City officials will soon determine who gets to purchase four
downtown Morgan Hill properties, based on how qualified a list of
potential buyers are to develop projects that support their vision
of a community with a variety of living, shopping and entertainment
options.
City officials will soon determine who gets to purchase four downtown Morgan Hill properties, based on how qualified a list of potential buyers are to develop projects that support their vision of a community with a variety of living, shopping and entertainment options.
A committee of Morgan Hill Redevelopment Agency staff and citizens have been in the process of reviewing 15 responses to a request for qualifications to develop the four properties, which was posted last year. They will recommend a buyer or buyers for the properties to the city council, serving as the RDA board at an April 1 special meeting, according to David Heindel, assistant to the city manager for downtown revitalization.
The four properties in question are the Granada Theater lot on the east side of Monterey Street, which also includes the Downtown Mall and the Morgan Hill Tobacco Company; a half-acre parcel at the corner of Monterey and Second streets that currently houses Royal Clothiers; a lot on Depot Street between Second and Third streets, where BookSmart and Jesus restaurant are located; and the six-acre Caltrain parking lot across the railroad tracks.
The RDA owns the Granada Theater and Royal Clothiers’ lots, and partially owns the Caltrain lot with the Santa Clara Valley Transportation Agency. The property that contains BookSmart and Jesus is privately owned.
If the RDA board accepts the staff recommendation, the city’s plan is to enter into an “exclusive negotiating agreement” to put the properties into one or more of the 15 potential buyers’ hands, Heindel said.
“The next step would be to start back into the process of looking at what the property would look like,” and then craft an agreement with developers to proceed with plans, Heindel said.
The full list of potential developers won’t be released until later this month. The RDA’s request for qualifications indicates a preference for development plans that are consistent with the Downtown Specific Plan – specifically high-density residential units mixed with retail uses, and public parking. The lot at Second and Monterey streets is designated for a new multi-screen movie theater.
RDA board and Councilmember Marby Lee envisions, for example, multi-story developments with retail or dining on the ground floor, with residential, condominium-style units on upper floors.
“I hope to see something that’s going to intrigue businesses to want to come down there, and bring people not only to shop, but also entice them to want to live downtown,” Lee said. “And I think that’s a variety of shops, entertainment and good food.”
She added that speculation that the city wants to build a Santana Row-style neighborhood is unfounded, as such a project would not be consistent with the “pace” of Morgan Hill.
One potential developer who submitted their qualifications was Realtor Pamala Meador and the Save the Granada foundation. The nonprofit group wants to restore the theater, which has been closed for about five years, and continue to use it for movie screenings.
City officials and local developers are sentimental about the Granada Theater, but its continued long-term use as a cinema appears unlikely. While the council might save the theater’s existing sign and marquee, no part of the building is eligible for historical designation.
Plus, the city has already indicated a strong preference to build a mixed-use project that includes a second-floor theater one block south where Royal Clothiers is located. The city has already approved an investment of about $300,000 to make minor renovations to the Granada, so it can be opened temporarily while the new cinema is being built, Lee said.
The RDA purchased the Granada Theater and Downtown Mall parcel for about $10 million in 2007.
One firm that wants to develop the Granada property is Community Housing of San Jose. While the company has not submitted detailed plans, they will likely propose a mixed-use building that combines residential and retail, according to former Mayor Dennis Kennedy, who is working with the company on public outreach efforts.
He did not rule out the possibility that Community Housing might reopen the Granada Theater.
Community Housing also hopes to develop the Caltrain lot.
“That would be a combination of condominiums, some apartments, and some office space and maybe some services supporting the courthouse” such as attorneys’ offices, Kennedy said.
