schools or other individuals who know the area well.

Opinions on formula retail stores vary among local business owners. Some vehemently oppose these kinds of shops in the area, while others are more encouraging, saying they would welcome any type of store, including the Cold Stone Creamery, to the downtown area.

"I have no problems with anyone," said Claudia Cimpoieru, manager of Schuz of Los Gatos, a shoe store at 1 N. Santa Cruz Ave. "I love my neighbors." Schuz has no direct competitors in the area; its most recent corporate rival, a Rockport store, closed a few years back.

"It's a big town, and I think success depends on the products of your store," Cimpoieru said.

Joani Ilse, who works at her daughter's clothing store, Nuance, at 130 W. Main St., said she just didn't want to see any empty storefronts in the area, preferring brisk business to the recent going-out-of-business sales at Four Green Fields and Main Street Antiques. Ilse credited the recent closures to the rising costs of business and not to an influx of formula retail stores.

"The rents are so high in the town that most independent people can't afford to be here," she said. Ilse, who has been in town for more than 25 years, said that even franchises are not immune to these pressures, with many stores coming and going over the years.

But direct competitor Tima Nezarati, who owns Yogurt Delite on 464 N. Santa Cruz Ave., took a different stance. Nezarati has previously protested the Cold Stone before the planning commission and plans to do the same at the town council meeting.

"I think it's not only going to hurt my business but that it's going to hurt all of our businesses down here," she said, citing the number of ice cream-type shops on the street.

Beyond competition, Nezarati argued that she has seen formula stores push out many independently owned stores since she came to Los Gatos 18 years ago, giving examples such as a small health food store on N. Santa Cruz Avenue that shut down after Whole Foods came into Los Gatos.

"This is a charming, cozy town," she said. "We don't want franchises to be here because it will look like Valley Fair."

Visitor Gordon Jeffery, who was sitting in the town's plaza across from the proposed Cold Stone location, didn't understand what the fuss was about.

"I don't see what the difference is between a franchise shop and a privately owned shop," he said. "If it's tasteful, then what's the difference?"

The town council will hear the Cold Stone Creamery matter on April 5 at 7 p.m. in council chambers, 110 E. Main St.