downtown gilroy parking lot eigleberry seventh street gilroy city council
The Gilroy City Council approved a construction bid for a parking lot at the corner of Seventh and Eigleberry streets. Photo: Erik Chalhoub

Construction is expected to start soon on downtown Gilroy’s newest parking lot after more than two years of planning.

The city council on April 18 unanimously approved Norcal Contractor’s bid of $2,310,000 to construct the lot at the corner of Seventh and Eigleberry streets. Councilmembers Rebeca Armendariz and Zach Hilton were absent.

The 140-spot lot will take over a vacant lot and the former Gilroy Demonstration Garden. It will include electric vehicle charging stations, ADA-compliant curb ramps, lighting, landscaping and associated signing and striping.

Construction is expected to start before summer, according to Public Works Director Daryl Jordan, with the contractor estimating it will be completed in December.

Norcal Contractor submitted the lowest of six bids received by roughly $500,000. 

Jordan said labor shortages have caused costs to fluctuate considerably, and asphalt costs are on the rise due to “skyrocketing” oil prices.

The council approved a $1.5 million budget for the parking lot in January 2020, and later in the year awarded a $241,396 contract to BKF Engineers to design it.

In early 2021, the city estimated construction could cost $2.1 million.

In April 2021, Mayor Marie Blankley voted against approving the design of the parking lot, saying that although she supported the lot, she was concerned about the escalating costs.

On Monday, she said that although construction costs translates to roughly $16,500 per parking space, the $200,000 between the estimate and the bid was not something she would vote against.

Also during the meeting, the council awarded a $4.5 million contract to McKim Corporation for rehab and maintenance work for 149 street segments throughout the city over the next year.

The list of streets can be found at

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Erik Chalhoub joined Weeklys as an editor in 2019. Prior to his current position, Chalhoub worked at The Pajaronian in Watsonville for seven years, serving as managing editor from 2014-2019.


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