The single largest building project the City of Gilroy has seen in five years is at a standstill.
The proposed Oak Creek project, a 26-acre, 237-unit residential development in the south side of Gilroy at the intersection of Luchessa Avenue and Monterey Road would include 213 single-family homes and 24 condominium units. The master plan was approved in 2009, and more recently, specific grading approval was granted by the City in April.
But all that sits in the empty lot now is grading on the housing tract, causing many residents and would-be home buyers to wonder what is going on.
According to City Public Information Officer Joe Kline, the project has been delayed until off-site improvements are finalized and approved between the developer, Los Angeles-based KB Home, and the City’s engineering department.
Some of those off-site improvements, which the developer is responsible for, include a new sound wall that will be installed on the north side of Luchessa Avenue and the widening of W. Luchessa Avenue into a four-lane road.
Development Engineer for the City, Teresa Mack, said some other off-site improvements – a combination of compliance with City standards and part of the overall approval process – include various traffic signal improvements and installations, as well as construction of a roundabout. The entire project goes through an environmental review process determining off-site impact, Mack explained.
She also said that KB Home is in negotiations for the title of a propane facility that is located on the property and owned by Vince Giacalone, former chief executive officer of Giacalone Electrical Services, Inc. in Gilroy.
“There are lots of moving parts and we’ve been working together to get the project going,” said Mack.
Kline said a lot of the details are being worked out on the engineering level, and until those details are finalized and approved, construction of the project as a whole is on hold.
“It’s a joint effort; the developer is responsible for the designs of the project but obviously the City needs to approve those designs to make sure City codes are met,” he said.
Once the engineering details are worked out, Kline said the developer will be responsible for conducting outreach with neighbors who live adjacent to the proposed development on the north side of Luchessa Avenue.
“The developer is supposed to let neighbors know what is planned and what the timetable for construction is,” Kline explained, adding that the City is helping to facilitate that communication.
According to KB Home corporate communications director, Craig LeMessurier, the first homes to be built will be model units, showcasing the developer’s varied design layouts. This includes two-story, single-family homes with three-to-five bedrooms. Projected floor plan sizes vary from 1,800 to 2,400 square feet and the homes are built to order.
KB Home wouldn’t release the projected price of the houses, but Coldwell Banker Realtor Lisa Cassara previously estimated that people will be forking out around $500,000 to stake a claim in Gilroy’s southward expansion.
Generally speaking, Mack said the developer has been cooperative in the process to get plans finalized and approved, “but a little slow.”
