Gilroy
– With one property down and 13 to go, the city’s dream of a
downtown cultural arts center is one step closer to reality, but
challenges remain staunch.
The Gilroy Parks and Recreation Commission announced Tuesday
night that
”
the city is the proud, new owner of a taqueria
”
on Seventh and Monterey streets, the future site of the new arts
center.
Gilroy – With one property down and 13 to go, the city’s dream of a downtown cultural arts center is one step closer to reality, but challenges remain staunch.
The Gilroy Parks and Recreation Commission announced Tuesday night that “the city is the proud, new owner of a taqueria” on Seventh and Monterey streets, the future site of the new arts center.
El Grullense Tacos, which sits on property leased by city staff member George Besson Jr., will move across Monterey and a half-block north by Predator’s Archery. Hugo Llamas owns the taqueria along with his brother and cousin. The family owns three other El Grullense taquerias: on First Street, in Hollister and in Los Banos.
Paid for by the city, the move will cost between $100,000 and $150,000 and should take about six to nine months to complete, said City Facilities Development Manager Bill Headley.
The city secured the property Aug. 10 for $300,000 from Besson, Headley said. The Gilroy City Council approved the sale in June.
The remaining 13 properties are owned by four different landlords. While Headley said negotiations are underway “in one form or another” with each of the four landlords, two pose unique challenges for the city.
The family of recently deceased Baleriana Oyao had agreed to a $310,000 deal with the city a few months ago for her property on Seventh Street. Baleriana Oyao owned two houses on the lot and lived in one from 1964 until her death in July, fulfilling her promise to stay on her property until she died regardless of the city’s requests.
But after Oyao’s passing, the family hired a new attorney and the deal has since reopened, said Francisco Oyao, Baleriana Oyao’s grandson, on Wednesday.
Another landlord with property on Seventh and Monterey streets is 83-year-old Loi Dong, who owns a Chinese eatery that has been closed for nine years. The past several months have been a tangle between city officials and Dong, who said the city’s offer of $97,000 for his property was far from sufficient. That figure came from a city-hired appraiser, and Dong contested with a $330,000 estimate from a different appraiser.
The city attempted to bring in a third appraiser but Dong refused access to the building, insisting it’s in good condition with the exception of a water-stained ceiling.
The worth of Dong’s property seems to be disputed among city staff. City Councilman Craig Gartman said he agreed with Dong that the city’s initial appraisal was too low, considering the property’s commercial value.
“You’re talking about a 4,500- to 6,000-square-foot building right on Monterey,” Gartman said. “But I was in the minority in that decision.”
But the city’s Administrative Services Director Mike Dorn said Tuesday that Dong has “an overblown idea of what his property is worth.”
By law, the city is required to ensure Dong incurs no financial loss through the ordeal. But even though the art center’s project time budget is still indefinite at this point, city officials are beginning to tap their feet in wait. Council voted in June to start the process of eminent domain on Dong’s property, and it remains to be seen if the remaining landowners – the Gera family and the Salvation Army – will incur the same.
Gartman said the city made a mistake when it pinpointed Seventh and Monterey streets as the only desirable site for the arts center. Because landowners know city officials are drooling for their property, they’re less willing to unclench their fists, Gartman said, and such a standoff is significantly raising the project’s pricetag.
“What it’s getting down to is that everyone wants to be the last person at the table, because that person will get the best price,” Gartman said. “From a city standpoint, we have no bargaining chip. They have the land, and we’ve said we want it.”
In order to pursue eminent domain, the city first must prove the property is “absolutely necessary for the health and well being of the community” – a label Gartman is hesitant to slap on an arts center.
“I would have to dig deep to justify that action,” Gartman said. “I can see (eminent domain) for a hospital or a freeway. I can see that for a major roadway or sewer line. But a desire to have an arts center, I think that’s stretching the definition. But I’d have to hear all the arguments.”
Although Councilman Charles Morales agreed that eminent domain should be a last resort, he questions the time and money the city already has lost.
“We have allowed all parties enough time to come to resolve on this particular issue,” Morales said. “I dislike putting people out on the streets, but nevertheless, the process has taken an ample amount of time.”
Despite the road bumps, members of the Parks and Recreation Commission said they are pleased with the art center’s recent progress, deeming the Besson sale as the center’s “first solid step.”
“We’re on track. It may not have been as smooth as everyone wanted it to be, but it’s happening,” said member Sherri Stuart.
The city’s vision of the estimated $9 million arts center, expected to reach completion in four to six years, will serve as the shining centerpiece of a revitalized downtown. City planners already approved the building’s conceptual design, and a business plan will be presented to city council by October if all goes well, said Recreation Superintendent Cheryl Bolin.
