Business leaders endorse housing for motorcycle plant
Gilroy – County officials hoping to drum up support for a new half-cent sales tax found no sympathizers at the Gilroy Chamber of Commerce, whose members unanimously agreed Friday to oppose a ballot measure that could bring $150 million or more to county coffers each year.
“We don’t have an issue with the county trying to pay its bills,” said Gilroy Economic Development Director Larry Cope. “We just don’t want the big black hole of the VTA.”
Many residents believe the half cent sales tax represents an end run around county taxpayers by the Santa Clara Valley Transportation Authority and the Silicon Valley Leadership Group, the business association backing BART, a multibillion dollar commuter rail extension to San Jose.
In recent weeks, the Leadership Group backed off of its efforts for a new, stand-alone quarter cent sales tax intended to raise billions of dollars for BART and other transportation improvements. The move came after reports began circulating that such a measure faced certain defeat. Now the business group is backing the half cent tax, stoking fears that VTA will use a back door to siphon county money for the BART project.
Those fears were reinforced Friday morning at a meeting of the Gilroy Chamber’s Government Relations Committee, a group that makes political recommendations to the chamber’s board of directors.
Greg Perry, a representative for Citizens for Sensible Transportation, drew attention to the fact that county financial needs other than highways and transportation stand at $32 million – far short of the $150 million to $170 million expected from the new sales tax.
“Why is it a half cent tax?” Perry asked. “The answer is that there’s a back room deal between the county and San Jose” to finance BART.
Santa Clara County Executive Pete Kutras dismissed the accusation.
“There is no agreement to funnel any of the money to VTA,” he said, explaining that county supervisors would retain control of funds raised through a new sales tax.
The dozen or so chamber members on hand voted unanimously on a recommendation to oppose the new tax. Several members said they would support a quarter cent increase for county services in the fall election, if the half cent proposal fails in June.
While they opposed the tax increase, chamber members unanimously supported a 204-unit housing project proposed for the defunct Indian Motorcycle plant off 10th Street. The vote came after project representative and former councilman Tony Sudol gave a brief presentation on the proposal, which includes a four-story condominium complex and dozens of townhomes.
In coming months, council members are expected to vote on a zone change needed to clear the way for the project.
