Jane Howard, Gilroy Welcome Center's executive director,

A Gilroy City Council discussion over a city funded tourism
group’s plans to sell retail items erupted into a shouting match
Monday night at City Hall, culminating in Mayor Al Pinheiro
threatening to kick one boisterous local business owner out of the
Council chambers if he didn’t keep quiet. Full story
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A Gilroy City Council discussion over a city funded tourism group’s plans to sell retail items erupted into a shouting match Monday night at City Hall, culminating in Mayor Al Pinheiro threatening to kick one boisterous local business owner out of the Council chambers if he didn’t keep quiet.

It was the latest – and most combative – episode in a controversial and dividing issue ignited last month when local business owners Alex and Charles Larson vehemently objected to the organization’s decision to sell Gilroy and regionally themed retail items in its new location at the Gilroy Premium Outlets.

Later in the night, a split Council voted 4-3 to remain a part of the Santa Clara Valley Habitat Conservation Plan.

But the evening belonged to the harsh, biting comments flung during the Welcome Center debate, which escalated to a personal level Monday as the Larsons and several Council members traded expletives and insults following a presentation by Center Executive Director Jane Howard.

“That’s a load of bull ****. Plain and simple,” Charles Larson said in response to an explanation that the Welcome Center can sell retail items because it’s a nonprofit, 501(c)6 organization.

Later, when he chastised some Council members for not returning emails about the issue, Councilman Bob Dillon replied, “I got them. I just ignored them.”

Dillon’s comments elicited a “Shame on you,” from a woman in the audience.

“You just ignored them?” Charles Larson asked Dillon.

“It’s because you’re such a pleasant person,” the Councilman responded in sarcasm.

At other points, Charles Larson shouted from the audience that he and his brother should be allowed more than three minutes of speaking time because Howard was not held to that standard during her agendized presentation.

Mid-discussion, the Council voted 6-1 to cut the Larsons off at three minutes. Peter Arellano was the lone opposing vote.

Still, Pinheiro twice promised Charles Larson he would order him removed from the room if he didn’t pipe down.

“Did you hear what I just said?” Pinheiro sternly said. “That’s the last time I’m saying that. I’ll have you walked out.”

Alex Larson called the city’s decision to fund the retail-minded Welcome Center a “shameful spending spree” and a “crisis of conscience.” He said Pinheiro and Howard had privately asked him to keep the discussion from becoming personal because it might make the city look bad.

“Well, Gilroy does look bad,” said Larson, who insinuated the issue had indeed become personal, and against his businesses – the Garlic Shoppe and Rappazini Winery, located on the south end of Gilroy along U.S. Highway 101.

He said the city’s wayfinding signs, which point residents and visitors to different attractions, directed traffic toward every winery in the Gilroy area except his. He added the Center’s retail provided potentially damaging competition to other local shops.

Alex Larson also called out several Council members, including Perry Woodward, whom Larson claimed should recuse himself from discussions because of a conflict of interest.

When a miffed Woodward questioned Alex Larson on his allegation, Larson explained Gilroy Unified School District Board trustee Mark Good – who is Woodward’s stepfather and mayoral campaign treasurer – had a run-in with Larson in 1993 when Good was a Gilroy police officer and Larson owned a night club in the city.

As Woodward pressed Alex Larson further, Larson replied, “You can play stupid all you want.”

Woodward was baffled by Larson’s statements, though he added, “I take allegations of conflict of interest very seriously.”

Alex Larson also called out Councilwoman Cat Tucker, who serves as a member of the Welcome Center’s board of directors.

Tucker later defended herself, saying, “I don’t get paid by the board of directors to do that.”

The Council took no action on the issue Monday night.

The Welcome Center opened at its new location Friday morning. In its first four days, the center’s walk-in traffic wax approximately 450 people, Howard said, doubling walk-in traffic for all of October last year.

So far, they haven’t been coming for the retail, she said.

“Retail has been less than $150 for four days. It’s not about the retail side, it’s about getting information out,” Howard told the Council.

Howard said the Center plans to keep $10,000-$15,000 in net profit per year from retail sales, which it will feed back into its marketing budget.

As of Monday, Gilroy Gardens and Casa de Fruta are the sole businesses that allow their items to be sold at the new Welcome Center. Howard said the Welcome Center’s board has voted not to include garlic items in its current retail plans.

The Welcome center has a $376,000 yearly budget – $300,000 of which comes from the City of Gilroy, Howard said.

The Center is modeled after the California Welcome Center, a state tourism group with 20 locations, including San Francisco, Salinas and Merced.

Howard said the Center, which pays just $1 a month rent, also advertises restaurants and local business with garlic themes, including the Larsons’ Garlic Shoppe.

Arellano, who has publicly been opposed to the city funding the Welcome Center, formerly the Gilroy Visitors Bureau, didn’t change his tune Monday.

“It’s not right for us to be funding a retail establishment, said Arellano, who later added, “I didn’t agree with it the first time it was discussed. I don’t agree with it now.”

Other Council members disagreed with Arellano.

“It’s completely separate from us,” Dillon said of the Welcome Center. “They don’t need permission from us to do this. If we don’t like it, we can just cut them off.”

He added, “I really don’t have any idea how they’re getting free rent, but good for them.”

Councilman Dion Bracco called the Center’s retail plans “a great idea.”

“Even the folks who are against it are getting free advertising,” Bracco said.

Council marches forward with HCP

The Council voted 4-3 to stay with the recently refined 50-year Santa Clara Valley Habitat Conservation Plan.

The revisions include a $281 million cost reduction.

Bracco, Dillon and Woodward were the opposed votes. The trio has voted against the plan the past three times the Council has voted on it.

Jim Conklin of the South County Business County told the Council during a public comment period, “We’re not saying the HCP is a bad idea, we’re saying the HCP needs to be modified.”

The newly formed South County Business Council includes the Santa Clara County Farm Bureau and the Cattlemen’s Association.

Resident Tom Espersen urged the Council to remain in the plan because it would make life easier for the city in the long run.

Espersen said, “I believe it’s a scientific fact that you get more flies with honey than with vinegar.”

WORTH NOTING:

– Early in Monday night’s meeting, Gilroy Fire Chief Dale Foster left the Council chambers to City Hall’s west side after a taxi driver called 911 to report his passenger was feeling ill. Firefighters, paramedics and police officers tended to the man, though Foster said the situation wasn’t too serious.

WORTH QUOTING:

– During the consent calendar vote, Arellano asked that the Sept. 12 minutes be pulled for a correction. Arellano, who was absent from the Sept. 19 meeting because of an illness, said the Sept. 12 minutes wrongly showed him as absent too. But City Clerk Shawna Freels pointed out the minutes didn’t declare him absent: Because Arellano was 15 minutes late to the meeting, his name didn’t appear on the roll call, Freels said. “Oh!” Arellano replied.

– Councilman Dillon let out an audible groan – “ughhhh” – when resident Espersen invoked a Japanese phrase meaning “one hand washes the other” during a habitat plan discussion.

– In the midst of a discussion whether to change several city truck routes, Arellano said, “They can still deliver to the lumber yard, if it’s still there.” Dillon answered, “It’s closed.” In the same debate, Arellano said truck routes should be limited in the city because they could pose a danger to children in residential areas. “The kids card came out. You must be serious,” Dillon said. Arellano replied, “If I lose one vote from one truck driver, fine!”

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