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Gilroy council enacts citywide moratorium on new tobacco retailers

City of Gilroy — Coffee with the Mayor · January 12, 2026

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Summary

Gilroy's council extended a previously discussed downtown moratorium to a citywide urgency ordinance that pauses new tobacco-retailer approvals for up to 10 months while staff researches updated code and public-health options; council set a 45-day window for findings to justify the pause.

The City of Gilroy has imposed an urgency ordinance pausing approvals for new tobacco retailers across the city as staff prepares findings and a possible update to municipal code.

At Coffee with the Mayor, officials said the moratorium began as a targeted pause for the downtown corridor but council expanded it after receiving additional information about the growth of new tobacco-style retailers and vaping or flavored-product outlets. Mayor Braco described the action as a temporary pause to allow the city time to study modern retail formats and bring code language up to date.

"It is an urgency ordinance which means that the city has 45 days to come back with findings that justify having a pause on any new tobacco retailers in the whole entire city of Gilroy for 10 months while more research is done," Mayor Braco said.

Council members and residents said the measure does not force existing retailers to close; it only prevents new retail approvals in the short term while staff examines policy options, including whether to treat newer 'smoke-shop' formats differently in the code. Officials noted that many local ordinances were written before vaping and the current array of flavored products became common and that updated language could clarify permitted uses and limitations.

Next steps: staff will return with findings within the statutory 45-day period and the council may consider ordinance language or other regulations to address flavored products, youth exposure and retail siting in specific neighborhoods.