The Morgan Hill City Council on Dec. 17 unanimously approved plans for a $500,000 gateway arch spanning Monterey Road at Main Avenue, marking progress on a downtown landmark project the city has discussed for decades.
The Downtown Morgan Hill Improvement District will contribute $250,000 toward the arch, with the remaining half to be raised through private donations and community fundraising. The property-based improvement district aims to complete construction by November 2026 to coincide with the city’s 120th anniversary.
“A gateway is not just a decorative feature, it’s a long-term investment in our brand, in our future,” said David Dindak, president of the Morgan Hill Downtown Association and long-term supporter of the project. “We’ve been talking about this for 40 years.”
The design features a double-sided representation of the El Toro mountain silhouette in laser-cut steel with backlit “Downtown Morgan Hill” lettering visible at night. Bronze frame mesh columns filled with stone will support the structure, with a base designed to accommodate donor tiles or bricks. The arch will be high enough to maintain semi-truck clearance and avoid interference with driver sight lines.
The project sparked debate over spending priorities as the city faces unprecedented budget challenges, though the city council ultimately has no authority over how the DMHID spends its funds.
Councilmember Yvonne Martinez-Beltràn questioned whether the arch should take precedence over other priorities. She noted that when the improvement district was established, the understanding was that assessment funds would help offset city expenses for downtown maintenance, lighting, trash collection and police services, expressing concern that the organization had outgrown its intended use.
“When we created this PBID … we were paying for the twinkle lights, we were paying for maintenance, we were paying for police officers to go down there, we were paying for trash cans, many things that were coming from our funds here,” Beltràn said. “If this arch were being completely funded by private donations, I think that would be great.”
The improvement district generates about $300,000 annually through property assessments and non-assessment revenue from events and programs. The City of Morgan Hill, as one of the largest property owners within the district, pays roughly 50% of those assessment fees, making it a significant but not the only contributor of funds for the district.
The improvement district includes 92 properties held by 58 owners. Including non-assessment revenue, the city pays just over 42% of the PBID’s total funds.
The improvement district’s funds are managed by its board of directors, who include nine downtown property or business owners and residents. One of the mandates laid out in the PBID’s Management District Plan is the creation of capital improvement projects and art installations such as the gateway arch.
Matt Mahood, economic development director for the city and a member of the DMHID board, said the district has been saving up funds to pay for the arch over the last two years, with $75,000 currently held in reserve for the project and expectations of continued revenue growth to fulfill the remaining portion of the district’s commitment.
“In order to pay for large-scale capital improvements, like an art installation, a portion of the budget may be held in reserve until such time the balance is sufficient to pay for the improvement,” Mahood said. “For this project, they’ve held two years of capital improvement money.”
The project passed through the city’s Library, Culture, and Arts Commission earlier this month, which unanimously supported the project and recommended its approval to the City Council.
One local resident stepped forward during the public comment portion of the city council meeting to voice strong opposition to the project. Joe Baranowski cited the city’s $4 million structural budget deficit and what he characterized as unfulfilled commitments by the improvement district to address downtown parking issues.
“I love the timeless arch. I think Morgan Hill is going to end up with the nicest arch in all of Northern California, if not the country,” he said. “What I don’t understand is that, however many years that we’ve needed an arch, how many of those years were we also facing a $4 million per year budget deficit?”
Baranowski referenced previous discussions about using improvement district funds to support valet parking for the Hotel MOHI and other downtown visitors, questioning why the arch took precedence.
“Let’s not pretend that there’s not specific, identifiable needs,” that are not being addressed by the district, he said. “As a taxpayer who is concerned about getting in and out of downtown and what the impact will be to all businesses when there is a traffic problem, the priority for the arch is just way, way too high.”
Representatives from multiple downtown organizations stepped forward to express support for the project. Nick Gaich, president of the Morgan Hill Chamber of Commerce, called the arch “a strategic investment in identity, tourism and urban renewal” that will enhance the city’s presence as a destination.
“The gateway arch will function as a powerful economic catalyst, tourism magnet and symbol of progress and civic identity,” Gaich said.
Krista Rupp, executive director of destination marketing organization Visit Morgan Hill, said the project could lend itself to marketing opportunities when shared on social media.
“An easily photographed landmark provides an opportunity for the public to amplify recognition of Morgan Hill,” Rupp said. “That’s some of the best marketing that you can get, when it’s shared by others.”
Dan McCranie, downtown business owner and improvement district board member, announced plans to lead an aggressive fundraising campaign and establish a structure to allow for tax-deductible donations to be made to the gateway arch project.
“I think it’s going to bring us all together. I think it’s a very special thing,” McCranie said. “The city’s been looking for something like this for decades now.”
