When City Council passed a revised version of Gilroy’s sign ordinance that banned A-frame signs, permanent banners and costumed advertisers, it sparked concern throughout the small business community. But after that spark grew through community activism and door-to-door outreach by business owners and concerned citizens, the fire could not be ignored—or extinguished.
At its June 9 study session, the council decided to reconsider the ordinance and incorporate suggestions of a local collective that, in collaboration, developed signage standards in hopes of keeping signs that entice customers through the doors.
Elsa LeDon, proprietor of downtown’s Queen of Hearts Boutique, presented the collective’s proposed modifications to the ordinance that would regulate A-frame signs across town and require uniformity based on where a business is located. In the downtown historic district, for example, the collective suggested using metal A-frame signs and proposed using tall white plastic A-frames elsewhere.
The collective, jumpstarted by Fiesta Auto Insurance franchise owners Barbara and John Rubio, offered to enforce its own rules—if ultimately adopted by council—provide information on the regulations and offer workshops to new and existing business owners.
The council’s decision to formally reconsider the regulations was a long sought victory for the Rubios and other members of the collective.
“Our voices are now being heard,” Barbara said after the decision.
“It means the city is willing to work with us and make this a win-win situation,” John added.
After the ordinance was first passed in March, the Rubios organized gatherings of business owners and community members in hopes of developing a business-led alternative. Over time, the gatherings grew larger and they presented the result of their collaboration to the council.
They bridged the “lack of communication” between the City and small business owners who speak limited English or may not be accustomed to involvement in city matters, Barbara said.
Though the City held meetings of a Sign Ordinance Task Force over the course of two years prior to the adoption of the ordinance, downtown business owner Gary Walton said the council should have ensured as many business owners were involved from the start.
“That way, you won’t have people all up in arms,” Walton said, addressing the council. “You need to really look at the process you went through to come up with the ordinance. The process was flawed. There was no buy-in by the small businesses to this ordinance.”
Ultimately, the collective’s efforts to change the regulations they said are hurting their bottom lines were recognized by a majority of the council.
“I was very pleased to see this level of commitment from business owners,” Councilwoman Terri Aulman said. “They want the same thing that we want for our city (which is) for it to look nice. The fact they were all willing to do this level of work to bring this back to us is heartwarming.”
But for many small business owners, the ordinance—which took effect May 7—has proven costly. According to president and CEO of the Gilroy Chamber of Commerce, Mark Turner, local business owners say they’ve lost between 10 and 25 percent of their customer base in the month since the sign ordinance took effect.
“Signage is a critical part of the ability for a small business to survive,” Turner added. “With the hundreds of businesses we have here in town, five to 10 percent has a major impact on our local economy.”
Richard Trujillo, owner of Sign-O-Graphics on Church Street, said his business has dropped off dramatically.
“People have come in to purchase banners (or A-frames) from my business, and I’ve educated them on the new ordinance,” Trujillo said. “The second I do, they take their deposit back from me, rip up the check and tell me ‘no thank you.’”
But the purpose of the ordinance wasn’t to hurt small business, Mayor Don Gage said.
“It’s to make it a little more attractive,” Gage said, adding he’s heard complaints about “trashy” signs downtown.
“We want to make our city nicer; it’s not about going after small business,” Councilman Dion Bracco added. “I’m really glad to see that some business owners have stepped up and gotten involved in the process so that we can make Gilroy better for the City and the business owners.”
City Council will reconsider the ordinance and discuss potentially incorporating the collective’s recommendations at the July 1 meeting. There, council is expected to determine which sections of the ordinance will be a low priority for the City’s code enforcement team—tasked with warning, citing and fining those who violate it.
The ordinance review process is expected to continue at the Aug. 18 council meeting.
Until the ordinance is formally reconsidered, the City’s ability to enforce it is limited, according to City staff. As of press time, Gilroy has not hired two part-time, temporary employees specifically tasked with enforcing the ordinance over a six-month period, as requested by the council in March.
“Until we bring them on onboard, we have limited capabilities to do proactive sign code enforcement,” Development Center Manager Lee Butler said.
City Administrator Tom Haglund explained that enforcement of the regulations related to A-frame signs, banners and costumed advertising “has not started in earnest.”
“Given the council’s discussion, we will likely defer any specific enforcement in these three areas, except for any safety or right-of-way related issues caused by signage, until after the council provides us specific direction July 1,” Haglund added.
In the meantime, John Rubio said the collective plans on holding more meetings and will collaborate with the Chamber and the Gilroy Downtown Business Association on how to move forward.
Following council’s decision, Trujillo was beaming—hopeful the regulations will soon change in favor of the small businesses who oppose them.
“It’s a great feeling knowing that they (the council) are willing to work with us. I feel good,” Trujillo said with a smile.
