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Council directs staff to revive and strengthen vacant‑storefront/plywood rules; vacancy tax deferred
Summary
After presentations from downtown subcommittees, the council asked staff to update an expired vacant‑storefront ordinance to require artwork or approved coverings, limit bare plywood use and explore registration, monitoring fees and enforcement; staff recommended no vacancy tax now but will return with draft language and stakeholder outreach.
City staff presented recommendations Nov. 3 to update policies aimed at removing plywood and blight from Gilroy’s downtown and addressing long‑term vacant commercial properties.
The downtown plywood removal and vacancy‑ordinance subcommittees proposed requirements including mandatory registration of vacant storefronts, limits on plywood (bare plywood permitted only up to 90 days, then must be decorated with approved art or coverings), fines for noncompliance (proposed $500/month for failing to cover plywood after 90 days; $250/month to remove temporary plywood after one year), and possible vacancy monitoring fees or taxes for prolonged vacancies. Staff reviewed other cities’ models (Fairfield, Sacramento, Oakland, Berkeley, San Francisco) and noted legal and administrative considerations — in particular, a recent court decision troubling for residential vacancy taxes and state bills under consideration.
Staff recommended reviving and updating the expired Chapter 5D (vacant commercial space) with strengthened enforcement and permitted window‑covering standards, but advised against adopting a commercial vacancy tax now because of legal uncertainty and potential takings litigation. Staff proposed stakeholder engagement, fee structure analysis and community outreach and estimated bringing an ordinance back in 2026 once code enforcement staffing and work plan priorities are aligned.
Council members from the downtown committee stressed that some buildings have been vacant for more than a decade and that prior voluntary approaches and incentives had limited effect; they argued clearer enforcement and financial consequences can spur building owners to act. Other council members and public commenters urged collaborative approaches — murals, artist partnerships and incentives — to make vacant storefronts look welcoming while owners pursue re‑use. Council directed staff to proceed: revive, update and strengthen the expired ordinance for vacant commercial space and plywood removal (without imposing a vacancy tax at this time) and to return with draft language and a stakeholder engagement plan.
