Gilroy
– The city has agreed to pay the Salvation Army $1.15 million
for its Monterey Street thrift store, one of 14 neighboring
properties needed to make room for the downtown’s future arts
center.
Gilroy – The city has agreed to pay the Salvation Army $1.15 million for its Monterey Street thrift store, one of 14 neighboring properties needed to make room for the downtown’s future arts center.
City Councilmen Monday night approved the purchase, which will provide the charity with $723,540 for the half-acre lot at 7341 Monterey Street plus $429,282 for relocation costs.
The city paid $300,000 in July to purchase the .17-acre property next door, on the corner of Monterey and Seventh streets.
The buyout price to the charity will barely cover the cost of its future store, according to Salvation Army Captain Howard Bennett, who said the vacant lot in Gilroy Crossing where it plans to build another store will cost $1.2 million.
“From a retail standpoint it’s better,” Bennett said. “We’re in the middle of a million square feet of retail.”
The agreement with the city gives the Salvation Army three years to move out, although Bennett expects to move into the new store in half that time. He said the relocation would not disrupt the charity’s services.
“We’re looking to provide more comprehensive donation services –the ability to handle any type of donation right on site,” he said. “This clears the way for the city to do something significant for the community, which is to build the cultural arts center … This is a good thing for everybody involved.”
The land purchase still must receive final approval by Salvation Army regional headquarters. Bennett expected that process to take another month.
The Salvation Army’s current site will eventually become the entry court and garden area for the arts center, which is slated for construction on 2.33 acres north of Seventh Street between Eigleberry and Monterey streets. The facility and parking lot are planned for construction farther back on the block along Eigleberry and Seventh, on property owned by Baleriana Oyao and Marko Gera, who holds more than half the acreage the city is looking to purchase.
Negotiations with those owners have yet to produce results. Councilmen have passed a resolution stating the public’s need for the properties, a preliminary step to seizure using eminent domain. The move does not obligate the city to move forward with seizure, but lays the groundwork to maintain momentum on the project in the event the owners refuse to sell.
Officials hope to open the new center by 2008. City Administrator Jay Baksa expects the city to complete the land purchases by March.
