Official Press Release
FOR IMMEDIATE RELEASE
July 31, 2024
Rachelle Bedell, Communication and Engagement Manager
City of Gilroy
408-846-0443
Regarding an Application to Construct an Apartment Complex at 315 Las Animas Avenue
Wednesday, July 31, 2024 (Gilroy, CA): On Friday, July 26, 2024, the City of Gilroy was notified that it had been sued in Superior Court by a developer (Gandolfi Investments, LLC) regarding an application by the developer to construct a 501-unit apartment complex on 27 acres of land located at 315 Las Animas Avenue.
The land is designated for industrial, not residential, use in the City’s General Plan and Zoning Ordinance. It is not contained in the City’s Housing Element as available for residential development.
Nevertheless, the developer seeks an Architectural and Site Review Permit because of a provision of State law called the Builder’s Remedy. This law applies to a City whose Housing Element was not in substantial compliance with State law at the time the application was filed. There is a legal issue as to whether the Builder’s Remedy is applicable to this particular project. If it does apply, it would prevent the City from turning down the project based solely on the inconsistency with the Zoning Ordinance or General Plan Land Use designation (though the project could be denied if it is determined after analysis that the project would have unmitigable public safety or environmental impacts).
Over the last few months, City Staff has been processing the developer’s application and has asked for information to allow it to undertake its normal review for consistency with objective standards, plans, and policies and compliance with the California Environmental Quality Act. The City has not taken any steps to deny the project, nor has it taken an official position as to whether the Builder’s Remedy may ultimately apply to the application once its analysis is completed. The developer claims in the lawsuit that the City is not properly processing its application. The City disputes this contention, since it is actually analyzing and processing the application under the same rules that apply to any similar project, regardless of whether the Builder’s Remedy may eventually be deemed to apply to this project.
Furthermore, notwithstanding the unfounded allegations of the lawsuit, neither the Staff nor individual Council members have taken any irrevocable position as to the ultimate desirability of this project after Staff completes its analysis.
This afternoon, July 31, 2024, the City Staff formally informed the developer that their application has been deemed complete and that Staff will begin the process of reviewing the application for consistency with objective standards, plans, and policies and environmental impacts as required by the California Environmental Quality Act. This is the same process that is required by law for similar development projects.
On July 29, 2024, at a regularly scheduled meeting, the City Council considered this matter in closed session. The Council voted to direct legal counsel to defend the lawsuit.
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