Is dream of a water park going down the drain?

By Jack Foley
Senior Editor
Ten months after Gilroy learned that a huge water park resort might come to town, no one on the city council seems to know where things stand or what it would mean to add such an attraction to the city’s bag of tourist-enticing tricks.
But at least one council member believes officials at Great Wolf Lodges, reportedly also exploring other Northern California cities, is just stringing Gilroy along.
The concept as floated in a joint city-Great Wolf press release last year was for the highly successful chain to build an indoor waterpark and 300 to 500-room resort lodge, conference and banquet center on 30 acres of unused land in the city-owned Gilroy Gardens Family Park on Highway 152, in western Gilroy.
But since then, the Madison, WI-based firm has had nothing more to say despite repeated media requests for more information.
Early Wednesday morning, Great Wolf Resorts Media Communications Manager Rebecca Smith in Chicago emailed this comment in response to a series of detailed questions sent by the Dispatch that asked about the status of things in Gilroy:
“We continually search for opportunities to expand Great Wolf Lodge to new audiences and Northern California is a market we’ve been exploring. As part of this exploration, we are having active and ongoing discussions with the city of Gilroy. At this time, it is still premature to discuss any specific plans.”
The statement is almost identical to one sent out in early March. Here is that one:
“We continually search for opportunities to expand our category-leading, family-friendly brand of indoor waterparks to new audiences. At this point, it is premature to speculate on the potential of us developing a Great Wolf Lodge in Gilroy,” said communications director Jason Lasecki in an email.
The city and Great Wolf have a confidentiality agreement while each explores finances, land uses, etc.
Such agreements are common, but what they mean, in effect, is that their own elected officials and city employees have agreed to bar themselves from sharing information with concerned and interested citizens until an outside party says it’s OK.
Nor apparently are city officials allowed to share what their internal research might reveal about how Great Wolf does business and, for example, whether it has been a boon or bust for other cities that have invited them into the community.
The city council has held several closed-door discussions on the matter but the substance of those discussions are secret.
An official did confirm this month that the idea of Great Wolf coming to Gilroy is still alive, as he did in March.
“The fact that we are still talking is a good sign,” Gilroy City Administrator Gabe Gonzalez said recently when asked for an update.
Both parties continue to explore what locating in Gilroy would mean, he said, but Great Wolf has not indicated a time frame for its decision.
Until they indicate a preference for Gilroy, it’s premature to engage in community discussion, he said.
He reiterated the city’s position that it will not sell public land to Great Wolf, which means the firm would likely have to agree to a long-term lease if it wants to splash down in Gilroy.
“Last I heard, GW is still interested in Gilroy and is taking a deeper look into finances,” Mayor Roland Velasco said in a recent email.
“It’s too early in the process to form an opinion. I’m supportive of the City conducting a financial review to determine if GW is feasible. The community needs this information so that we can make a rational decision,” he added.
Former Mayor Perry Woodward, who first announced the resort’s interest in August 2016, and whose family stayed in one of the firm’s resorts in Southern California and enjoyed it, said he has not discussed the matter since leaving office seven months ago.
“When I was the mayor they were very engaged and very interested, I don’t know if that has changed or not,” he said Tuesday.
He continues to believe it’s a good deal for the city in terms of hotel taxes, and that it and would help Gilroy Gardens.
The theme park faces a significant increase in labor costs when the state’s minimum wage hike goes into effect, and that has city and the park’s nonprofit board concerned. The board’s meetings are not open to the public and its records are not subject to public inspection under the states’ Public Records Act.
“Gilroy Gardens has not been a tremendous commercial success, it has gotten by but at times just barely,” Perry said.
Opening a premier water park at the park would “create a synergy. It’s hard to think of anything better,” Woodward said.
Velasco and Perry, his former opponent for the Mayor’s seat agree on that point, even use similar language.
“I believe Gilroy, along with the synergy of Gilroy Gardens, is the best place for GW.  I think they realize that too,” the Mayor he said in an email.
When surveyed via email by the Dispatch on June 20, with two follow-ups, four of the six other council members responded. Dan Harney and Peter Leroe-Munoz did not respond.
Harney is serving his second appointed stint on the council but has never been elected. Last year, he came in sixth in a field of eight, well out of the running, but was later appointed by the council to the seat vacated with Velasco’s election as mayor.
Leroe-Munoz has served since 2010 and recently announced his candidacy in the 2018 race for the 30th District seat in the California Assembly.
Of the council member who did respond to the survey about Great Wolf, first term councilman Fred Tovar said he supports the resort in Gilroy and will go to bat for local jobs and more.
“I will be advocating that if this project becomes reality, that they make it a priority to hire local residents. In addition, my hope is Gilroy residents will have special access if possible,” he said.
The latter comment was in response to questions about whether access to the indoor water park and it’s towering slides and Olympic size pool will be restricted to lodge guests and refuse admission to residents who just want to have a fun day in the water.
“Since the City of Gilroy is and will continue to be a desirable tourist destination, and Gilroy continues to look for ways to capitalize on local opportunities like Gilroy Gardens, wineries and others local attractions, I believe the Great Wolf would be a positive for the city,” Tovar said in an email.
Paul Kloecker, who was re-elected to the council last year after a long absence, said in an email, “I have no specific info on this project, so have not formulated any opinions about as yet.”
Councilwoman Cat Tucker echoed those sentiments but went further. “I truly don’t have an opinion yet because we don’t have any details…I can tell you that I have not seen any details and it seems logical that GW will try to negotiate a deal that is best for them.”
She added her opposition to the city paying anything to “entice” a private firm to the city, “no matter how much we are promised in future revenues.
“We just have to look north to Santa Clara for an example (Levi Stadium) to see how those deals don’t work out for the benefits of citizens,” Tucker said.
For his part, Councilman Dion Bracco seemed to suggest that Gilroy might already be out of the running with Great Wolf.
“I really don’t have any opinions on this except to say I personally don’t think they’re serious,” he said in an email, adding, “I haven’t received enough information to comment on it.”