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Sharks Ice update: city awaits independent cost estimate; Sharks reaffirm commitment to Gilroy
Summary
Gilroy staff updated council on the proposed Sharks Ice facility and said an independent cost reconciliation is due mid-July. The Sharks continue to express intent to build; the city cautioned its public-infrastructure contribution could grow as project costs are refined.
City staff and Sharks Ice representatives gave an update on the proposed multi-rink ice facility at the Gilroy Sports Park during the June 16 meeting. The city said the Sharks remain committed to the project but that the current focus is reconciling an independent construction cost estimate due in mid-July.
Background and current status
The facility concept dates to a 2022 term sheet that envisioned a 100,000-square-foot building with two NHL-sized rinks and 387 parking spaces, under a model where the city would own the building and Sharks Ice LLC would operate it. Early 2022 cost expectations cited a roughly $30 million building estimate; subsequent work by architects in 2024 produced a $59 million estimate that the Sharks did not regard as a final construction price. The city engaged Sharks Ice under a consultant agreement to develop design and procurement documents and agreed to contribute to public improvements (frontage roads, traffic signals, utilities and mitigation for drainage/floodplain work) that benefit the larger sports park master plan.
Why the independent estimate matters
Staff explained that the independent cost-reconciliation, expected in mid-July, will be used to determine the project budget and the city's portion of public improvements and off-site work. Staff said site conditions'including the need for earthwork and potential off-haul of fill and environmental mitigation'are among variables that can substantially alter the cost to prepare the site for an impermeable structure. City staff estimated that the city's public-improvement contribution could approach $10 million (rather than the $5 million estimate discussed earlier), depending on the reconciled cost estimate and required scope of off-site work.
Council direction and next steps
Staff outlined the next steps: Sharks Ice will reconcile independent estimates and present the reconciled project budget; the city will develop a financing plan for its contribution (using non-general-fund sources such as impact fees where feasible); the project would proceed to a design-build procurement and, if bids are materially higher than estimates, both the Sharks and the city would have contractual exit options.
Why it matters: A major sports facility could change traffic patterns, require significant public infrastructure investment and expand recreational amenities. Councilmembers asked for continued updates; staff said the sharks have repeatedly stated "we are coming to Gilroy," and staff will return to council with cost reconciliation and financing recommendations once the independent estimate is complete.
Ending: Staff expects the reconciled independent cost estimate in mid-July and will bring a recommended financing approach to council thereafter.
