Gilroy
– Two newly approved buildings are helping to push the city’s
historic downtown beyond its traditional core, marking the latest
phase in the area’s rebirth.
Gilroy – Two newly approved buildings are helping to push the city’s historic downtown beyond its traditional core, marking the latest phase in the area’s rebirth.

On Monday, city council members approved a pair of buildings that will bring 43 new homes to the area: a three-story building with 16 condominiums at the northwest corner of Monterey and Third streets, and a four-story building with 27 condos at 7776 Monterey St. just south of IOOF Avenue.

“Now you’re starting to see things develop on those fringes,” said Mayor Al Pinheiro, who has placed downtown redevelopment at the top of his agenda. “I think it’s great thing to be happening. We look to all of those areas to enhance (the downtown core) and bring it alive.”

Such buildings outside the downtown’s traditional core will help fuel the area’s rebirth by diversifying the mix of businesses and creating a broader customer base, Pinheiro said.

In addition to housing, both buildings will include street-level retail offerings.

Jose Montes received unanimous council approval Monday to convert a business plaza into the four-story condo project. The horseshoe shaped building, which now serves as home to Great China Garden restaurant and four other businesses, has been red-tagged as an earthquake hazard.

“I just want to be able to improve the area, improve the building and make it more appealing to the community,” said Montes. He said he already has a hair salon, grocer and tax service lined up as future tenants. The building is slated for construction within a year.

Montes said he’s excited about the project but worries about a glut of new housing in downtown.

“Trying to have so many condominiums in a high density small area could be a little trouble, and the parking is still (an issue),” he said.

Just southwest of Montes’ property, city officials have also approved a 16-unit building that will stand on the former site of Elwood’s Auto Sales. Last year, elected officials also approved a new three-story building to replace a Monterey Street antique store facing Jack in the Box, just across from First Street.

City Planner Gregg Polubinsky calls the intersection of Fourth and Monterey streets the epicenter of new construction, with several new buildings either completed or under construction on the corner or south of it. But a growing number of property owners are redeveloping land outside the traditional core as well.

“The new construction is over a greater number of blocks than people realize,” said Polubinsky, who handles downtown building applications.

More than 20 projects are now under discussion for the area, and nearly a quarter of those are slated for areas north and south of the traditional Monterey Street business district between Fourth and Sixth streets. To the south, the city has already approved a 100-unit project that includes commercial space just south of Platinum Theaters. Developers are also looking to convert the former Indian Motorcycle plant at Tenth and Alexander streets into 200 homes.

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