L
and use is one of the most
complex issues faced by cities
today. Being the precious asset that it
is, our development and stewardship of
land is fraught with political, economic
and environmental regulations as well as
socio-cultural considerations.
Gilroyans are working hard to be
smart developers and good stewards
of their land for the benefit of current
and future generations. This effort
brings together Gilroy City staff and
Councilmembers, the Gilroy Economic
Development Corporation, the Gilroy
Chamber of Commerce, the Gilroy
Downtown Business Association and
others, to bring forward solutions.
In 2018, the City of Gilroy and
the Gilroy Economic Development
Corporation (GEDC) retained Economic
Planning Systems, Inc. (EPS) to assess
past economic development and current
general plan analysis, and bring their
perspective to the City’s approach to
improving its competitiveness in terms
of growth and development. The City’s
goal is to improve economic growth and
diversity while establishing a sustainable
short- and long-term revenue base.
EPS study findings, captured in
the Gilroy Place-Based Economic
Development Strategy, were presented
at the January 14 th Special Meeting of
the Gilroy City Council. The EPS study
provides concepts and ideas to spark
discussion and exploration of Gilroy
economic development opportunities
from a fresh perspective.
And what is a place-based economic
development strategy? EPS defines it as
an approach to economic development
that focuses on the strengths of local
industries, workforce, and market
dynamics to attract new investment
and strengthen existing businesses.
For example, the latest “innovation
parks,” like San Ramon’s Bishop Ranch,
emphasize quality of place, sometimes
including residential spaces as part of a
mixed-use development that includes
offices and retail.
Exploring Best-Use Development
The Gilroy Place-Based Economic
Development Strategy looks at local and
regional economic conditions, identifying
ways to better leverage economic develop-
ment opportunities, and giving guidance
to the City in reviewing its General
Plan Update. The study’s purpose: “to
evaluate available land parcels suitable
for development, specifically to prepare
the sites to be shovel ready.”
EPS analyzed prevailing market,
property, and legislative conditions,
providing a useful summary of trending
data and making recommendations
vis- à-vis policy and technical actions to
support sustainable development for the
City of Gilroy through 2029. Of course,
further evaluation and feasibility testing
will be required before recommended
actions can be considered.
To help Gilroy stakeholders gain a
quick high-level perspective on the real
GILROY • MORGAN HILL • SAN MARTIN
april/may 2019
estate market, EPS graphed a multi-
year trend analysis of industrial/R&D,
office, and retail space. The analysis
included leasable square feet (as of Q1
2018); average annual vacancy and
lease rates (2013-2018); and average
annual square feet constructed (2008-
2018). The analysis compared data for
the Gilroy, Gilroy/Morgan Hill, San Jose,
and Salinas markets.
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