Two new businesses will open in downtown despite continued
construction in the area
Gilroy – Construction cranes and cement trucks will remain in downtown Gilroy for another two months, but that isn’t stopping several new businesses from opening.
In October, two new businesses will open along Monterey Street in the midst of major downtown construction – Heritage Bank of Commerce, in a new Spanish mission-style building at the corner of Lewis and Monterey streets, and Gardner South County Health Center, in a renovated building one block south.
Repeated delays in the construction schedule have forced Heritage Bank, which plans to open Oct. 10, to begin operating downtown before the city finishes its facelift of the beleaguered area, now a fenced-off wasteland that has seen few shoppers in recent months. Opening amidst construction wasn’t part of Heritage’s relocation plans, according to Bruce Williams, the vice president of the local branch.
“It’s a little disconcerting that the street isn’t open,” Williams said. “We thought the street and the sidewalk would be open two months ago.”
City officials originally predicted roadwork along the two-block stretch between Fourth and Sixth streets would wrap up in July, followed by sidewalk work by early September. The city has set Oct. 13 and Nov. 22 as the new end-dates for road-work and sidewalks, respectively.
Though a kink in his bank’s plans, construction delays have not soured Williams on the company’s decision to relocate from its First Street office to the heart of historic Gilroy. The area is in the midst of a major Renaissance, not just of its streets and sidewalks, but of a number of sites now slated for renovation. The old cannery, one block east of Heritage Bank’s future home, was demolished in recent weeks to make room for 200 new homes and 40,000 square feet of offices and stores. To the south, at the corner of Seventh and Monterey streets, the city is preparing to knock down several buildings and build a new cultural arts center. And in between, roughly 20 building owners have started projects or have plans to tear down and rebuild or renovate older structures, often with a mix of street-level storefronts and above-ground homes.
“I think it’s the place to be,” Williams said of the downtown. “We’re putting our money where we feel it should be, because it’s quite expensive to be there. We made a conscious decision to move downtown because of the way it’s being revitalized and our faith in Gilroy and specifically the downtown area.”
Williams is not the only one betting on the area’s resurgence. A barber shop, day spa and classic-car dealer have signed leases for the three commercial spaces next to Heritage. Pinnacle Bank plans to move in across the street in coming months, on the corner of Fourth and Monterey streets, and Gardner South County Health Center plans to open its doors early next month one block south.
Gardner’s Chief Executive Officer Reymundo Espinoza said “it’s always a difficult situation when the area’s not completely clear, but I’m sure we’ll be able to work around it. I’m sure our patients will be able to get there.”
The center will open with a staff of 10 but hopes to eventually employ 20 to 25 people and serve roughly 80 patients a day.
“I hope it will have a positive effect and people will spend (money) in the area,” Espinoza said. “We’re in the business of having safe communities and that can be an added benefit that’s hard to quantify. What we want in the downtown is a healthy, family environment, and I think we can help with that.”
Any business that generates “professional traffic” will help inject new life into downtown, said Larry Cope, Gilroy’s economic development director.
“They’re going to have doctors and nurses and technicians there,” he said, “and they’re going to need places to shop, to go have lunch.”
Cope has spent most of his time in the last year helping owners of downtown buildings with efforts to renovate or tear down and build anew. He has also fielded questions from a changing group of businesses – usually between six and a dozen at any one time – interested in moving to the area.
The level of interest will, Mayor Al Pinheiro predicted, as downtown construction nears completion.
“I think there’s a lot of people on the fringes watching, waiting to see what will happen,” Pinheiro said. “I really think you’re going to see that momentum come in after the project is completed.”
Construction crews are currently grading portions of Monterey Street in preparation for paving. Officials said there have been no additional delays since a new construction schedule was released last month.
Once complete, downtown businesses will face onto 15-foot-wide sidewalks with new trees and decorative street lamps.
