Downtown Morgan Hill is buzzing with construction activity again, as work is underway at two long-planned commercial projects and a housing development that was allegedly vandalized this summer.
Meanwhile north of town, the city council recently approved permits for a 67-unit condominium known as Manzanita Park at Monterey Road and Tilton Avenue. The project was initially proposed by Dividend Homes, and has been purchased by Toll Brothers since the Morgan Hill Planning Commission approved the initial site review in March 2022.
The city council on Aug. 23 unanimously approved Manzanita Park’s final map, an agreement for the developer to complete subdivision improvements and an encroachment agreement.
“We were happy we were able to acquire this project from a local builder, and we look forward to building out the project as designed,” Steve Savage, of Toll Brothers, told the council Aug. 23.
Manzanita Park is proposed on a vacant, 5.8-acre property on the east side of Monterey Road, at Tilton Avenue. Improvements required for the project include an upgrade of the traffic signal at the intersection, according to city staff.
As the property is one of the northernmost sites within the Morgan Hill city limits, it is not connected to the public sewer system. Thus the council approved an encroachment permit that will allow the developer to build a private sewer system from one side of the property, to a private sewer lift station on the other side—all of which will be connected to the closest existing public sewer main that begins at Monterey Road and Burnett Avenue.
“A 79-foot-long segment of the private sanitary sewer line will run parallel to Monterey Road and will cross the Tilton Avenue extension. This sewer segment is proposed to be a permanent private sanitary sewer improvement,” says a city staff report.
Tilton Avenue will be the main road serving future residents and visitors to the 67 units planned in a total of 12 three-story buildings, according to the developer’s architectural site plan.
Other project features include six different unit layouts, as well as community amenities throughout the site such as a clubhouse with a kitchen, a cabana, two picnic areas, a basketball court, passive water features, open space, gardens, park benches and trash enclosures, according to the city staff report.
Fifteen percent of the units will be deed restricted for moderate-income households, city staff said.
Resuming downtown development
In the city’s downtown, construction is ongoing at the site of the new Edes Fine Art Gallery, and has resumed at the long-stalled MOHI Hotel on Monterey Road.
Although construction was stalled during the pandemic—due to the tightening of lending markets in the hospitality industry—owner Frank Leal redesigned the boutique hotel’s plans to include a partial fifth floor, bringing the total capacity to 73 rooms. Plans also include a spa, meeting facilities and a market-hall restaurant.
Leal expects construction to be completed by December 2025, according to a press release from the City of Morgan Hill.
Construction came to a standstill in 2020, leaving the two-story structure incomplete for years. However, during the pandemic, Leal pivoted to temporarily transform the site into MOHI Social restaurant. Leal has since opened a permanent restaurant, MOHI Farm, at the base of the Sunsweet building on East Third Street.
“When the pandemic hit, my main focus was on retaining my employees,” Leal said. “Launching MOHI Social allowed me to do just that and gave me the time I needed to adjust the hotel design and reposition the project to secure additional investment. I have promised the Morgan Hill community a Boutique Hotel, and I intend to make good on that promise.”
Leal is partnering with Gilroy-based Kent Construction on the construction of MOHI Hotel. Kent Construction is also working with Dan McCranie on the construction of McCranie’s Edes Fine Art Gallery at Monterey Road and Second Street.
The Edes Building gallery space—which will showcase contemporary artwork from the Bay Area and beyond—will consist of two levels for art exhibitions, workshops, public programming and a wine cafe. The total size of the mixed-use building’s interior is about 6,600 square feet.
And at the southeast corner of downtown Morgan Hill—near Depot Street and Dunne Avenue at the former site of Hale Lumber—has resumed the construction of a mixed-use housing development. Initial partial construction of units at that site was disrupted by a fire in June, which police say was caused intentionally by a serial arson suspect who was arrested for the crime in July.
Plans for the project on Depot Street include 49 multi-family residential units and 3,000 square feet of office space on the 2.29-acre site. Earlier this year, contractors completed a realignment of Depot Street, with additional curves to bring the street in line with an existing traffic signal at Church Street and Dunne Avenue.
