That's why council members discussed for more than two hours whether to allow the Wine Cellar to have a dance floor and have amplified music for more than the three days it has now. Unable to reach an agreement, however, they will return to the issue at the next council meeting.

"I want to help the Wine Cellar have a dance floor, but I don't want to create a nightclub," Mayor Mike Wasserman said at the council meeting June 20.

The Wine Cellar, an underground fine dining restaurant located in Old Town, is applying for a conditional use permit that asks for an increased number of seats, amplified live music for an extended number of days--it currently has live music on Thursdays, Fridays and Saturdays--and a dance floor.

Wine Cellar owners, brother and sister Lisa and Steve Hauck assured the public that by granting them the requested conditional use permit that it would not change the character of the restaurant into a club.

"To me, operating a nightclub would be more like a nightmare," Steve Hauck told council members.

The Haucks attended the meeting to explain to the council why allowing dancing and amplified music is an enhancement of the restaurant, not something negative.

"It was once a nightclub. We bought it and turned it into a fine dining establishment," Lisa Hauck said.

On May 25, the planning commission recommended a modified conditional use permit to the town council. The maximum seating was amended from 100 to 140 seats, including 46 seats for outside dining. Also, meals must be available up to the closing hour, which is currently 2 a.m. Also, the planners suggested no outdoor entertainment, and that amplified musical entertainment be monitored by a decibel-level system.

Contrary to the applicants' request, however, the planning commission prohibited a dance floor.

Several neighbors in support of the Wine Cellar attended the June 20 meeting. They said the Wine Cellar is an asset to downtown Los Gatos, and that live music and dancing would draw more people downtown. The neighbors also said noise from the Wine Cellar has never inconvenienced them.

The Haucks pointed out that since they took over the establishment, there have not been neighbor complaints.

Police Chief Scott Seaman agreed, and said that historically the police department has not received any significant noise complaints from restaurants.

"The police department and town have been working hard with the Wine Cellar over the years so they don't have any noise complaints, and to limit the adverse impacts on the community," Seamen said, but did not have specific statistics available.

Neighbor Randi Chen, who lives behind the Wine Cellar on Edelen Avenue, said she never had any problems with the underground restaurant, but was worried that the ability to have amplified music might be reminiscent of the previous business, a reggae bar once located above the Wine Cellar.

"We haven't been bothered by the Wine Cellar, and it is an entirely different establishment than Waves. If they have a dance floor, who cares, we just don't want to be able to hear the music," Chen said after the meeting.

Carri Benedetti, who has lived on Edelen Avenue since 1995, said she is not against music, but she is opposed to it until 2 a.m. every night.

"I'm really against having it during the weekdays. They could have it on Fridays and Saturdays. But people have to be able to sleep," Benedetti said.

Council members were concerned that even though the Haucks, who have never received a noise complaint, might understand the limitations of the conditional use permit, future owners may not. Because the conditional use permit runs with the land, and not the owners, future owners may interpret the permit differently and have different intentions for the business.

Councilwoman Diane McNutt suggested there be a "conditional, conditional use permit," where the owners could be granted a permit for a short period of time to see how the community is affected.

Some neighbors thought this was a good idea. Kent Ferrin, who lives on Edelen Avenue, agreed that a temporary time frame would give the Wine Cellar a chance to prove that it could have a dance floor and amplified music without bothering the neighbors.

But Los Gatan Dan Pinschmidt, who has lived behind the Wine Cellar on Edelen Avenue for six years, said he doesn't mind the music or the dance floor.

"It's one of the reasons you live downtown--because you're close to everything. If I didn't want the action, I'd move somewhere else," he said.

The council will return to the issue Aug. 1.