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Gilroy outlines progress on parks and capital projects; officials say grants and RFPs are advancing

Gilroy City Council · February 9, 2026
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Summary

Councilors reported a $3 million grant for San Diego Park upgrades, ongoing work on the Lions Creek Trail and intersection improvements at Santa Teresa, and a design‑build timeline for a new fire station; the Hillery Ice Center remains under review as private partners seek funding solutions.

The council briefing provided updates on several capital projects and associated funding.

Officials said the city secured roughly $3,000,000 in grant funding to upgrade San Diego Park and that environmental review for the planned improvements is complete. Staff and councilors expect to issue requests for proposals in the coming months and said some pedestrian crosswalk and intersection work could occur later this year.

The Lions Creek Trail project—described as a new trail connection on Gilroy’s north side toward Santa Teresa and a Tapestry Road bridge providing direct access near a high school—was presented as part of a package of parallel capital investments. Councilors said some projects have differing timelines based on funding and permitting; for example, planned pickleball courts at Los Angeles (site referenced in discussion) are expected to advance sooner than other larger projects.

On public safety infrastructure, the mayor said the city is on schedule to select a design–build contractor for a new fire station by 2026 with a targeted groundbreaking by year‑end, but emphasized staff must identify funding to staff the facility when completed.

Councilors also discussed the Hillery Ice Center and rising construction costs. Representatives from Sharks Ice are reportedly reviewing options to cover the funding gap; city officials said they are awaiting a financial proposal and are not planning to absorb the entire shortfall.

Councilors reminded the public that large capital projects often take months for right‑of‑way coordination and permitting, and promised RFP timelines and procurement steps will be shared when available.