By KOLLIN KOSMICKI, JONATHON JEISEL and CAROL HOLZGRAFFE
Staff Writers
The communities south of Silicon Valley are not just hoping to
maintain the health of local businesses in a difficult economy, but
officials from Gilroy, Hollister and Morgan Hill have all decided
it is time to become more proactive in attracting new enterprises
to the region.
By KOLLIN KOSMICKI, JONATHON JEISEL and CAROL HOLZGRAFFE
Staff Writers
The communities south of Silicon Valley are not just hoping to maintain the health of local businesses in a difficult economy, but officials from Gilroy, Hollister and Morgan Hill have all decided it is time to become more proactive in attracting new enterprises to the region.
The City of Gilroy has led the way with an increased marketing blitz during the past year while establishing a unique public-private partnership. The non-profit Gilroy Economic Development Corporation uses funds from the city, the Chamber of Commerce and several private businesses to help lure businesses to the area.
GEDC Executive Director Bill Lindsteadt markets the city through advertisements in trade magazines such as “Site Selection” and “Plants, Sites and Parks.” And he often travels to trade shows across the country to promote Gilroy as a thriving location to establish a business.
Officials have also developed a glossy brochure aimed at attracting high-tech, bio-tech and medical firms to the city’s expanding business and industrial parks.
The flyer touts Gilroy as “Silicon Valley’s Newest Industrial High-Tech Growth Center” and the fastest-growing city in Santa Clara County.
It also highlights the city’s location at the junction of two highways; its proximity to Silicon Valley, San Francisco and Monterey; its workforce; a supposed pro-business environment and the area’s high quality of life.
High-level company officials with Heartwood Cabinets praised the city’s pro-business attitude, especially a fast-tracked permitting process, as well the area’s quality of life and affordable housing as major factors in their decision to attract 160 workers and a 50,000-square-foot facility off Rossi Lane – rather than in San Jose.
“We heard nothing but ‘Can-do’ and ‘We’ll find a way,'” said Michael Wright, the company’s chief operating officer.
Heartwood Cabinets, a business that manufactures cabinet doors and components, originally moved from the Monterey Peninsula to Gilroy a couple of years ago because of lower real estate prices and higher real estate availability.
“At that point, there weren’t any buildings available anywhere,” said David Boll, the company’s president. “We were even lucky to find the building we found here. Things were so scarce then.”
And it turned out to be a good move in other ways, too.
“Since then, we’ve just considered ourselves so lucky to have been led to move here,” Boll said. “The quality of life, the small-town atmosphere, everything about down here – even the quality of the employees we can attract – couldn’t be better.”
Just north in Morgan Hill, both the Chamber of Commerce and the city’s Business Assistance and Housing Services Department continue to try to entice new industry to the area.
The chamber, intending to move its marketing efforts into overdrive, asked the Morgan Hill City Council in 2002 for additional funding to hire a professional marketing director, which would expand its offices to include a visitors center and to boost its marketing of the city to the world.
The City Council sent the plan back for fine-tuning, but instead of waiting, chamber officials did some fund-raising on their own and will move into new downtown offices April 1.
And Hollister, even in the midst of sewer moratorium stagnation, has become more aggressive in attracting businesses – especially to its downtown district.
One particular advantage in Hollister is relative cost of rent and land, according to Economic Development Corporation Director Al Martinez.
And as long as businesses are looking for a vacant building – and not to build – there is nothing else stopping businesses from moving to San Benito County.
The Hollister Downtown Association is putting together a new plan, which is close to being finalized, according to HDA President Ignacio Velazquez.
Velazquez said Hollister must attract businesses that will help keep San Benito County residents from shopping out of town. Currently, 70 percent of people living in the city do their shopping elsewhere, he said.
“We need a major anchor (downtown) to bring in more foot traffic,” Velazquez said.
In early May, the HDA will begin publishing a newsletter that “spotlights” businesses and relates stories about the historic downtown buildings.
