Granada to open in three years

Just before the city council looks at green-lighting a two-story
office, retail and theater complex downtown, stakeholders there are
asking them to put on the brakes.
MORGAN HILL

Just before the city council looks at green-lighting a two-story office, retail and theater complex downtown, stakeholders there are asking them to put on the brakes.

On Wednesday, the Morgan Hill City Council will consider moving forward on a two-story office and retail complex with a three-screen, 600-seat theater on the second floor, located on the southeast corner of Monterey Road and Second Street.

Moving quickly to spur development on some of the nearly $20 million in property the city bought in the past year is important, but not as important as getting input from local businesses, according to the Morgan Hill Downtown Association. The association’s board has requested the city hold off on a decision until after downtown leadership can meet with city staff to discuss all the options.

Jorge Briones, executive director of the association, said there was a misunderstanding stemming from a recent workshop between the council and the Planning Commission that outlined four different options for projects downtown. Assistant to the City Manager for Downtown Redevelopment David Heindel identified opening a theater downtown as a priority, and fast-tracking a small mixed-use project that included a theater is on the table for Wednesday.

But the association’s board thought they would have a chance to meet with staff and provide their input before the council made a final decision. That meeting has been scheduled for Feb. 12. The council is being asked to make a decision Feb. 4.

“We think it’s great that the city is moving forward and trying to make such an important project happen, especially in such a tough economic time,” said Briones. “We would just like to have the meeting to provide the input. It’s quite a large stake and investment in downtown.”

Mayor Steve Tate expressed frustration at the possible delay.

“You can’t win no matter what you do. We definitely want the downtown people providing input. I just think it’s great that we’re going to think of something. We’re not going to make a lot of progress on housing, so if we can find something else to do that’s great,” Tate said, referring to the other options, which included mixed-use projects with residences. With the housing market stalled, there’s not a lot of possibility there, he said.

Councilman Greg Sellers said putting off a final decision for two weeks means opening a theater two weeks later.

“The council feels strongly about moving forward with all delivered haste,” he said, noting that they were being responsive to the community’s urgency. “Hopefully that (urgency) will start to permeate in subsequent decisions as well.”

Sellers said he would like to see the Granada Theater, which closed in August 2003, re-open downtown in fewer than the three years quoted at the workshop.

Chamber of Commerce President Chris Giuisiana said her board would like to keep abreast of what was going on and as of Monday morning were exchanging e-mails on how to respond to the suggested plan.

Councilwoman Marby Lee said she, too, would like to hear more details before making a decision.

“As the Council talked about in our retreat, I think we’re willing to tolerate risk in moving forward with all of our projects,” Lee said in an e-mail, referring to the council’s recent annual goal-setting retreat. “But in my mind, without having a more firm commitment about an operator may be too much risk. I am excited about the possibilities, that we are moving forward, and I would like to see the timeline that was provided tightened up a bit.”

If approved by the Redevelopment Agency, with the city council serving as the board, staff would move forward with the mixed-use project by soliciting developer and investor interest, securing a leasing agreement with a cinema operator and spending up to $5,000 on a theater design by Rob Henry Architects.

The Music Tree owner Darin Dixon said he’d rather see the city focus on existing businesses than building spaces for new ones.

THE annex store owner Sabrina McClain said a theater downtown would create foot traffic from her new target market, teens. THE annex recently switched from an all-furniture outlet to a low-priced junior clothing store.

“Families looking for something to do before or after the movie would hopefully shop around downtown,” she said.

Carlos Perez, owner of Royal Clothiers men’s clothing store on the corner of Monterey and Second, said he looked forward to the future downtown but didn’t know how he would survive to see it.

The city will come up with a relocation plan for businesses like Royal, but in a struggling economy, Perez said he wasn’t sure where he would go and would look forward to returning to the downtown by renting a retail space in the new complex.

“I have a faith that downtown will come alive,” he said. “If I move from this building, I hope to come back soon.”

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