GILROY
– An estimated 120 new jobs – from meat cutting to optometry –
and scores of products – all of them bulk-sized and low-priced –
are coming to Gilroy early in the New Year.
GILROY – An estimated 120 new jobs – from meat cutting to optometry – and scores of products – all of them bulk-sized and low-priced – are coming to Gilroy early in the New Year.
Costco Wholesale, the warehouse merchandising giant, announced this week its Gilroy store would open Feb. 27 with an 8 a.m. ribbon cutting ceremony at its 7251 Camino Arroyo location on the southeast side of town.
“Everything is on schedule, actually about 10 days ahead of schedule, so the Feb. 27 date is looking real solid to us right now,” Costco Regional Manager John Booth said.
The “garlic town” Costco is the 44th location to open up in the company’s Bay Area region, which runs from the Oregon border to roughly Salinas and Reno, Nev. to the Pacific
Coast, Booth said.
Already the company has received a heavy load of employment applications. Since Costco does not have a human resources department at every location, applications are available at the Gilroy Economic Development Corporation at 7471 Monterey St.
Gilroy residents are encouraged to apply. Many Gilroy residents who work at Costco stores elsewhere in the Bay Area will be transferred to the local store, Booth said.
The opening of Costco precedes the arrival of Lowe’s home improvement store and a Chili’s chain restaurant in the same commercial area.
Landing these major economic players significantly boosts the sales tax revenue needed to support, among other things, police, fire and paramedic services in Gilroy, says Mayor Tom Springer. And, there figures to be plenty more support to come.
“This will be the primary shopping center as people travel from San Jose to Salinas. A lot of retailers are taking a new look at Gilroy,” Springer said.
The commercial area near Costco is so popular there is even talk of Wal-Mart relocating there from its 7500 Arroyo Circle location and building a Super Wal-Mart, Springer said.
“There are some issues with that, however. We wanted to see that area reserved for new retailers,” Springer said. “We’re happy with Wal-Mart where it is now.”
According to Springer, city officials figure that Wal-Mart in its existing location and a new retailer near Costco would optimize tax revenue for Gilroy.
Springer also said Wal-Mart would have to pay its full share of development impact fees if it constructed a store near Costco. Typically, the city waives the fees for three years on newly constructed retail stores in lieu of sales tax revenue.
“They can move if they want to move, but there would be no economic incentive given to them from the city,” Springer said.
