The Westfield Corporation has agreed to pay the salary of a new
city planner as it seeks to pursue a

more aggressive timeline

on a proposed 1.5-million-square-foot mall in east Gilroy.
Gilroy – The Westfield Corporation has agreed to pay the salary of a new city planner as it seeks to pursue a “more aggressive timeline” on a proposed 1.5-million-square-foot mall in east Gilroy.

An entourage of Westfield representatives agreed to the idea Jan. 11 during a meeting with top city administrators. City Planning Manager Bill Faus said Westfield representatives did not hesitate about funding the position when Gilroy officials proposed the idea.

“The project is very complex and they would like to move this along very fast, even to the point of funding a dedicated position on staff,” Faus said. “They’re willing to put that on the table in order to move that along a more aggressive timeline.”

The outdoor mall would be larger than the combined area of the two shopping centers off Highway 152 and could require a new highway ramp south of Leavesley Road. In addition to passing through Gilroy’s regulatory process, Westfield, the developer of Valley Fair mall in San Jose, will have to get a regional land use agency to sign off on annexation of 119 acres of farmland.

“We view Gilroy as an exciting investment opportunity,” said Westfield spokesperson Katy Dickey, “and look forward to working with the city, regional officials and other stakeholders.”

She did not provide additional details about the timeline or other project details.

The farmland, located just east of the Gilroy Premium Outlets, has been a source of friction between Gilroy officials and the Local Agency Formation Commission, an agency with veto power over annexation requests in Santa Clara County.

The relationship became strained about six years ago, when council members defied the agency and included the land in Gilroy’s 20-year growth boundary. The move set the stage for future development of the land and undercut LAFCO efforts to encourage a permanent urban edge around South County cities.

A recent change in the makeup of the five-member commission may bode well for the fate of the Westfield project. One of Gilroy’s fiercest critics on the commission, former San Jose Councilwoman Linda LeZotte, has been replaced by Pete Constant, a newly elected San Jose councilman. Constant is a self-described property rights advocate who plans to meet with South County leaders to discuss growth issues.

A friendlier LAFCO could prove vital for the success of the project. But the first order of business for Westfield involves gauging city council’s interest in moving forward. When city leaders decided to target the land for development, talk centered around the tail end of a 20-year growth plan. Now, just six years into the 20-year growth plan, officials are faced with a project that could pave over a large swath of some of the best remaining farmland in the area.

“When this was being talked about, that was seven years ago,” Gilroy Councilman Craig Gartman said, referring to the General Plan update process. “In the 20-year plan, we’re already a third of the way through it, so I wouldn’t characterize this as happening quickly.

“I think it sounds like a great idea,” he added. “I don’t see how it would adversely affect us. It’s an honor to be even thought of as being a marketplace for such a large investment. I think it says something about the attractiveness of Gilroy as a retail center.”

Connie Rogers, an environmental advocate who opposed the inclusion of the farmland in the Gilroy’s 20-year growth boundary, questioned the idea of Westfield paying for a city planner. The fact that the city would conduct the hiring process and the employee would answer to city officials did not ease her concerns.

“It’s like the fox guarding the hen house,” she said. “It’s scandalous.”

She also pointed out that the land is currently slated for use as an industrial hub. Seven years ago, a handful of pro-growth business and civic leaders convinced city council to target the land for development. Officials hoped the land would attract technology firms and other high-paying employers to Gilroy. The city would have to rezone the land for commercial use for Westfield to proceed with development.

The company would also have to design a so-called specific plan for the entire 660 acres of farmland and open space brought into the city’s 20-year boundary. That land stretches well beyond the 119 acres Westfield needs for its project and includes all the farmland and green space up to Llagas Creek – a mile from the city border.

“One of the general premises in our conversation with (Westfield) is that the 660 was always predicated on the fact that all of it was going to be planned … at the same time,” City Administrator Jay Baksa said. “We told them they have to plan everything and I think they’ve accepted that, but we still have to hear from them. They still haven’t signed on the dotted line.”

Company representatives and city council members will meet Feb. 5 to discuss a proposed timetable for the project, preliminary designs and other basic information. The 6pm meeting at City Hall is open to the public.

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