Council reopens talks on Gilroy Gardens, sports park and Sharks Ice; annexation and LAFCO issues discussed

During its May 5 strategic planning session the Gilroy City Council revisited long-running discussions about Gilroy Gardens and the adjacent Gilroy Sports Park, a large city-owned property outside city limits where council members and staff said a Sharks Ice facility or other sports-driven development could spur hotel, restaurant and retail investment.

City staff described the Sports Park as city-owned land located in county jurisdiction and said the city currently provides services under agreements that predate some LAFCO rules. City staff member Andy, who worked on earlier facets of the property plan, summarized the status: “The property is owned by the city. It’s in the county jurisdiction…we are allowed to service the properties…we are, in a sense, grandfathered,” he told the council.

Council members and staff discussed benefits and tradeoffs. Because the park lies outside the city, property tax now goes to the county. Sales tax from future retail or hotel development would not flow to the city until an annexation occurs. Several council members said they view an anchored facility such as Sharks Ice and a dug-in hockey rink as a catalyst that could prompt surrounding investment, and they discussed reopening a procurement process to attract proposals for new uses at Gilroy Gardens and the surrounding acreage.

The session also covered mitigation and prior planning steps. Staff recalled past RFPs and prior proposals (including developer interest such as Great Wolf and other bidders) that did not advance to fruition. They said a supplemental environmental review (EIR) and master planning work done earlier supported the possibility of sports-park development, but that a renewed effort is needed to reach the next stage.

On process and timing, staff said that if the Sharks Ice project advances it may be worthwhile to explore annexation with LAFCO because the agency’s posture toward such requests has changed in recent years. “The timing is certain will certainly be better in the next few years than it has been,” a staff member said, noting that prior LAFCO feedback favored infill alternatives rather than placing a major commercial use on the sports-park site.

Ending: The council did not adopt formal actions at the session. Members directed staff to re-examine options for Gilroy Gardens and the sports park as part of economic development work plans, and to consider whether annexation or other steps could improve the city’s share of future tax revenues if a major project is proposed.