Hotbed of new buildings and businesses for district
Gilroy – The city’s historic business district is poised for an explosion of new buildings and businesses after years of decline.
Triple-story buildings are in vogue, with developers constructing or preparing to construct four new buildings in the next year along the Monterey Street corridor. Work has also begun on a project to convert the old cannery off Lewis Street into 40,000 square feet of retail space and 200 homes, and a raft of new businesses are pulling business licenses for storefronts that have sat empty for months or years.
Momentum and energy – the ingredients city leaders have long said downtown is missing, appear to have finally arrived, though not without some pain. The area just emerged from its darkest hour, a seven-month construction closure that transformed a two-block stretch of Monterey Street into a wasteland devoid of shoppers.
A freshly paved street and sprawling new sidewalks were unveiled in mid-October, around the same time businesses and residents started moving into the street’s first three-story, mixed-use building at the corner of Lewis Street.
On the opposite side of the road, the Garlic Festival Association is now constructing another three-story building that blends street-level retail with above-ground apartments.
“I think that now people have finally seen the street come to fruition and the (Lewis Street) building up, there’s some energy,” Mayor Al Pinheiro said. “You’ve got a lot going on. Another six months and you’re going to see another six or seven projects under construction.”
The list includes numerous multi-story buildings at the south and north ends of historic Monterey Street. The first one likely to rise will fill the vacant lot on the west side of Monterey Street, just north of Sixth Street. A second is planned for the former auto dealership at the corner of Third and Monterey streets, and two more will rise on the opposite side of Monterey Street.
Gary Walton, a local developer and a key proponent of downtown renewal, is contributing to the growing list of triple-decker buildings with a new project at the southeast corner of Eigleberry and Fourth streets. The parking lot facing the Gilroy post office will eventually become a building with 18 living units and five retail spaces – especially geared toward restaurants with outdoor dining.
Walton said the level of interest in redeveloping downtown buildings has spiked in the past year. He credits the facelift to Monterey Street and the building at the corner of Monterey and Lewis streets for driving change.
“The more successes we have, the more momentum we’ll have,” he said.
But success means new stumbling blocks.
Walton has a grand vision to redevelop an entire downtown block between Old City Hall and Martin Street. The east side of the street could one day be a mix of three-story buildings, but a lone holdout has prevented property owners from moving beyond initial architectural renderings. Walton said the owners of the Rio Nilo night club have not yet bought into the idea and are instead trying to sell their property for roughly $2.7 million – a steep price that Walton and the mayor believe could stall the project.
“I think there are two schools of thought,” Pinheiro said. “There are people holding out for top dollar and maybe are going to sit with these buildings and are never going to get it. And there are the ones that are smart that are getting their buildings revitalized. We need to get the majority that are interested in making the downtown a great place, and not worry about the ones on the sidelines. Some day maybe they’ll join us.”
The city may have better luck getting creative with plans for a new arts center at the corner of Seventh and Monterey streets. Rather than a simple design of an arts center and a parking lot, Pinheiro is now floating the idea of tucking the center behind a string of businesses facing the street, with parking situated underground or atop buildings.
The more ambitious ideas may never reach fruition, Pinheiro admitted, but he said, “It’s about planting the seed. I think the interest is there.”
Michael A. and William Singh are among the first to cash in on the dream of downtown renewal.
The father-son development team purchased a building at 7574 Monterey St., the former site of Wellington Fish & Chips, and plan to open up a new restaurant in summer 2007. The restaurant, called Downtown Grill, will have outdoor patio dining and will serve American fare, according to Michael Singh.
“We’re really impressed with the things the city has done to generate growth and do everything they can to stimulate business,” he said. “We’re looking to be part of that. We see this as a great opportunity.”
Downtown Grill will join a growing list of new downtown businesses that includes an antique car dealer, a beauty spa and a bank. Domino’s Pizza is exploring a new store in the area and one local businessman hopes to open a micro-brewery.
Projects galore
The following businesses and buildings are in the works:
– A three-story building at the southwest corner of Eigleberry and Fourth Streets.
– Two hundred homes and 40,000 sq. ft. of retail at the old cannery off Lewis St.
– Arts center at Seventh and Monterey Streets.
– Downtown grill and tire company.
– Being discussed: Domino’s Pizza, microbrewery and yoga center.
