The North 40 Specific Plan included both private and public schools as permitted uses within the North 40 Specific Plan Area. Public schools are regulated by the State as to proximity to certain uses such as freeways and gas stations. Additionally, the Leroy F. Greene School Facilities Act of 1998, or Senate Bill 50 (SB 50), restricts the ability of local agencies, such as the Town of Los Gatos, to deny land use approvals on the basis that public school facilities are inadequate. SB 50 authorizes school districts to levy developer fees to finance the construction or reconstruction of school facilities to address local school facility needs resulting from new development. SB 50 establishes the base amount of allowable developer fees for school impacts. In January 2016, the State Allocation Board (SAB) increased Level 1 Fees to $0.56 per square foot of enclosed and covered space in any commercial or industrial development, and $3.48 per square foot for residential development (SAB, 2010). Public school districts can, however, impose higher fees than those established by the SAB, provided they meet the conditions outlined in the act.
Developers and School Boards can voluntarily consider additional arrangements. For the southern portion of the North 40 Area, the Los Gatos Union School District Board entered into an agreement with the prospective developers regarding school issues. It can be viewed here.