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June 23, 2021

Delivery center proposed in Gilroy

City staff: Amazon is tenant for project along Highway 152

Amazon is expected to be the tenant of a proposed delivery center at the intersection of Highway 152 and Camino Arroyo, adding to a sizable investment the online retail and web services giant is making in Gilroy and Hollister.

According to conceptual plans submitted to the city by Irvine-based Panattoni Development Company, a 141,360-square-foot delivery center building and a 266,220-square-foot warehouse are proposed on a roughly 53-acre site, in addition to more than 400 van parking spaces and various stormwater management basins.

Early plans show 65 truck docks across both buildings.

The property runs along Highway 152, between HomeGoods in the Pacheco Pass Center and Recology South Valley’s facility. The proposal leaves a five-acre parcel open for a future commercial project at the intersection.

The currently agricultural land, known as Rancho San Ysidro, is zoned General Industrial, according to Gilroy’s 2040 General Plan.

During a joint meeting between the Gilroy City Council and Gilroy Unified School District Board of Education on April 26, Community Development Director Karen Garner said Amazon will be the tenant.

A spokesperson for Amazon declined to comment, saying the company does not “provide information on our future roadmap.”

The proposal calls for splitting the parcel into three lots, and Garner said the project is expected to come to the planning commission and council by the fall.

Also slated to come before the commission and council around the same timeline is another Amazon project in Gilroy.

In August, Amazon purchased 66 acres of farmland in Gilroy under its data services subsidiary.

Seattle-based Amazon Web Services purchased the land on Camino Arroyo, just south of the Gilroy Premium Outlets and behind See Grins RV and the Gilroy Unified School District offices.

Southpoint Business Park Associates, which consists of developers Glen Loma Group and Arcadia Associates, sold the property to Amazon, according to the grant deed filed with the county recorder’s office.

Early proposals show a 214,000-square-foot building for the property, according to plans submitted to the city.

Farther south, Amazon has confirmed its project currently under construction in Hollister at the corner of San Felipe and Flynn roads, which is also being developed by Panattoni.

Grading work recently got underway on the 25.5-acre property after the Hollister Planning Commission on Jan. 28 unanimously approved the 129,540-square-foot, 44-foot-tall facility.

According to plans submitted to the city, the 24/7 facility, located in the Citation Business Park, would include 710 van parking spaces for the delivery fleet, 260 spaces for employees and the public, and 15 spaces for semi-trucks.

The center, known as a “last mile” facility, receives packages from Amazon fulfillment centers, which are then sorted and loaded into vehicles for delivery to customers.

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