Motorcycle plant has sat vacant since 2003
Gilroy – The first details of a project to convert the defunct Indian Motorcycle plant into 200 condominiums and townhouses will be revealed Monday night, when city leaders meet to learn more about a proposal that could spark vigorous debate.

So far, project representative and former councilman Tony Sudol has revealed few details about plans for the 6.2-acre parcel at 200 E. 10th St.

Some city leaders and staff already look favorably on the project, which a former councilman is shepherding through the approval process, since it will rehabilitate a defunct industrial site. But Mayor Al Pinheiro remains cautious, saying the city should focus its downtown renewal efforts along the historic downtown core.

Concerns also center on the growing traffic along the 10th Street corridor. The opening of Wal-Mart Supercenter east of Highway 101 has caused a noticeable spike in traffic, according to city officials, who predict the problem will only worsen as growth continues.

A conversion to residential use jibes with the city’s desire to build inward, but the project could spark debate since it requires council permission to sidestep Gilroy’s building-permit competition.

An increasing number of residents are expressing concern about the number of projects allowed to bypass the competition. Those concerns peaked at the beginning of the year after officials disclosed that they expect the city to exceed its 10-year growth cap by 30 percent, or roughly 1,000 housing units.

City planners and proponents say emphasis should be placed on the type of growth rather than the overall number of new housing units, which are capped at 3,450 through 2013.

Former councilman Tony Sudol, hired to steer the project, has asked the city to change its General Plan to accommodate the project. If approved, he would then have to seek inclusion of the project in the city’s Downtown Specific Plan area, allowing the project to draw from the 1,700 units of housing city officials allocated to the downtown. Those units are above and beyond the 10-year limit set by council in 2003.

The former motorcycle plant has sat vacant since it shut down in 2003. Ken Gimelli, a Hollister resident, purchased the land in 2004 for $3.5 million, although the county assessor values the property at $6.2 million. Sudol has said he has no ownership stake in the project but is simply guiding it through the permit process.

He did not return a call Friday.

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