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Gilroy Finished Its Small Downtown Project. The Big One Is Still Stuck.

August 13, 2026
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The Gilroy Rodeo sold out three nights this year. Boots hit the dirt at the Rodeo Grounds on Dunlap Avenue from August 7 through 9, and by the time the bull riding wrapped Saturday night, the rodeo had sold out its full run, a tradition that traces back to the Gilroy Gymkhana of 1930 through 1956. That's the easy story. The harder one is what happens downtown once the trucks and trailers clear out.

Gilroy has spent the last several years chasing three big downtown-adjacent projects at once. One of them is finished and quietly working. One of them just missed its own target date. The third got shelved entirely. If you live here and haven't tracked which is which, you're not alone, and the split between them tells you something real about how this town actually builds things.

The Rodeo Weekend Behind Us

The rodeo itself is the low-risk version of civic ambition. It's run by volunteers, it returns its profits to youth agriculture groups and the Kick'n Cancer initiative, and it doesn't need a construction bid or a bond to happen every August. This was the seventh year of the modern revival, and it sold out. Whatever else is true about Gilroy's bigger swings, the town still shows up for the thing it's always done.

Three days before the rodeo kicked off, the city ran its other reliable event: National Night Out on August 4 at Civic Center Plaza, 350 W. 6th Street, with the police department and the South County Youth Task Force running face painting and games until 8 p.m. Neither of these events required a funding committee. That distinction matters more than it sounds.

The Alley That Actually Got Built

Walk Gourmet Alley today, the stretch between 4th and 6th Streets behind the Monterey Street storefronts, and it doesn't look like a project that was contentious back in 2024. But it was. Before construction started in April 2024, Jane Howard, then interim executive director of the Gilroy Chamber of Commerce, put it plainly: "All of us have mixed emotions." The alley closed to pedestrian and vehicle traffic for months, parking on Eigleberry Street got squeezed, and downtown businesses had to figure out how to survive a construction season.

It finished anyway. The city's $3.9 million Clean California grant from Caltrans paid for resurfaced pavement, new lighting, landscaping, benches, bike racks, and shared trash enclosures that finally got dumpsters out of the walkway. The alley opened to the public that November with a ribbon cutting in the morning and a Downtown Business Expo that evening, where the businesses that actually use the space set up booths: Savvy's Ice Cream, Cafe 152, the Barber Academy, Covale, Bub's Comic Shop, and Azudena Bloom's flower shop, with Mariachi Mexico playing.

Almost two years later, that's still the honest read on Gourmet Alley. It's not a destination anyone drives across the county for. It's the two blocks that let downtown Gilroy's restaurants put tables outside without cars idling six feet away, and it's become the connective tissue between the shops on Monterey Street and the parking behind them.

Where the Foot Traffic Is Actually Landing

The alley gave downtown a place to walk. What's filling in around it is more incremental. OD's Kitchen has become the breakfast spot people mention first when they talk about downtown mornings, drawing the kind of review that calls it "what a fantastic spot for breakfast." A few blocks over, the old Round Table Pizza space at 815 1st Street is getting a new tenant. The license is filed under an entity called Endura LLC, the concept hasn't been announced, and there's no opening date yet. That's a real, if unglamorous, sign of a downtown that's still turning over its storefronts rather than sitting on empty ones.

None of this is a boom. It's a slow accumulation of small bets, which is exactly the kind of downtown activity that doesn't show up in a press release but shows up when you're the one walking past it every week.

The Loud Project That Isn't Moving

Now the part that hasn't gone the way anyone announced it would. Sharks Ice Gilroy, the 100,000-square-foot, two-rink complex the San Jose Sharks organization agreed to build and operate at the Gilroy Sports Park on Monterey Road, was supposed to open by fall 2026. That target has been public since the design was unveiled back in 2024.

It isn't happening on that schedule. Construction costs on the project rose from an estimated $30 million when the deal first took shape in 2022 to about $59 million by the time an architect updated the figure in 2024, a number city staff confirmed to the council in June 2025. That's not a modest overrun. It's close to double. The city and Sharks Sports & Entertainment formed an ad hoc council committee to figure out how to close the gap, and as of an April 2026 update, the project is still in that holding pattern. "Nobody has pulled the plug," the update noted, but the original fall opening is, in its words, "almost certainly delayed."

Councilmember Zach Hilton, who sits on that ad hoc committee, said in February that the negotiations were "going to get settled pretty quick." That was six months ago. Gilroy doesn't have an indoor ice facility of its own right now, and families who want one still drive 30 to 45 minutes to San Jose for hockey practice and open skate, the same commute this project was built to eliminate.

The ice center was one of three initiatives that came out of the same economic development partnership as Gourmet Alley. The third, a redevelopment plan for 536 acres of city-owned land near Gilroy Gardens, went further backward: the city ended its negotiations with the prospective partner, BayEcotarium, back in 2024. Two out of three of Gilroy's big downtown-adjacent swings are stalled or dead. The one that finished was also the cheapest and the least ambitious on paper.

What That Split Actually Tells You

This isn't a knock on the ambition. A $59 million ice complex with two NHL-sized rinks is a genuinely different kind of project than repaving an alley, and construction costs have moved against every municipal project in California over the past two years, not just this one. But if you live in Gilroy and you've been waiting to hear when you can finally skate five minutes from home instead of driving to San Jose, the honest answer right now is that nobody knows, and the people negotiating it don't know either.

What you can rely on is smaller and closer to the ground: the rodeo will sell out again next August, the alley will keep filling with restaurant tables, and downtown's storefronts will keep turning over one lease at a time, whether or not the bigger projects ever clear their funding gaps. That's not a lesser version of progress. In a town this size, it might be the more durable one.

If you're the kind of Gilroy resident who tracks this stuff because you actually care where the town is headed, not because you're shopping for a house, that instinct is worth trusting. And if a conversation about Gilroy ever does turn toward buying, selling, or figuring out what your own property is worth in a town that's still working out its next chapter, Erica Trinchero has spent enough time on these blocks to tell you which projects are actually moving and which ones are still stuck in committee.

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