The most important factor must be what’s best for Gilroy, not
just in terms of getting what looks like a great bargain.
There’s lots of enthusiasm among residents for the city of Gilroy to purchase and operate the troubled Gilroy Gardens amusement park.
But that’s not the only option open to Gilroy officials. Some have discussed a city purchase of the facility but instead of operating it as an amusement park, the city would run it as a vast city park, citing New York’s Central Park or San Francisco’s Golden Gate Park as examples.
The city is mulling whether to spend between $13.1 million and $25.4 million, depending on the type of financing plan used to purchase the land.
It’s possible that Gilroy officials could work with another agency, such as the Santa Clara County Parks Department, which is flush with parks acquisition and maintenance funds, to ease the burden of purchasing and maintaining the 536-acre park off Hecker Pass Highway.
And then there’s the option offered by Alliant Real Estate and Financial Services. It recently sweetened its offer to buy the park to $50 million. Alliant would pay $32.5 million in cash, $10 million toward an arts center, and $6 million toward a gymnasium and aquatics center at Christopher High School. They’d create a water park and resort on the Gilroy Garden site.
And of course, the city doesn’t have to buy Gilroy Gardens at all. Despite the many comments about what a great bargain it is, sometimes the best bargain is the item you don’t buy. If the city purchases Gilroy Gardens, it becomes responsible for ensuring the fiscal health of the amusement park, for ensuring the safety of visitors, and for maintaining 536 acres that contains undeveloped land, amusement park rides, water features, retail operations, and gardens. That’s not a small or inexpensive task.
And it’s worth remembering that the park has not been a profitable venture until now, even when managed by professionals in the amusement park industry. The park has struggled to stay out of creditors’ hands since it opened seven years ago. Its economic position improved last year with the completion of a financial restructuring that reduced its debt load from $70 million to $12.4 million. Though the park has earned more than $1 million in profits for the last few years, city officials remain anxious it could fall prey to developers if it fails to beef up its reserve funds by 2008, as required under the terms of the restructuring plan.
The point is this: The city has many options when it comes to Gilroy Gardens. The time to weigh them all is now. Those options need to be evaluated in an unemotional, clear-eyed manner.
The most important factor must be what’s best for the residents of Gilroy, not just in terms of getting what looks like a great bargain.
Most importantly, let’s look before we leap, not after.
