GILROY
– Part of a 50-acre East Gilroy industrial park that has been
eyed for businesses such as a Canadian biotech startup will house
the county’s newest health clinic.
GILROY – Part of a 50-acre East Gilroy industrial park that has been eyed for businesses such as a Canadian biotech startup will house the county’s newest health clinic.

Supervisors this week approved a $5.5 million land purchase for 11.77 acres of the Southpoint Business Park at Arroyo Circle and Gilman Road. Southpoint, which is roughly 50 percent built out, is one of Gilroy’s prime industrially zoned properties and is already home to the Kaiser Permanente health clinic.

County officials say the health center, which is still two years away from being constructed, will solve Gilroy’s growing demand for reduced cost medical and dental services. It will be called the Valley Health Center at Gilroy.

“We’ve got the highest statistics in the county of low income residents who don’t get the proper medical treatment,” District 1 County Supervisor Don Gage said. “The clinic in San Martin is overflowing and there’s people who can’t get appointments for months.”

The San Martin clinic, which is operated by the Santa Clara Valley Health and Hospital System, was built more than 20 years ago to serve Morgan Hill and Gilroy residents. It is one of nine such clinics in the county.

In Gilroy alone, growth over the last two decades has pushed the clinic to the gills. County documents state that the majority of Santa Clara Valley Health and Hospital System patients live west of Highway 101, just opposite the Southpoint parcel.

“Given the population explosion over the last 20 years, what we have is a clinic in the wrong location,” said Robin Roche, the county’s community health services director.

Roche said the San Martin clinic will continue to operate as a satellite to the Gilroy health center.

The county will have to raise an additional $25 million to design and construct the health center. Plans are for the county to sell bonds. The bond sale is not required to be approved by voters.

“People may be wondering why the county would be interested in this economy to make this kind of arrangement, but this really is an investment in the future,” Roche said. “By the time we actually start paying off the bonds, which could be three or four years from now, we hope the economy is in better shape.”

The center will offer general medical, dental and obstetrics and gynecological services. Support services such as a radiology unit and a pharmacy, Roche said. In addition to an ability-to-pay program, the county clinic will take privately insured and MediCal clients, Roche said.

The Southpoint parcel was selected over 17 other properties, which included undeveloped land and buildings that would have needed retrofitting.

The parcel is currently owned by Glen Loma Group, a major Gilroy developer, and Arcadia Development of San Jose. The property has been under those companies’ ownership since 1987, Glen Loma co-owner John Filice said.

“Glen Loma and Arcadia have a long-standing relationship,” Filice said. “We developed the Outlets together.”

Gage said the Southpoint site was selected for several factors, from location and road access to its potential for expansion.

It is not know when or by how much the facility would expand in the future, but county documents state “the expansion might include not only other health services, but other County services as well” such as a mental health facility.

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