Developer looks to forge ahead on downtown development; Santa
Teresa delayed
Gilroy – An entire block stretching north of old City Hall could become a three-story mix of storefronts, homes and offices if Gary Walton, one of the visionaries behind downtown redevelopment, can forge an alliance with fellow property owners.

On Wednesday, Walton was awaiting the final check from a group of four property owners so he could move forward with schematic designs. He stressed that the project – born just two months ago – remains in its earliest stages.

“We don’t have any numbers, no idea what this is going to cost,” Walton said. “But it’s an opportunity to complete one whole block at one time.”

The idea of redeveloping the entire block emerged after Mayor Al Pinheiro connected Walton with neighboring building owners to plan a new downtown parking lot. In the course of those discussions, the owners decided to explore the possibility of sharing costs and integrating designs on a project spanning the whole east side of the block, from just north of old City Hall up to Fine Things, an antique store at 7488 Monterey St.

The gray cement wall of the Rio Nilo night club is now the most dominant feature of the block, which also serves as home to Carnitas Michoacan, Kutz & Kolorz and 10 other businesses.

A redevelopment of the area would not only add 70 parking spots to the downtown (between the railroad tracks and the back of the buildings), but would allow the properties to share corridors, elevators, entrances and stylistic features, according to Walton, who is no stranger to downtown development.

In the last few years, Walton has rehabilitated several buildings in the area, including the kitchen design store just north of old City Hall, and led an effort to craft development guidelines for downtown.

He said it’s a daunting task to get five people on the same page, but expressed hope that a successful partnership could serve as a model for the rest of downtown.

“Rather than each property individually doing something, we’re able to look at most of the block as one project,” he said. “As a consequence you’ll have a better project overall and it will all get done at one time, rather than in a piecemeal fashion.”

Santa Teresa rain delays

An unusually long rain season has further delayed efforts to bring closure to roadwork along Santa Teresa Boulevard, now five months beyond its original deadline.

“We were going to do some additional pavement testing but that was delayed because of the rain,” City Administrator Jay Baksa said. “We should have the results by next week.”

He expected to meet in early May with Granite Construction Company, the Watsonville contractor hired to widen the city’s western traffic artery from two to four lanes.

City officials ordered the company to discontinue work in October, after inspectors discovered that tire ruts were forming in the freshly paved southbound lane of the road. Both the city and contractor believe that water intrusion has caused the early deterioration of the road, but it remains unclear if the city or the contractor will have to pick up the cost of repairs. City officials have warned about the possibility of a protracted legal battle over the matter, while Granite officials have downplayed the possibility of a lawsuit.

Both sides are now reviewing technical plans to resolve the problem.

“The reason we’re doing more tests,” Baksa said, “is to have a more clear definition of the problem. Once we have that, then we can meet with Granite.”

This new Thursday feature spotlights commercial and residential development in Gilroy, as well as policies affecting growth. E-mail story ideas to

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