GILROY
– The state may be encroaching on the city’s tax coffers more
and more, but Gilroy – thanks in large part to the Economic
Development Corporation and two new retail centers – is in much
better shape than its neighbors.
GILROY – The state may be encroaching on the city’s tax coffers more and more, but Gilroy – thanks in large part to the Economic Development Corporation and two new retail centers – is in much better shape than its neighbors.
At the eighth annual Gilroy Economic Development Corporation’s partnership luncheon Thursday, developers and business, education, political and community leaders praised the nonprofit for being a model for other communities.
The Gilroy Crossing and Pacheco Pass Centers at Highway 152 and 10th Street are “going to be that future that will help us stay ahead of the curve,” Mayor Al Pinheiro said. “And it is because of the EDC that we will be able to continue to do that.”
Gilroy, with a population of 46,000, recieved more than $1 billion in annual taxable retail sales last year, more than some cities twice its size, Economic Development Corporation President Vic Vanni said.
The two newest retail shopping centers, with stores like Costco, Target, Sportmart and Barnes & Noble, and restaurants like Chili’s and Maui Tacos, offer 1.2 million square feet of retail space that should keep revenues flowing.
“Because of the situation with the state, it’s clear it’s going to be a benefit to us down the road as the state becomes more involved in taking money from local government,” Vanni said.
Sales tax is the backbone of city finances, making up nearly half of Gilroy’s general fund. Cities now have three general fund revenue sources – property taxes and vehicle license fees are the other two – where 13 years ago, they had nine, said City Councilman Roland Velasco.
As the state often deals with its financial shortfalls by siphoning local money into Sacramento, increased sales tax becomes even more significant. The grand opening of Beverages & more just two weeks ago and Saturday’s Sportmart opening are the most recent examples of major brand names that will increase Gilroy’s taxable retail sales.
Bill Lindsteadt, executive director of the Gilroy Economic Development Corporation since its inception, has predicted that in 2004, Gilroy could beat its 2003 tax revenues of $9.3 million by up to 15 or 20 percent.
Local business leaders applauded Lindsteadt Thursday for helping pave the way for developers and aggressively promoting this city to businesses.
“If Bill invites you to lunch, beware,” said Glenn Pace, EDC vice president and local developer.
Lindsteadt provides developers with all the Gilroy demographics information they need to ensure they can attract potential employers, Pace said. With the Highway 152 corridor thriving, Gilroy already stands to gain 5,000 jobs, he said.
“This is where Bill really shines, is to shepherd these projects through the city,” he said.
Some newer economic development agencies use Gilroy as a model, given its success.
“To go to another community and show them how it works here, … it’s so simple: It’s just a matter of this thing called cooperation and coordination, rather than having two agencies, an EDC and a Chamber, try to do the same job,” Lindsteadt said.
Susan Jacobsen, past Chamber of Commerce president, praised the partnership between the EDC and Chamber.
“It’s a beautiful relationship, just like a marriage, one needs the other,” she said. “I just don’t think they could do each other’s job.”
