EDITOR: Having served as a president of the Gilroy Chamber of
Commerce and a financial partner to the Gilroy Economic Development
Corporation, I understand the need for economic vitality within a
community and the benefits that it can afford to all citizens.
EDITOR:
Having served as a president of the Gilroy Chamber of Commerce and a financial partner to the Gilroy Economic Development Corporation, I understand the need for economic vitality within a community and the benefits that it can afford to all citizens. I applaud both Gilroy and Morgan Hill for their aggressive, yet thoughtful pursuit of businesses that mesh well with the vision that our city leaders have had for our communities. It is with this in mind that I caution the council.
Yes, I am concerned about direct competition from another Ford dealer – concerned because I do not believe that these two communities can support two profitable Ford stores. As a board member and president of South Valley Hospital Foundation I observed the difficulty South Valley Hospital had in providing health care – even in a non-profit setting. I heard the rumors of the difficulties that Morgan Hill’s Saint Louis Hospital experienced. Today, one of those two facilities stands vacant.
Yes, there are two Chevrolet stores between our two communities, South County Chevrolet in Morgan Hill and Marx Chevrolet in Gilroy. However, where South County focuses on retail car and truck sales, Marx focuses on commercial truck sales. This niche strategy is not a possibility for either Bob Lynch Ford in Gilroy or Tim Paulus’ proposed dealership in Morgan Hill given the well-established presence of Ford commercial truck centers as close as Mission Valley Ford in San Jose and Salinas Valley Ford in Salinas.
Will this be a “win” for Morgan Hill? Since 1994, when Ford decided to put a dealership here, its market share has declined significantly in the California region. Will having a market presence in Morgan Hill help it to recover? – I say marginally. Will its presence here be long term, I say doubtfully. Will the short-term benefits of its sales-tax revenue out-weigh the negative impacts to its neighbors or risk of its failure – I propose not.
In regard to the application before the council, it is my impression that much emphasis is being placed on highway visibility being a requirement for success. The applicant has selected a highway-adjacent location and is requesting exceptions to the PUD that would enhance its visibility. I suggest that such an exception is not necessary to ensure success. Specifically, since Highway 101, which bypasses Monterey Street, was completed over 20 years ago, we have not enjoyed highway visibility. Also, Beschoff Motors, a recently completed Mercedes dealership, stands alone on the corner of Tully and Capitol Expressway in east San Jose, not visible from the nearest freeway, 101, and not adjacent to any other auto franchises. I make this point to suggest that options for dealership locations in or near your community may not be as limited as you might think.
Local residents have expressed concern over test drives being taken in their neighborhoods. Staff heard their concern and suggested, in an effort to mitigate, that test drives be limited to certain streets. From my experience as a sales consultant and manager of sales consultants, I know that the test drive is an opportunity to demonstrate one’s product and build rapport with a prospective customer. It is only natural for a sales consultant to gravitate to areas near the dealership that will best compliment the vehicle being shown – specifically, quiet, picturesque neighborhoods that compliment the product and allow easy conversation.
Traffic signals and congestion at Condit and Dunne will be avoided unless demonstrating the vehicle necessitates the customer testing its acceleration or performance at highway speeds. From a practical standpoint, it will be impossible to monitor. Technicians will test drive vehicles to ensure repairs have been done properly. Because they are concerned with completing a test drive as quickly as possible, they will avoid traffic and will travel routes that return them to the dealership in the shortest amount of time. These vehicles are plated and will be difficult to discern from vehicles owned by residents.
As someone who is proud of the communities I serve, I encourage you to consider a different strategy for Morgan Hill, one that compliments the demographics of your community and better matches the buying patterns of your constituents. I suggest that the city continue its quest for auto dealerships – but focus on bringing franchises that compliment what is already present in Gilroy and that they be located in a campus-type setting that is harmonious with the atmosphere already well-established here – away from residential areas of the city.
R. Scott Lynch, president,Bob Lynch
Ford Lincoln-Mercury,
Gilroy
