A controversial offer to transform Gilroy Gardens into a $200
million water park was nixed Monday by the park’s board of
directors, whose president maintained that the city’s interest in
the park should come first.
Gilroy – A controversial offer to transform Gilroy Gardens into a $200 million water park was nixed Monday by the park’s board of directors, whose president maintained that the city’s interest in the park should come first.
But the rejection hasn’t deterred its proponents, who envision two roller coasters, a “mega water ride” and a six-story hotel on the 536-acre site.
“We’ll keep on pursuing the purchase,” said Robert McDuff Sr., an investor and consultant with Alliant Real Estate and Financial Services who presented the plan. “Even if we have to purchase it from the city once they buy it.”
The board dubbed the water park offer “highly speculative and premature” and inconsistent with their commitment to explore a potential $12.4 million purchase of the park by the city, according to board president Bob Kraemer, who noted that the water park bid was unsolicited. Board member and City Councilman Dion Bracco put it simply: “The park’s not for sale,” he said.
Alliant offered $32.5 million for the park, a sum Bracco called “insulting” and “nowhere near what the park is worth.” The park was assessed at more than $60 million in recent years, according to Kraemer – nearly five times what Gilroy might pay for the gardens.
Advocates countered that Alliant would fully pay off roughly $12.5 million in bonds, plus interest, and give the city a 5 percent cut of the park’s future profits.
“Obviously it’s encouraging that they see merit in Gilroy Gardens,” said Kraemer, “but our decision as a board was to continue to work with the city in its review … We believe they best fit our vision.”
Developers from Alliant plugged the proposal as a worldwide attraction boasting rides, theaters, stores and restaurants all retaining park founder Michael Bonfante’s educational and family focus. But critics fretted that a large-scale resort would clog surrounding roads with traffic and additional noise.
Investors backing the Alliant plan were disappointed by the board’s decision, and upset that they weren’t invited to present their plan in person to the entire board – though they met with Kraemer in a joint meeting with Assistant City Administrator Anna Jatczak June 22.
“We feel it’s unfair not only to us, but to the community of Gilroy,” argued McDuff, insisting that the water park would bring thousands of new full-time jobs to the city. McDuff complained that the park had been tarred as a carpet-bagger proposal. “We’re not some big developer trying to come in and build box stores. I grew up in Gilroy and I’ve been here 37 years.”
In a letter to the board, fellow Alliant investor Sam Rohan wrote, “Please keep in mind, we are not trying to take this away from the city.”
But board members were unconvinced – and said so.
“They’re trying to buy it out from underneath the city, is what they’re trying to do,” said Bracco. “We don’t believe that we can even sell it anyway – the city is the only beneficiary of the park, according to our bylaws.”
Kraemer said there was no need for Alliant to meet directly with the board after meeting with him.
“It really doesn’t matter,” he said. “I met with them, and the board was satisfied.”
City officials are mulling whether to buy the financially troubled park, which faced $12.4 million in debt as of last year. Though the park has earned more than $1 million in profits in recent years, some city officials fear it could still fall into developers’ hands if the park doesn’t start replenishing its reserve funds.
Council members have touted the sale as a steal available only to the city; Bracco envisions the attraction as Gilroy’s Golden Gate Park, and has asked the city to shelve plans for a downtown arts center to snap up the park instead. Residents will have to chance to voice their thoughts at a city meeting July 11, when city officials will unveil a detailed financing plan.
Despite the board’s refusal, Alliant investors say they’re still eyeing the site, as well as the adjacent Raley’s property to its east, where they imagine extending the Gilroy Golf Course into an 18-hole championship course.
“We’re going to pursue it until we can’t pursue it anymore,” said McDuff. “But if we don’t get Gilroy Gardens, we’re not going to take Raley’s next door.”
