The Gilroy City Council is taking a second look at the Gilroy
Visitors Bureau’s plans to sell retail items when the tourism
organization moves into its new location and changes its name later
this month.
The Gilroy City Council is taking a second look at the Gilroy Visitors Bureau’s plans to sell retail items when the tourism organization moves into its new location and changes its name later this month.
The bureau promises to offer Gilroy themed merchandise – including lip balm, luggage tags, tote bags and postcards – when it treks from its Monterey Road location to the Gilroy Premium Outlets, Executive Director Jane Howard said. But brothers who own two well-known Gilroy shops say the Bureau’s retail path is a conflict of interest, and a city-funded endeavor shouldn’t compete with other local businesses.
“The City of Gilroy and the Gilroy Visitors Bureau need to get out of the retail business,” said Alex Larson, who along with his brother, Charles Larson, owns the Rapazzini Winery and The Garlic Shoppe.
Charles Larson called the plan to sell retail items “reckless.”
“I think you all believe in local government being for the people,” he said. “The city shouldn’t be funding private businesses.”
The Council voted 6-1 Monday night to invite Howard to a future Council meeting to answer questions regarding the Bureau’s retail plans. Councilman Perry Woodward was the lone dissenting vote. No date for Howard’s return has been set.
In an agenda item prior to the vote, Howard presented the Council with an annual Visitors Bureau report, detailing the organization’s progress over the last fiscal year, which ended June 30.
Howard voluntarily clarified the Visitors Bureau was not trying to compete with local businesses, and Council members did not ask her any questions following her presentation.
“This is a welcome center with a small amount of retail,” Howard said, adding the center estimates to earn around $10,000 from retail sales over an entire year.
Howard said the center would sell consignment items, meaning the Bureau wouldn’t pay for the items unless they sold them. She said she meticulously selected items visitors likely wouldn’t find in other places.
“It’s the type of things people expect at a welcome center. It’s not about competing,” she said.
In May, Howard announced the Bureau’s desire to sell a small amount of retail items. The city upped the Bureau’s allocation from $160,000 to $300,000 per year for the next two fiscal years when it approved its new budget, and Howard said the center would continue to look for funding sources independent of the city.
Councilman Peter Arellano suggested the conflict of interest issue come back to the council as an agenda item.
“I’m looking for more information how we as a government can support a retail outlet,” Arellano said. “We need to talk about policies, and who we are going to subsidize and who we are not going to subsidize.”
City Administrator Tom Haglund suggested Howard return with a full description of center’s retail plans, but didn’t think the city was subsidizing the organization.
“I’m not so certain there’s a subsidization of this by the city’s contribution, but the funding of the underlying mission of the Visitors Bureau,” Haglund said.
Howard said the center’s rent will be $1 a month, the same price it pays now.
