Study calls for new business direction for downtown area
Gilroy – Starbucks won’t be opening downtown anytime soon, but an eclectic mix of restaurants and specialty stores could inject new life into the historic business district, according to the newly released Downtown Gilroy Strategic Plan.
The 83-page report by Economic and Planning Systems Inc., of Berkeley, offers a snapshot of the downtown’s allure for new businesses and ways to stoke interest in the area.
“Downtown Gilroy does not have the established retail sector, demographics, traffic counts and large building formats that are generally required to attract major national chains,” the report states, recommending instead a focus on attracting new restaurants.
The area’s limited offerings are now comprised of a handful of low-priced Mexican eateries, Happy Dog Pizza Company, Harvest Time Restaurant a pair of family-style diners. Two previous attempts at high-end dining – Old City Hall Restaurant and Station 55 on Fifth Street – did not last more than a few years.
Finding unique restaurants in the Bay Area and convincing them to open new sites in downtown Gilroy has been a top priority for Gilroy Economic Development Director Larry Cope, who in recent months has prospected for dining options in Capitola, Monterey, Mountain View, Santa Cruz and Sunnyvale.
“I’m looking at places that have unique restaurants that are looking to expand,” he explained. “It should be some kind of interesting combination that will serve locals and attract people from all around town. We’ve been looking at the deli concept or a wine and cheese shop that offers things you might not find in the grocery stores. We’re looking at sit-down family-type restaurants that have a unique ambiance to them. Maybe one or two more elegant places.”
Cope’s efforts jibe with a report recommendation to start a restaurant recruitment program. In many cases, he said he has relied on friends and colleagues to serve as business scouts. A handful of businesses are gathering information on Gilroy as a result of the effort, Cope said, but none have reached the point of taking out loans and applying for building permits.
To encourage outdoor dining, the report recommends allowing bigger tables on the downtown’s sprawling new sidewalks. Officials may also consider banning plastic furniture and replacing it with bistro-type tables and chairs.
New restaurants could help the downtown capture a bigger share of the $64 million Gilroy residents spend at city businesses each year, much of it at big-box stores and the Gilroy Premium Outlets. The downtown captures less than half of that amount, the report states, suggesting “that downtown retail is currently under-performing but has a large consumer base on which to draw.”
Hundreds of new housing units will be constructed in the downtown in the next few years, providing a core customer base for the maturing downtown, according to the report. Luring customers from beyond a half mile radius – traditionally considered “walking distance” – will require a mix of unique businesses such as art galleries, craft studios and vintage clothing stores, the report states.
The city has already started work on many of the recommendations aimed at attracting such businesses. Officials, for instance, have found ways to speed up the permitting process – a key consideration for merchants looking to renovate a building – and business and civic leaders are discussing plans to establish a business improvement district. The entity would allow merchants to share the costs of marketing and other programs aimed at drawing customers.
To a large extent, officials say the $60,000 study confirms the direction the city is already taking with the downtown.
Plenty of important questions remain unanswered, said Larry Mickartz, president of the Downtown Business Association.
“I think one of the things we really need downtown is to survey the neighborhood within a half mile and ask people what they need and see what their concerns are right now,” Mickartz said. “What types of businesses do people want? And what are their perceptions of issues in the area – safety, lighting, parking, if they need more events downtown. We feel that’s a missing piece that nobody’s really got a handle on right now.”
The business association hopes to complete the survey in six months. To obtain a copy of the downtown marketing plan, contact the city’s planning department at 846-0440.
