Main story: Gourmet Alley project faces concerns by downtown merchants

$3.9 million project funded largely by Caltrans grant

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By Marty Cheek

Downtown Gilroy businesses have started preparing for significant challenges in the coming six months as the long-awaited Gourmet Alley revitalization project broke ground April 5.

“I will tell you from the very start, we are going to be very disruptive,”  Jimmy Forbis, Gilroy’s city administrator, warned downtown merchants and property owners at an April 3 public meeting. “We are going to tear downtown up, and it’s going to be a pain for all of you. But we  hope you get through it with us because it’s going to look very nice when we get done.”

The $3.9 million project, funded largely through a Caltrans Clean California Local Grant, aims to transform two blocks of the narrow alley on the west side of buildings facing Monterey Street. The alley is now unsightly with rows of dumpsters lining the backs of buildings and unattractive landscaping.

The goal is to create an inviting pedestrian destination with improved infrastructure, landscaping, and amenities to make downtown more bicycle friendly. This may provide opportunities for restaurants and pubs to create outdoor dining experiences for customers in the back end of their businesses.

However, the path to this “shining star” will be a “tough road,” according to Jane Howard, interim executive director of the Gilroy Chamber of Commerce.

“All of us have mixed emotions. We have been strongly advocating for the Gourmet Alley project that will enhance that whole area,” she said. “But now we’re facing the realities of what that means and how it impacts so many of our businesses and property owners. It’s big.”

The construction, slated to begin April 8 and continue through September, will close Gourmet Alley between Fourth and Sixth streets, as well as the adjacent parking lots. This extended closure has raised concerns among local business owners who rely on the area for customer access and parking.

At the April 3 meeting, Bruce Haller, co-owner of Café 152 on Eigleberry Street, expressed his apprehension about the loss of 46 public parking spaces during the construction.

“I compete for parking with the post office, and now I’m struggling,” he said. “We’re already on ground zero, and during lunchtime, it’s a difficult spot at best. Customers only have 30 or 45 minutes, so I know it’s going to be a struggle.”

Heba El-Guindy, the public works director leading the project, sympathized.

“We hear your concern and we will need to make adjustments as we go,” she told him. “But this is something that we have to look at closely. I won’t be able to promise anything at this point.”

Other residents and business owners at the meeting expressed concerns about specific challenges they will face during the construction. These include alley access to the back side of their shops and dealing with dumpster and trash cans access on garbage days.

The city council awarded a project contract to Trinchero Construction at the March 18 meeting to provide infrastructure and aesthetic improvements along Gourmet Alley between Fourth and Sixth streets. The bid was $2,975,648.

The project will resurface the alley pavement between two blocks, resurface the two parking lots, and add lighting, three trash enclosures, trash receptacles, landscaping and irrigation, benches for public seating, bike racks, and improved signage and pavement markings. The alley will limit access to pedestrians only.

Included in the project will be work on resurfacing Railroad Street between Lewis Street and Hornlein Court on the eastside of the downtown. The city also plans to add fencing between railway tracks and Railroad Street for safety.

Gilroy’s project was among the 105 projects awarded a Caltrans grant, out of the 329 submitted applications to the state. Funding must be spent on projects that enhance communities and improve walking and recreational spaces. The project was originally required to be completed by June 30, 2024, but the state gave the city an extension.

Despite the challenges for downtown business owners and nearby residents dealing with the noise, dust and traffic issues, Howard remains optimistic about the project’s aggressive timeline to finish by fall. Work is scheduled six days a week from 7 a.m. to 7 p.m.

“In terms of the big picture, long term, this could be good. Short term, painful,” she acknowledged.

The Gourmet Alley project was one of three key economic development initiatives proposed by the Gilroy Economic Development partnership to the city, she said. It aimed at stimulating the downtown area and promoting it as a destination for visitors.

As the construction looms, the Chamber of Commerce and Gilroy Downtown Business Association have started seeking ways to support the affected businesses, Howard said.

“As a Chamber here in Gilroy, my wheels are already turning on how we can be extra supportive of these downtown businesses as they go through these challenging few months,” she said. “It’s going to take some extra love here, truly.”

Jeff Orth, chair of the Gilroy Downtown Business Association board, declined to comment about the project for this story but promised information later.

The city and local organizations will need to work collaboratively to help businesses weather the construction period, potentially through promotions and grants, Howard said.

The Chamber will also closely monitor how the construction impacts upcoming downtown events, such as its June 15 Garlic City Car Show, and work with event planners to make necessary accommodations.

As Gilroy embarks on this transformative journey, the community braces itself for the short-term disruptions in what Howard hopes will be a long-term payoff — a revitalized Gourmet Alley that will serve as a vibrant hub for residents and visitors alike.