Former Councilman Tony Sudol has plans to develop former Indian,
Nob Hill site
Gilroy – The warehouse that once served as home to Indian Motorcycles and as headquarters for Nob Hill Foods may one day become townhomes and storefronts, according to newly disclosed development plans.
The proposal is still in the conceptual stage but appears to have the early blessing of city leaders who are crafting new development and zoning guidelines for the downtown corridor.
Tony Sudol, a former city councilman representing the project, planned to submit a zone-change request today that would position the site for “workforce housing” such as industrial lofts and live-work units, as well as retail space. The 6.5-acre parcel, located at 200 E. 10th St. on the eastern edge of the train tracks, is now zoned strictly for commercial use.
If approved, the new homes would lie within walking distance of bus and train stations, a multitude of stores, the city’s movie theater and the future arts center, scheduled for construction off Seventh and Monterey streets by 2008.
“There’s a desire for cities and public agencies to provide high density residences near transit corridors to help reinvigorate cities, especially in downtown (areas),” Sudol said.
The mixed-use theme jibes with the community-oriented style of development officials have sought to encourage in the area. It also fits with their desire to re-use abandoned industrial sites. The warehouse has sat vacant since September 2003, when Indian Motorcycles closed for financial reasons. Although Hollister resident Ken Gimelli purchased the site for $6.1 million early in 2004, many of the 380 workers once employed by the plant held out hope that the manufacturer would return.
It now appears unlikely the city will reclaim those jobs, but officials are welcoming Sudol’s vision for the area.
“It’s probably the highest and best use of the site,” said Gary Walton, a local developer and chairman of the Downtown Specific Plan Task Force. “It can fit in with the transit-oriented district in that area (and) it anchors the south end of the Cannery District.”
The area, slated for hundreds of new homes and stores in the next decade, borrows its name from a development now under way at the old cannery off Lewis Street. That site, double the acreage of the proposed 10th Street project, will bring 201 residential units and 40,000 square feet of retail space to the downtown area. Sudol said it is too early to discuss the ratio of homes and commercial space for his proposal.
The relationships Sudol developed with current City Council members and other decision-makers during his four-year council term that ended in 2001 could help smooth the way for the project. At the same time, his entanglement in a federal lawsuit could hamper his ability to see the project through to its end. In March, the U.S. Securities and Exchange Commission filed a civil suit against Sudol, claiming he provided insider tips about corporate mergers that helped enrich his brothers, Richard and Michael, by more than $400,000. Sudol, who worked as an advance man for Cisco Systems’ corporate acquisitions division, was not accused of personally benefiting from the transactions. He has declined to comment on the charges.
The U.S. Attorney’s office would not disclose if it is pursuing a parallel criminal case against Sudol. It remains unclear if the former councilman could proceed as project manager if faced with criminal charges or if authorities freeze his assets.
For the moment, he plans to move forward with efforts to obtain a zone change, a process that could last six to eight months. He has no plans to incorporate the project within the boundaries of the downtown specific plan. Such a move could shave years off the approval process if councilmen continue to exempt downtown housing units from the city’s building permit competition – a policy credited for helping to fuel the area’s revitalization.
“The specific plan has been a lot of work over the last two years,” Sudol said. “For them to go back and revisit the plans at this point may not be the most appropriate thing.”
He held out the possibility, however, that the project may still qualify for affordable housing or other exemptions depending on final designs.
Whatever specific form the plan takes, city leaders are already looking forward to what they’ve heard from Sudol so far.
Councilman Craig Gartman, who served as treasurer for Sudol’s 1997 campaign for city council, said he welcomed the project.
“I think it’s an exciting proposal to bring some more affordable housing to an area that desperately needs it,” Gartman said. “It would be a great re-use of that location. I’m looking forward to seeing what the proposal is and if it cuts the mustard.”
