Gilroy set to use the power of eminent domain to take the land
for the arts and culture center
Gilroy – City Hall will use the power of eminent domain to seize the remaining land needed for Gilroy’s future arts center.
After more than a year of unsuccessful negotiations, officials will pay $1,685,000 to the family of Marko Gera and seek a court order clearing the way for development of the arts center, scheduled for completion by 2010. The Geras are the last of five property owners still battling the city over the value of their land.
The family’s 1.17 acres along Eigleberry and Seventh streets represent half the land needed for the new facility. The vacant lot, now overgrown with grass and weeds, will eventually serve as home to a rear portion of the arts center and 115 parking spots.
At the beginning of the summer, city attorneys filed paperwork necessary to obtain the land through eminent domain and are now awaiting a green light from councilmen to seek an order of possession. The legal maneuver allows government agencies to pay what they believe represents fair market value for a property and begin development, leaving it up to a judge to settle lingering price disagreements with landowners. The process of obtaining an order of possession usually takes one or two months, according to deputy city attorney Jolie Houston.
Mayor Al Pinheiro will support the court-ordered possession as a way to move forward with a project vital to the downtown, although the discussion has not yet been placed on the council’s agenda.
“I think the city has in all cases done everything possible to settle so that we don’t have to go through these procedures. That is absolutely certain,” he said. “Many downtowns use (arts centers) as a catalyst for development. There’s no question that it’s important to the city.”
Norman Matteoni, a San Jose lawyer representing the Geras, did not return a call for comment.
The city has used eminent domain sparingly in the past, reserving the strong-arm tactic to obtain small pieces of land to expand sidewalks, roads, and other public rights of way.
But practical concerns have forced the city to move forward with eminent domain against the Geras, according to Bill Headley, the city’s parks and facilities manager.
The city needs to obtain the land, he explained, to proceed with the legal process of consolidating lots and installing utilities for the future arts center. Possession also factors heavily in the search for financing.
“Many of the criteria for successfully competing for cultural arts grants include having full control of the future site for the cultural arts center,” Headley explained. “It’s like trying to plan a school and not owning the land. How far can you go with real fundraising and design activities?”
Officials have already agreed on sale prices with three property owners and are about to sign an agreement with Loi Dong, who previously rejected a $97,000 offer for his boarded up Chinese restaurant at 7347 Monterey St.
Dong’s appraiser valued the property, slated for an art gallery and garden, at more than $300,000. Officials have not disclosed the final sale price.
In total, the arts center plans call for the purchase of 14 separate lots measuring 2.33 acres facing the Caltrain station, immediately north of Seventh Street. The project is expected to cost more than $10 million.
What it means
The city will pay $1.68 million for the 1.17 acres that represents half of the land for the art center.
