GILROY
– One of the last remaining undeveloped properties on First
Street could be an apartment and senior living complex by next
year, with an adjacent strip mall to follow.
Benassi Oaks is being described as a well-thought-out blend of
commercial and residential development by many close to the
project. Meanwhile, questions linger over whether bringing yet
another supermarket-anchored shopping center to the area is
necessary since two supermarkets, a produce stand and a
neighborhood grocery store are just blocks away.
GILROY – One of the last remaining undeveloped properties on First Street could be an apartment and senior living complex by next year, with an adjacent strip mall to follow.
Benassi Oaks is being described as a well-thought-out blend of commercial and residential development by many close to the project. Meanwhile, questions linger over whether bringing yet another supermarket-anchored shopping center to the area is necessary since two supermarkets, a produce stand and a neighborhood grocery store are just blocks away.
The city’s Planning Commission tonight will review the proposal to develop the 14.5-acre, mostly vacant lot that borders Hecker Pass to the west. On Feb. 17, City Council will conduct its own review.
“We’re looking at this as an opportunity for more in-fill development,” City Planner Cydney Casper said. “Basically, this is a property surrounded by development.”
Staff is recommending approval for the project, meaning construction on the residential portions could begin as early as this summer.
New design for senior housing
The Benassi family has been the longtime owner of the site, which borders Hecker Pass Plaza to the west. The family is selling a portion of the property to Orchard Valley Communities to build 24 single-story homes for seniors on the southernmost end of the parcel. The 24 units have been granted housing permits already, but City Council must re-approve those permits since the new design calls for detached housing units. The units were designed to be attached when they got approved. Orchard Valley Communities President Cliff Johnson said the detached design will save homebuyers up to $18,000. Johnson said the increased price is due to higher construction insurance rates for attached housing.
The middle portion of the parcel will be turned into 80 apartments. And on the northernmost end, bordering First Street, a commercial development is planned. It is undetermined what will go in the commercial section, but conventional wisdom says a supermarket – the immediate area’s third one – is likely.
“We feel this project is an innovative approach,” said John Kent, of Pacific Oak Properties. “We tried to design a project that was well integrated (the apartments and senior homes will share a tot lot and swimming pool) and was a good transition from the existing single family homes (on Cypress Court) out to the commercial line.”
Pacific Oak Properties, which designed the Nob Hill center on First Street, is designing conceptual plans for the apartments and commercial development, but the Benassi family has yet to retain them to develop the property.
Commercial side up in the air
Although support seems widespread for the residential portion of the project, some Planning Commission and City Council members have concerns over the future commercial development.
Both boards will be asked to approve the residential portions of the project before a firm plan for the section that is zoned commercial gets developed. Kent said it could be two to several years before the commercial center is planned and built.
Kent said the Benassi family has not made up its mind regarding when or how to develop the commercial lot. But he’d like to see it developed with a supermarket after the housing is in, to ensure the viability of the stores.
Kent also would like to see it develop in conjunction with the small commercial lot to the west on the corner of First Street and Santa Teresa Boulevard. Union 76 owns that lot, but has no immediate development plans.
Does Gilroy need another supermarket?
“Personally, I think we have plenty of supermarkets,” Planning Commission member Norm Thompson said. “I’m happy we don’t have to deal with that issue now. The developer will have a chance to further assess what makes sense in that area. I want to see what the experts have to say.”
Councilman Paul Correa, who has been watchdogging the Wal-Mart Supercenter proposal over concerns of what its non-unionized grocery market might do to area competition, said he will approach the commercial development carefully.
“I want to see commercial and retail development that complements the existing marketplace and offers a variety of goods,” Correa said. “They might be proposing a specialty store like a Trader Joe’s and that would be a different kind of offering for the public. I really need to have the project in front of me before I could form an opinion.”
