A developer who wants to build a new mini-city called Rancho San
Benito in north San Benito County off Highway 25 is reaching out to
politicians and officials in Santa Clara County, hoping to round up
support for a project that could drastically alter the South Valley
landscape.
Hollister – A developer who wants to build a new mini-city called Rancho San Benito in north San Benito County off Highway 25 is reaching out to politicians and officials in Santa Clara County, hoping to round up support for a project that could drastically alter the South Valley landscape.

So far, reception has been cool.

Santa Clara County politicians say constructing a new city between Gilroy and Hollister that could be home to as many as 10,000 people in an area without city services is a bad idea for a region already struggling with development pressures.

“If I had my druthers, I’m not sure a whole new community is something I would like to see,” Gilroy Mayor Al Pinheiro said. “We’re trying to build housing and develop at a pace we can live with. This is not something I see that would be a positive impact to Gilroy.”

At the top of Pinheiro’s list of concerns is traffic, which he said could overwhelm Gilroy’s roads and pollute the environment.

“Anything that develops in such close proximity to Gilroy brings all kinds of impacts. We would be affected especially on traffic,” Pinheiro said. “Whether they’re going to work in North County or going shopping, they’ll be coming through our front door.”

DMB Realty, an Arizona development company, has not yet revealed detailed plans for the 4,500-acre Rancho San Benito. Spokesman Ray Becker said recently that’s because the company wants the development to be a collaborative project welcomed in San Benito County and the surrounding area.

“We don’t have a project yet, we’re working through a process that we hope will lead to a project,” Becker said.

“I think it’s important to listen to everyone,” he said. “But at the end of the day the people of San Benito County are the ones who decide whats best for San Benito County.”

Santa Clara Supervisor Don Gage said he warned Becker that his plans for a leapfrog development will encounter substantial opposition. Part of the land owned by DMB sits in the Soap Lake flood plain and a new major development would require significant improvements to Highway 25. The area currently has no water or sewer services, or schools.

“I made it clear to them that there are significant impacts that have to be mitigated before I would support anything,” Gage said. “I think it’s too big a project not within city limits. You wouldn’t build something like that in this county. Whatever you do out there is going to be very sensitive so if they’re going to do something they better be very good at presenting information.”

San Benito Supervisor Anthony Botelho said that he would want to consider the concerns of the county’s northern neighbors before giving his approval to any project DMB might present.

“Rancho San Benito aside, I think we’re getting into a position right now where we need to consult with neighboring counties as far as impact … especially cross boundary line impacts, environmental impacts,” Botelho said.

But, he said, there are many things, such as rezoning and voter approval, that need to happen before a project could be approved.

“I still think that a project is so far down the road and in the planning stages … it’s so involved,” he said.

Previous communities DMB has built in Arizona, Utah and Southern California have restaurants, shops, downtowns, community centers – one even has a library. Becker said that a couple of projects in the Phoenix area exceed 10,000 homes. He said that DMB has typically opened new schools at the initial phases of development so as to not strain existing schools. Rancho San Benito is primarily in the Aromas/San Juan Unified School District, which has about 1,200 students in three schools. Superintendent Jackie Muñoz could not be reached for comment.

The Rancho San Benito area has a history of unsuccessful development efforts. Plans for a mini town with its own sewer system, police, schools, roads, golf courses and trains were proposed in 1988 and again in 1990. Each time, plans were stymied by environmental concerns. In 1990 the area flooded during the approval process.

About 1,000 acres owned by DMB are in the flood plain. Becker said the plain will not be developed and stressed that his company wants to build only what the community wants. He said the outreach process will last through the end of this year. Earlier this month, DMB sent a letter to about 26,000 San Benito residents, soliciting comments and establishing a mailing list for future community forums.

The letter says that DMB’s foremost concern is to “work with the people of the community to learn about community needs and to plan a project that meets those needs.” Becker said the 1,000 replies he has received have been “very gratifying.”

At present there are no plans for a similar letter to Gilroy residents, but Becker said he is already studying what development would do to South County traffic.

“We have probably spent more time on traffic analysis and trying to understand the dynamics of traffic on a regional basis than any other single component,” he said. “Our job is to not only mitigate traffic impacts but create a net positive gain on the traffic situation in the area.”

Next month, Becker will meet with a regional planning group of Hollister, Gilroy, Morgan Hill and Santa Clara and San Benito counties that was established to address the now-defunct plans for a casino near Hollister.

“The goal is that we all hear basically the same thing so we’re all playing off of the same database,” Gilroy City Administrator Jay Baksa said. “It was very helpful on the casino issue.”

Because the Rancho San Benito is in San Benito County, Santa Clara politicians will play no more than an advisory role in the process. San Benito County Board of Supervisors Chairman Reb Monaco said he will listen closely.

“I certainly want to listen to them,” Monaco said. “I would be most interested in the concerns of Supervisor Gage.”

For more information, or to comment on the development, contact Ray Becker at 831-635-5910 or

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Staff Writer Luke Roney contributed to this report

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