Another construction project is about to begin in downtown Morgan Hill, as the owner of the former retail building at Second Street and Monterey Road is preparing to bring a new restaurant—or two—to the neighborhood.
Contractors fenced off the roughly 8,000-square-foot property, on the southeast corner of the intersection, earlier this week after they acquired permits from the city, according to architect Jim Dumas of Dumas + Associates.
The building formerly housed Royal Clothier and Tryst—both clothing stores that relocated elsewhere downtown after developer Steve Pace purchased the site in 2015.
Dumas said his crews and the developer will be “gutting the building” and remodeling it for at least one restaurant space, though they might open it up for two such tenants. The outdoor space on the south side of the building—between the vacant structure and Prova restaurant—will be converted from the current “pocket park” to outdoor dining for the new restaurant.
The developer does not have a specific tenant or tenants lined up yet, but Dumas said they are looking for a “restaurant/bar” to move in when construction is completed. A wine bar is another possibility.
Construction is expected to last about eight months, Dumas added.
Dumas didn’t know how old the Royal Clothier building is, but he confirmed it received seismic upgrades in 1990. He and Pace are planning to make it even more earthquake safe.
Their plans also include accentuating the building’s existing “Spanish influence,” with “deeply recessed windows,” new entryways and other architectural features, Dumas said. The outdoor patio will include a “trellis shade structure” with lighting, plus fans and mist-spraying nozzles for dining during the warm seasons.
More restaurants on the horizon
The Morgan Hill Redevelopment Agency purchased the downtown Second Street property for about $1.4 million in 2008, using bond proceeds. After the state shut down the RDA in 2011, the city was forced to sell off the Royal Clothier building—as well as other properties it owned downtown—to developers who would commit to projects with a mix of new residential and commercial uses that would complement each other and existing transportation infrastructure.
Pace purchased the Royal Clothier building from the post-RDA regulators for about $880,000.
Other former RDA properties were sold off to developers in a similar fashion about the same time the city council approved the sale to Pace. Construction or planning in various stages is underway at each downtown site.
These former RDA properties include:
• The former Simple Beverages site at Third Street and Monterey Road, where The Opa Group is in the process of building four new restaurants in two buildings under construction. That project is expected to be complete in January 2018.
• The Granada Theater, which South Valley hospitality developer Frank Leal remodeled as a high-class event venue last year.
• The former Downtown Mall site, which was also acquired by Leal. He has demolished the former structure, and is preparing to build the 60-room Granada Hotel on the site.
• The former Depot Center or BookSmart shopping center, where developer City Ventures has been busy lately pouring foundations for a new residential/commercial project.
• The “Sunsweet” property on East Third Street, where owners Rocke and Glenda Garcia have the council’s approval to build an 80-plus high-density residential project with a restaurant on the ground floor.
Other projects underway or recently completed downtown are the Barley Place condominium project at East Main Avenue and Depot Street; and a restaurant, art gallery and wine bar with rooftop dining on the southwest corner of Second Street and Monterey Road (across the street from the Pace property).