The standoff over a proposed 13-story tower in Los Gatos has turned into a legal staring contest, with developer Ben Eisenberg warning the town it could be on the hook for big attorney bills if it stands in his way. Town leaders are not buying it and have formally pushed back, even as the high-rise plan inches through the local review process and the two sides square off in court.
Developer's warning at council
At a Dec. 16 Los Gatos Town Council meeting, Eisenberg, appearing remotely, told council members he had already secured attorneys’ fees in similar fights and warned that trying to block his Vista Capri proposal could cost the town dearly. As reported by San Jose Spotlight, he argued that the town’s lawsuits "will cost the town dearly" if it keeps resisting the 13-story, 119-unit project on a narrow, wedge-shaped half-acre off Winchester Boulevard.
Council response and town documents
Council members unanimously fired back the same night, approving a "Statement and Findings" resolution that rejects Eisenberg’s claim that staff is dragging its feet and affirms that his application is being processed. According to the town’s Dec. 16 agenda packet, the materials spell out technical review comments, public correspondence and a draft resolution from Town Attorney Gabrielle Whelan responding to the developer’s challenged conduct notice. The staff report and an addendum are included in the meeting materials the council considered.
Builder's remedy and state law
At the core of the dispute is California’s builder's remedy, a provision of the Housing Accountability Act that sharply limits local governments’ power to deny qualifying housing projects in cities that lack a state-certified housing element from the Department of Housing and Community Development. State officials and the attorney general have warned that improperly refusing or slow-walking builder's remedy applications can lead to court-ordered attorneys’ fees, fines and other penalties. The Attorney General’s legal alert and the text of the HAA spell out how the remedy vests and what local governments risk if a court finds they violated state housing law.
The lawsuit and court filings
Los Gatos LLC, the Fullerton-based company Eisenberg created for the Vista Capri project, sued the town earlier this year after Los Gatos repeatedly found the company’s applications incomplete, according to The Real Deal. Local reporting describes a second amended petition filed Dec. 5 that challenges the town’s use of zoning overlays and leans on recent appellate rulings as part of the developer’s argument. Those court claims will move ahead on a separate track while the town continues its administrative review.
Neighbors raise safety and traffic worries
People living near the wedge-shaped lot have mounted their own opposition campaign, arguing that a tower of this scale does not mesh with the realities on the ground. They point to Capri Drive’s limited exits, existing traffic congestion and emergency access as top concerns. A neighborhood opposition website and public comment letters submitted to the town describe a street network that funnels cars into just a few choke points and urge a detailed environmental and safety review. Those comments were included in the town’s packet and formed part of the record before the council last Tuesday.
Developer profile and project details
Eisenberg bought the roughly half-acre site at 14288 Capri Drive in late 2023 for about $1.7 million and has since submitted several iterations of the Vista Capri application to town planners. San Jose Spotlight reports that the applicant is tied to a mailbox address in Fullerton and notes that Eisenberg was previously suspended from practicing law in California after State Bar discipline. The filings describe a 119-unit apartment tower that includes a portion of lower-income units and relies on state housing law arguments that limit the town’s usual zoning discretion.
What happens next
For now, both sides are moving on dual tracks. Los Gatos staff continue their technical review of the Vista Capri plans while the courts consider the developer’s petitions, which could decide how far the town can go with certain procedural requirements. Local reporting notes that the council has held closed-session discussions and that additional administrative actions are likely even as the legal fight unfolds. The result is a slow, parallel process that is likely to delay any final outcome while judges and town officials each work through their respective steps.
Legal implications
If a court concludes that Los Gatos improperly blocked or delayed a qualifying builder's remedy project, the town could be ordered to pay the developer’s attorneys’ fees, face statutory penalties and even post appeal bonds, as outlined in the attorney general’s guidance. Recent state laws and court decisions have sharpened how the builder's remedy operates and what triggers it, raising the stakes for cities that try to stretch local review beyond objective standards. Cities that find themselves in similar builder's remedy battles have at times opted to settle or to post bonds rather than risk costlier judgments that could force project approvals or large payouts.
