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Gilroy
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August 18, 2022

Delivery center moves forward

Amazon is the likely tenant of project on Highway 152

The Gilroy Planning Commission on Oct. 21 gave its OK to a project that would add a large-scale delivery center, warehouse and commercial space on a nearly 60-acre piece of farmland at the intersection of Highway 152 and Camino Arroyo.

While not confirmed by the company, signs point to the delivery center’s tenant being Amazon, the online retail and web services giant.

The project will head to the city council at a future meeting for consideration.

According to plans submitted to the city by Irvine-based Panattoni Development Company, a 143,153-square-foot delivery center building and a 266,220-square-foot warehouse are proposed on a roughly 59-acre site, in addition to more than 650 van parking spaces and various stormwater management basins.

The delivery center would be constructed during the first phase, according to the plans.

The property runs along Highway 152, between HomeGoods in the Pacheco Pass Center and Recology South Valley’s facility. The proposal leaves a five-acre parcel open for a future commercial project at the intersection.

The currently agricultural land, known as Rancho San Ysidro, is zoned General Industrial, according to Gilroy’s 2040 General Plan.

During a joint meeting between the Gilroy City Council and Gilroy Unified School District Board of Education on April 26, Community Development Director Karen Garner said Amazon will be the tenant.

A spokesperson for Amazon declined to comment.

In documents submitted to the city, the project is identified as “DXC1 Logistics,” and is referred to as a “last mile” facility, which receives packages from fulfillment centers that are then loaded into vehicles for delivery.

A project description states that the facility expects to be staffed with 197 full-time positions that start at $15 an hour. The document and plans mention the “Flex” driver program, which is an Amazon initiative, as well as the building’s color of “Prime” blue, another company term.

Panattoni Development Company has worked on a number of Amazon delivery stations in California and throughout the nation. It recently completed a similar project in Hollister at the corner of San Felipe and Flynn roads.

During the Oct. 21 meeting, some commission members expressed concern over how traffic would be impacted on the already-congested Camino Arroyo, but were supportive of the overall project.

Erik Chalhoub
Erik Chalhoub joined Weeklys as an editor in 2019. Prior to his current position, Chalhoub worked at The Pajaronian in Watsonville for seven years, serving as managing editor from 2014-2019.

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