The way things are going, it might take a crystal ball to find
out the Granada Theater’s future.
Morgan Hill – The way things are going, it might take a crystal ball to find out the Granada Theater’s future.
The 84-year-old landmark on Monterey Road has been closed since 2001 and nobody – from city officials to the theater’s new owner – knows the building’s fate.
Downtown Mall owner Manou Mobedshahi, who purchased the Granada more than a year ago, said he wants the building to be used to draw people to the city’s core. But at this point, Mobedshahi’s not sure if a private art-house theater is viable; talks with potential operators have broken down.
“There’s no real status on it,” said Mobedshahi, who has a track record in acquiring old buildings and restoring them into successful enterprises. “It’s just wait and see … Everything I do is a long-term investment.”
Mobedshahi, who lives in Morgan Hill, is interested in seeing how Morgan Hill’s downtown progresses during the next few years, in terms of high-density residential development that could help bring more people to support a theater. His own plans to demolish the Downtown Mall and build retail, offices and condos is on hold right now, because of a depressed real estate market, he said.
But not everyone favors a wait-and-see approach. The Morgan Hill City Council indicated at its goal-setting retreat it wants to invest $20 million – maybe more – in downtown RDA projects over the next five years, and Morgan Hill City Councilman Larry Carr thinks the community has waited long enough to see what the Granada’s future is going to be.
“If the private property owner can’t figure out what its use will be, it’s time for the RDA to move that along,” Carr said. “I personally would like to see it remain as a movie theater … I don’t know if that’s a viable option or not, but it’s something we should explore.”
Councilman Greg Sellers said the Granada is a proud landmark, but warned the city council should not get into the business of trying to supersede the market.
“The key for us is to work with the market and make that an asset,” Sellers said. “If there is no interest in turning (the Granada) into a theater, there’s no justification for us to get involved.”
At the same time, Sellers called the theater a “black hole” in Morgan Hill’s downtown and said it may be in the community’s interest to advocate for the continued use of the site as a cinema.
“Virtually every community that’s converted a theater into some other use has regretted it,” Sellers said, citing Willow Glen as an example. “If you lose a theater, you can never get it back … the market won’t put it back.”
Gloria Pariseau, co-president of the Morgan Hill Historical Society, said the Granada Theater is on the city’s historical buildings survey but is not listed as a state or federal landmark. Pariseau said the building’s status as a potential landmark, because of its listing on the city’s survey, presents a hurdle for developers who may want to demolish it. But that doesn’t mean the building couldn’t be converted to another use – even retail. Asked for her opinion, Pariseau said she wouldn’t mind if that happened to the Granada.
“I think that’s something the owner would have to discuss with the city’s planning staff,” Pariseau said, adding she conducted a survey last year that showed residents are interested in preserving the facade and keeping the building as a movie house.
South County Real Estate broker Chris Borello, who narrowly lost his first city council bid last November, thinks the theater could be put to a better use to help revitalize downtown. A good example, he said, was the conversion of the Jose Theater in San Jose – built in 1904 – to the San Jose Improv Comedy Club in 2000.








