March 16, 2023
State of the City 2023
Please join me for a live presentation of the 2023 State of the City on Saturday, April 1 at 9:30am in Council Chambers. Coffee, tea, donuts and old-fashioned face-to-face conversation will be provided. For those unable to join, the State of the City will also be live-streamed and recorded. Thank you for participating in Gilroy’s future and moving us forward together!

Mayor Marie Blankley, CPA
Hello Gilroy!

I hope the information provided here will entice you to attend this year’s State of the City address on April 1st. There’s certainly a lot going on and much to be proud of.

A quick bit about myself—I’ve been a Gilroy resident since birth and graduated from Gilroy High School in 1981 with three siblings to follow. I have two adult children with my husband, Steve (and three dogs from local rescues and shelters), a career as a Certified Public Accountant (CPA) since 1988, and I’m in my third year as your mayor. I am continually honored to follow Roberta Hughan, whose family also has deep roots in Gilroy, as the second woman to be the mayor of Gilroy since 1870! I hope you’re as pleased as I am with all that we’ve accomplished since the pandemic and with the many, many projects in the works.

See for yourselves!
Economic and Commercial Development

Beginning with opportunities meant to foster revenue to the City, either directly or indirectly, the following recreational and commercial developments are in the works:

  • Adding a 2-ice rink facility to the Gilroy Sports Park. The San Jose Sharks organization will operate the facility that will be a magnet for future growth of our Sports Park. The facility will include ice-related recreation and entertainment venues for all ages. Design/Construction is anticipated to begin by this summer and will take approximately 18-24 months to complete. 

  • In our Downtown, the City is investing $4 million to improve and create pedestrian alleys on the back sides of the buildings along Monterey Street. The improvements will stretch from 4th Street to 7th Street on Gourmet Alley, and from Lewis Street to 7th Street on Railroad Alley. Currently in the design phase, construction is anticipated to begin this year and completed by June 2024. These improvements will allow downtown businesses and customers to use the pedestrian alleys for seating, strolling, dining and shopping and turn the three-block long vehicular driveway into a pedestrian pathway.

  • The new Gourmet Parking Lot is now complete! Adding to easy access of our downtown businesses and entertainment venues, this multi-purpose parking lot also provides space downtown to host events such as Farmers markets and Art & Wine festivals. Ribbon cutting for this downtown addition is scheduled for Tuesday, March 21st at 4:00pm. With the conversion of unsightly vehicular driveways to welcoming pedestrian pathways plus the addition of major parking space that also doubles as event space downtown, the City will have invested $6.5 million in infrastructure improvements in our downtown since the pandemic. 

  • On Monterey at First Street will be a new three-story mixed-use apartment complex consisting of 10 residential units above 2 commercial units and a ground level parking garage. The project is currently in the building permit plan review process and is estimated to begin construction in 2024.

  • A new commercial center, Plaza Allium, at 10th and Chestnut will include a five-story 112-room hotel, three restaurants with drive-through, a convenience store, a gas station, a carwash, and long-awaited roadway improvements/repairs at 10th Street and Chestnut. The project received entitlement approval in October 2021. To date, the building permit process has begun for the hotel, two of the restaurants (including Chick-Fil-A), and the carwash.

  • East of the Gilroy Crossing Commercial Center, a proposed development will include two hotels, a fast-food restaurant, a gas station with a carwash, and future industrial warehouse buildings.

  • Amazon WEB services will construct a data center of over 200,000 square feet on Camino Arroyo south of the The Outlets. 

  • The City has 13 industrial or warehouse development applications that are in various stages for development near Hwy 152 east of 101. These developments bring promise of the welcome addition of jobs to Gilroy.
  • New warehouses on Silacci Way
  • Industrial developments and warehouses on Holloway Road
  • Renz Lane will have new industrial buildings and a hotel
  • Distribution warehousing on Luchessa Avenue
  • A new industrial warehouse is proposed on Bolsa Road.
  • Gilman Road will see new mini storage buildings.
  • Near Cameron Blvd. and Venture Way will be a business park with industrial buildings.

  • The City continues to consider options to better utilize city-owned properties including the 536 acres at Gilroy Gardens. 

Street Maintenance, Transportation Services, and Infrastructure

  • In our last 2-year budget cycle, the Gilroy City Council approved an additional $2 million in annual funding towards the maintenance of our own city streets. This action resulted in a 5-year street maintenance plan to prevent the further decline of pavement conditions where possible, and for which the funding was identified for the first two years. We are currently in the next 2-year budget cycle, and I hope the City Council will be supportive of another 2 years of this additional funding. For a list of street segments identified for maintenance in fiscal year 2022 and 2023 visit the Better Roads Ahead page on the City's website.

  • In 2022 the City was unsuccessful on our initial submittal of the RAISE grant for the 10th Street Bridge over Uvas Creek. As part of the 2023 RAISE grant application, the City conducted extensive Community Outreach which we hope will bolster the application submitted to the federal government just last week, and for which Senator Alex Padilla has sent a letter of support to the Secretary of the U.S. Department of Transportation, along with our own from the Gilroy City Council. 

  • The US101/SR25 Interchange Project has secured funding for Phase 1, the construction for which should begin in late 2024 and be completed in 2027. Phase 2 is the Santa Teresa Extension for which Valley Transportation Authority (VTA) is currently working to secure funding to begin the environmental clearance process anticipated to be in place in 2024. The final design and construction would then follow.

  • CalTrain and VTA each recently received significant transportation grants. VTA received $375 million for Phase 2 of Bay Area Rapid Transit (BART) enhancements, allowing for the necessary tunneling from the Berryessa station through San Jose and into Santa Clara. CalTrain received $367 million for full electrification of its mainline service from San Francisco to the Tamien station in San Jose. While Gilroy and Morgan Hill will not yet have electrified service, we expect an increase in the number of trains coming and going from Gilroy by June 2024. CalTrain is also simultaneously working on service that continues to Salinas.

  • High-Speed Rail has begun the planning process with our City Staff for the downtown station. The goal of this process is to make sure all parties are aligned in how the Gilroy Transit Station will integrate with the surrounding area and support the City’s land use goals and transportation needs.

  • The City is currently working with Frontier Communications to review their plans for the installation of nine miles of fiber optic cable which will bring high-speed internet, video, and voice services throughout Gilroy. Construction on this main system is expected to begin in the Spring.

  • Over the next several months, Valley Water will be completing their recycled water pipeline project along Luchessa Avenue which will provide recycled water to the systems installed in the Glen Loma Development. Once completed, Luchessa Avenue will see significant pavement improvements that will put an end to the current disruption faced daily by our residents and businesses in that vicinity. 

Public Safety - Fire

The City of Gilroy is working to build and staff a temporary Santa Teresa District (STR) fire station at 10th and DeAnza. Today, the STR is served by a part-time fire crew located at a temporary facility at Christmas Hill Park which helps to reduce emergency response time throughout the City. Progress with the temporary station at 10th and DeAnza will proceed as soon as PG&E provides necessary service. Building the permanent STR fire station at Miller Avenue and West Luchessa Avenue will be initiated when the Glen Loma developers reach the number of new construction permits specified in the development agreement and remit the required funding for the new fire station. Until that time, the temporary STR fire station will help the district, and the City as a whole, improve its overall response times and meet the adopted Standards of Coverage recommendations for fire and EMS service delivery.

Public Safety - Police

The Gilroy Police Department is committed to keeping our residents and neighborhoods safe. To that end, GPD continues to prioritize employee retention, recruitment, hiring and training efforts. While vacancies still exist, GPD has hired eight new police officers, one detention services officer, one community services officer and one public safety communications trainee since the beginning of the fiscal year. To ensure the health of our police team, the City provides mental health resources, including a wellness program, the costs for which have been supplemented by a state grant from the Bureau of State and Community Corrections.

  • The Community Engagement Team (Quality of Life Officers and the School Resource Officers) continue to respond to community concerns. For the latest progress report to the City Council, click here. Their established relationships with local non-profit organizations, and other service providers, have netted many local success stories. 

  • The South County Youth Task Force received a $1 million grant to expand the South County Restorative Justice Diversion Program. This program aims to help local youth at risk of entering the Juvenile Justice System.

  • Records Management and Flock Camera Systems (license plate readers) have been updated to provide better efficiency with operational workload.

  • Training in Procedural Justice and Implicit Bias Training (Principle Policing) continues to be a strong part of our local law enforcement training.

Housing

The level of detail provided in the February Spotlight with the Mayor newsletter says it all.

While the February Spotlight with the Mayor also reports on how city resources are distributed to benefit the unhoused, some of whom suffer from mental and behavioral health issues, I’ve since signed on in support of two State Senate Bills, one to propose Conservatorship Reform and the other to direct the State Department of Health Care Services to create a database of behavioral health facilities and share bed capacity as it is changing in real-time. A comprehensive repository of specialized services such as chemical dependency recovery hospitals, acute psychiatric hospitals, and mental health rehabilitation centers will assist with overwhelmed emergency centers and link individuals to condition-specific resources. Organized by San Jose mayor Matt Mahan, each mayor of every city in Santa Clara County was asked to support this legislation for full county-wide support. Something else I learned—11 mayors of our 15 cities in the Santa Clara County are women!

Community Center

Over the last year, much discussion has occurred concerning the addition of a Community Center which is greatly needed to address the needs of Gilroyans of all ages. As part of the upcoming budget cycle, the City will consider providing funding to conduct initial studies concerning facility opportunities at the Gilroy Civic Center, defined as the 3-block area from Church Street to Dowdy Street between 6th and 7th Streets.

  • We welcome to Gilroy DigitalNEST and their efforts to purchase a building downtown in which to open their third location (after Watsonville and Salinas) for Gilroy youth to explore and prepare for career paths in technology. Currently leasing the space they hope to purchase, DigitalNEST together with non-profit partners intends to create the Gilroy Youth Impact Center that will benefit our youth from cradle to career. Thank you to DigitalNEST for choosing Gilroy!

  • SVCreates is in their third year of collaboration with Gilroy and our local arts community. SVCreates continues to expand efforts to impact the arts in Gilroy by working with the Arts & Culture Commission, exploring ways to use the talent of local artists to contribute to the artistic and cultural health of the city, and by convening a monthly Gilroy Arts Roundtable to build a strong network of local artists and community leaders. The goal for 2023 is to activate and beautify downtown Gilroy through murals, festivals and art installations. SVCreates is the County of Santa Clara’s official arts agency and aims to strengthen the arts in all corners of our county. We are so thankful to have them in our corner!

Gilroy Unified School District

Together with the City Administrator, I meet monthly with the Chair and Vice-Chair of the GUSD Board and the Superintendent to discuss matters of mutual concern/interest. Kudos to the beautiful new campuses that are Brownell Middle School and soon-to-be completed South Valley Middle School.

Adopting the Next 2-Year Budget and Opportunities for Public Participation

  • A second Council budget workshop focusing on department workplan priorities was held on March 13 as we continue to work towards a recommended budget.

  • A Community Budget workshop is scheduled for May 24 for the public to ask questions and get feedback concerning the recommended budget.

  • The City expects to finalize the FY 24 and FY 25 budget at the City Council meeting on June 5, 2023.

I’d like to close this year’s State of the City with the sentiments of unity and togetherness. Gilroy is a community of heart, heart that drives me every day to do the best that I can for the community I love. Unity comes when we recognize heart, the sincere and genuine efforts put forth by so many in Gilroy to solve problems and help others with no expectation of recognition or compensation. Heart brings us together, builds trust in one another, and contributes to real and effective solutions that we can all support and feel proud of. I hope that in the coming year more and more Gilroyans feel the heart that has kept me in Gilroy since birth, unites us in community and moves us forward together.
We are Gilroy, together.

Sincerely, Mayor Marie Blankley