Gilroy council pivots to economic development, signals likely new director in upcoming budget

At a May 5 special strategic planning session, the Gilroy City Council centered discussion on economic development and what council members described as the “how” of implementation, including a likely new economic development director and measurable, revenue-focused goals.

The council’s economic-development discussion was led by Victoria Valencia, the city’s economic development manager, who reviewed a set of seven council-adopted guiding principles she said should frame incentives and outreach. “They are focused on revenue enhancing economic development, evaluating return on investment and community benefit, recognizing incentives are catalysts, promoting a can-do mindset for economic development, using data for insight and expanding accessibility, being visionary, and sustainability in viability,” Valencia said.

Why it matters: Council members repeatedly tied economic development to the city’s ability to pay for services, citing public safety and unfunded state mandates as reasons to prioritize revenue generation. Council member Joe Ramirez said, “Economic development is going to pay for the services that everyone in this community wants, including and especially public safety.”

Council members pushed for clear metrics and accountability. Several called for SMART goals (specific, measurable, attainable, relevant, time‑sensitive) and an executive dashboard showing progress on items such as jobs, property tax and sales tax. Council member Mark Marx said he expects to see indicators that move “up, up, up” over time so officials can judge a director’s effectiveness. Council member Zach Klein urged a quick timeline and said he wanted the position to be part of the FY 2025–26 budget: “My expectation … is part of this budget and moving forward. July 1, looking for that position to be filled,” Klein said.

City Administrator Jimmy (first name provided in the meeting) characterized the council’s direction as clear and said staff would reflect it in the coming budget. “I talk to you all. I listen, and there’s probably a pretty good chance there’ll be a director in the budget that you get on Wednesday,” he told the council.

Council members described what they expect from a director: someone who can build private-sector relationships, drive revenue, coordinate city departments, and manage projects such as a downtown strategic plan, gateway improvements and promotion of assets like Gilroy Gardens and a proposed sports park. Several council members wanted an aggressive, in-house economic development program instead of a scattershot approach; they repeatedly said the role should demonstrate return on investment.

Discussion touched on specific assets and projects the director would manage or coordinate with partners: downtown revitalization, a strategic plan for the Gilroy Sports Park and Sharks Ice, and efforts to market Gilroy as a recreational and visitor destination tied to its agriculture, wineries and events.

Council members also emphasized internal culture and relationships: streamlining customer service at counter and online, coordinating with bargaining units and city departments, and creating an “advocate” role for businesses so applicants do not get lost navigating permit and regulatory processes.

Next steps and timing: Council workshops on the budget were scheduled May 12 and May 19, and the city’s budget adoption deadline is June 2. Staff said they will draft work plans and include economic development staffing and priorities in that budget process for council consideration.

Ending: The council did not take a formal vote at the session. Instead members used the workshop to provide policy direction that staff said will be reflected in the forthcoming budget packet and work plan documents for final council action during the June adoption process.