Planning commissioners were not permitted to comment or make a decision regarding the proposal due to a staff error in submitting the public hearing notice, Orry Korb, town attorney, said.

American Apparel is based out of Los Angeles, and was started 10 years ago as a wholesale operator, project manager and applicant Tacee Webb stated in a letter of justification to the town.

After hearing four business owners and a property owner speak against allowing American Apparel to move into town at 25 N. Santa Cruz Ave., Webb addressed the commission by saying that she rushed to California from Seattle to speak at the meeting.

Originally, she said that she was not planning on attending, but after reading a letter published in the Los Gatos Weekly-Times, submitted by Larry Arzie, protesting the clothing store, she felt that she needed to address some of the concerns he raised.

Arzie spoke at the planning commission meeting, and said that he did not want to see a "national" come into the town, especially one that will appeal to a "younger, less sophisticated" demographic that "makes less money."

In the staff report, however, it states that the downtown does not have enough stores where younger people shop. It also states that the commission should consider American Apparel, which sells casual clothing for women, men and children, because the addition would maintain a balance and diversity of businesses in the downtown.

"It should be noted that the majority of the existing apparel stores in the central business district caters to women only," the staff report states. Additionally, economic vitality manager Danielle Surdin said in the staff report that the store could bring younger shoppers, another under-served market, into downtown.

Another benefit to having the store in Los Gatos, Webb said, is that the company does not outsource; "every piece of clothing we produce is truly 'made in America.' All of our products are 'sweatshop free' because we pay our workers a fair wage according to California wage and hour laws."

After a business owner suggested that American Apparel put its store at Valley Fair instead of downtown Los Gatos, Webb explained that the clothing store would not consider that.

"You won't find American Apparel at your typical mall; we've been very selective about our locations," she states in her letter to the town. "We are a committed street-retailer. We want people to come into local urban business districts, like Los Gatos, for a more fulfilling community-centered shopping experience."

American Apparel would be considered a formula retail store, which means it has more than seven other locations. Should the application be approved, the percentage of formula retail stores in town would increase from 18 percent to 19 percent.

Also, real estate agent Michael Johnson said that the property, which is 3,748 square feet, is a challenge to rent because of its size. In the staff report, it states that retail spaces over 2,500 square feet have been difficult to lease because rents can range from $12,000 to $17,000 per month.

Ginger Rowe, owner of Time Out Clothing, said that she does not want to see the downtown be taken over by formula retail stores, which she thinks do not participate and give back to the community. She recently organized a town-wide effort to raise money for hurricane victims, and she said that not one formula retail store participated.

The planning commission will return to the issue on Nov. 9. The meeting will start an hour earlier, at 6 p.m.