Nissan building new dealership

COMING SOON Nissan of Gilroy recently broke ground on its new dealership on 6807 Automall Parkway.

Nissan of Gilroy broke ground on its new dealership at 6807 Automall Parkway.

The dealership will move all of its operations from 400 Automall Drive to the new location by early 2020, owner Don Groppetti said.

The new dealership will be built on what is currently a vacant three-acre lot. The 23,948-square-feet dealership will include a 32-foot-tall, two-story building, with 82 parking spaces.

“We are relocating to our new facility, primarily because we believe the location is superior to our current location, and will offer our staff and customers a state of the art modern facility,” Groppetti said.

He added that Nissan of Gilroy’s lease is coming to an end at its current location.

Downtown association gives report

In 2018, 20 events held in downtown Gilroy attracted more than 54,000 people. The downtown also saw 19 new businesses open last year, with four closing.

Private and public investment in downtown totaled $31 million, highlighted by the $26 million apartment complex constructed on Lewis Street.

Gary Walton, president of the Gilroy Downtown Business Association, presented a report on downtown to the city council on June 17.

“A lot of good things are happening downtown,” he said. “Downtown is on the rise. People are seeing that downtown is improving; it’s moving forward.”

Walton said this is the first year the downtown association has relied on data “to show where we have been and where we’re going.” The association received $153,557 in total income, nearly $80,000 of which was from events, while the rest was from grants, sponsorships and other sources.

According to the downtown association, 127 businesses are located downtown, with an estimated 685 employees. Twenty commercial spaces are vacant.

Walton also provided a list of activities on which the association wants the city to act this year, including creating a parking lot at Eigleberry and Seventh streets, former site of the community garden, and maintaining a stronger police presence downtown.

Mayor Roland Velasco said he was “very pleased” to see 19 new businesses set up shop downtown.

“People don’t truly understand how difficult it is to open a small business and be successful,” he added.

Grocery Outlet goes public

Grocery Outlet began trading on the NASDAQ on June 20 for the first time in its 73-year history.

In a press release, the grocery store chain announced its public offering of more than 17 million shares will be priced at $22 per share, under the symbol “GO.”

Based in Emeryville, Grocery Outlet has more than 300 stores in California, Idaho, Nevada, Oregon, Pennsylvania and Washington, including at 333 E. 10th St. in Gilroy.

Grocery Outlet will use the proceeds to repay its outstanding term loans, which is expected to reduce its debt from $854 million to $610 million, according to the company.

In a filing with the U.S. Securities and Exchange Commission, Grocery Outlet stated it has had 15 consecutive years of growth.

“We believe that our broad customer appeal supports significant new store growth opportunities, and we plan to continue to expand our reach to additional customers and geographies across the United States,” the filing stated.

Send business news to Erik Chalhoub at [email protected].

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