Mayor Ignacio Velazquez plans to maintain ownership of The Vault restaurant building in downtown Hollister. And with it, he will continue to step away from any decisions relating to the annual motorcycle rally due to a financial conflict of interest.
Velazquez is the longtime owner of The Vault building at the corner of Fifth and San Benito streets in downtown Hollister. In his 2012 campaign for mayor, which he won last November, Velazquez stressed a push to revive the annual motorcycle rally that had been canceled due to six-figure losses by the city, largely related to security costs. Council members unanimously sanctioned the rally in January – Velazquez did take part in the decision – with the event put on in July by an outside promoter.
Since his election, though, Velazquez at times has recused himself from consideration of rally items due to a perceived, potential conflict of interest. That is because as owner of The Vault, the motorcycle rally could provide a major financial benefit to Velazquez. The mayor did not take part in the recent decision for the city to officially commit to the event for 10 years.
Velazquez before the January decision to revive the motorcycle rally decided to hand over The Vault business for the rally weekend and not have any involvement or gain financially from the July 4 event. With deals falling through that would have involved separate parties running The Vault and the Pendergrass Restaurant across the street throughout the year – there are no longer plans to revive the short-lived Pendergrass business – Velazquez confirmed this week he would once have ownership and involvement in The Vault business.
“They’re closed. They’re gone. I have no idea,” Velazquez said of the individuals who had planned to run The Pendergrass.
He said there had been partners who wanted to independently run the two businesses. The finances didn’t work out, and Velazquez took over The Vault again at the start of October, he said. That business will focus mostly on banquets and other events, Velazquez said.
He said he is not concerned about the perception of him going back and forth on the recusal and ownership consideration.
“No, I think my goal was to make sure it happened last year,” he said. “I just kind of felt I didn’t want to take a chance of it not happening.”
