If San Martin wants to become a city, it would be financially
solvent, it would not adversely impact Santa Clara County and it
would have various ways to develop economically, according to a
recently released report
– and three local leaders are backing the idea.
If San Martin wants to become a city, it would be financially solvent, it would not adversely impact Santa Clara County and it would have various ways to develop economically, according to a recently released report – and three local leaders are backing the idea.

The $23,500 study was funded by the San Martin Neighborhood Alliance, a grass-roots group vying for more local control on land-use decisions in the rural, buffer community between Mrgan Hill and Gilroy.

The study is the first step toward formally seceding from the county and incorporating as an independent city – a process that needs approval by more than 50 percent of San Martin voters and the county’s anti-sprawl agency called the Local Agency Formation Commission (LAFCO).

Mayor Dennis Kennedy, Gilroy Mayor Tom Springer and County Supervisor Don Gage – a voting LAFCO member – pledged their support for a San Martin incorporation after consultants presented their study Thursday night.

“As I look at the study it reminds me of Morgan Hill – staff positions are similar, though proportionately smaller,” Kennedy said. “The feasibility study was done very well. They are on the right track and I applauded them for their efforts. It’s the right thing for them to do to control their own destiny. I will help any way I can.”

Springer said he was pleased with the buffer possibilities the new city would provide.

“The City of San Martin would be the best greenbelt buffer we could have between Morgan Hill and Gilroy,” Springer said. “I urge you to put your boundary as close to ours as you possibly can, so we don’t have to move our lines.”

According to Barry Shiller of the San Martin Neighborhood Alliance – the grassroots group funding the incorporation effort – San Martin boundaries could not extend much past Masten Avenue, north of Day Road property under consideration for a variety of uses including a Catholic Church, a Catholic elementary school, a residential development and Gilroy public high school.

Shiller says acreage south of Masten is in Gilroy’s so-called sphere of influence – an area independent of a particular city that is still impacted by that city. Since Day Road is in that sphere of influence, it would be difficult, if not impossible, to become a part of San Martin.

“Even if we wanted to expand the boundary that much, I don’t believe we ever could,” Shiller said.

The consultants, Berkeley-based Economic & Planning Systems, based their study on a boundary that includes Middle Avenue to the north, New Avenue to the east, and a southwest boundary that wavers as far south as Masten Avenue and well west of Santa Teresa Boulevard.

Shiller said the actual boundary would likely include Maple Avenue to the north and all of Masten Avenue to the south.

“I’m excited about this chance for a little more self-determination. It makes it hard for anyone to make us a dumping ground,” said Charles Logan, a 13-year San Martin resident. “When you’re trying to get your voice heard they don’t hear a city by the size of a city. They have to deal with you as a city, period.”

There are several steps proponents of an incorporated San Martin must now take to become a city.

The San Martin Neighborhood Alliance will now enter a public outreach phase. The group wants to hold block parties, partly to take public comment regarding incorporation and partly to acquire petition signatures from 25 percent of the town’s voters – one of other LAFCO requirements.

“I’m quite sure there are questions we (the San Martin Neighborhood Alliance) never thought of,” chairwoman Sylvia Hamilton said. “We need to hear from everybody in the community. After all, that’s why the alliance formed in the first place.”

Perchlorate contamination, a lawsuit over increased airport hangars, the expansion of a waste transfer station and a proposed fish processing and distribution center triggered political activism from the grassroots group.

Although the county and Gage has been targeted by the group over more than one of those issues, the Supervisor expressed his desire to see San Martin incorporate Thursday.

“We will give our full cooperation,” Gage said. “I see nothing in this study that would make the county want to stand in your way.”

However, Gage went on to caution residents that an anticipated $156 million county deficit would limit the level of support the county could provide.

The county’s fiscal health is crucial to San Martin incorporation because state law requires a forming city to prove its secession will not harm county coffers. The study states that “revenues transferred to the new city (from the county) do not exceed the expenditures transferred.” It also predicts income from property tax, sales tax and other fees to exceed city expenses each year of the next decade.

Richard Berkson said an incorporated San Martin runs the risk of not having enough reserves to meet the state’s “rainy day” fund requirements. However, expanding commercial development, establishing a hotel room tax at the CordeValle country club and other revenue-generating actions could add to reserves.

The incorporation study assumes 5,800 residents will make up the city of San Martin.

The meeting will be rebroadcast on MHAT (cable channel 19) at 8-9:30 p.m. Wednesday, July 23.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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