Gilroy City Council
August 17, 2026

August 17, 2026 | 5:00 PM Page 1 of 8 City Council
Regular Meeting

CITY COUNCIL

REGULAR MEETING
AGENDA

CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020

AMENDED AGENDA
5:00 STUDY SESSION
6:00 REGULAR SESSION
MONDAY, AUGUST 17, 2026 | 5:00 PM
MAYOR
Greg Bozzo

COUNCIL MEMBERS
Dion Bracco
Tom Cline
Terence Fugazzi
Zach Hilton
Carol Marques
Kelly Ramirez
CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE FRIDAY PRIOR TO THE MEETING Remote Participation
Gilroy City Council meetings are held in person. The community may attend in person or via Zoom (video/teleconference). The meetings are also live-streamed on the City's website and YouTube.

Those wishing to participate in the meetings remotely may join using the following link:
https://bit.ly/GilroyCityCouncilMeetings. Additionally, Zoom participants must be running the latest version or will be required to update to it before joining the meeting remotely.

Remote participation is also available by calling (669) 900-6833 and entering webinar ID: 930 2066 6240#. Dial *9 to raise your hand, and be called upon to speak for up to 3 minutes. Dial *6 to unmute.

Public Comment

COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. **Please limit your comments to 3 minutes.** The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda.

Public comment will be heard first from those attending in person, with the submission of a speaker card. Once that is complete, we will move to those on Zoom who have their virtual hand raised. Following public comment from Zoom, we will close the public comment period for that item.

Please note: Once the third speaker has provided comment on an item, there will be no further speaker cards or virtual raised hands taken for that item.

August 17, 2026 | 5:00 PM Page 2 of 8 City Council
Regular Meeting
Written comments on any agenda item may be emailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN.

In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at least 72 hours prior to the meeting at (408) 846-0204 or [email protected] to help ensure that reasonable arrangements can be made.

If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure.

A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to the Staff’s ability to post the documents before the meeting.

KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public.

Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review.

FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT

ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A

VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204.

If you need assistance with translation and would like to speak during public comment, please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or e-mail the City Clerk’s Office at [email protected].

Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a [email protected].

August 17, 2026 | 5:00 PM Page 3 of 8 City Council
Regular Meeting
To access written translation during the meeting, please scan the QR Code or click this link:

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www.cityofgilroy.org/translate
Choose Language and Click Attend | Seleccione su
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1. STUDY SESSION - 5:00 PM

1.1. Call to Order

1.2. Roll Call

1.3. Place-Based Economic Development Strategic Plan Data Update and Economic Vitality Next Steps
The agenda for this regular meeting is outlined as follows:

2. REGULAR MEETING - 6:00 PM

2.1. Call to Order

2.2. Roll Call

2.3. City Clerk's Report on Posting the Agenda

2.4. Pledge of Allegiance

2.5. Invocation

2.6. Orders of the Day

2.7. Employee Introductions

3. CEREMONIAL ITEMS - Proclamations and Awards

3.1. Emergency Management Awareness and National Preparedness Month Proclamation

4. PRESENTATIONS TO THE COUNCIL

4.1. Arts and Culture Commission Annual Presentation

August 17, 2026 | 5:00 PM Page 4 of 8 City Council
Regular Meeting

4.2. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda.

Written comments to address the Council on matters not on this agenda may be e-mailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00 pm on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1:00pm deadline will be provided to the City Council as soon as practicable. Written material provided by public members under this section of the agenda will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically.

5. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee
Council Member Marques – Gilroy Sister Cities, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – ABAG, CalTrain Policy Group (alternate), Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Cities Association of Santa Clara County, Gilroy Youth Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA, Santa Clara Housing and Community Development Advisory Committee

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Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate), Cities Association of Santa Clara County (alternate)

6. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the City Council votes to approve. If removed, the item will be discussed in the order in which it appears.

6.1. Approve the July 27, 2026 City Council Regular Meeting minutes and the August 3, 2026 City Council Regular Meeting minutes

6.2. Award of a Professional Services Agreement to Chandler Asset Management, Inc. to provide Investment Management and Advisory Services effective September 1, 2026 through June 30, 2029, and Authorize the City Manager to Execute the Agreement, with Two Optional One-year Extensions

6.3. Acceptance of Cash and Investment Report as of June 30, 2026

6.4. Approve the Sixth Amendment to the Tree Pruning and Maintenance Services Agreement with West Coast Arborists, Inc.

6.5. Claim of Helen Rodriguez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

7. BIDS AND PROPOSALS

7.1. Adopt a Resolution Approving the Plans and Specifications for the Precast Concrete Fence Replacement Project, Amending the FY2026-27 Capital Improvement Program to include the Project, Awarding a Construction Contract to Silicon Valley Paving, Inc. for an Amount Not to Exceed $415,000 with a Total Construction Cost Including Contingency of $456,500, and Amending the FY2026-27 Capital Improvement Program Budget by Appropriating $456,500 of Community Facility District (CFD) Funds to the Project

1. Staff Report:

John Doughty, Public Works Director

2. Public Comment

3. Recommended Action:

August 17, 2026 | 5:00 PM Page 6 of 8 City Council
Regular Meeting
Adopt a Resolution:

1. Approving the plans and specifications for the Precast Concrete Fence Replacement Project;

2. Amending the FY2026-27 Capital Improvement Program to include the Project (Project No. 801240);

3. Awarding a construction contract to Silicon Valley Paving, Inc. for an amount not to exceed $415,000 for the Precast Concrete Fence Replacement Project;

4. Establishing a construction contingency of $41,500 for a total construction contract amount of $456,500;

5. Authorizing the City Administrator to execute the construction contract;

6. Authorizing staff to approve any amendments, extensions, and change orders until completion of the project in accordance with the plans and specifications up to the project construction amount; and

7. Amending the FY2026-27 Capital Improvement Program Budget by appropriating $456,500 of Community Facility District (CFD) funds to the Project.

7.2. Pilot Program seeking to Award a contract to Citiguard, Inc. for City Parks AfterHours Security for $69,203 and a total not-to-exceed amount of $346,015 over a five-year period and Approval of the Second Amendment to the agreement with Frank & Grossman Landscape Contractors, Inc. for Park Restroom Cleaning and Gate Opening Services for $129,841.60 and a revised not to exceed total of $1,711,718.20.

1. Staff Report:

John Doughty, Public Works Director

2. Public Comment

3. Recommended Action:

1. Award an agreement to Citiguard, Inc. for after-hours park patrol services at five City parks. The agreement would have an initial oneyear term of $69,203, with up to four additional one-year administrative extensions, for a total amount not to exceed $346,015 over five years.

2. Approve the Second Amendment to the agreement with Frank & Grossman Landscape Contractors, Inc. to add park restroom cleaning and gate-opening services from September 1, 2026, through October 31, 2027; increase the agreement by $129,841.60; and establish a revised total amount not to exceed $1,711,718.20.

3. Adopt a resolution amending the FY 2027 adopted budget to increase appropriations in the Facilities Fund (615) by $92,744.40 and decreasing appropriations in the General Fund (100) by $16,489.

4. Authorize the City Administrator to finalize and execute both agreements and related documents, including any authorized

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administrative extensions, subject to satisfactory performance and available appropriations.

7.3. Award a Professional Services Agreement to KTU&A for Preparation of a New Parks and Recreational Trails Master Plan in an Amount Not to Exceed $310,000

1. Staff Report:

John Doughty, Public Works Director

2. Public Comment

3. Recommended Action:

1. Award a professional services agreement to KTU&A in an amount not to exceed $310,000 for preparation of a new Parks and Recreational Trails Master Plan; and

2. Authorize the City Administrator to finalize and execute the agreement and associated documents necessary to implement the project within the approved project budget.

8. PUBLIC HEARINGS

8.1. Introduction and First Reading of an Ordinance Amending Chapter 30, Article L of the Gilroy City Code Relating to Architectural and Site Review Permit Process and to Enhance Public Outreach

1. Disclosure of Ex-Parte Communications

2. Staff Report:

Sharon Goei, Community Development Director

3. Open Public Hearing

4. Close Public Hearing

5. Recommended Action:

1. Determine the proposed ordinance is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061 (b)(3) (the “common sense” exemption) for the adoption of an ordinance relating to Architectural and Site Review Permit Process and to enhance public outreach;

2. Motion to read the ordinance by title only and waive further reading of the ordinance; and

3. Introduce an ordinance amending Chapter 30 (Zoning), Article L (Planning Department Applications) relating to Architectural and Site Review Permit Process.

9. INTRODUCTION OF NEW BUSINESS

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9.1. Authorization for Council Travel to the League of California Cities Annual Conference, Selection of Voting Delegate, and Direction Regarding the Proposed League Resolution

1. Staff Report:

Kim Mancera, City Clerk

2. Public Comment

3. Recommended Action:

1. Authorize Travel for Council Member Ramirez to attend the League of California Cities (League) Annual Conference;

2. Select Council Member Ramirez as the voting delegate; and

3. Identify if Council desires to vote no or abstain in voting on the League resolution.

9.2. Amazon Data Services Reimbursement Agreement for Recycled Water Improvements and Memorandum of Understanding with South County Regional Wastewater Authority

1. Staff Report:

Derek Cray, Public Utilities Director

2. Public Comment

3. Recommended Action:

1. Approve the Agreement with Amazon Data Services to reimburse the City of Gilroy (City) for design and construction of Recycled Water Improvements at the South County Regional Wastewater Authority site; and

2. Direct staff to engage with South County Regional Wastewater Authority (SCRWA) representatives to negotiate and execute a Memorandum of Understanding for reimbursement of the recycled water improvements.

10. CITY ADMINISTRATOR'S REPORTS

11. CITY ATTORNEY'S REPORTS

12. ADJOURNMENT

1.3. City of Gilroy

STAFF REPORT
Agenda Item Title: Place-Based Economic Development Strategic Plan Data Update and Economic Vitality Next Steps
Meeting Date: August 17, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director Prepared by: Raissa de la Rosa, Economic Development Director STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION
Receive the 2026 Economic Data Update Report to the 2019 Place-Based Economic Development Strategic Plan and discuss integration of the findings into the development of a three-year Economic Growth and Vitality Action Plan.

EXECUTIVE SUMMARY
The Place-Based Economic Development Strategic Plan data update provides a refreshed understanding of Gilroy’s current economic conditions and the shifts that have occurred since adoption of the 2019 Strategy. This refresh was necessary to reassess changes in employment, industry mix, and development activity driven by external events and regional shifts.

The updated information is informing the development of a three-year Economic Growth and Vitality Action Plan that will translate the data findings into clear priorities, actionable initiatives, and measurable outcomes that support Gilroy’s long-term competitiveness and economic resilience. The three pillars of the new Action Plan are Place-Based Initiatives, Business Retention, Expansion and Attraction (BREA), and Economic Vibrancy and Resiliency.

Staff is seeking discussion on the data presentation, input on the proposed Place-Based Initiatives to be reviewed during this study session, and initial thoughts pertaining to the

1.3. development of the BREA and Economic Vibrancy and Resiliency pillars to be presented to Council at future study sessions.

BACKGROUND
City Council adopted the Gilroy Place-Based Economic Development Strategy in 2019 to strengthen the city’s economic foundations, support business growth, and leverage Gilroy’s unique geographic and economic position. A place-based strategy is a targeted roadmap that aligns community assets, policy, and strategic investment to boost local economic vitality. Community assets include existing businesses, local workforce, infrastructure, community partners, and any other resource that can be leveraged to influence the local economy. Examples of targeted investments are corridor improvements like upgraded streetscape, lighting, and sidewalks, enhanced utilities or transportation access in key districts, tenant or façade improvement grants within a defined area, and public space projects such as the Gourmet Alley revitalization.

To this end, the 2019 Strategy identified several opportunity sites around the city, and infill opportunities along portions of the First Street, Tenth Street, and Monterey Street corridors where there is potential for new development and redevelopment of uses that will achieve the City’s goals of attracting jobs- and tax revenue-producing uses, while also fostering the community’s high quality of life. In short, the goal is to intensify underutilized sites to better absorb and further encourage growth while maintaining the essence of what makes Gilroy unique and desirable.

While each identified site has certain positive attributes, in many cases there are financial or physical constraints that are hindering prospects of development. In such cases, the City may need to implement policy actions or infrastructure cost burden assistance to encourage prospective development. This was the case outlined in the 2019 report and remains the case today.

Given the significant external shifts that have altered regional dynamics, labor markets, and consumer behaviors since adoption of the 2019 strategy, the data update in the attached report serves as a recalibration of the original study, incorporating the latest employment, industry, real estate, and taxable sales data to help refine implementation efforts and the fleshing out of a more broadly comprehensive action plan.

ANALYSIS
Gilroy’s economic performance continues to be shaped by its location at the crossroads of multiple regional economies. The updated data illustrate several notable trends:

Regional Positioning and Labor Force Characteristics
Gilroy retains strong ties to the broader Santa Clara County economy while simultaneously sharing characteristics with neighboring counties in the Salinas Valley

1.3. and Central Coast. This dual identity continues to influence commuting patterns, employment opportunities, and competitive positioning. The city’s labor surplus suggests both an opportunity and a challenge; residents regularly seek employment outside Gilroy, underscoring a need for continued development of local, higher-wage job opportunities within Gilroy.

Industry Shifts and Post-Pandemic Recovery
Although total employment has recovered, the composition of Gilroy’s job base has shifted. Traditional strengths such as manufacturing and retail have declined, while professional and business services have expanded. Major existing clusters (hospitality, distribution, education, and business and information services) remain central to Gilroy’s economy but do not mirror the more technology-driven clusters prevalent elsewhere in Santa Clara County. Growth projections remain modest, reinforcing the importance of targeted cluster development and business retention strategies the Economic Development Department is developing for the Economic Growth and Vitality Action Plan.

Retail and Taxable Sales Dynamics
Gilroy’s retail sector experienced competitive pressure in areas such as apparel and automotive sales. Despite this, overall taxable sales remain strong, with business-tobusiness transactions offsetting declines in some consumer-oriented categories. This pattern indicates emerging opportunities within non-traditional retail segments (e.g. ecommerce and pop-up stores) and underscores the value of leveraging industrial and logistics activity to support revenue stability (i.e. business-to-business taxable sales).

Commercial Real Estate Conditions
Industrial development has continued, with new inventory contributing to higher vacancy rates than in previous years. Demand has largely centered on logistics rather than advanced manufacturing. Office and retail segments have shown increased vacancies with minimal new development. These trends highlight the importance of refining land-use strategies, ensuring zoning supports emerging industries, and exploring ways in which place-based improvements can strengthen business attraction and retention.

Organizational Alignment and Regional Partnerships
The city’s in-house economic development function has improved local coordination and marketing. At the same time, Gilroy’s partnerships remain oriented toward the Bay Area, even though economic ties extend southward. Aligning regional collaboration more intentionally with both economic spheres could enhance opportunities for workforce development, business recruitment, and cluster formation.

Taken together, the updated data reaffirm Gilroy’s unique regional position and highlight the continued importance of previously identified place-based strategies, while also underscoring the need for supportive actions that strengthen broader economic growth, vitality, and resiliency. To this end, next steps include integrating the place-based strategic action items into an Economic Growth and Vitality Action Plan with three

1.3. pillars:
• Place-Based Initiatives
Enabling and incentivizing desired activity on opportunity and corridor infill sites • Business Retention, Expansion, and Attraction
Strategies and actions for large business attraction, entrepreneurship and small business support, workforce development, and the climate and culture of doing business with the City
• Economic Vibrancy and Resiliency
Downtown revitalization, placemaking opportunities, public-private partnerships, and financing tools (PBID, TIF, etc.)

ALTERNATIVES
No alternatives have been identified. This is a study session specific to the Place-Based Economic Development Strategic Plan Data Update and proposed next steps in developing an Economic Growth and Vitality Action Plan.

FISCAL IMPACT/FUNDING SOURCE
Not applicable.

PUBLIC OUTREACH
Not applicable.

NEXT STEPS
Staff will return to Council for study sessions as elements that will make up the Economic Growth and Vitality Action Plan are prepared for presentation and input. The estimated timeline is:
• August 17, 2026 – Place-Based Initiatives
• November 2026 – BREA tactics
• February 2027 – Economic Vibrancy and Resiliency tactics, and review of the full draft Economic Growth and Vitality Action Plan
• January - March 2027 – preparation for Council priorities and budget planning process
Attachments:

1.3. 1. Gilroy Place-Based Economic Development Strategy Data Update - 08-06-26

GILROY PLACE-BASED

ECONOMIC

DEVELOPMENT STRATEGY

DATA UPDATE

DRAFT REPORT
Prepared for: Prepared by:

City of Gilroy Economic & Planning Systems, Inc.

August 6, 2026
EPS #252121

Table of Contents

1. Introduction and Summary of Findings 1
Introduction..................................................................................................................................................................................1 Summary of Significant Findings ..............................................................................................................................................2

2. Demographic Profile 3
Comparative Demographics......................................................................................................................................................3

3. Economic Base 17
Comparative Job Base and Trends ........................................................................................................................................17 Economic Base...........................................................................................................................................................................17 Projected Job Growth ..............................................................................................................................................................22 Economic Roles..........................................................................................................................................................................38 Industry Clusters........................................................................................................................................................................48 Labor Supply (Surpluses and Shortages)...............................................................................................................................49 Taxable Sales Indicators...........................................................................................................................................................60

4. Commercial Real Estate Indicators and Site Development Considerations 64 Commercial Real Estate ...........................................................................................................................................................64 Development Potential ............................................................................................................................................................72

5. Economic Development Context and Next Steps 79
City Economic Development Function .................................................................................................................................79 Workforce Development.........................................................................................................................................................80 Opportunity Zone......................................................................................................................................................................81 Strategic Plans............................................................................................................................................................................81 Next Steps...................................................................................................................................................................................83

List of Tables
Table 1. Summary of Economic Indicators........................................................................................................................4 Table 2. Population Trend ....................................................................................................................................................5 Table 3. Educational Attainment, Population Aged 25 and Over ................................................................................7 Table 4. Employment Status and Labor Force Participation, Population Aged 16 and Over.................................8 Table 5. Commute Characteristics, Population Aged 16 and Over .............................................................................9 Table 6. Labor Force by Occupation and Industry ....................................................................................................... 11 Table 7. Household Income Characteristics .................................................................................................................. 12 Table 8. Class of Worker ................................................................................................................................................... 13 Table 9. Household Size and Room Occupancy ........................................................................................................... 15 Table 10. Housing Costs and Household Income (Five-Year Sample 2020-2024).................................................. 16 Table 11-A. Employment Growth Trends, 2014 to 2024 - Gilroy................................................................................... 18 Table 11-B. Employment Growth Trends, 2014 to 2024 - Santa Clara County........................................................... 20 Table 11-C. Employment Growth Trends, 2014 to 2024 - San Benito County............................................................ 21 Table 11-D. Employment Growth Trends, 2014 to 2024 - Monterey County ............................................................. 24 Table 11-E. Employment Growth Trends, 2014 to 2024 - 101 Corridor...................................................................... 25 Table 11-F. Employment Growth Trends, 2014 to 2024 - Salinas ................................................................................. 26 Table 11-G. Employment Growth Trends, 2014 to 2024 - Morgan Hill ........................................................................ 27 Table 11-H. Employment Growth Trends, 2014 to 2024 - Gonzales ............................................................................. 28 Table 12. Projected Average Employment Growth Rate Comparison - Gilroy & Surrounding Communities.... 29 Table 13-A. Employment Projections 2025 to 2035 - Gilroy........................................................................................... 30 Table 13-B. Employment Projections 2025 to 2035 - Santa Clara County................................................................... 31 Table 13-C. Employment Projections 2025 to 2035 - San Benito County.................................................................... 32 Table 13-D. Employment Projections 2025 to 2035 - Monterey County ..................................................................... 33 Table 13-E. Employment Projections 2025 to 2035 -101 Corridor ............................................................................... 34 Table 13-F. Employment Projections 2025 to 2035 - Salinas.......................................................................................... 35 Table 13-G. Employment Projections 2025 to 2035 - Morgan Hill................................................................................. 36 Table 13-H. Employment Projections 2025 to 2035 - Gonzales ..................................................................................... 37 Table 14-A. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Gilroy .............................................. 51 Table 14-B. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Santa Clara County ...................... 52 Table 14-C. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - San Benito County....................... 53 Table 14-D. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Monterey County......................... 54 Table 14-E. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - 101 Corridor.................................. 55 Table 14-F. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Salinas............................................. 56 Table 14-G. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Morgan Hill.................................... 57 Table 14-H. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Gonzales......................................... 58

Table 15. Comparison of Employment and Labor Force by Industry ......................................................................... 59 Table 16. Taxable Sales Per Capita Growth, 2015 to 2024.......................................................................................... 62 Table 17. Taxable Sales Per Capita Comparison, 2024 - Gilroy & Region................................................................. 63 List of Figures
Figure 1. Economic Roles of Industries -Gilroy, 2014 to 2024........................................................................................... 39 Figure 2. Economic Roles of Industries -Santa Clara County, 2014 to 2024................................................................... 40 Figure 3. Economic Roles of Industries -San Benito County, 2014 to 2024.................................................................... 41 Figure 4. Economic Roles of Industries - Monterey County, 2014 to 2024 .................................................................... 42 Figure 5. Economic Roles of Industries - 101 Corridor, 2014 to 2024 ............................................................................. 43 Figure 6. Economic Roles of Industries - Salinas, 2014 to 2024 ........................................................................................ 44 Figure 7. Economic Roles of Industries - Morgan Hill, 2014 to 2024 ............................................................................... 45 Figure 8. Economic Roles of Industries - Gonzales, 2014 to 2024 .................................................................................... 46 Figure 9. Existing Conditions - Industrial 10-Year Summary............................................................................................... 65 Figure 10. Industrial Property Locations .................................................................................................................................... 66 Figure 11. Existing Conditions - Retail 10-Year Summary...................................................................................................... 68 Figure 12. Retail Property Locations........................................................................................................................................... 69 Figure 13. Existing Conditions - Office 10-Year Summary .................................................................................................... 71 Figure 14. Office Property Locations.......................................................................................................................................... 72 Figure 15. Gilroy Zoning Map....................................................................................................................................................... 74

Economic & Planning Systems, Inc. 1 Introduction and Summary of Findings

1. Introduction and Summary of Findings
Introduction
The City of Gilroy is a community that serves many different roles and is situated in a location influenced by multiple economic cross-currents. Even though Gilroy is part of Santa Clara County, its labor force and economic drivers are also connected with neighboring San Benito and Monterey counties.

The Highway 101 corridor illustrates the nature of this interconnected yet uniquely differentiated economic region. To the north, Highway 101 connects Gilroy to the high-value innovation-driven Silicon Valley economy, and to the south, the corridor connects to agriculturally situated communities in San Benito County and the Salinas Valley. Concurrently, corridors going across Gilroy serve a visitor-serving role by connecting the community to the Central Valley and the coastal areas.

With much of Santa Clara County’s urbanized areas built out to the north, Gilroy has served an important role as a bedroom community. Gilroy’s population experienced rapid growth beginning in the 1960s with the growth rate exceeding 70 percent in the 1970s and 1980s. Even though the county’s population growth has slowed since 2000, Gilroy’s population has continued to grow in this decade even with the county as a whole experiencing some population losses.

With the pandemic, communities throughout the country experienced economic shocks that staggered their economic base and disrupted local trade. As businesses reopened, communities found themselves having to adjust to shifts in the market and labor force. Gilroy was no exception.

In addition, the retail sectors in Gilroy saw their competitive position also erode in some specific areas, such as apparel and automotive sales. Concurrently, Gilroy has seen a rise in business-to-business activity that has helped to maintain growth in taxable sales overall.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 2 Introduction and Summary of Findings Summary of Significant Findings
• Gilroy has an economic base and labor force that have some ties to the rest of Santa Clara County, but are also distinct. The city shares many characteristics with San Benito and Monterey counties. Gilroy’s unique role also potentially presents unique economic roles and opportunities. • Gilroy experienced a sharp loss of jobs in 2020, and by 2024 the overall job base has largely recovered back to pre-pandemic levels. However, when looking at the nature of the recovery, it was not even across all sectors. The job base in Gilroy has shifted away from manufacturing and retail trade towards more professional services. Growth is generally projected to be negligible to moderate.
• Gilroy’s largest industry clusters include hospitality, business and information services, distribution, and education. However, these large clusters do not include representation of other large clusters elsewhere in Santa Clara County that are more technology-driven.
• Gilroy has a large labor surplus that applies to nearly all industries. Only retail trade has a shortage of labor.
• Taxable sales in Gilroy perform well above average for most categories, despite increasing competition from other regional centers in the Bay Area.

Gilroy’s sales tax capture has grown due to increases in taxable sales from non-retail business-to-business activity.
• Much of Gilroy’s commercial real estate development has focused on industrial buildings. With increased inventory, Gilroy’s vacancies have increased in recent years after years of very low vacancies. Most of the demand has been for logistics rather than advanced manufacturing.

Desirability of industrial sites tends to vary based on the zoning. Retail and office segments have seen recent upticks in vacancies, but little new development over the past decade.
• Gilroy’s economic development function has been brought in-house, with the local outreach and marketing functions now more directly guided by the City.

Gilroy’s regional partnerships and regional strategic focus remain tied to Silicon Valley and the Bay Area, even though Gilroy’s economy and labor force also have ties to Monterey and San Benito counties.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 3 Demographic Profile

2. Demographic Profile
Comparative Demographics
The socioeconomic characteristics of a community illustrate the commercial and labor market support that a community can support. These demographic indicators are also an important factor in how site selectors for commercial, office, and industrial uses choose to locate establishments. Communities with more attractive demographic indicators would potentially be able to utilize the local labor as a starting point for entrepreneurial growth.

This section provides an overview of how Gilroy compares with surrounding communities as well as countywide and statewide characteristics. This provides context for the city’s capacity to support economic development, and how it compares to neighboring communities.

Many of Gilroy’s demographic indicators have characteristics that align closer to communities along the Highway 101 corridor south of San Jose, and San Benito and Monterey counties, than the rest of Santa Clara County. In addition, Gilroy shares both similarities and contrasts with the neighboring cities of Morgan Hill and Salinas (Table 1). This illustrates Gilroy’s unique role as a gateway to distinct economic regions that might provide different sets of roles and opportunities.

Population Trend
As the southernmost city in Santa Clara County, Gilroy’s rapid growth continued for decades after the rest of the County’s growth trajectory had begun to reach buildout and slow.

Gilroy’s population grew by over 70 percent through the 1990s. Even after the growth rate began leveling off after 2000, it has remained well above the county growth rates. While the trend after the COVID-19 pandemic has seen an overall population loss of 1.7 percent in the county through 2024, Gilroy has grown by

2.5 percent (Table 2).

By comparison, Morgan Hill showed a similar pattern of rapid growth through 2000. During the 1990s, Morgan Hill had a higher growth rate than Gilroy, but has had a slightly lower growth rate in other decades. Like Gilroy, Morgan Hill went against the prevailing trend by adding population during the pandemic.

Salinas, Gonzales, and San Jose all lost population during the pandemic.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 4 Demographic Profile Table 1. Summary of Economic Indicators
Summary Indicator Gilroy California
Santa Clara
County
San Benito
County
Monterey
County Morgan Hill Salinas Gonzales San Jose 101 Corridor [1] Population, 16 and Over 44,957 31,699,656 1,561,261 52,365 338,030 34,684 119,710 6,072 813,827 536,686 Civilian Labor Force 30,269 20,068,466 1,050,468 35,029 197,008 23,309 73,416 4,044 550,130 342,217 Percent in Labor Force 67.3% 63.3% 67.3% 66.9% 58.3% 67.2% 61.3% 66.6% 67.6% 63.8% Unemployment Rate 6.3% 6.6% 4.9% 5.4% 5.2% 5.3% 4.7% 3.5% 5.1% 4.9% Households 17,459 13,548,091 659,353 20,561 132,489 14,865 43,620 2,280 328,550 207,503 Median Household Income $133,107 $99,122 $164,281 $114,394 $97,230 $163,920 $91,908 $77,672 $146,427 n/a Mean Household Income $161,536 $140,436 $227,007 $143,684 $131,486 $207,486 $110,027 $104,875 $194,463 $171,125 Households with Cash Public Assistance Income 2.7% 4.0% 2.8% 2.9% 2.9% 3.1% 2.5% 2.0% 3.3% 2.7% Households With Food Stamp/SNAP Benefits 10.1% 12.4% 6.6% 10.5% 9.6% 6.8% 11.5% 5.0% 8.9% 8.9% Educ. Attainment - High School (or Equivalent) 83.4% 84.7% 89.3% 83.4% 73.3% 91.7% 62.2% 61.0% 85.4% 79.9% Educ. Attainment - Bachelor's Degree or Higher 29.3% 37.1% 56.5% 24.1% 28.2% 46.8% 16.5% 9.7% 47.3% 34.2% Housing Units with 4 Persons or More 40.0% 28.5% 27.7% 39.1% 36.2% 31.9% 47.5% 48.6% 30.4% 37.4% Housing Units with Over 1.0 Occupants Per Room 5.8% 8.2% 7.5% 6.0% 15.0% 6.3% 25.6% 21.3% 9.0% 11.1% Median Monthly Housing Cost $2,884 $2,114 $3,017 $2,483 $2,071 $2,998 $1,963 $1,741 $2,838 n/a Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 21 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 5 Demographic Profile Table 2. Population Trend
Year
Gilroy
Popul.

Growth
Rate
Santa Clara
Co. Popul.

Growth
Rate
San Benito
County Popul.

Growth
Rate
Monterey
County Popul.

Growth
Rate
Morgan Hill
Popul. 101 Corridor [1]
Salinas
Popul.

Growth
Rate
Gonzales
Popul.

Growth
Rate
San Jose
Popul.

Growth
Rate
1960 7,348 642,315 15,396 198,351 3,151 28,957 2,138 204,196 1970 12,684 72.6% 1,064,714 65.8% 18,226 18.4% 250,071 26.1% 5,579 77.1% 58,896 103.4% 2,575 20.4% 459,913 125.2% 1980 21,641 70.6% 1,295,071 21.6% 25,005 37.2% 290,444 16.1% 17,060 205.8% 80,479 36.6% 2,891 12.3% 629,400 36.9% 1990 31,487 45.5% 1,497,577 15.6% 36,697 46.8% 355,660 22.5% 23,928 40.3% 108,777 35.2% 4,660 61.2% 782,248 24.3% 2000 41,464 31.7% 1,682,585 12.4% 53,234 45.1% 401,762 13.0% 33,556 40.2% 142,685 31.2% 7,525 61.5% 894,943 14.4% 2010 48,821 17.7% 1,781,642 5.9% 55,269 3.8% 415,057 3.3% 37,882 12.9% 150,441 5.4% 8,187 8.8% 945,942 5.7% 2020 59,520 21.9% 1,936,259 8.7% 64,209 16.2% 439,035 5.8% 45,483 20.1% 163,542 8.7% 8,647 5.6% 1,013,240 7.1% 2024 61,033 2.5% 1,903,198 -1.7% 65,853 2.6% 437,614 -0.3% 46,384 2.0% 162,037 -0.9% 8,466 -2.1% 969,491 -4.3% Source: US Census Bureau (via Wikipedia); California Department of Finance (2024 Population Estimate). Page 22 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 6 Demographic Profile Educational Attainment
Communities with a higher educational attainment potentially have an advantage for basic industry attraction and more upscale development opportunities for retail stores.

Gilroy’s educational attainment shows that over 83 percent of the population 25 and over has at least a high school education, and around 29 percent have at least a bachelor’s degree (Table 3). This shares some similarity to the educational attainment in San Benito and Monterey counties. In general, Gilroy’s high school educational attainment is nearly identical to California, San Benito County, and San Jose, and lower than Santa Clara County and Morgan Hill.

For educational attainment with at least a bachelor’s degree, Gilroy is more similar to Monterey County, and lower than California, Santa Clara County, Morgan Hill, and San Jose.

Labor Force Participation
While the high labor force participation suggests a strong pool of workers for businesses in Gilroy and good retail market support, the higher unemployment rate also suggests a slight disconnect between the skills base and the regional job market (Table 4). Compared to the state averages, Gilroy has a higher labor force participation, and is similar to Santa Clara and San Benito counties. Gilroy’s unemployment rate of 6.3 percent (2020 to 2024 five-year average) is also nearly identical the statewide average, but is higher than Santa Clara, San Benito, and Monterey counties; and the cities of Morgan Hill, Salinas, Gonzales, and San Jose.

Commute Pattern
Commute times serve as an indicator for the extent to which an area serves as more of a bedroom community, and some imbalances between the jobs and housing. Gilroy has a longer average commute time (33 minutes) than the state and Santa Clara County (Table 5). This indicates that Gilroy has more of an outcommute to the large job centers in the Bay Area. The commute time for Morgan Hill is nearly identical, while the average for San Benito County is higher.

In contrast, the commute times for Monterey County, Salinas, and Gonzales are significantly shorter, which suggests more interaction with the local job base than long commutes up to the Bay Area.

The presence of remote workers indicates how the occupational mix of the labor force is concentrated in the types of jobs that require an on-site presence.

Workers that have the option of remote work from home typically work in service or technical occupations. Gilroy has a lower percentage of workers that work from home (12.8 percent) than the state and county averages, and the averages for San Jose and Morgan Hill. Gilroy’s remote work percentage is higher than the averages for San Benito and Monterey counties.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 7 Demographic Profile Table 3. Educational Attainment, Population Aged 25 and Over Gilroy and Surrounding Areas
(2019-2023 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County Morgan Hill Salinas Gonzales San Jose 101 Corridor [1] Population 25 years and over 37,508 13,368,599 1,347,266 44,349 281,390 30,337 97,489 4,787 697,587 454,892 Educational Attainment
Less Than 9th Grade 9.0% 8.7% 6.4% 9.9% 16.8% 4.6% 24.8% 23.1% 8.8% 12.5% High School, No Diploma 7.6% 6.5% 4.4% 6.6% 9.9% 3.7% 12.9% 15.9% 5.8% 7.6% High School Graduate (or Equivalent) 21.2% 20.5% 13.3% 27.2% 20.9% 16.0% 23.8% 29.2% 16.1% 19.5% Some College, No Degree 23.7% 19.3% 13.1% 22.9% 16.4% 20.0% 15.4% 20.1% 14.9% 18.1% Associate's Degree 9.2% 7.9% 6.3% 9.2% 7.8% 8.9% 6.5% 2.0% 7.1% 8.0% Bachelor's Degree 19.0% 22.7% 28.2% 17.3% 16.7% 30.1% 11.9% 5.3% 26.4% 20.9% Graduate or Professional Degree 10.3% 14.4% 28.3% 6.8% 11.5% 16.7% 4.6% 4.4% 20.9% 13.3% High School Graduate or Higher 83.4% 84.7% 89.3% 83.4% 73.3% 91.7% 62.2% 61.0% 85.4% 79.9% Bachelor's Degree or Higher 29.3% 37.1% 56.5% 24.1% 28.2% 46.8% 16.5% 9.7% 47.3% 34.2% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 24 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 8 Demographic Profile Table 4. Employment Status and Labor Force Participation, Population Aged 16 and Over Gilroy and Surrounding Areas
(2019-2023 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County
Morgan
Hill Salinas Gonzales San Jose 101 Corridor [1]
Population 16 years and over 44,957 31,699,656 1,561,261 52,365 338,030 34,684 119,710 6,072 813,827 536,686 Employment Status
In labor force 67.4% 63.8% 67.4% 67.0% 60.1% 67.2% 61.4% 66.6% 67.7% 63.8% Civilian labor force 67.3% 63.3% 67.3% 66.9% 58.3% 67.2% 61.3% 66.6% 67.6% 63.8% -Employed 63.1% 59.1% 64.0% 63.3% 55.3% 63.6% 58.4% 64.2% 64.2% 60.6% -Unemployed 4.2% 4.2% 3.3% 3.6% 3.0% 3.6% 2.9% 2.4% 3.4% 3.1% Armed Forces 0.1% 0.5% 0.1% 0.1% 1.9% 0.0% 0.0% 0.0% 0.1% 0.1% Not in labor force 32.6% 36.2% 32.6% 33.0% 39.9% 32.8% 38.6% 33.4% 32.3% 36.2% Civilian labor force 30,269 20,068,466 1,050,468 35,029 197,008 23,309 73,416 4,044 550,130 342,217 Unemployment Rate 6.3% 6.6% 4.9% 5.4% 5.2% 5.3% 4.7% 3.5% 5.1% 4.9% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 25 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 9 Demographic Profile Table 5. Commute Characteristics, Population Aged 16 and Over Gilroy and Surrounding Areas
(2019-2023 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County Morgan Hill Salinas Gonzales San Jose 101 Corridor [1] Commuting to Work
Workers 16 years and over 27,131 18,371,933 970,790 31,798 188,150 17,202 67,964 3,833 504,395 313,223 Mode of Transport to Work
Car, truck, or van -- drove alone 70.5% 65.7% 59.9% 73.3% 70.3% 65.1% 74.2% 80.2% 62.9% 69.1% Car, truck, or van -- carpooled 13.6% 9.5% 9.0% 11.5% 9.9% 9.5% 10.9% 11.9% 10.7% 10.9% Public transportation (excluding taxicab) 1.0% 2.9% 2.3% 0.8% 1.1% 0.9% 0.7% 0.7% 2.4% 1.3% Walked 1.5% 2.4% 2.1% 0.8% 2.9% 0.8% 1.2% 2.5% 1.8% 1.1% Other means 0.7% 2.4% 2.8% 1.7% 6.0% 1.0% 8.8% 2.8% 1.9% 3.1% Worked from home 12.8% 17.2% 23.9% 11.8% 9.8% 22.8% 4.3% 1.9% 20.3% 14.5% Mean travel time to work (minutes) 33.3 28.7 26.2 36.6 25.4 33.5 26.6 27.0 27.3 0.0 Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 26 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 10 Demographic Profile Employment Pattern for Local Workers
In general, the prevalence of workers in management and technical occupations indicate a higher skilled labor force with potential for business formation and attraction. Gilroy’s labor force is concentrated in management/technical and service occupations, with average concentrations of workers in production, construction, and sales occupations (Table 6). Even though the management and professional occupations make up the largest portion of Gilroy’s labor force, the concentration is below the state and county averages. The concentration is higher than San Benito and Monterey counties, which suggests a locational advantage for Gilroy.

By industry, Gilroy’s labor force is concentrated in construction, manufacturing retail trade, professional services, and education/health care industries. While Gilroy’s concentration in professional services is similar to the statewide trend, it is lower than the average for the county, Morgan Hill, and San Jose.

Income Pattern and Growth
Gilroy’s income distribution is concentrated in the middle and upper-income groups with a higher median ($133,100) and mean income ($161,500) than California and San Benito and Monterey counties, but lower than Santa Clara County, Morgan Hill, and San Jose (Table 7).

Nearly 29 percent of Gilroy’s households earn $200,000 or more. This is higher than the state average of 20.5 percent, but much lower than Santa Clara County’s average of 41.6 percent. The concentration of high-income households in Morgan Hill mirrors the county average, while the proportion of high-income households in San Benito and Monterey counties is much lower.

Gilroy residents have a higher-than-average proportion of wage earners. In addition, while Gilroy has a lower proportion of residents with public assistance income, such as SNAP benefits and cash public assistance, compared to the state it has a higher proportion of SNAP benefits than Santa Clara County. This type of income is generally more vulnerable to federal policy changes, which in turn can make the level of spending support from those residents less stable.

Class of Worker
Compared to the state and most of the other comparison areas, Gilroy has a high proportion of private sector wage and salary workers, and a lower concentration of government and self-employed workers (Table 8). Gilroy’s worker class distribution is more in line with Santa Clara County than the surrounding counties, which have higher concentrations of government workers.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 11 Demographic Profile Table 6. Labor Force by Occupation and Industry
Gilroy and Surrounding Areas
(2019-2023 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County Morgan Hill Salinas Gonzales San Jose 101 Corridor [1] Occupation
Civilian employed population 16 years and over 28,363 18,742,898 999,346 33,144 186,765 22,067 69,941 3,901 522,283 325,430 Management, business, science, and arts occupations 35.4% 43.3% 59.3% 32.7% 33.0% 51.7% 24.4% 20.4% 51.5% 40.5% Service occupations 20.4% 17.4% 13.3% 16.7% 19.0% 14.0% 18.1% 13.3% 16.4% 16.6% Sales and office occupations 19.2% 19.0% 14.5% 18.9% 17.9% 18.6% 18.3% 25.2% 16.3% 18.4% Natural resources, construction, and maintenance occupations 12.9% 8.6% 5.3% 16.8% 18.3% 7.6% 23.3% 20.9% 6.7% 13.0% Production, transportation, and material moving occupations 12.0% 11.7% 7.5% 14.9% 11.9% 8.2% 15.9% 20.2% 9.2% 11.4% Industry
Civilian employed population 16 years and over 28,363 18,742,898 999,346 33,144 186,765 22,067 69,941 3,901 522,283 325,430 Agriculture, forestry, fishing and hunting, and mining 3.3% 2.0% 0.5% 6.9% 14.3% 1.1% 18.6% 21.2% 0.4% 6.7% Construction 10.6% 6.6% 4.9% 9.8% 7.0% 8.5% 7.3% 8.1% 5.9% 7.5% Manufacturing 11.0% 8.8% 16.2% 10.9% 5.3% 16.3% 5.4% 9.9% 16.6% 11.4% Wholesale trade 2.1% 2.3% 1.4% 2.8% 2.5% 2.5% 3.3% 3.9% 1.3% 2.3% Retail trade 12.0% 10.0% 8.0% 9.8% 9.6% 7.1% 10.5% 11.2% 8.7% 9.6% Transportation and warehousing, and utilities 3.7% 6.0% 3.2% 6.3% 4.0% 3.2% 4.0% 4.0% 3.6% 4.1% Information 1.2% 2.9% 6.5% 1.2% 1.2% 3.7% 1.0% 0.6% 4.6% 2.4% Finance and insurance, and real estate and rental and leasing 3.1% 5.6% 4.2% 3.3% 3.5% 4.0% 2.1% 1.7% 4.1% 3.9% Professional, scientific, and management, and administrative and waste management services 12.7% 14.5% 23.1% 11.4% 10.6% 18.8% 10.2% 6.0% 20.8% 15.2% Educational services, and health care and social assistance 22.4% 22.1% 19.2% 18.7% 21.5% 19.0% 20.0% 15.0% 19.0% 20.4% Arts, entertainment, and recreation, and accommodation and food services 9.4% 9.4% 7.0% 8.4% 10.7% 8.1% 8.5% 8.6% 8.3% 8.2% Other services, except public administration 4.2% 4.8% 3.4% 4.6% 4.1% 3.7% 4.4% 4.6% 4.0% 4.2% Public administration 4.2% 4.8% 2.5% 5.8% 5.5% 3.9% 4.7% 5.2% 2.8% 4.1% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 28 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 12 Demographic Profile Table 7. Household Income Characteristics
Gilroy and Surrounding Areas
(2020-2024 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County
Morgan
Hill Salinas Gonzales San Jose 101 Corridor [1]
Income and Benefits (2023 Dollars)
Total Households 17,459 13,548,091 659,353 20,561 132,489 14,865 43,620 2,280 328,550 207,503 Income Distribution
Less than $10,000 1.7% 4.5% 2.9% 2.8% 3.5% 1.4% 3.0% 1.6% 3.0% 2.6% $10,000 to $14,999 2.5% 2.9% 1.8% 2.2% 2.4% 0.8% 3.1% 0.8% 2.2% 2.1% $15,000 to $24,999 3.4% 5.0% 3.0% 2.9% 4.6% 2.5% 5.0% 3.5% 3.5% 3.6% $25,000 to $34,999 3.9% 5.3% 3.0% 2.7% 5.2% 3.2% 5.7% 8.6% 3.5% 3.8% $35,000 to $49,999 5.4% 8.1% 4.6% 6.4% 8.6% 5.2% 9.1% 17.2% 5.1% 6.3% $50,000 to $74,999 10.3% 13.0% 7.9% 12.3% 13.8% 9.6% 14.6% 16.5% 8.8% 10.7% $75,000 to $99,999 11.2% 11.6% 8.3% 13.0% 13.4% 6.4% 14.9% 8.5% 9.3% 10.7% $100,000 to $149,999 19.2% 17.8% 14.6% 22.0% 20.6% 15.5% 22.5% 20.7% 15.6% 18.6% $150,000 to $199,999 13.7% 11.3% 12.4% 13.9% 11.2% 12.8% 10.9% 10.7% 13.0% 12.8% $200,000 or more 28.6% 20.5% 41.6% 21.8% 16.8% 42.8% 11.3% 11.8% 36.0% 28.8% Median household income (dollars) $133,107 $99,122 $164,281 $114,394 $97,230 $163,920 $91,908 $77,672 $146,427 n/a Mean household income (dollars) $161,536 $140,436 $227,007 $143,684 $131,486 $207,486 $110,027 $104,875 $194,463 $171,125 Source of Income
With earnings 85.9% 80.6% 85.0% 82.6% 81.2% 83.9% 85.4% 92.5% 85.6% 84.1% Mean earnings (dollars) $160,816 $141,312 $232,856 $138,252 $123,783 $212,162 $109,257 $106,801 $199,822 $170,079 With Social Security 26.5% 28.4% 23.0% 29.6% 30.4% 27.8% 26.0% 15.9% 23.8% 27.5% Mean Social Security income (dollars) $23,783 $23,818 $26,826 $25,681 $24,282 $27,996 $21,038 $19,327 $25,051 $25,418 With retirement income 21.1% 21.7% 18.7% 25.0% 22.5% 25.8% 16.8% 6.4% 18.2% 21.6% Mean retirement income (dollars) $43,563 $40,267 $42,594 $44,303 $45,712 $39,471 $34,547 $16,999 $38,087 $41,937 With Supplemental Security Income 4.1% 5.9% 4.3% 5.3% 4.6% 3.2% 5.5% 1.1% 5.7% 5.0% Mean Supplemental Security Income (dollars) $10,088 $11,625 $11,290 $8,838 $10,761 $12,861 $10,269 n/a $11,463 n/a With cash public assistance income 2.7% 4.0% 2.8% 2.9% 2.9% 3.1% 2.5% 2.0% 3.3% 2.7% Mean cash public assistance income (dollars) $4,585 $6,160 $6,271 $6,512 $7,510 $6,067 $6,592 n/a $5,891 n/a With Food Stamp/SNAP benefits in the past 12 months 10.1% 12.4% 6.6% 10.5% 9.6% 6.8% 11.5% 5.0% 8.9% 8.9% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 29 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 13 Demographic Profile Table 8. Class of Worker
Gilroy and Surrounding Areas
(2020-2024 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County Morgan Hill Salinas Gonzales San Jose 101 Corridor [1] Class of Worker
Civilian employed population 16 years and over 3,901 18,742,898 999,346 33,144 186,765 22,067 69,941 3,901 522,283 325,430 Private wage and salary workers 85.2% 77.6% 84.7% 77.9% 76.0% 82.8% 80.0% 85.2% 83.6% 80.4% Government workers 12.3% 14.8% 10.0% 16.1% 16.5% 10.7% 14.3% 12.3% 11.0% 13.5% Self-employed in own not incorporated business workers 2.5% 7.4% 5.0% 5.9% 7.1% 6.4% 5.1% 2.5% 5.1% 5.8% Unpaid family workers 0.0% 0.2% 0.2% 0.0% 0.4% 0.1% 0.6% 0.0% 0.2% 0.3% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 30 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 14 Demographic Profile Household Size
Household size and room occupancy serves an indicator of overcrowding and housing quality. Compared to Santa Clara County, Gilroy has a high concentration of households with 4 or more residents, and is more consistent with the household sizes for San Benito and Monterey counties (Table 9).

While Gilroy has a higher proportion of large households, the community does not have an overcrowding problem with its housing stock. Compared to Santa Clara County and the surrounding areas, Gilroy has a higher percentage of households with 1.0 or fewer occupants per room (94.2 percent). This is consistent with Gilroy’s higher proportion of single-family detached housing, which makes up 74 percent of the city’s housing units, compared to 61 percent countywide. Monterey County has a significantly higher issue with overcrowding, with Salinas showing over 25 percent of its housing with more than 1.0 occupant per room.

Housing Costs as Percentage of Income
The average housing costs for Gilroy residents ($2,300) between 2020 and 2024 was higher than the state average, slightly lower than with Santa Clara County and higher than Monterey and San Benito counties (Table 10). This represents about 26 percent of median income overall, and nearly 34 percent of median income for renters.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 15 Demographic Profile Table 9. Household Size and Room Occupancy
Gilroy and Surrounding Areas
(2020-2024 Five-Year Average) Gilroy California
Santa Clara
County
San Benito
County
Monterey
County
Morgan
Hill Salinas Gonzales San Jose 101 Corridor [1]
Occupied Housing Units 17,459 13,548,091 659,353 20,561 132,489 14,865 43,620 2,280 328,550 207,503 Household Size
1 Person 14.6% 24.3% 22.0% 16.3% 20.1% 16.7% 15.1% 10.7% 21.0% 16.2% 2 Persons 26.6% 30.5% 31.4% 26.6% 28.8% 33.1% 21.7% 22.2% 29.5% 28.3% 3 Persons 18.8% 16.7% 18.9% 18.0% 15.0% 18.2% 15.7% 18.5% 19.0% 18.1% 4 or More 40.0% 28.5% 27.7% 39.1% 36.2% 31.9% 47.5% 48.6% 30.4% 37.4% Occupants Per Room

1.00 or Less 94.2% 91.8% 92.5% 94.0% 85.0% 93.7% 74.4% 78.7% 91.0% 88.9%

1.01 to 1.50 Occupants 4.6% 5.0% 4.5% 4.1% 8.6% 3.8% 14.5% 15.0% 5.4% 6.8%

1.51 or More 1.2% 3.2% 3.0% 1.9% 6.4% 2.5% 11.1% 6.2% 3.5% 4.3% Source: US Census American Community Survey (2020 to 2024 five-year sample) [1] The 101 corridor includes the ZIP codes adjacent to US Highway 101 from south San Jose to Soledad. Page 32 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 16 Demographic Profile Table 10. Housing Costs and Household Income (Five-Year Sample 2020-2024) Median
Monthly
Housing Cost
Median Housing
Cost - OwnerOccupied
Median Housing
Cost - RenterOccupied
Median
Household
Income
Median
Household
Income OwnerOccupied
Median
Household
Income RenterOccupied
Housing Cost
as Percentage
of Median
Income
Housing Cost as
Percentage of
Median Income
(Owner-Occupied)
Housing Cost as
Percentage of
Median Income
(Renter-Occupied)
Gilroy $2,884 $3,410 $2,301 $133,107 $159,224 $82,220 26.0% 25.7% 33.6% California $2,114 $2,221 $2,036 $99,122 $127,456 $71,186 25.6% 20.9% 34.3% Santa Clara County $3,017 $3,323 $2,857 $164,281 $208,519 $122,974 22.0% 19.1% 27.9% San Benito County $2,483 $2,795 $1,992 $114,394 $135,966 $79,940 26.0% 24.7% 29.9% Monterey County $2,071 $2,101 $2,055 $97,230 $125,231 $73,346 25.6% 20.1% 33.6% Morgan Hill $2,998 $3,506 $2,474 $163,920 $210,090 $90,014 21.9% 20.0% 33.0% Salinas $1,963 $1,888 $1,991 $91,908 $119,430 $71,375 25.6% 19.0% 33.5% Gonzales $1,741 $2,079 $1,524 $77,672 $121,530 $52,423 26.9% 20.5% 34.9% San Jose $2,838 $3,121 $2,669 $146,427 $191,106 $103,391 23.3% 19.6% 31.0% Source: US Census American Community Survey (2020 to 2024 five-year sample) Page 33 of 645 Economic & Planning Systems, Inc. 17 Economic Base

3. Economic Base
Comparative Job Base and Trends
The economic base for a community identifies the foundational sources of prosperity for an economy. This comes through job growth and comparative concentration of jobs by economic sector. These jobs provide opportunities for the local labor force, and can also attract labor from workers commuting in from other areas.

Gilroy’s geographic proximity to both the Silicon Valley and the Salinas Valley provides opportunities for strengthened economic ties to multiple areas.

These can include labor supply to and from these areas, buyer-supplier relationships between businesses, retail trade, and institutional relationships. As with the demographic indicators, Gilroy shares characteristics that differ from the rest of Santa Clara County, and have some commonalities with other communities along the 101 corridor, and with San Benito and Monterey counties.

Economic Base
Gilroy is situated at a crossroads along the Highway 101 corridor that draws economic activity from both the Bay Area and the Salinas Valley. Gilroy represents one of the last concentrations of agricultural production in Santa Clara County, while in close proximity to the more prominent farming economy in Monterey County. Even though Gilroy is part of Santa Clara County, its economic activity does not mirror the rest of the county economy. The economic base is driven by sectors distinct from the rest of the county, with other distinctions from the San Benito and Monterey County economies.

Gilroy Employment Trends
In 2024, Gilroy supported over 18,100 jobs, as shown in Table 11-A. Aside from its importance in supporting sales tax revenues, the retail sectors also generate over 3,700 jobs and represents the largest number of jobs in Gilroy. The employment concentration is also twice the state and national averages, and is the highest among all major industry sectors.

Other major sectors that support at least 1,000 jobs in Gilroy include construction, manufacturing, administrative services, education, health care/social assistance, and hospitality. The concentration of employment in Gilroy is also above the state average in construction, management, arts/recreation, hospitality, and miscellaneous services. The job concentration in agriculture for Gilroy is above the national average, but below the state average.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 18 Economic Base
Table 11-A. Employment Growth Trends, 2014 to 2024 - Gilroy Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 16,468 17,822 15,821 18,095 1,626 0.9% 272 0.3% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 231 188 195 184 (48) (2.3%) (5) (0.5%) 0.45 1.25 Mining, Quarrying, and Oil and Gas Extraction 21 1 5 6 7 6 21.0% 2 7.6% 0.45 0.11 Utilities 22 86 88 66 61 (24) (3.3%) (27) (7.0%) 0.52 0.61 Construction 23 831 1,321 1,272 1,370 539 5.1% 49 0.7% 1.49 1.41 Manufacturing 31 1,371 1,303 1,169 1,000 (371) (3.1%) (303) (5.2%) 0.81 0.67 Wholesale Trade 42 397 557 527 589 192 4.0% 33 1.2% 0.90 0.83 Retail Trade 44 4,291 4,270 3,813 3,719 (573) (1.4%) (551) (2.7%) 2.35 2.05 Transportation and Warehousing 48 410 405 412 431 22 0.5% 26 1.3% 0.50 0.49 Information 51 150 96 91 92 (58) (4.8%) (4) (0.9%) 0.17 0.26 Finance and Insurance 52 242 150 141 133 (109) (5.8%) (17) (2.3%) 0.27 0.18 Real Estate and Rental and Leasing 53 135 146 142 161 26 1.8% 15 1.9% 0.52 0.56 Professional, Scientific, and Technical Services 54 409 395 382 445 36 0.8% 51 2.4% 0.31 0.35 Management of Companies and Enterprises 55 37 74 80 441 404 28.1% 367 43.0% 1.54 1.45 Administrative and Support and Waste Management and Remediation Services 56 606 785 784 1,078 473 5.9% 293 6.6% 0.99 1.00 Educational Services 61 1,114 1,164 1,128 1,341 228 1.9% 178 2.9% 0.87 0.87 Health Care and Social Assistance 62 2,437 2,554 2,511 2,958 521 2.0% 403 3.0% 0.98 1.04 Arts, Entertainment, and Recreation 71 484 475 170 470 (14) (0.3%) (5) (0.2%) 1.16 1.35 Accommodation and Food Services 72 2,155 2,654 1,918 2,515 360 1.6% (139) (1.1%) 1.49 1.52 Other Services (except Public Administration) 81 692 787 635 773 81 1.1% (14) (0.4%) 1.34 1.41 Public Administration 92 359 404 380 323 (36) (1.0%) (80) (4.3%) 0.36 0.35 Unclassified 99 30 0 0 1 (29) (27.7%) 1 52.8% 0.37 0.05 Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Gilroy

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 19 Economic Base
Between 2019 and 2024 the overall job count in Gilroy grew by about 300 jobs, or

0.3 percent average annual growth. This indicates that Gilroy has recovered its job base back to pre-pandemic levels overall. However, the recovery was uneven across sectors and showed shifts in the job base during the economic recovery.

The largest job gains in Gilroy during this period occurred in professional and administrative services-related industries, education, and health care/social assistance. Concurrently, the largest job losses occurred in manufacturing and retail trade.

When looking back to 2014, Gilroy has had an overall job gain of over 1,600 jobs with an annual growth rate of 0.9 percent.

Santa Clara County Employment Trends
Santa Clara County had an employment base of about 1.1 million jobs in 2024, as shown in Table 11-B. The largest sectors in the county were professional services and health care/social assistance, which each employ over 160,000 workers. The other sector with over 100,000 jobs is manufacturing. The sectors with the highest employment concentration in the county is information services and management.

Other concentrated industries include manufacturing and professional services.

Compared to the pre-pandemic 2019 employment base, the 2024 job count in Santa Clara County was nearly identical, with a net loss of about 3,000 jobs.

Similar to Gilroy’s trend, the largest job losses in the county occurred in manufacturing and retail trade, while the largest job gains during this period occurred in management and health care/social assistance.

San Benito County Employment Trends
San Benito County’s job base is about the same as Gilroy’s, with just over 18,000 jobs (Table 11-C). However, the county’s job base is more heavily concentrated in agriculture and manufacturing.

In addition, San Benito County’s job recovery from the pandemic occurred at a faster rate than in Gilroy. Like Gilroy, San Benito County had a large shift away from manufacturing employment. In addition, San Benito County had its largest job losses in agriculture, while the job growth was more heavily focused around educational services and health care/social assistance.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 20 Economic Base
Table 11-B. Employment Growth Trends, 2014 to 2024 - Santa Clara County Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 973,670 1,119,635 1,051,176 1,116,583 142,913 1.4% (3,052) (0.1%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 3,500 3,265 3,109 3,034 (466) (1.4%) (230) (1.5%) 0.12 0.33 Mining, Quarrying, and Oil and Gas Extraction 21 266 155 146 157 (110) (5.2%) 1 0.2% 0.15 0.04 Utilities 22 3,253 3,244 3,298 3,596 343 1.0% 352 2.1% 0.49 0.58 Construction 23 38,961 52,128 49,245 52,134 13,174 3.0% 7 0.0% 0.92 0.87 Manufacturing 31 155,141 168,643 165,327 122,751 (32,390) (2.3%) (45,891) (6.2%) 1.60 1.33 Wholesale Trade 42 35,989 30,840 28,375 27,163 (8,826) (2.8%) (3,677) (2.5%) 0.67 0.62 Retail Trade 44 84,997 83,099 72,307 70,973 (14,023) (1.8%) (12,125) (3.1%) 0.73 0.63 Transportation and Warehousing 48 17,865 19,341 18,953 19,405 1,540 0.8% 64 0.1% 0.36 0.36 Information 51 66,986 101,131 105,684 94,137 27,150 3.5% (6,994) (1.4%) 2.78 4.29 Finance and Insurance 52 21,402 21,655 22,515 20,636 (765) (0.4%) (1,019) (1.0%) 0.67 0.45 Real Estate and Rental and Leasing 53 13,129 15,662 14,887 15,391 2,263 1.6% (271) (0.3%) 0.81 0.87 Professional, Scientific, and Technical Services 54 131,509 162,137 160,432 160,257 28,748 2.0% (1,881) (0.2%) 1.83 2.04 Management of Companies and Enterprises 55 11,443 15,278 14,755 60,198 48,756 18.1% 44,920 31.6% 3.41 3.20 Administrative and Support and Waste Management and Remediation Services 56 57,123 61,837 57,455 57,152 29 0.0% (4,686) (1.6%) 0.85 0.86 Educational Services 61 73,641 81,154 74,468 85,687 12,046 1.5% 4,533 1.1% 0.90 0.90 Health Care and Social Assistance 62 114,583 136,962 137,685 165,584 51,001 3.8% 28,622 3.9% 0.89 0.95 Arts, Entertainment, and Recreation 71 14,831 18,128 11,346 20,613 5,782 3.3% 2,485 2.6% 0.82 0.96 Accommodation and Food Services 72 76,777 89,725 62,350 83,150 6,372 0.8% (6,575) (1.5%) 0.80 0.81 Other Services (except Public Administration) 81 25,063 27,971 21,050 26,069 1,005 0.4% (1,902) (1.4%) 0.73 0.77 Public Administration 92 24,172 27,273 27,788 28,412 4,240 1.6% 1,139 0.8% 0.51 0.50 Unclassified 99 3,041 10 2 84 (2,956) (30.1%) 74 53.1% 0.43 0.05 Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Santa Clara County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 21 Economic Base
Table 11-C. Employment Growth Trends, 2014 to 2024 - San Benito County Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 15,921 17,358 16,299 18,032 2,110 1.3% 674 0.8% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 1,812 2,359 2,177 1,817 5 0.0% (541) (5.1%) 4.46 12.38 Mining, Quarrying, and Oil and Gas Extraction 21 14 23 20 29 15 7.5% 5 4.3% 1.75 0.42 Utilities 22 45 43 34 57 12 2.4% 14 5.7% 0.48 0.57
Construction 23 892 1,616 1,556 1,615 722 6.1% (1) (0.0%) 1.76 1.67 Manufacturing 31 2,740 3,154 2,824 2,966 227 0.8% (188) (1.2%) 2.40 1.99 Wholesale Trade 42 359 362 351 320 (39) (1.1%) (42) (2.4%) 0.49 0.45 Retail Trade 44 2,532 1,352 1,279 1,537 (994) (4.9%) 185 2.6% 0.97 0.85 Transportation and Warehousing 48 469 488 474 572 103 2.0% 84 3.2% 0.67 0.65 Information 51 67 60 33 58 (10) (1.6%) (2) (0.7%) 0.11 0.16 Finance and Insurance 52 207 216 204 225 18 0.8% 8 0.8% 0.45 0.31 Real Estate and Rental and Leasing 53 183 136 140 124 (59) (3.8%) (11) (1.7%) 0.40 0.44 Professional, Scientific, and Technical Services 54 381 274 250 329 (52) (1.5%) 54 3.7% 0.23 0.26 Management of Companies and Enterprises 55 52 28 22 29 (24) (5.8%) 0 0.2% 0.10 0.09 Administrative and Support and Waste Management and Remediation Services 56 718 900 967 946 228 2.8% 46 1.0% 0.87 0.88 Educational Services 61 1,285 1,466 1,341 2,020 735 4.6% 554 6.6% 1.32 1.32 Health Care and Social Assistance 62 1,699 1,907 1,846 2,141 442 2.3% 234 2.3% 0.71 0.76 Arts, Entertainment, and Recreation 71 309 220 159 218 (91) (3.4%) (1) (0.1%) 0.54 0.63 Accommodation and Food Services 72 989 1,423 1,315 1,536 546 4.5% 113 1.5% 0.91 0.93 Other Services (except Public Administration) 81 379 433 395 494 115 2.7% 61 2.7% 0.86 0.90 Public Administration 92 739 898 912 999 260 3.1% 101 2.2% 1.12 1.09 Unclassified 99 49 0 0 0 (49) (36.8%) 0 0.0% 0.16 0.02
Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

San Benito County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 22 Economic Base
Monterey County Employment Trends
Like Gilroy and San Benito County, Monterey County has also seen its job base recovery back to pre-pandemic levels with a 0.2 percent average growth rate between 2019 and 2024 (Table 11-D). Monterey County’s largest growth occurred in construction, education, health care/social assistance, and agriculture, while the job base saw large job losses in manufacturing, retail trade, transportation, management, administrative services, and hospitality. This differs from the other jurisdictions in that Monterey County’s agricultural production large recovered and saw its job growth focused in a few sectors while broader cross-sections of the economy had job losses.
101 Corridor Employment Trends
The 101 corridor (south San Jose to Soledad) as a whole saw a net gain of more than 4,000 jobs between 2019 and 2024, indicating an overall recovery to prepandemic levels (Table 11-E). This growth rate of 0.4 percent is slightly higher than Gilroy’s job recovery. Because the 101 corridor covers a large portion of unincorporated areas, its job base is more heavily concentrated in agriculture, which is nearly equal to the pre-pandemic job levels. Similar to Gilroy, the 101 corridor’s job gains were concentrated in health care/social assistance, construction and education, while the job losses occurred primarily manufacturing and retail trade.

Both Morgan Hill and Salinas saw more rapid recovery from the pandemic, with higher growth rates than Gilroy between 2019 and 2024 (Tables 11-F and 11-G).

Projected Job Growth
Most of the job growth forecasts for Gilroy and Santa Clara, San Benito, and Monterey counties shows a slowdown over the long-term. Since the COVID19 pandemic, long-term forecasts for job and population growth from multiple sources have been revised downward across a broad cross-section of regions across the country.

For Gilroy, JobsEQ projects job losses over the next decade for every jurisdiction, except San Benito County (Table 12). By comparison, the Association of Bay Area Governments’ (ABAG) Plan Bay Area 2050+ revision projects moderate job growth more in line with the historical trends over the past decade. For Monterey County and San Benito counties, the Association of Monterey Bay Area Governments (AMBAG) projection anticipates very low job growth. Both Caltrans and California EDD project positive job growth at a lower rate than over the past decade.

When looking at individual sectors, the JobsEQ projection for both Gilroy and Santa Clara County shows most of the job growth occurring in health care/social assistance, with Santa Clara County also projected to have large job growth in

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 23 Economic Base
information and professional services. Most of the other sectors are projected to show job losses. (Tables 13-A through 13-H).

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 24 Economic Base
Table 11-D. Employment Growth Trends, 2014 to 2024 - Monterey County Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 180,250 198,165 183,718 200,246 19,996 1.1% 2,082 0.2% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 52,066 54,802 53,777 55,530 3,463 0.6% 728 0.3% 12.27 34.07 Mining, Quarrying, and Oil and Gas Extraction 21 230 265 247 211 (19) (0.9%) (54) (4.5%) 1.16 0.28 Utilities 22 948 998 1,013 815 (133) (1.5%) (183) (4.0%) 0.62 0.73 Construction 23 4,984 6,684 6,378 7,727 2,743 4.5% 1,043 2.9% 0.76 0.72 Manufacturing 31 5,253 5,301 4,646 4,682 (571) (1.1%) (619) (2.5%) 0.34 0.28 Wholesale Trade 42 5,356 5,711 5,335 5,686 330 0.6% (25) (0.1%) 0.78 0.72 Retail Trade 44 16,359 16,929 15,625 16,276 (83) (0.1%) (653) (0.8%) 0.93 0.81 Transportation and Warehousing 48 4,124 4,103 3,732 3,777 (346) (0.9%) (326) (1.6%) 0.40 0.39 Information 51 1,583 1,239 1,009 1,081 (503) (3.7%) (159) (2.7%) 0.18 0.27 Finance and Insurance 52 2,166 2,427 2,308 2,049 (116) (0.6%) (378) (3.3%) 0.37 0.25 Real Estate and Rental and Leasing 53 1,732 1,943 1,781 2,055 323 1.7% 112 1.1% 0.60 0.65 Professional, Scientific, and Technical Services 54 5,617 5,300 5,073 5,220 (397) (0.7%) (80) (0.3%) 0.33 0.37 Management of Companies and Enterprises 55 934 1,512 1,535 787 (147) (1.7%) (725) (12.2%) 0.25 0.23 Administrative and Support and Waste Management and Remediation Services 56 5,988 8,353 8,154 7,771 1,783 2.6% (581) (1.4%) 0.64 0.65 Educational Services 61 12,936 15,367 14,168 16,118 3,182 2.2% 751 1.0% 0.95 0.95 Health Care and Social Assistance 62 18,834 21,632 21,167 24,347 5,514 2.6% 2,715 2.4% 0.73 0.78 Arts, Entertainment, and Recreation 71 2,752 2,996 2,143 3,241 489 1.6% 244 1.6% 0.72 0.84 Accommodation and Food Services 72 20,326 23,358 16,950 22,689 2,363 1.1% (670) (0.6%) 1.21 1.24 Other Services (except Public Administration) 81 4,707 5,108 4,400 5,608 901 1.8% 500 1.9% 0.88 0.92 Public Administration 92 13,047 14,133 14,276 14,575 1,528 1.1% 441 0.6% 1.47 1.44 Unclassified 99 307 1 0 2 (306) (41.0%) 1 9.6% 0.05 0.01 Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Monterey County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 25 Economic Base
Table 11-E.Employment Growth Trends, 2014 to 2024 - 101 Corridor Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 205,376 229,573 214,050 233,703 28,326 1.3% 4,130 0.4% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 45,773 48,830 47,403 48,518 2,746 0.6% (311) (0.1%) 9.18 25.51 Mining, Quarrying, and Oil and Gas Extraction 21 176 123 112 111 (65) (4.5%) (12) (2.1%) 0.52 0.13 Utilities 22 1,298 1,457 1,458 1,572 275 1.9% 115 1.5% 1.03 1.21 Construction 23 7,501 11,076 10,925 12,432 4,931 5.2% 1,356 2.3% 1.05 0.99 Manufacturing 31 19,039 21,420 19,379 16,302 (2,737) (1.5%) (5,118) (5.3%) 1.02 0.85 Wholesale Trade 42 6,378 7,542 7,205 7,449 1,071 1.6% (93) (0.2%) 0.88 0.81 Retail Trade 44 24,575 24,160 21,784 22,252 (2,323) (1.0%) (1,908) (1.6%) 1.09 0.95 Transportation and Warehousing 48 3,872 4,015 3,876 4,287 416 1.0% 272 1.3% 0.38 0.38 Information 51 1,751 1,921 1,641 1,683 (68) (0.4%) (238) (2.6%) 0.24 0.37 Finance and Insurance 52 2,626 2,893 2,863 2,646 20 0.1% (247) (1.8%) 0.41 0.28 Real Estate and Rental and Leasing 53 1,863 2,269 2,135 2,275 412 2.0% 6 0.1% 0.57 0.62 Professional, Scientific, and Technical Services 54 8,987 8,771 8,644 8,581 (406) (0.5%) (191) (0.4%) 0.47 0.52 Management of Companies and Enterprises 55 1,513 1,846 1,841 5,162 3,649 13.1% 3,317 22.8% 1.40 1.31 Administrative and Support and Waste Management and Remediation Services 56 7,048 10,455 10,239 10,311 3,263 3.9% (144) (0.3%) 0.73 0.74 Educational Services 61 15,056 16,905 15,633 18,564 3,508 2.1% 1,658 1.9% 0.93 0.93 Health Care and Social Assistance 62 24,581 28,914 28,919 33,612 9,031 3.2% 4,698 3.1% 0.86 0.92 Arts, Entertainment, and Recreation 71 2,764 2,759 1,638 3,098 334 1.1% 339 2.3% 0.59 0.69 Accommodation and Food Services 72 15,489 18,081 13,524 17,840 2,351 1.4% (240) (0.3%) 0.82 0.83 Other Services (except Public Administration) 81 5,162 5,649 4,549 6,230 1,068 1.9% 581 2.0% 0.84 0.88 Public Administration 92 9,473 10,484 10,283 10,769 1,296 1.3% 285 0.5% 0.93 0.91 Unclassified 99 453 1 0 9 (445) (32.5%) 7 44.1% 0.22 0.03 Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States. [4] The 101 Corridor includes all of the ZIP codes and incorporated jurisdictions between south San Jose and Soledad adjacent to the US 101 freeway.

Highway 101 Corridor [4]

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 26 Economic Base
Table 11-F.Employment Growth Trends, 2014 to 2024 - Salinas Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 55,052 69,043 65,591 72,210 17,159 2.8% 3,168 0.9% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 16,600 19,565 19,358 22,187 5,588 2.9% 2,622 2.5% 13.05 37.75 Mining, Quarrying, and Oil and Gas Extraction 21 4 0 0 0 -4 -50.4% 0 6.9% 0.00 0.00 Utilities 22 159 90 94 86 -74 -6.0% (4) (1.0%) 0.22 0.21 Construction 23 847 1,387 1,323 1,625 778 6.7% 237 3.2% 0.40 0.42 Manufacturing 31 1,308 2,109 1,806 1,784 476 3.2% (325) (3.3%) 0.40 0.30 Wholesale Trade 42 2,481 2,725 2,599 2,789 308 1.2% 64 0.5% 1.09 0.98 Retail Trade 44 7,127 7,588 7,154 7,272 145 0.2% (316) (0.8%) 1.24 1.00 Transportation and Warehousing 48 1,146 1,191 1,079 1,101 -45 -0.4% (91) (1.6%) 0.34 0.31 Information 51 606 714 592 648 42 0.7% (66) (1.9%) 0.30 0.46 Finance and Insurance 52 790 1,005 962 834 44 0.5% (172) (3.7%) 0.53 0.28 Real Estate and Rental and Leasing 53 361 411 374 388 27 0.7% (23) (1.1%) 0.33 0.34 Professional, Scientific, and Technical Services 54 1,335 1,241 1,197 1,253 -83 -0.6% 12 0.2% 0.23 0.25 Management of Companies and Enterprises 55 331 558 597 379 49 1.4% (179) (7.4%) 0.58 0.31 Administrative and Support and Waste Management and Remediation Services 56 1,947 3,523 3,726 3,045 1,098 4.6% (478) (2.9%) 0.94 0.71 Educational Services 61 4,930 5,637 5,167 5,949 1,019 1.9% 312 1.1% 0.93 0.97 Health Care and Social Assistance 62 7,288 9,365 9,123 10,291 3,003 3.5% 926 1.9% 0.83 0.91 Arts, Entertainment, and Recreation 71 320 453 286 480 160 4.1% 27 1.2% 0.19 0.35 Accommodation and Food Services 72 4,137 4,754 3,744 4,917 780 1.7% 163 0.7% 0.61 0.74 Other Services (except Public Administration) 81 1,401 1,496 1,292 1,824 423 2.7% 328 4.0% 0.62 0.83 Public Administration 92 1,853 5,232 5,119 5,361 3,508 11.2% 129 0.5% 1.57 1.47 Unclassified 99 83 0 0 0 -82 -40.0% 0 10.5% 0.00 0.00
Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Salinas

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 27 Economic Base
Table 11-G. Employment Growth Trends, 2014 to 2024 - Morgan Hill Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 13,832 17,995 16,744 19,474 5,642 3.5% 1,479 1.6% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 89 73 71 68 (21) (2.7%) (5) (1.3%) 0.15 0.43 Mining, Quarrying, and Oil and Gas Extraction 21 5 1 3 4 (1) (2.8%) 2 21.6% 0.22 0.05 Utilities 22 18 0 28 30 12 5.2% 30 0.0% 0.24 0.28
Construction 23 696 1,129 1,199 1,400 704 7.2% 270 4.4% 1.41 1.34 Manufacturing 31 3,138 4,229 4,102 3,419 281 0.9% (811) (4.2%) 2.56 2.13 Wholesale Trade 42 803 1,151 1,080 950 147 1.7% (201) (3.8%) 1.35 1.24 Retail Trade 44 1,525 2,010 1,874 2,005 480 2.8% (4) (0.0%) 1.18 1.03 Transportation and Warehousing 48 156 200 193 282 126 6.1% 82 7.1% 0.30 0.30 Information 51 128 148 135 151 22 1.6% 3 0.4% 0.26 0.39 Finance and Insurance 52 288 312 329 281 (7) (0.2%) (31) (2.1%) 0.52 0.35 Real Estate and Rental and Leasing 53 159 242 224 249 90 4.6% 8 0.6% 0.75 0.81 Professional, Scientific, and Technical Services 54 1,154 1,175 1,249 1,168 14 0.1% (7) (0.1%) 0.77 0.85 Management of Companies and Enterprises 55 389 463 484 2,022 1,632 17.9% 1,559 34.3% 6.57 6.16 Administrative and Support and Waste Management and Remediation Services 56 453 977 723 814 361 6.0% (163) (3.6%) 0.69 0.70 Educational Services 61 1,012 983 902 1,019 7 0.1% 35 0.7% 0.62 0.61 Health Care and Social Assistance 62 1,093 1,501 1,515 1,841 747 5.3% 340 4.2% 0.57 0.60 Arts, Entertainment, and Recreation 71 104 195 78 317 213 11.8% 121 10.1% 0.72 0.85 Accommodation and Food Services 72 1,632 1,990 1,520 2,163 532 2.9% 174 1.7% 1.19 1.21 Other Services (except Public Administration) 81 520 594 440 664 144 2.5% 70 2.2% 1.07 1.12 Public Administration 92 429 622 597 627 198 3.9% 5 0.2% 0.65 0.64 Unclassified 99 42 0 0 1 (40) (30.2%) 1 54.0% 0.33 0.04 Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Morgan Hill

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 28 Economic Base
Table 11-H. Employment Growth Trends, 2014 to 2024 - Gonzales Industry NAICS 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR [1]
2024 Location
Quotient (CA) [2]
2024 Location
Quotient (US) [3]
Total - All Industries Total 4,137 3,581 2,994 3,036 (1,101) 100.0% (544) (3.2%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 2,884 2,225 1,719 1,571 (1,313) 6358.5% (653) (6.7%) 22.89 63.59 Mining, Quarrying, and Oil and Gas Extraction 21 2 1 1 1 (1) 6.5% 0 2.7% 0.27 0.06 Utilities 22 1 0 0 0 (1) 0.0% 0 7.5% 0.00 0.00
Construction 23 49 16 31 55 6 33.8% 39 28.0% 0.36 0.34
Manufacturing 31 260 280 234 252 (8) 100.6% (28) (2.1%) 1.21 1.01 Wholesale Trade 42 95 92 132 149 54 124.7% 57 10.1% 1.36 1.25 Retail Trade 44 112 139 147 170 59 55.9% 31 4.1% 0.64 0.56 Transportation and Warehousing 48 100 34 27 33 (67) 22.5% (1) (0.5%) 0.23 0.22 Information 51 0 0 0 0 0 0.0% 0 0.0% 0.00 0.00
Finance and Insurance 52 10 9 7 5 (6) 3.9% (4) (11.5%) 0.06 0.04 Real Estate and Rental and Leasing 53 0 0 0 0 (0) 0.0% (0) (100.0%) 0.00 0.00 Professional, Scientific, and Technical Services 54 27 9 11 13 (14) 6.0% 4 7.1% 0.05 0.06 Management of Companies and Enterprises 55 1 0 0 0 (1) 0.0% (0) (3.2%) 0.00 0.00 Administrative and Support and Waste Management and Remediation Services 56 50 22 20 6 (44) 3.6% (15) (21.4%) 0.04 0.04 Educational Services 61 258 338 308 368 110 142.2% 29 1.7% 1.42 1.42 Health Care and Social Assistance 62 108 101 92 113 5 23.8% 12 2.3% 0.22 0.24 Arts, Entertainment, and Recreation 71 0 0 0 0 0 0.0% 0 0.0% 0.00 0.00 Accommodation and Food Services 72 120 203 158 188 68 67.6% (14) (1.5%) 0.66 0.68 Other Services (except Public Administration) 81 21 36 33 34 13 36.4% (2) (1.4%) 0.35 0.36 Public Administration 92 34 76 75 78 44 50.6% 2 0.5% 0.52 0.51 Unclassified 99 5 0 0 0 (5) 0.5% 0 4.1% 0.04 0.00
Source: JobsEQ, data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Gonzales

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 29 Economic Base
Table 12. Projected Average Employment Growth Rate Comparison - Gilroy & Surrounding Communities Projected Annual Growth Rate by Source Gilroy
Santa Clara
County
San Benito
County
Monterey
County Salinas Morgan Hill Gonzales
JobsEQ (2025 to 2035 Projection) (0.4%) (0.2%) 0.9% (0.2%) (0.3%) (0.3%) (0.4%) Plan Bay Area 2050+ (2025 Projection - 2023 to 2050) [1] 0.8% 1.4% - - - 0.8% - AMBAG (2026 Draft Projection - 2023 to 2050)) - - 0.2% 0.2% 0.3% - 0.3% Caltrans (2026 Projection - 2024 to 2055) - 0.6% 0.2% 0.5% - - - California EDD (2023 Projection - 2023 to 2033) [2] - 0.7% 0.7% 0.9% - - - Source: JobsEQ, ABAG, AMBAG
[2] The EDD growth projections are done by Metropolitan Statistical Area (MSA), so Santa Clara and San Benito counties share the same forecast. [1] The Plan Bay Area 2050+ growth projections are produced by ABAG. Gilroy and Morgan Hill are part of the South Santa Clar County super district, which is the geographic area for the growth rate. Page 46 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 30 Economic Base
Table 13-A. Employment Projections 2025 to 2035 - Gilroy Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 18,122 17,384 (738) (0.4%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 180 169 (11) (0.6%) 0.45 1.25 Mining, Quarrying, and Oil and Gas Extraction 21 7 7 0 0.0% 0.45 0.11 Utilities 22 65 58 (7) (1.1%) 0.52 0.61
Construction 23 1,353 1,310 (43) (0.3%) 1.49 1.41
Manufacturing 31 1,005 934 (71) (0.7%) 0.81 0.67
Wholesale Trade 42 587 560 (27) (0.5%) 0.90 0.83
Retail Trade 44 3,707 3,404 (303) (0.8%) 2.35 2.05
Transportation and Warehousing 48 430 409 (21) (0.5%) 0.50 0.49 Information 51 93 83 (10) (1.1%) 0.17 0.26
Finance and Insurance 52 132 126 (6) (0.5%) 0.27 0.18
Real Estate and Rental and Leasing 53 161 154 (7) (0.4%) 0.52 0.56 Professional, Scientific, and Technical Services 54 441 435 (6) (0.1%) 0.31 0.35 Management of Companies and Enterprises 55 424 410 (14) (0.3%) 1.54 1.45 Administrative and Support and Waste Management and Remediation Services 56 1,061 1,002 (59) (0.6%) 0.99 1.00 Educational Services 61 1,359 1,223 (136) (1.0%) 0.87 0.87 Health Care and Social Assistance 62 3,027 3,180 153 0.5% 0.98 1.04 Arts, Entertainment, and Recreation 71 455 442 (13) (0.3%) 1.16 1.35 Accommodation and Food Services 72 2,525 2,418 (107) (0.4%) 1.49 1.52 Other Services (except Public Administration) 81 785 753 (32) (0.4%) 1.34 1.41 Public Administration 92 322 303 (19) (0.6%) 0.36 0.35
Unclassified 99 4 4 0 0.0% 0.37 0.05
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Gilroy

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 31 Economic Base
Table 13-B. Employment Projections 2025 to 2035 - Santa Clara County Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 1,117,328 1,100,115 (17,213) (0.2%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 3,006 2,820 (186) (0.6%) 0.12 0.33 Mining, Quarrying, and Oil and Gas Extraction 21 155 149 (6) (0.4%) 0.15 0.04 Utilities 22 3,646 3,439 (207) (0.6%) 0.49 0.58
Construction 23 51,491 49,795 (1,696) (0.3%) 0.92 0.87
Manufacturing 31 123,193 119,716 (3,477) (0.3%) 1.60 1.33 Wholesale Trade 42 27,039 26,050 (989) (0.4%) 0.67 0.62 Retail Trade 44 70,730 64,613 (6,117) (0.9%) 0.73 0.63
Transportation and Warehousing 48 19,378 18,456 (922) (0.5%) 0.36 0.36 Information 51 95,248 101,311 6,063 0.6% 2.78 4.29
Finance and Insurance 52 20,371 19,526 (845) (0.4%) 0.67 0.45 Real Estate and Rental and Leasing 53 15,347 14,699 (648) (0.4%) 0.81 0.87 Professional, Scientific, and Technical Services 54 158,157 163,791 5,634 0.4% 1.83 2.04 Management of Companies and Enterprises 55 58,042 56,147 (1,895) (0.3%) 3.41 3.20 Administrative and Support and Waste Management and Remediation Services 56 56,257 53,018 (3,239) (0.6%) 0.85 0.86 Educational Services 61 87,287 80,054 (7,233) (0.9%) 0.90 0.90 Health Care and Social Assistance 62 169,087 174,189 5,102 0.3% 0.89 0.95 Arts, Entertainment, and Recreation 71 20,217 19,814 (403) (0.2%) 0.82 0.96 Accommodation and Food Services 72 83,619 80,217 (3,402) (0.4%) 0.80 0.81 Other Services (except Public Administration) 81 26,473 25,631 (842) (0.3%) 0.73 0.77 Public Administration 92 28,270 26,371 (1,899) (0.7%) 0.51 0.50 Unclassified 99 314 309 (5) (0.2%) 0.43 0.05
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Santa Clara County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 32 Economic Base
Table 13-C. Employment Projections 2025 to 2035 - San Benito County Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 18,179 19,811 1,632 0.9% 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 1,781 1,907 126 0.7% 4.46 12.38 Mining, Quarrying, and Oil and Gas Extraction 21 31 35 4 1.2% 1.75 0.42 Utilities 22 54 56 2 0.4% 0.48 0.57
Construction 23 1,603 1,767 164 1.0% 1.76 1.67
Manufacturing 31 2,925 3,177 252 0.8% 2.40 1.99
Wholesale Trade 42 328 356 28 0.8% 0.49 0.45
Retail Trade 44 1,571 1,652 81 0.5% 0.97 0.85
Transportation and Warehousing 48 554 597 43 0.8% 0.67 0.65 Information 51 56 62 6 1.0% 0.11 0.16
Finance and Insurance 52 229 252 23 1.0% 0.45 0.31
Real Estate and Rental and Leasing 53 125 137 12 0.9% 0.40 0.44 Professional, Scientific, and Technical Services 54 349 391 42 1.1% 0.23 0.26 Management of Companies and Enterprises 55 29 32 3 1.0% 0.10 0.09 Administrative and Support and Waste Management and Remediation Services 56 1,012 1,074 62 0.6% 0.87 0.88 Educational Services 61 2,075 2,184 109 0.5% 1.32 1.32
Health Care and Social Assistance 62 2,164 2,540 376 1.6% 0.71 0.76 Arts, Entertainment, and Recreation 71 233 264 31 1.3% 0.54 0.63 Accommodation and Food Services 72 1,557 1,702 145 0.9% 0.91 0.93 Other Services (except Public Administration) 81 484 531 47 0.9% 0.86 0.90 Public Administration 92 1,011 1,087 76 0.7% 1.12 1.09
Unclassified 99 7 8 1 1.3% 0.16 0.02
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

San Benito County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 33 Economic Base
Table 13-D. Employment Projections 2025 to 2035 - Monterey County Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 200,969 196,906 (4,063) (0.2%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 53,791 52,067 (1,724) (0.3%) 12.27 34.07 Mining, Quarrying, and Oil and Gas Extraction 21 196 187 (9) (0.5%) 1.16 0.28 Utilities 22 852 797 (55) (0.7%) 0.62 0.73
Construction 23 7,995 7,963 (32) (0.0%) 0.76 0.72
Manufacturing 31 4,637 4,641 4 0.0% 0.34 0.28
Wholesale Trade 42 5,577 5,484 (93) (0.2%) 0.78 0.72
Retail Trade 44 16,566 15,620 (946) (0.6%) 0.93 0.81
Transportation and Warehousing 48 3,857 3,766 (91) (0.2%) 0.40 0.39 Information 51 1,130 1,091 (39) (0.4%) 0.18 0.27
Finance and Insurance 52 2,179 2,156 (23) (0.1%) 0.37 0.25 Real Estate and Rental and Leasing 53 2,099 2,072 (27) (0.1%) 0.60 0.65 Professional, Scientific, and Technical Services 54 5,418 5,504 86 0.2% 0.33 0.37 Management of Companies and Enterprises 55 799 798 (1) (0.0%) 0.25 0.23 Administrative and Support and Waste Management and Remediation Services 56 7,830 7,603 (227) (0.3%) 0.64 0.65 Educational Services 61 16,288 14,744 (1,544) (1.0%) 0.95 0.95 Health Care and Social Assistance 62 25,087 26,610 1,523 0.6% 0.73 0.78 Arts, Entertainment, and Recreation 71 3,413 3,478 65 0.2% 0.72 0.84 Accommodation and Food Services 72 22,800 22,625 (175) (0.1%) 1.21 1.24 Other Services (except Public Administration) 81 5,697 5,658 (39) (0.1%) 0.88 0.92 Public Administration 92 14,706 13,993 (713) (0.5%) 1.47 1.44 Unclassified 99 52 51 (1) (0.2%) 0.05 0.01
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Monterey County

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 34 Economic Base
Table 13-E.Employment Projections 2025 to 2035 -101 Corridor Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 233,766 229,377 (4,389) (0.2%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 47,072 45,662 (1,410) (0.3%) 9.18 25.51 Mining, Quarrying, and Oil and Gas Extraction 21 108 111 3 0.3% 0.52 0.13 Utilities 22 1,588 1,468 (120) (0.8%) 1.03 1.21
Construction 23 12,453 12,356 (97) (0.1%) 1.05 0.99
Manufacturing 31 16,305 16,294 (11) (0.0%) 1.02 0.85
Wholesale Trade 42 7,377 7,197 (180) (0.2%) 0.88 0.81
Retail Trade 44 22,405 20,989 (1,416) (0.7%) 1.09 0.95
Transportation and Warehousing 48 4,319 4,204 (115) (0.3%) 0.38 0.38 Information 51 1,729 1,724 (5) (0.0%) 0.24 0.37
Finance and Insurance 52 2,685 2,628 (57) (0.2%) 0.41 0.28 Real Estate and Rental and Leasing 53 2,282 2,222 (60) (0.3%) 0.57 0.62 Professional, Scientific, and Technical Services 54 8,578 8,763 185 0.2% 0.47 0.52 Management of Companies and Enterprises 55 5,001 4,855 (146) (0.3%) 1.40 1.31 Administrative and Support and Waste Management and Remediation Services 56 10,316 9,923 (393) (0.4%) 0.73 0.74 Educational Services 61 18,858 17,219 (1,639) (0.9%) 0.93 0.93 Health Care and Social Assistance 62 34,415 36,210 1,795 0.5% 0.86 0.92 Arts, Entertainment, and Recreation 71 3,117 3,132 15 0.0% 0.59 0.69 Accommodation and Food Services 72 17,934 17,568 (366) (0.2%) 0.82 0.83 Other Services (except Public Administration) 81 6,312 6,239 (73) (0.1%) 0.84 0.88 Public Administration 92 10,849 10,550 (299) (0.3%) 0.93 0.91 Unclassified 99 63 63 0 0.0% 0.22 0.03
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States. 101 Corridor

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 35 Economic Base
Table 13-F.Employment Projections 2025 to 2035 - Salinas Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 72,342 70,475 (1,867) (0.3%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 21,501 20,801 (700) (0.3%) 13.05 37.75 Mining, Quarrying, and Oil and Gas Extraction 21 0 0 0 0.0% 0.00 0.00 Utilities 22 88 83 (5) (0.6%) 0.22 0.21
Construction 23 1,683 1,675 (8) (0.0%) 0.40 0.42
Manufacturing 31 1,777 1,757 (20) (0.1%) 0.40 0.30
Wholesale Trade 42 2,737 2,691 (46) (0.2%) 1.09 0.98
Retail Trade 44 7,406 6,993 (413) (0.6%) 1.24 1.00
Transportation and Warehousing 48 1,113 1,091 (22) (0.2%) 0.34 0.31 Information 51 677 663 (14) (0.2%) 0.30 0.46
Finance and Insurance 52 881 869 (12) (0.1%) 0.53 0.28
Real Estate and Rental and Leasing 53 394 388 (6) (0.2%) 0.33 0.34 Professional, Scientific, and Technical Services 54 1,297 1,309 12 0.1% 0.23 0.25 Management of Companies and Enterprises 55 385 385 0 0.0% 0.58 0.31 Administrative and Support and Waste Management and Remediation Services 56 3,067 2,932 (135) (0.4%) 0.94 0.71 Educational Services 61 6,022 5,372 (650) (1.1%) 0.93 0.97 Health Care and Social Assistance 62 10,590 10,997 407 0.4% 0.83 0.91 Arts, Entertainment, and Recreation 71 504 512 8 0.2% 0.19 0.35 Accommodation and Food Services 72 4,944 4,896 (48) (0.1%) 0.61 0.74 Other Services (except Public Administration) 81 1,855 1,841 (14) (0.1%) 0.62 0.83 Public Administration 92 5,405 5,204 (201) (0.4%) 1.57 1.47 Unclassified 99 16 16 0 0.0% 0.00 0.00
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Salinas

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 36 Economic Base
Table 13-G. Employment Projections 2025 to 2035 - Morgan Hill Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 19,439 18,793 (646) (0.3%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 68 64 (4) (0.6%) 0.15 0.42 Mining, Quarrying, and Oil and Gas Extraction 21 4 4 0 0.0% 0.22 0.06 Utilities 22 31 28 (3) (1.0%) 0.24 0.27
Construction 23 1,381 1,336 (45) (0.3%) 1.41 1.32
Manufacturing 31 3,442 3,329 (113) (0.3%) 2.56 2.15
Wholesale Trade 42 945 903 (42) (0.5%) 1.35 1.22
Retail Trade 44 2,000 1,838 (162) (0.8%) 1.18 0.98
Transportation and Warehousing 48 281 269 (12) (0.4%) 0.30 0.29 Information 51 152 158 6 0.4% 0.26 0.43
Finance and Insurance 52 278 266 (12) (0.4%) 0.52 0.35
Real Estate and Rental and Leasing 53 249 239 (10) (0.4%) 0.75 0.81 Professional, Scientific, and Technical Services 54 1,155 1,219 64 0.5% 0.77 0.92 Management of Companies and Enterprises 55 1,950 1,886 (64) (0.3%) 6.57 5.95 Administrative and Support and Waste Management and Remediation Services 56 799 756 (43) (0.6%) 0.69 0.68 Educational Services 61 1,032 921 (111) (1.1%) 0.62 0.58 Health Care and Social Assistance 62 1,888 1,945 57 0.3% 0.57 0.66 Arts, Entertainment, and Recreation 71 311 306 (5) (0.2%) 0.72 0.85 Accommodation and Food Services 72 2,170 2,079 (91) (0.4%) 1.19 1.21 Other Services (except Public Administration) 81 675 655 (20) (0.3%) 1.07 1.15 Public Administration 92 624 587 (37) (0.6%) 0.65 0.62
Unclassified 99 4 4 0 0.0% 0.33 0.15
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Morgan Hill

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 37 Economic Base
Table 13-H. Employment Projections 2025 to 2035 - Gonzales Industry NAICS
2025Q2 Jobs
(Est.)
2035Q2 Jobs
(Proj.)
2025 to 2035
Growth
2025 to 2035
CAGR
2024 Location
Quotient (CA)
2024 Location
Quotient (US)
Total - All Industries Total 3,018 2,913 (105) (0.4%) 1.00 1.00 Agriculture, Forestry, Fishing and Hunting 11 1,530 1,479 (51) (0.3%) 22.89 62.38 Mining, Quarrying, and Oil and Gas Extraction 21 1 1 0 0.0% 0.27 0.09 Utilities 22 0 0 0 0.0% 0.00 0.00
Construction 23 57 57 0 0.0% 0.36 0.36
Manufacturing 31 256 264 8 0.3% 1.21 1.10
Wholesale Trade 42 147 144 (3) (0.2%) 1.36 1.25
Retail Trade 44 174 163 (11) (0.7%) 0.64 0.56
Transportation and Warehousing 48 36 35 (1) (0.3%) 0.23 0.25 Information 51 0 0 0 0.0% 0.00 0.00
Finance and Insurance 52 5 5 0 0.0% 0.06 0.04
Real Estate and Rental and Leasing 53 0 0 0 0.0% 0.00 0.00 Professional, Scientific, and Technical Services 54 13 13 0 0.0% 0.05 0.06 Management of Companies and Enterprises 55 0 0 0 0.0% 0.00 0.00 Administrative and Support and Waste Management and Remediation Services 56 7 7 0 0.0% 0.04 0.04 Educational Services 61 373 330 (43) (1.2%) 1.42 1.33
Health Care and Social Assistance 62 118 120 2 0.2% 0.22 0.26 Arts, Entertainment, and Recreation 71 0 0 0 0.0% 0.00 0.00 Accommodation and Food Services 72 189 187 (2) (0.1%) 0.66 0.70 Other Services (except Public Administration) 81 34 34 0 0.0% 0.35 0.38 Public Administration 92 78 75 (3) (0.4%) 0.52 0.51
Unclassified 99 1 1 0 0.0% 0.04 0.25
Source: JobsEQ, baseline data from Quarterly Census of Employment and Wages (QCEW) [1] CAGR = Compounded Annual Growth Rate
[2] Location quotient represents the local employment concentration compared to California. [3] Location quotient represents the local employment concentration compared to the United States.

Gonzales

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 38 Economic Base
Similarly, San Benito County also leans heavily towards agriculture, with food processing, agricultural inputs and services, and downstream chemical products as the largest industry clusters. As with Monterey County, the wage levels for the industry clusters is significantly lower than for Santa Clara County.

For the 101 Corridor as a whole, agricultural inputs and services make up the largest industry cluster, with business services, information technology, and distribution and electronic commerce also very prominent. Similar to the situation in Gilroy, the 101 corridor has a large disparity in wage levels between the agricultural jobs and the tech-driven business services and information technology sectors.

Economic Roles
Identification of Economic Roles
This section identifies the economic roles for industries in Gilroy and the surrounding counties. These roles are defined based on recent employment growth and the employment concentration (location quotient). These roles are described below, and shown in Figures 1 through 8. The economic roles of industries in Gilroy are shown in Figure 1, while the economic roles for industries in Santa Clara County are shown in Figure 2.

Growing Economic Base Industries
Growing economic base industries (positive job growth and high concentration) represent the primary drivers of the county economy. These industries already prominently contribute to the overall economic base because of their aboveaverage concentration. Yet, they also continue to show job growth:
• Growing economic base industries for Gilroy are generally concentrated around construction; beverage and machinery manufacturing; some select administrative, health care, social assistance, and personal services; and food service (ties in with tourism and hospitality).
• Growing economic base industries for Santa Clara County align with Gilroy with specialty construction and machinery manufacturing; and social assistance sectors. Santa Clara County has broader growing base industries with electrical equipment manufacturing; and professional, information, and technical services.
• Monterey County’s growing base industries share specializations with Gilroy in beverage manufacturing; social assistance, and building construction.

Monterey County has additional growing base industries in accommodation, visitor services, and sightseeing transportation.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 39 Economic Base
Figure 1. Economic Roles of Industries -Gilroy, 2014 to 2024 111 Crop Production 236 Construction of Buildings
115 Support Activities for Agriculture and Forestry 238 Specialty Trade Contractors 322 Paper Manufacturing 312 Beverage and Tobacco Product Manufacturing 332 Fabricated Metal Product Manufacturing 333 Machinery Manufacturing 334 Computer and Electronic Product Manufacturing 337 Furniture and Related Product Manufacturing 445 Food and Beverage Retailers 424 Merchant Wholesalers, Nondurable Goods 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 441 Motor Vehicle and Parts Dealers 456 Health and Personal Care Retailers 444 Building Material and Garden Equipment and Supplies Dealers 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 455 General Merchandise Retailers 459 Sporting Goods, Hobby, Music, Book, and Miscellaneous Retailers 551 Management of Companies and Enterprises 484 Truck Transportation 562 Waste Management and Remediation Services 713 Amusement, Gambling, and Recreation Industries 621 Ambulatory Health Care Services 624 Social Assistance
722 Food Services and Drinking Places
811 Repair and Maintenance
812 Personal and Laundry Services
814 Private Households
112 Animal Production and Aquaculture 114 Fishing, Hunting and Trapping 113 Forestry and Logging 213 Support Activities for Mining 211 Oil and Gas Extraction 237 Heavy and Civil Engineering Construction 212 Mining (except Oil and Gas) 316 Leather and Allied Product Manufacturing 221 Utilities 321 Wood Product Manufacturing
311 Food Manufacturing 336 Transportation Equipment Manufacturing 313 Textile Mills 339 Miscellaneous Manufacturing
314 Textile Product Mills 423 Merchant Wholesalers, Durable Goods 315 Apparel Manufacturing 481 Air Transportation
323 Printing and Related Support Activities 485 Transit and Ground Passenger Transportation 324 Petroleum and Coal Products Manufacturing 486 Pipeline Transportation 325 Chemical Manufacturing 487 Scenic and Sightseeing Transportation 326 Plastics and Rubber Products Manufacturing 488 Support Activities for Transportation 327 Nonmetallic Mineral Product Manufacturing 492 Couriers and Messengers 331 Primary Metal Manufacturing 493 Warehousing and Storage 335 Electrical Equipment, Appliance, and Component Manufacturing 518 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
425 Wholesale Trade Agents and Brokers 519 Web Search Portals, Libraries, Archives, and Other Info Svcs. 457 Gasoline Stations and Fuel Dealers 531 Real Estate
482 Rail Transportation 532 Rental and Leasing Services 483 Water Transportation 541 Professional, Scientific, and Technical Services 491 Postal Service 561 Administrative and Support Services 512 Motion Picture and Sound Recording Industries 611 Educational Services 513 Publishing Industries 813 Religious, Grantmaking, Civic, Professional, Similar Orgs. 516 Broadcasting and Content Providers 921 Executive, Legislative, and Other General Government Support 517 Telecommunications 924 Administration of Environmental Quality Programs 521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
524 Insurance Carriers and Related Activities
525 Funds, Trusts, and Other Financial Vehicles
533 Lessors of Nonfinancial Intangible Assets
622 Hospitals
623 Nursing and Residential Care Facilities
711 Performing Arts, Spectator Sports, and Related Industries 712 Museums, Historical Sites, and Similar Institutions 721 Accommodation
922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
925
Administration of Housing Programs, Urban Planning, and Community Development
926 Administration of Economic Programs
927 Space Research and Technology
928 National Security and International Affairs
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 40 Economic Base
Figure 2. Economic Roles of Industries -Santa Clara County, 2014 to 2024 334 Computer and Electronic Product Manufacturing 238 Specialty Trade Contractors 516 Broadcasting and Content Providers 333 Machinery Manufacturing 517 Telecommunications 335 Electrical Equipment, Appliance, and Component Mfg. 533 Lessors of Nonfinancial Intangible Assets 513 Publishing Industries 927 Space Research and Technology 518 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services 519 Web Search Portals, Libraries, Archives, and Other Information Services 541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
622 Hospitals
624 Social Assistance
711 Performing Arts, Spectator Sports, and Related Industries 713 Amusement, Gambling, and Recreation Industries
111 Crop Production 114 Fishing, Hunting and Trapping
112 Animal Production and Aquaculture 115 Support Activities for Agriculture and Forestry 113 Forestry and Logging 221 Utilities
211 Oil and Gas Extraction 236 Construction of Buildings 212 Mining (except Oil and Gas) 237 Heavy and Civil Engineering Construction 213 Support Activities for Mining 313 Textile Mills
311 Food Manufacturing 314 Textile Product Mills
312 Beverage and Tobacco Product Manufacturing 316 Leather and Allied Product Manufacturing 315 Apparel Manufacturing 336 Transportation Equipment Manufacturing 321 Wood Product Manufacturing 455 General Merchandise Retailers 322 Paper Manufacturing 457 Gasoline Stations and Fuel Dealers 323 Printing and Related Support Activities 481 Air Transportation 324 Petroleum and Coal Products Manufacturing 485 Transit and Ground Passenger Transportation 325 Chemical Manufacturing 488 Support Activities for Transportation 326 Plastics and Rubber Products Manufacturing 492 Couriers and Messengers 327 Nonmetallic Mineral Product Manufacturing 493 Warehousing and Storage 331 Primary Metal Manufacturing 523 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 332 Fabricated Metal Product Manufacturing 525 Funds, Trusts, and Other Financial Vehicles 337 Furniture and Related Product Manufacturing 531 Real Estate 339 Miscellaneous Manufacturing 562 Waste Management and Remediation Services 423 Merchant Wholesalers, Durable Goods 611 Educational Services 424 Merchant Wholesalers, Nondurable Goods 621 Ambulatory Health Care Services 425 Wholesale Trade Agents and Brokers 623 Nursing and Residential Care Facilities 441 Motor Vehicle and Parts Dealers 722 Food Services and Drinking Places 444 Building Material and Garden Equipment and Supplies Dealers 812 Personal and Laundry Services 445 Food and Beverage Retailers 813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 921 Executive, Legislative, and Other General Government Support 456 Health and Personal Care Retailers 923 Administration of Human Resource Programs 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 924 Administration of Environmental Quality Programs 459 Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers 925 Administration of Housing Programs, Urban Planning, and Community Development 482 Rail Transportation
483 Water Transportation
484 Truck Transportation
486 Pipeline Transportation
487 Scenic and Sightseeing Transportation
491 Postal Service
512 Motion Picture and Sound Recording Industries
521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
524 Insurance Carriers and Related Activities
532 Rental and Leasing Services
561 Administrative and Support Services
712 Museums, Historical Sites, and Similar Institutions 721 Accommodation
811 Repair and Maintenance
922 Justice, Public Order, and Safety Activities
926 Administration of Economic Programs
928 National Security and International Affairs
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration)

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 41 Economic Base
Figure 3. Economic Roles of Industries -San Benito County, 2014 to 2024 111 Crop Production 112 Animal Production and Aquaculture 312 Beverage and Tobacco Product Manufacturing 115 Support Activities for Agriculture and Forestry 321 Wood Product Manufacturing 212 Mining (except Oil and Gas) 445 Food and Beverage Retailers 236 Construction of Buildings 712 Museums, Historical Sites, and Similar Institutions 238 Specialty Trade Contractors 311 Food Manufacturing
325 Chemical Manufacturing
327 Nonmetallic Mineral Product Manufacturing
331 Primary Metal Manufacturing
333 Machinery Manufacturing
484 Truck Transportation
487 Scenic and Sightseeing Transportation
525 Funds, Trusts, and Other Financial Vehicles
611 Educational Services
624 Social Assistance
813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
113 Forestry and Logging 221 Utilities
114 Fishing, Hunting and Trapping 237 Heavy and Civil Engineering Construction 211 Oil and Gas Extraction 323 Printing and Related Support Activities 213 Support Activities for Mining 336 Transportation Equipment Manufacturing 313 Textile Mills 441 Motor Vehicle and Parts Dealers
314 Textile Product Mills 444 Building Material and Garden Equipment and Supplies Dealers 315 Apparel Manufacturing 455 General Merchandise Retailers 316 Leather and Allied Product Manufacturing 457 Gasoline Stations and Fuel Dealers 322 Paper Manufacturing 459
Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers
324 Petroleum and Coal Products Manufacturing 488 Support Activities for Transportation 326 Plastics and Rubber Products Manufacturing 491 Postal Service 332 Fabricated Metal Product Manufacturing 492 Couriers and Messengers 334 Computer and Electronic Product Manufacturing 493 Warehousing and Storage 335 Electrical Equipment, Appliance, and Component Manufacturing 513 Publishing Industries 337 Furniture and Related Product Manufacturing 518
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
339 Miscellaneous Manufacturing 523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
423 Merchant Wholesalers, Durable Goods 561 Administrative and Support Services 424 Merchant Wholesalers, Nondurable Goods 621 Ambulatory Health Care Services 425 Wholesale Trade Agents and Brokers 622 Hospitals
449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 721 Accommodation 456 Health and Personal Care Retailers 722 Food Services and Drinking Places 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 811 Repair and Maintenance 481 Air Transportation 812 Personal and Laundry Services 482 Rail Transportation 921 Executive, Legislative, and Other General Government Support 483 Water Transportation 922 Justice, Public Order, and Safety Activities 485 Transit and Ground Passenger Transportation 928 National Security and International Affairs 486 Pipeline Transportation
512 Motion Picture and Sound Recording Industries
516 Broadcasting and Content Providers
517 Telecommunications
519 Web Search Portals, Libraries, Archives, and Other Info Svcs. 521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
524 Insurance Carriers and Related Activities
531 Real Estate
532 Rental and Leasing Services
533 Lessors of Nonfinancial Intangible Assets
541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
562 Waste Management and Remediation Services
623 Nursing and Residential Care Facilities
711 Performing Arts, Spectator Sports, and Related Industries 713 Amusement, Gambling, and Recreation Industries
925
Administration of Housing Programs, Urban Planning, and Community Development
926 Administration of Economic Programs
927 Space Research and Technology
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 42 Economic Base
Figure 4. Economic Roles of Industries - Monterey County, 2014 to 2024 111 Crop Production 115 Support Activities for Agriculture and Forestry 114 Fishing, Hunting and Trapping 236 Construction of Buildings 928 National Security and International Affairs 312 Beverage and Tobacco Product Manufacturing 424 Merchant Wholesalers, Nondurable Goods
445 Food and Beverage Retailers
487 Scenic and Sightseeing Transportation
562 Waste Management and Remediation Services
624 Social Assistance
712 Museums, Historical Sites, and Similar Institutions 721 Accommodation
813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
925
Administration of Housing Programs, Urban Planning, and Community Development
112 Animal Production and Aquaculture 211 Oil and Gas Extraction 113 Forestry and Logging 213 Support Activities for Mining 212 Mining (except Oil and Gas) 237 Heavy and Civil Engineering Construction 221 Utilities 238 Specialty Trade Contractors
311 Food Manufacturing 314 Textile Product Mills
313 Textile Mills 321 Wood Product Manufacturing
315 Apparel Manufacturing 332 Fabricated Metal Product Manufacturing 316 Leather and Allied Product Manufacturing 335 Electrical Equipment, Appliance, and Component Manufacturing 322 Paper Manufacturing 444 Building Material and Garden Equipment and Supplies Dealers 323 Printing and Related Support Activities 457 Gasoline Stations and Fuel Dealers 324 Petroleum and Coal Products Manufacturing 485 Transit and Ground Passenger Transportation 325 Chemical Manufacturing 488 Support Activities for Transportation 326 Plastics and Rubber Products Manufacturing 492 Couriers and Messengers 327 Nonmetallic Mineral Product Manufacturing 512 Motion Picture and Sound Recording Industries 331 Primary Metal Manufacturing 518
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related
333 Machinery Manufacturing 519 Web Search Portals, Libraries, Archives, and Other Info Svcs. 334 Computer and Electronic Product Mfg. 524 Insurance Carriers and Related Activities 336 Transportation Equipment Manufacturing 525 Funds, Trusts, and Other Financial Vehicles 337 Furniture and Related Product Manufacturing 531 Real Estate 339 Miscellaneous Manufacturing 532 Rental and Leasing Services 423 Merchant Wholesalers, Durable Goods 561 Administrative and Support Services 425 Wholesale Trade Agents and Brokers 611 Educational Services 441 Motor Vehicle and Parts Dealers 621 Ambulatory Health Care Services 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 622 Hospitals 455 General Merchandise Retailers 623 Nursing and Residential Care Facilities 456 Health and Personal Care Retailers 711 Performing Arts, Spectator Sports, and Related Industries 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 713 Amusement, Gambling, and Recreation Industries 459
Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers 722 Food Services and Drinking Places
481 Air Transportation 811 Repair and Maintenance
482 Rail Transportation 812 Personal and Laundry Services 483 Water Transportation 921 Executive, Legislative, and Other General Government Support 484 Truck Transportation 926 Administration of Economic Programs 486 Pipeline Transportation
491 Postal Service
493 Warehousing and Storage
513 Publishing Industries
516 Broadcasting and Content Providers
517 Telecommunications
521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
533 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
927 Space Research and Technology
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 43 Economic Base
Figure 5. Economic Roles of Industries - 101 Corridor, 2014 to 2024 111 Crop Production 115 Support Activities for Agriculture and Forestry 114 Fishing, Hunting and Trapping 221 Utilities
312 Beverage and Tobacco Product Manufacturing 236 Construction of Buildings 322 Paper Manufacturing 238 Specialty Trade Contractors 334 Computer and Electronic Product Manufacturing 325 Chemical Manufacturing 445 Food and Beverage Retailers 424 Merchant Wholesalers, Nondurable Goods 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 441 Motor Vehicle and Parts Dealers 551 Management of Companies and Enterprises
624 Social Assistance
814 Private Households
922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
112 Animal Production and Aquaculture 212 Mining (except Oil and Gas) 113 Forestry and Logging 237 Heavy and Civil Engineering Construction 211 Oil and Gas Extraction 316 Leather and Allied Product Manufacturing 213 Support Activities for Mining 327 Nonmetallic Mineral Product Manufacturing 311 Food Manufacturing 335 Electrical Equipment, Appliance, and Component Manufacturing 313 Textile Mills 336 Transportation Equipment Manufacturing 314 Textile Product Mills 339 Miscellaneous Manufacturing 315 Apparel Manufacturing 423 Merchant Wholesalers, Durable Goods 321 Wood Product Manufacturing 455 General Merchandise Retailers 323 Printing and Related Support Activities 457 Gasoline Stations and Fuel Dealers 324 Petroleum and Coal Products Manufacturing 481 Air Transportation 326 Plastics and Rubber Products Manufacturing 483 Water Transportation 331 Primary Metal Manufacturing 485 Transit and Ground Passenger Transportation 332 Fabricated Metal Product Manufacturing 486 Pipeline Transportation 333 Machinery Manufacturing 487 Scenic and Sightseeing Transportation 337 Furniture and Related Product Manufacturing 488 Support Activities for Transportation 425 Wholesale Trade Agents and Brokers 492 Couriers and Messengers 444 Building Material and Garden Equipment and Supplies Dealers 493 Warehousing and Storage 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 518 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
456 Health and Personal Care Retailers 519 Web Search Portals, Libraries, Archives, and Other Information Services 459
Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers 523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
482 Rail Transportation 524 Insurance Carriers and Related Activities 484 Truck Transportation 525 Funds, Trusts, and Other Financial Vehicles 491 Postal Service 531 Real Estate
512 Motion Picture and Sound Recording Industries 532 Rental and Leasing Services 513 Publishing Industries 533 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 516 Broadcasting and Content Providers 561 Administrative and Support Services 517 Telecommunications 562 Waste Management and Remediation Services 521 Monetary Authorities-Central Bank 611 Educational Services 522 Credit Intermediation and Related Activities 621 Ambulatory Health Care Services 541 Professional, Scientific, and Technical Services 622 Hospitals 712 Museums, Historical Sites, and Similar Institutions 623 Nursing and Residential Care Facilities 927 Space Research and Technology 711 Performing Arts, Spectator Sports, and Related Industries 713 Amusement, Gambling, and Recreation Industries
721 Accommodation
722 Food Services and Drinking Places
811 Repair and Maintenance
812 Personal and Laundry Services
813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 921 Executive, Legislative, and Other General Government Support 925
Administration of Housing Programs, Urban Planning, and Community Development
926 Administration of Economic Programs
928 National Security and International Affairs
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 44 Economic Base
Figure 6. Economic Roles of Industries - Salinas, 2014 to 2024 114 Fishing, Hunting and Trapping 111 Crop Production
458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 115 Support Activities for Agriculture and Forestry 516 Broadcasting and Content Providers 311 Food Manufacturing 322 Paper Manufacturing
424 Merchant Wholesalers, Nondurable Goods
445 Food and Beverage Retailers
455 General Merchandise Retailers
519 Web Search Portals, Libraries, Archives, and Other Info Svcs. 622 Hospitals
624 Social Assistance
921 Executive, Legislative, and Other General Govt Support 922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
925
Administration of Housing Programs, Urban Planning, and Community Development
112 Animal Production and Aquaculture 236 Construction of Buildings 113 Forestry and Logging 237 Heavy and Civil Engineering Construction 211 Oil and Gas Extraction 238 Specialty Trade Contractors 212 Mining (except Oil and Gas) 312 Beverage and Tobacco Product Manufacturing 213 Support Activities for Mining 314 Textile Product Mills 221 Utilities 315 Apparel Manufacturing
313 Textile Mills 321 Wood Product Manufacturing
316 Leather and Allied Product Manufacturing 323 Printing and Related Support Activities 324 Petroleum and Coal Products Manufacturing 325 Chemical Manufacturing 326 Plastics and Rubber Products Manufacturing 332 Fabricated Metal Product Manufacturing 327 Nonmetallic Mineral Product Manufacturing 333 Machinery Manufacturing 331 Primary Metal Manufacturing 335 Electrical Equipment, Appliance, and Component Manufacturing 334 Computer and Electronic Product Manufacturing 336 Transportation Equipment Manufacturing 425 Wholesale Trade Agents and Brokers 337 Furniture and Related Product Manufacturing 441 Motor Vehicle and Parts Dealers 339 Miscellaneous Manufacturing 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 423 Merchant Wholesalers, Durable Goods 459
Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers 444 Building Material and Garden Equipment and Supplies Dealers 481 Air Transportation 456 Health and Personal Care Retailers 482 Rail Transportation 457 Gasoline Stations and Fuel Dealers 483 Water Transportation 485 Transit and Ground Passenger Transportation 484 Truck Transportation 487 Scenic and Sightseeing Transportation 486 Pipeline Transportation 492 Couriers and Messengers 488 Support Activities for Transportation 512 Motion Picture and Sound Recording Industries 491 Postal Service 518
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
493 Warehousing and Storage 524 Insurance Carriers and Related Activities 513 Publishing Industries 525 Funds, Trusts, and Other Financial Vehicles 517 Telecommunications 532 Rental and Leasing Services
521 Monetary Authorities-Central Bank 551 Management of Companies and Enterprises 522 Credit Intermediation and Related Activities 561 Administrative and Support Services 523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities 562 Waste Management and Remediation Services 531 Real Estate 611 Educational Services
533 Lessors of Nonfinancial Intangible Assets 621 Ambulatory Health Care Services 541 Professional, Scientific, and Technical Services 623 Nursing and Residential Care Facilities 712 Museums, Historical Sites, and Similar Institutions 711 Performing Arts, Spectator Sports, and Related Industries 721 Accommodation 713 Amusement, Gambling, and Recreation Industries 927 Space Research and Technology 722 Food Services and Drinking Places 811 Repair and Maintenance
812 Personal and Laundry Services
813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 926 Administration of Economic Programs
928 National Security and International Affairs
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 45 Economic Base
Figure 7. Economic Roles of Industries - Morgan Hill, 2014 to 2024 111 Crop Production 236 Construction of Buildings
312 Beverage and Tobacco Product Manufacturing 238 Specialty Trade Contractors 321 Wood Product Manufacturing 322 Paper Manufacturing
445 Food and Beverage Retailers 334 Computer and Electronic Product Manufacturing 712 Museums, Historical Sites, and Similar Institutions 335 Electrical Equipment, Appliance, and Component Manufacturing 811 Repair and Maintenance 339 Miscellaneous Manufacturing 927 Space Research and Technology 424 Merchant Wholesalers, Nondurable Goods 441 Motor Vehicle and Parts Dealers
444 Building Material and Garden Equipment and Supplies Dealers 455 General Merchandise Retailers
458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 551 Management of Companies and Enterprises
623 Nursing and Residential Care Facilities
713 Amusement, Gambling, and Recreation Industries
722 Food Services and Drinking Places
812 Personal and Laundry Services
923 Administration of Human Resource Programs
111 Crop Production 114 Fishing, Hunting and Trapping
112 Animal Production and Aquaculture 115 Support Activities for Agriculture and Forestry 113 Forestry and Logging 221 Utilities
211 Oil and Gas Extraction 237 Heavy and Civil Engineering Construction 212 Mining (except Oil and Gas) 314 Textile Product Mills 213 Support Activities for Mining 316 Leather and Allied Product Manufacturing 311 Food Manufacturing 336 Transportation Equipment Manufacturing 315 Apparel Manufacturing 423 Merchant Wholesalers, Durable Goods 321 Wood Product Manufacturing 425 Wholesale Trade Agents and Brokers 323 Printing and Related Support Activities 445 Food and Beverage Retailers 324 Petroleum and Coal Products Manufacturing 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 326 Plastics and Rubber Products Manufacturing 456 Health and Personal Care Retailers 327 Nonmetallic Mineral Product Manufacturing 457 Gasoline Stations and Fuel Dealers 331 Primary Metal Manufacturing 481 Air Transportation
333 Machinery Manufacturing 483 Water Transportation
459 Sporting Goods, Hobby, Music, Book, and Miscellaneous Retailers 484 Truck Transportation 482 Rail Transportation 485 Transit and Ground Passenger Transportation 516 Broadcasting and Content Providers 486 Pipeline Transportation 517 Telecommunications 487 Scenic and Sightseeing Transportation 521 Monetary Authorities-Central Bank 488 Support Activities for Transportation 522 Credit Intermediation and Related Activities 491 Postal Service 524 Insurance Carriers and Related Activities 492 Couriers and Messengers 712 Museums, Historical Sites, and Similar Institutions 493 Warehousing and Storage 512 Motion Picture and Sound Recording Industries
513 Publishing Industries
518
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
519 Web Search Portals, Libraries, Archives, and Other Info Svcs. 523
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
525 Funds, Trusts, and Other Financial Vehicles
531 Real Estate
532 Rental and Leasing Services
533 Lessors of Nonfinancial Intangible Assets
541 Professional, Scientific, and Technical Services
561 Administrative and Support Services
562 Waste Management and Remediation Services
611 Educational Services
621 Ambulatory Health Care Services
622 Hospitals
624 Social Assistance
711 Performing Arts, Spectator Sports, and Related Industries 721 Accommodation
813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 921 Executive, Legislative, and Other General Government Support 922 Justice, Public Order, and Safety Activities
924 Administration of Environmental Quality Programs
925 Administration of Housing Programs, Urban Planning, and Community Development 926 Administration of Economic Programs
928 National Security and International Affairs
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 46 Economic Base
Figure 8. Economic Roles of Industries - Gonzales, 2014 to 2024 111 Crop Production 312 Beverage and Tobacco Product Manufacturing 115 Support Activities for Agriculture and Forestry 424 Merchant Wholesalers, Nondurable Goods 311 Food Manufacturing 457 Gasoline Stations and Fuel Dealers 325 Chemical Manufacturing 611 Educational Services
811 Repair and Maintenance
112 Animal Production and Aquaculture 237 Heavy and Civil Engineering Construction 113 Forestry and Logging 238 Specialty Trade Contractors 114 Fishing, Hunting and Trapping 314 Textile Product Mills 211 Oil and Gas Extraction 322 Paper Manufacturing
212 Mining (except Oil and Gas) 326 Plastics and Rubber Products Manufacturing 213 Support Activities for Mining 332 Fabricated Metal Product Manufacturing 221 Utilities 335 Electrical Equipment, Appliance, and Component Manufacturing 236 Construction of Buildings 339 Miscellaneous Manufacturing 313 Textile Mills 423 Merchant Wholesalers, Durable Goods 315 Apparel Manufacturing 441 Motor Vehicle and Parts Dealers 316 Leather and Allied Product Manufacturing 444 Building Material and Garden Equipment and Supplies Dealers 321 Wood Product Manufacturing 445 Food and Beverage Retailers 323 Printing and Related Support Activities 449 Furniture, Home Furnishings, Electronics, and Appliance Retailers 324 Petroleum and Coal Products Manufacturing 455 General Merchandise Retailers 327 Nonmetallic Mineral Product Manufacturing 456 Health and Personal Care Retailers 331 Primary Metal Manufacturing 459 Sporting Goods, Hobby, Music, Book, and Miscellaneous Retailers 333 Machinery Manufacturing 519 Web Search Portals, Libraries, Archives, and Other Information Services 334 Computer and Electronic Product Manufacturing 525 Funds, Trusts, and Other Financial Vehicles 336 Transportation Equipment Manufacturing 624 Social Assistance 337 Furniture and Related Product Manufacturing 713 Amusement, Gambling, and Recreation Industries 425 Wholesale Trade Agents and Brokers 721 Accommodation 458 Clothing, Clothing Accessories, Shoe, and Jewelry Retailers 722 Food Services and Drinking Places 481 Air Transportation 813 Religious, Grantmaking, Civic, Professional, and Similar Organizations 482 Rail Transportation 921 Executive, Legislative, and Other General Government Support 483 Water Transportation 922 Justice, Public Order, and Safety Activities 484 Truck Transportation 923 Administration of Human Resource Programs 485 Transit and Ground Passenger Transportation 924 Administration of Environmental Quality Programs 486 Pipeline Transportation 925 Administration of Housing Programs, Urban Planning, and Community Development 487 Scenic and Sightseeing Transportation 926 Administration of Economic Programs 488 Support Activities for Transportation 928 National Security and International Affairs 491 Postal Service
492 Couriers and Messengers
493 Warehousing and Storage
512 Motion Picture and Sound Recording Industries
513 Publishing Industries
516 Broadcasting and Content Providers
517 Telecommunications
518 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services 521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
523 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 524 Insurance Carriers and Related Activities
531 Real Estate
532 Rental and Leasing Services
533 Lessors of Nonfinancial Intangible Assets
541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
561 Administrative and Support Services
562 Waste Management and Remediation Services
621 Ambulatory Health Care Services
622 Hospitals
623 Nursing and Residential Care Facilities
711 Performing Arts, Spectator Sports, and Related Industries 712 Museums, Historical Sites, and Similar Institutions 812 Personal and Laundry Services
927 Space Research and Technology
Source: JobsEQ
Declining Economic Base Industries (Negative Job Change, High Concentration) Growing Economic Base Industries (Positive Job Growth, High Concentration) Declining Non-Base Industries Emerging Industries (Positive Growth, Low Concentration

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 47 Economic Base
• San Benito County’s growing base industries share economic role specializations with Gilroy in construction, machinery manufacturing, and social assistance services. Its economic growth and specialization are more focused around agriculture; education; and multiple manufacturing sectors that not as prominent in Gilroy, such as chemical, metal, and mineral product manufacturing.

Declining Base Industries
Declining base industries (negative job change and high concentration) represent economic drivers that continue to show high employment concentration but have also had recent vulnerability with declines in employment. Declining base industries might be considered candidates for business retention activity:
• Declining base industries for Gilroy are largely in agricultural production and support services; paper, metal, and electronic product manufacturing; truck transportation; and amusement/recreational services.
• For Santa Clara County, the declining base industries in common with Gilroy include electronic product manufacturing; Declining base industries in the county also include broadcasting and telecommunications services. • Monterey County’s declining base industries show a common trend with Gilroy in crop production.
• San Benito County’s declining base industries include crop production, which is a shared trait with Gilroy. Other declining base industries in the county include beverage and wood product manufacturing.

Emerging Industries
Emerging industries (positive job growth and low concentration) represent potential future economic drivers for the county economy. While these industries have not yet attained an above-average concentration of jobs, they have shown recent growth:
• Emerging industries in Gilroy include mining support; wood product, leather product, transportation equipment, and miscellaneous manufacturing; various transportation and logistics sectors; information sectors; professional services; various transportation services sectors; and education. • Monterey County’s emerging industries include oil/mining activity; heavy and specialty construction; textile, wood product, metal product, and electrical equipment manufacturing; information and financial services; administrative services; health care; amusement and entertainment; food services; and personal services.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 48 Economic Base
• Emerging industries in San Benito County include utilities; transportation equipment manufacturing; various transportation and logistics sectors; information sectors,
Industry Clusters
Traded Clusters
Traded clusters represent groupings of interrelated industries that bring net wealth into a region. A traded cluster does not depend on population-driven local demand (i.e., retail and local-serving services) because it serves regional, national, and global markets. The traded clusters defined in this section are benchmarks formerly used by the US Cluster Mapping Project, which was a joint venture between the US Economic Development Administration and Harvard Business School.

Benchmark Industry Clusters for Gilroy & Neighboring Counties A review of the standard traded clusters indicates that the existing cluster activity in Gilroy is largely focused on the following clusters:
• Business services
• Hospitality and tourism
• Distribution and electronic commerce
• Information technology and analytical instruments
• Education and knowledge creation
As shown in Tables 14-A through 14-H, the average wage levels differ considerably between the clusters. Business services is Gilroy’s largest industry cluster, accounting for nearly 700 jobs and far exceeding the pre-pandemic levels.

These jobs average over $374,000 in wages per worker. However, the employment concentration is low. The second largest cluster in Gilroy is hospitality and tourism. Thes annual wages for these jobs average $28,600. But, the employment concentration is above average. Information technology is another industry cluster with very high average wage levels above $350,000, while distribution and education have wage levels closer to $100,000.

In 2024, the most prominent traded clusters in Santa Clara County were similar to Gilroy’s, but added several other industry clusters driven by technology-related activity, such as financial services, communications equipment, aerospace vehicles and lighting and electrical equipment that also support wage levels above $375,000 annually. The main difference with Gilroy is its prominence in hospitality and tourism.

For Monterey County, its top industry cluster is agricultural inputs and services by a wide margin. The next largest industry cluster is hospitality and tourism. The average

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 49 Economic Base
annual wage for these industry clusters is around $50,000. In fact, most of the traded industry clusters in Monterey County support wage levels below $100,000 annually. Even for the same industry clusters, Monterey County generally has lower wage levels than in Santa Clara County.

Labor Supply (Surpluses and Shortages)
The labor supply provides on indicator of how the local employed resident population compares to the job base. A net labor surplus would indicate that a community serves a role of providing workers to other communities, while a labor shortage would indicate a net in-commute from other communities. While a labor surplus indicates an existing underutilization of local workers, it also presents potential opportunities for business expansion and attraction, because employers can utilize a more readily available supply of workers. This can also support economic diversification and entrepreneurship. Concurrently, a labor shortage potentially creates demand for housing that matches the income levels that the jobs support.

Gilroy
Using a five-year average (2020 to 2024), Gilroy shows an overall labor surplus of about 11,100 workers, with 28,400 employed residents and 17,200 jobs (Table 15). While this indicates that Gilroy serves as more of a bedroom community, the trend does vary by industry. Gilroy’s most prominent employer is retail trade, and those sectors have a net labor shortage of about 400 workers.

Nearly all other sectors in Gilroy show a net surplus of workers. The largest surpluses are in construction, manufacturing, professional services, and health care/social assistance. This indicates that Gilroy has a resident population that goes to higher paying and higher skilled jobs located outside of the city. It also provides a local labor supply that can help with Gilroy’s economic development efforts.

Comparison Cities
For comparison, the analysis also looked at Morgan Hill and Salinas. Morgan Hill has a smaller employed resident population and a larger job base. So, its labor surplus is just over 3,700 workers. Morgan Hill has its largest labor surplus in professional services, while the community has labor shortages in manufacturing, wholesale trade, and retail trade.

Salinas has an overall labor supply that’s nearly equal between the jobs and local workers. However, there are substantial imbalances by individual sector. By far the largest labor shortage in Salinas is with agriculture, with a net labor shortage of over 8,400 workers. Other sectors with a labor shortage of more than 1,000 workers include health care/social assistance and public administration. Concurrently, Salinas has large labor surpluses in construction, manufacturing, transportation and

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 50 Economic Base
warehousing, professional services, and other services. This indicates that Salinas is primarily a bedroom community as well, but draws a substantial in-commute for agricultural activity.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 51 Economic Base
Table 14-A. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Gilroy Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Business Services 238 214 211 688 450 11.2% 475 26.4% 0.56 $374,959 Hospitality and Tourism 534 604 216 578 44 0.8% (27) (0.9%) 1.38 $28,573 Distribution and Electronic Commerce 249 332 300 321 72 2.6% (11) (0.7%) 0.44 $115,778 Information Technology and Analytical Instruments 317 403 408 269 (48) (1.6%) (134) (7.8%) 1.56 $351,494 Education and Knowledge Creation 85 142 150 200 115 8.9% 58 7.1% 0.36 $98,610 Construction Products and Services 86 143 155 151 65 5.8% 8 1.0% 1.16 $133,295 Food Processing and Manufacturing 365 293 184 112 (253) (11.1%) (181) (17.5%) 0.74 $50,350 Agricultural Inputs and Services 102 109 101 96 (6) (0.6%) (13) (2.6%) 2.13 $34,967 Environmental Services 62 27 29 92 30 4.1% 65 27.7% 5.04 $54,546 Paper and Packaging 156 59 65 68 (87) (7.9%) 9 2.9% 1.78 $48,266 Aerospace Vehicles and Defense 3 25 25 66 63 38.4% 41 21.6% 0.82 $233,190 Furniture 64 45 54 65 1 0.2% 20 7.7% 1.65 $72,562
Marketing, Design, and Publishing 36 35 26 55 19 4.3% 21 9.7% 0.31 $150,544 Transportation and Logistics 252 135 45 52 (200) (14.6%) (83) (17.4%) 0.22 $71,730 Metalworking Technology 45 62 51 51 6 1.2% (11) (3.9%) 0.93 $69,856 Communications Equipment And Services 58 28 32 37 (22) (4.5%) 9 6.0% 0.72 $236,981 Lighting and Electrical Equipment 36 30 28 35 (1) (0.2%) 5 3.4% 0.83 $127,511 Livestock Processing 14 13 15 35 20 9.2% 22 22.4% 0.52 $39,721 Production Technology and Heavy Machinery 30 43 50 34 4 1.4% (9) (4.5%) 0.29 $86,331 Source: JobsEQ and US Cluster Mapping Project
Note: Figures may not sum because of rounding. Page 68 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 52 Economic Base
Table 14-B. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Santa Clara County Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Business Services 107,198 140,226 135,768 188,181 80,983 5.8% 47,955 6.1% 2.47 $375,958 Information Technology and Analytical Instruments 120,490 154,411 157,818 111,753 (8,737) (0.7%) (42,658) (6.3%) 10.47 $414,152 Marketing, Design, and Publishing 26,993 36,445 37,925 46,208 19,215 5.5% 9,762 4.9% 4.23 $522,771 Education and Knowledge Creation 36,913 41,786 39,468 44,760 7,847 1.9% 2,974 1.4% 1.30 $94,007 Distribution and Electronic Commerce 31,435 25,635 23,216 22,854 (8,581) (3.1%) (2,782) (2.3%) 0.50 $191,166 Hospitality and Tourism 15,761 19,091 11,000 17,911 2,150 1.3% (1,180) (1.3%) 0.69 $72,731 Financial Services 11,129 10,917 12,060 10,531 (598) (0.6%) (386) (0.7%) 0.72 $279,411 Communications Equipment And Services 23,204 24,957 25,831 7,528 (15,676) (10.6%) (17,429) (21.3%) 2.37 $340,669 Aerospace Vehicles and Defense 6,521 5,166 5,213 6,696 175 0.3% 1,530 5.3% 1.36 $303,971 Lighting and Electrical Equipment 2,862 4,469 3,437 4,918 2,056 5.6% 449 1.9% 1.90 $135,449 Performing Arts 2,190 2,307 1,900 3,622 1,432 5.2% 1,315 9.4% 1.20 $66,871 Medical Devices 4,201 3,089 2,921 3,427 (774) (2.0%) 338 2.1% 1.69 $174,308 Transportation and Logistics 4,434 4,184 3,172 3,200 (1,234) (3.2%) (984) (5.2%) 0.22 $73,543 Construction Products and Services 3,399 3,635 3,684 3,089 (309) (0.9%) (545) (3.2%) 0.38 $131,324 Food Processing and Manufacturing 2,963 2,885 2,320 2,623 (340) (1.2%) (262) (1.9%) 0.28 $43,207 Production Technology and Heavy Machinery 3,574 3,305 3,543 2,004 (1,570) (5.6%) (1,301) (9.5%) 0.28 $143,390 Metalworking Technology 2,015 2,288 2,083 1,954 (61) (0.3%) (334) (3.1%) 0.58 $68,560 Biopharmaceuticals 1,517 3,103 3,166 1,563 46 0.3% (1,540) (12.8%) 0.62 $142,241 Insurance Services 1,918 1,356 1,369 1,367 (551) (3.3%) 10 0.2% 0.14 $123,068 Agricultural Inputs and Services 957 1,417 1,275 1,239 282 2.6% (178) (2.6%) 0.45 $43,486 Environmental Services 444 549 483 1,131 687 9.8% 581 15.5% 1.00 $58,277 Automotive 655 1,756 1,059 748 93 1.3% (1,008) (15.7%) 0.10 $181,566 Downstream Metal Products 712 704 693 714 2 0.0% 10 0.3% 0.21 $90,618 Source: JobsEQ and US Cluster Mapping Project
Note: Figures may not sum because of rounding. Page 69 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 53 Economic Base
Table 14-C. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - San Benito County Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Agricultural Inputs and Services 31,890 35,241 34,945 37,547 5,657 1.6% 2,306 1.3% 75.62 $47,293 Hospitality and Tourism 8,351 9,785 6,482 9,078 727 0.8% (707) (1.5%) 1.95 $52,629 Distribution and Electronic Commerce 4,600 4,790 4,474 4,987 387 0.8% 197 0.8% 0.61 $93,567 Business Services 4,146 4,761 4,617 3,637 (509) (1.3%) (1,124) (5.2%) 0.27 $99,426 Education and Knowledge Creation 3,448 3,682 3,744 3,636 188 0.5% (46) (0.3%) 0.59 $72,715 Food Processing and Manufacturing 2,482 2,406 1,914 2,260 (222) (0.9%) (146) (1.2%) 1.34 $66,247 Transportation and Logistics 705 622 498 673 (32) (0.5%) 51 1.6% 0.26 $78,102 Marketing, Design, and Publishing 829 600 509 553 (276) (4.0%) (47) (1.6%) 0.28 $59,016 Financial Services 707 608 589 513 (194) (3.2%) (95) (3.3%) 0.20 $195,509 Performing Arts 272 338 218 488 216 6.0% 151 7.7% 0.90 $47,470 Construction Products and Services 644 855 841 464 (180) (3.2%) (391) (11.5%) 0.32 $114,440 Paper and Packaging 430 443 429 423 (7) (0.2%) (21) (1.0%) 1.00 $88,552 Insurance Services 156 396 391 333 177 7.9% (62) (3.4%) 0.18 $102,684 Information Technology and Analytical Instruments 468 388 359 323 (145) (3.6%) (65) (3.6%) 0.17 $90,927 Environmental Services 229 135 133 252 24 1.0% 117 13.3% 1.25 $98,091 Production Technology and Heavy Machinery 174 115 113 146 (29) (1.8%) 30 4.8% 0.11 $91,166 Wood Products 76 173 163 132 56 5.7% (41) (5.3%) 0.27 $56,968 Oil and Gas Production and Transportation 159 140 111 119 (40) (2.9%) (21) (3.2%) 0.16 $221,271 Communications Equipment And Services 280 237 212 103 (177) (9.5%) (134) (15.3%) 0.18 $80,860 Source: JobsEQ and US Cluster Mapping Project
Note: Figures may not sum because of rounding. Page 70 of 645

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 54 Economic Base
Table 14-D. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Monterey County Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Food Processing and Manufacturing 1,034 1,335 1,193 1,140 107 1.0% (194) (3.1%) 7.53 $52,347 Agricultural Inputs and Services 950 1,484 1,355 1,068 117 1.2% (416) (6.4%) 23.88 $59,924 Downstream Chemical Products 439 532 535 600 162 3.2% 68 2.4% 18.91 $83,671 Distribution and Electronic Commerce 356 371 373 322 (34) (1.0%) (49) (2.8%) 0.44 $68,663 Hospitality and Tourism 115 195 176 205 91 6.0% 10 1.0% 0.49 $39,541 Vulcanized and Fired Materials 0 0 0 173 173 0.0% 173 0.0% 6.22 $61,594 Business Services 239 258 192 159 (80) (4.0%) (99) (9.3%) 0.13 $68,198 Production Technology and Heavy Machinery 90 187 194 145 54 4.8% (42) (5.0%) 1.25 $83,190 Wood Products 137 94 64 93 (44) (3.8%) (1) (0.2%) 2.10 $55,388 Construction Products and Services 45 90 48 91 46 7.2% 1 0.3% 0.70 $74,766 Transportation and Logistics 109 81 92 87 (22) (2.2%) 6 1.4% 0.38 $62,862 Financial Services 52 51 46 79 27 4.2% 28 9.1% 0.34 $112,564 Recreational and Small Electric Goods 94 77 62 63 (32) (4.0%) (14) (4.1%) 2.99 $63,763 Livestock Processing 70 81 50 62 (7) (1.1%) (18) (5.1%) 0.94 $42,970 Information Technology and Analytical Instruments 106 77 60 62 (44) (5.2%) (15) (4.3%) 0.36 $73,764 Biopharmaceuticals 0 64 99 58 58 0.0% (6) (2.0%) 1.44 $109,918 Upstream Chemical Products 0 47 45 45 45 0.0% (1) (0.6%) 2.24 $100,508 Aerospace Vehicles and Defense 0 0 0 42 42 0.0% 42 0.0% 0.53 $107,139 Automotive 26 55 29 41 15 4.6% (14) (5.6%) 0.35 $61,747 Source: JobsEQ and US Cluster Mapping Project
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GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 55 Economic Base
Table 14-E. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - 101 Corridor Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Agricultural Inputs and Services 27,409 31,614 30,668 32,550 5,141 2% 936 0.6% 56.17 $47,024 Business Services 6,607 7,452 7,494 10,324 3,717 5% 2,872 6.7% 0.65 $348,640 Information Technology and Analytical Instruments 7,826 9,769 9,343 6,661 -1,165 -2% (3,108) (7.4%) 2.98 $281,144 Distribution and Electronic Commerce 5,282 5,838 5,560 6,050 767 1% 212 0.7% 0.64 $110,835 Food Processing and Manufacturing 3,637 3,583 2,961 2,985 -652 -2% (598) (3.6%) 1.52 $61,376 Hospitality and Tourism 2,649 3,220 1,726 2,984 335 1% (236) (1.5%) 0.55 $51,952 Education and Knowledge Creation 2,535 2,566 2,561 2,646 111 0% 81 0.6% 0.37 $87,024 Construction Products and Services 1,098 1,146 1,147 1,136 38 0% (10) (0.2%) 0.68 $135,360 Marketing, Design, and Publishing 698 847 734 1,078 380 4% 231 4.9% 0.47 $139,979 Downstream Chemical Products 474 571 575 631 158 n/a 60 2.0% 1.54 $83,215 Financial Services 856 772 813 622 -234 -3% (150) (4.2%) 0.20 $185,759 Transportation and Logistics 816 655 509 577 -239 -3% (78) (2.5%) 0.19 $73,203 Lighting and Electrical Equipment 315 633 492 545 230 6% (88) (2.9%) 1.00 $114,420 Biopharmaceuticals 508 983 929 533 25 0% (450) (11.5%) 1.02 $154,013 Paper and Packaging 601 508 498 490 -112 -2% (18) (0.7%) 0.99 $81,837 Production Technology and Heavy Machinery 660 498 521 415 -245 -5% (83) (3.6%) 0.28 $102,154 Insurance Services 239 261 295 309 70 3% 49 3.5% 0.15 $120,241 Communications Equipment And Services 644 520 458 308 -336 -7% (212) (10.0%) 0.46 $183,534 Metalworking Technology 265 335 284 275 10 0% (59) (3.8%) 0.39 $67,818 Environmental Services 215 125 128 261 45 2% 136 15.9% 1.11 $65,163 Performing Arts 188 191 128 253 64 3% 62 5.8% 0.40 $52,908 Wood Products 235 281 234 227 -7 0% (53) (4.1%) 0.39 $56,895 Furniture 349 359 231 222 -127 -4% (137) (9.2%) 0.43 $71,167 Vulcanized and Fired Materials 80 100 84 214 134 10% 114 16.5% 0.59 $65,298 Medical Devices 124 154 145 196 72 5% 42 5.0% 0.46 $180,152 Electric Power Generation and Transmission 127 176 140 148 20 n/a (28) (3.5%) 0.44 $209,350 Upstream Metal Manufacturing 148 198 182 147 -1 0% (50) (5.7%) 0.27 $50,616 Aerospace Vehicles and Defense 63 42 38 134 71 8% 92 26.2% 0.13 $186,136 Recreational and Small Electric Goods 172 140 108 102 -70 -5% (38) (6.1%) 0.38 $85,420 Livestock Processing 87 95 68 102 15 2% 7 1.3% 0.12 $41,723 Source: JobsEQ and US Cluster Mapping Project
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GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 56 Economic Base
Table 14-F. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Salinas Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Agricultural Inputs and Services 10,651 13,883 13,400 16,214 5,563 4.3% 2,331 3.2% 90.56 $45,152 Distribution and Electronic Commerce 2,070 2,241 2,204 2,454 384 1.7% 212 1.8% 0.84 $95,016 Food Processing and Manufacturing 701 965 773 866 165 2.1% (100) (2.2%) 1.43 $73,736 Business Services 774 1,114 1,207 836 62 0.8% (277) (5.6%) 0.17 $119,385 Education and Knowledge Creation 1,099 856 867 785 (314) (3.3%) (71) (1.7%) 0.35 $77,019 Hospitality and Tourism 565 648 398 583 17 0.3% (66) (2.1%) 0.35 $47,597 Paper and Packaging 220 366 343 332 112 4.2% (34) (1.9%) 2.17 $88,514 Marketing, Design, and Publishing 242 328 292 300 58 2.2% (28) (1.8%) 0.42 $47,088 Transportation and Logistics 204 223 208 243 39 1.8% 20 1.8% 0.26 $77,983 Financial Services 193 210 209 154 (38) (2.2%) (56) (6.0%) 0.16 $116,229 Performing Arts 53 82 45 124 71 8.8% 41 8.5% 0.63 $44,156 Wood Products 21 120 109 83 62 14.7% (36) (7.0%) 0.47 $56,873 Construction Products and Services 174 186 172 83 (91) (7.1%) (103) (14.9%) 0.16 $117,897 Insurance Services 40 86 88 77 38 6.9% (8) (2.0%) 0.12 $105,472 Production Technology and Heavy Machinery 42 57 54 58 16 3.3% 1 0.4% 0.12 $89,243 Communications Equipment And Services 145 130 117 54 (91) (9.4%) (76) (16.1%) 0.26 $81,091 Environmental Services 28 17 16 47 19 5.2% 30 22.1% 0.64 $89,272 Metalworking Technology 20 38 27 29 9 3.7% (9) (5.4%) 0.13 $52,640 Information Technology and Analytical Instruments 44 39 37 27 (17) (4.6%) (12) (7.1%) 0.04 $52,424 Source: JobsEQ and US Cluster Mapping Project
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GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 57 Economic Base
Table 14-G. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Morgan Hill Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Business Services 934 1,544 1,616 3,129 2,196 12.9% 1,585 15.2% 2.35 $410,168 Information Technology and Analytical Instruments 1,212 2,020 2,203 1,825 613 4.2% (195) (2.0%) 9.81 $174,549 Distribution and Electronic Commerce 538 664 598 522 (16) (0.3%) (142) (4.7%) 0.66 $115,273 Hospitality and Tourism 215 336 209 287 72 2.9% (49) (3.1%) 0.64 $48,726 Lighting and Electrical Equipment 141 231 199 222 81 4.7% (9) (0.8%) 4.91 $116,855 Education and Knowledge Creation 128 111 110 121 (7) (0.6%) 10 1.8% 0.20 $106,042 Medical Devices 60 83 83 109 49 6.1% 26 5.6% 3.07 $195,747 Food Processing and Manufacturing 180 158 148 103 (77) (5.4%) (55) (8.2%) 0.63 $54,356 Furniture 119 194 66 95 (24) (2.2%) (98) (13.2%) 2.24 $72,301 Upstream Metal Manufacturing 5 148 135 86 80 32.3% (63) (10.4%) 1.86 $40,872 Financial Services 94 109 121 69 (25) (3.1%) (40) (8.7%) 0.27 $232,108 Metalworking Technology 71 90 80 63 (8) (1.1%) (27) (6.8%) 1.08 $60,272 Biopharmaceuticals 77 156 168 63 (14) (1.9%) (93) (16.6%) 1.44 $116,464 Communications Equipment And Services 91 85 82 59 (32) (4.3%) (26) (7.0%) 1.06 $177,903 Production Technology and Heavy Machinery 89 63 78 56 (32) (4.4%) (7) (2.3%) 0.45 $91,478 Marketing, Design, and Publishing 81 37 29 41 (40) (6.5%) 4 2.1% 0.22 $161,598 Construction Products and Services 21 5 21 34 13 5.0% 29 47.7% 0.24 $109,998 Insurance Services 29 26 23 32 3 0.8% 5 3.8% 0.18 $130,900 Downstream Metal Products 17 16 14 31 14 6.1% 14 13.4% 0.53 $100,342 Upstream Chemical Products 104 62 31 26 (78) (13.1%) (36) (16.2%) 1.16 $98,053 Plastics 58 68 48 25 (33) (8.0%) (43) (18.1%) 0.32 $98,527 Source: JobsEQ and US Cluster Mapping Project
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GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 58 Economic Base
Table 14-H. Employment Growth Trends for Top Traded Clusters, 2014 to 2024 - Gonzales Traded Cluster 2014 Jobs 2019 Jobs 2020 Jobs 2024 Jobs
2014 to 2024
Growth
2014 to 2024
CAGR
2019 to 2024
Growth
2019 to 2024
CAGR
2024 Location
Quotient
Wage per
Worker
Agricultural Inputs and Services 1,417 1,566 1,316 1,303 (114) (0.8%) (263) (3.6%) 173.08 $41,380 Food Processing and Manufacturing 182 201 161 183 2 0.1% (18) (1.9%) 7.19 $65,603 Distribution and Electronic Commerce 102 90 130 147 46 3.8% 57 10.3% 1.19 $98,487 Production Technology and Heavy Machinery 20 17 17 21 1 0.4% 4 4.4% 1.08 $99,351 Education and Knowledge Creation 15 19 19 19 4 2.6% 1 0.6% 0.21 $73,514 Construction Products and Services 6 10 12 13 7 8.8% 3 4.5% 0.59 $107,673 Source: JobsEQ and US Cluster Mapping Project
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GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 59 Economic Base
Table 15. Comparison of Employment and Labor Force by Industry Industry Description
NAICS
Code
2020-24 Jobs
(Five-Year Avg.)
[1]
2020-24 Labor
Force (Five-Year
Avg.) [2]
Labor Surplus
(Shortage)
2020-24 Jobs
(Five-Year Avg.)
[1]
2020-24 Labor
Force (Five-Year
Avg.) [2]
Labor Surplus
(Shortage)
2020-24 Jobs
(Five-Year Avg.)
[1]
2020-24 Labor
Force (Five-Year
Avg.) [2]
Labor Surplus
(Shortage)
Total - All Industries Total 17,217 28,363 11,146 18,339 22,067 3,728 69,940 69,941 1 Agriculture, Forestry, Fishing and Hunting 11 186 908 722 71 238 167 21,441 13,003 (8,438) Mining, Quarrying, and Oil and Gas Extraction 21 7 41 34 3 0 (3) 0 0 (0) Utilities 22 60 274 214 29 193 164 82 329 247
Construction 23 1,349 2,994 1,645 1,350 1,868 518 1,470 5,114 3,644 Manufacturing 31 1,211 3,129 1,918 4,187 3,607 (580) 1,864 3,799 1,935 Wholesale Trade 42 575 601 26 1,003 556 (447) 2,675 2,304 (371) Retail Trade 44 3,805 3,400 (405) 1,990 1,574 (416) 7,271 7,363 92 Transportation and Warehousing 48 453 779 326 261 513 252 1,107 2,500 1,393 Information 51 92 350 258 146 822 676 622 696 74
Finance and Insurance 52 135 484 349 303 520 217 899 874 (25) Real Estate and Rental and Leasing 53 154 407 253 240 366 126 381 563 182 Professional, Scientific, and Technical Services 54 431 2,029 1,598 1,213 3,084 1,871 1,241 2,623 1,382 Management of Companies and Enterprises 55 154 40 (114) 788 42 (746) 644 82 (562) Administrative and Support and Waste Management and Remediation Services 56 1,022 1,530 508 804 1,031 227 3,555 4,398 843 Educational Services 61 1,233 2,072 839 949 1,708 759 5,543 5,590 47 Health Care and Social Assistance 62 2,671 4,281 1,610 1,684 2,474 790 9,507 8,409 (1,098) Arts, Entertainment, and Recreation 71 369 413 44 221 364 143 388 769 381 Accommodation and Food Services 72 2,277 2,251 (26) 1,924 1,417 (507) 4,487 5,171 684 Other Services (except Public Administration) 81 707 1,197 490 574 824 250 1,618 3,081 1,463 Public Administration 92 325 1,183 858 599 866 267 5,145 3,273 (1,872) Source: JobsEQ (sourced from Quarterly Census of Employment and Wages) and US Census American Community Survey (2020-24 five-year sample) Note: Figures may not sum because of rounding.
[1] The industry data is annualized, so the totals will differ from the occupational data that is only reported on a quarterly basis. Jobs reflect the location of work. [2] Labor force reflects the location of residence for employed workers.

Gilroy Morgan Hill Salinas

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 60 Economic Base
Taxable Sales Indicators
Gilroy Sales Trends
Taxable sales per capita in Gilroy have been consistently high over the past decade. The largest retail sectors in Gilroy are motor vehicle and parts dealers, general merchandise stores, food service, and clothing and accessories stores (Table 16). Each of these categories generated more than $3,000 in taxable sales per capita in 2024. Compared to the pre-pandemic year of 2019, Gilroy’s retail and food service taxable sales showed an overall decline in 2024. However, due to increased non-retail transactions, Gilroy’s overall taxable sales are virtually unchanged from pre-pandemic levels.

The largest sales declines between 2014 and 2024 occurred in motor vehicle and parts sales, and clothing and apparel stores. The automotive sector has been impacted by supply chain disruptions and cost escalations, resulting in sales volatility and overall reductions in sales across the industry that have not yet fully recovered to pre-pandemic levels. Gilroy’s dealerships generated about $4,300 in taxable sales per capita, which is a significant decline from the $7,000 per capita sales in 2019 and $4,900 in 2014. Gilroy also has significant competition for auto sales from other communities along the 101 corridor.

Clothing and apparel store sales in Gilroy are largely driven by the outlets. The taxable sales per capita were just below $3,200 in 2024, compared to $3,600 in 2019 and $4,800 in 2014. Much of this is driven by direct competition from the San Francisco Premium Outlets in Livermore, which opened in 2012 and are located closer to the population centers in the Bay Area and Central Valley.

General merchandise stores and food services have seen significant sales growth, and now exceed the pre-pandemic sales levels.

Comparative Taxable Sales
Gilroy’s per capita sales are far ahead of neighboring communities and the averages for Santa Clara, San Benito, and Monterey counties (Table 17). Gilroy shows comparative strengths across nearly all major retail categories.

The per capita taxable sales for Gilroy are above the Santa Clara County average for all categories except home furnishings/appliance stores, food service, and miscellaneous retail. Gilroy’s strongest comparative advantage compared to surrounding communities and the three counties are in clothing stores and general merchandise stores. Gilroy also shows comparative strength in motor vehicle sales, while Morgan Hill and Salinas also have high concentrations of sales in this category.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 61 Economic Base
While clothing stores have had sales declines due to competitive conditions with the outlet center, the per capita sales in this category remain well above other communities along Highway 101 and the averages for the three counties.

About 80 percent of Gilroy’s taxable sales come from retail stores and food services. This is below the average for the three counties, but above Morgan Hill and Hollister. Statewide, about 70 percent of taxable transactions come from these sources. The non-retail taxable sales have grown in Gilroy over the past decade and this keeps the per capita sales for Gilroy above neighboring communities along the 101 Corridor.

Gilroy’s overall per capita sales are below Santa Clara County because of the very high non-retail sales averages. Because of the concentration of high revenue technology-focused companies based in Santa Clara County, the taxable transactions that do not have a designated point-of-sale are often assigned to the headquarters location. Growth in non-retail taxable transactions indicates that Gilroy has seen growth with business-to-business activity, and points to economic diversification as another way of increasing sales tax revenues.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 62 Economic Base
Table 16. Taxable Sales Per Capita Growth, 2015 to 2024 Business Category Gilroy (2024) Gilroy (2019) Gilroy (2015) Motor Vehicle and Parts Dealers $4,313 $7,032 $4,885
Home Furnishings and Appliance Stores $631 $951 $891
Building Material and Garden Equipment and Supplies Dealers $1,710 $1,560 $1,467 Food and Beverage Stores $878 $794 $749
Gasoline Stations $2,309 $2,191 $2,127
Clothing and Clothing Accessories Stores $3,164 $3,783 $4,752 General Merchandise Stores $4,290 $3,561 $3,412
Food Services and Drinking Places $3,074 $2,425 $2,199
Other Retail Group $1,645 $1,495 $1,677
Total Retail and Food Services $22,015 $23,792 $22,159
All Other Outlets $5,385 $3,667 $2,903
Total All Outlets $27,400 $27,458 $25,062
Retail Percent of Total Taxable Sales 80.3% 86.6% 88.4% Population 61,033 59,606 55,803
Households 18,402 17,357 15,816
Average Household Size 3.26 3.38 3.47
Source: CDTFA, California Department of Finance, EPS.

Taxable Sales Per Capita (Millions)

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 63 Economic Base
Table 17. Taxable Sales Per Capita Comparison, 2024 - Gilroy & Region Business Category Gilroy Morgan Hill Salinas Hollister
Santa Clara
County
San Benito
County Monterey County
Motor Vehicle and Parts Dealers $4,313 $5,590 $3,839 $1,801 $2,353 $1,367 $2,557 Home Furnishings and Appliance Stores $631 $186 $430 $174 $1,520 $214 $483 Building Material and Garden Equipment and Supplies Dealers $1,710 $1,954 $1,606 $862 $1,167 $663 $1,193 Food and Beverage Stores $878 $984 $1,026 $1,046 $752 $778 $966 Gasoline Stations $2,309 $2,527 $2,230 $1,985 $1,196 $1,375 $1,698 Clothing and Clothing Accessories Stores $3,164 $997 $1,146 $598 $1,583 $569 $1,058 General Merchandise Stores $4,290 $1,327 $1,987 $910 $1,710 $811 $1,628 Food Services and Drinking Places $3,074 $3,222 $2,399 $2,112 $3,458 $1,670 $2,740 Other Retail Group $1,645 $1,073 $917 $652 $4,115 $1,828 $2,072 Total Retail and Food Services $22,015 $17,860 $15,581 $10,139 $17,855 $9,275 $14,395 All Other Outlets $5,385 $3,397 $4,584 $1,695 $12,372 $6,395 $6,831 Total All Outlets $27,400 $21,258 $20,165 $11,834 $30,227 $15,670 $21,226 Retail Percent of Total Taxable Sales 80.3% 84.0% 77.3% 85.7% 59.1% 59.2% 67.8% Population (1/2024) 61,033 46,384 162,037 42,872 1,903,198 65,853 437,614 Households (1/2024) 18,402 15,833 43,870 12,857 672,611 20,963 134,979 Average Household Size (1/2024) 3.26 2.90 3.64 3.31 2.77 3.12 3.10 Source: CDTFA, California Department of Finance, EPS.

Taxable Sales Per Capita (Millions)

Economic & Planning Systems, Inc. 64 Commercial Real Estate Indicators and Site Development Considerations

4. Commercial Real Estate Indicators and Site
Development Considerations
Commercial Real Estate
Commercial real estate indicators provide a snapshot of how the economy manifests itself in the form of building and leasing activity in Gilroy and surrounding areas. With changes that have occurred with the pandemic, space utilization by businesses has reflected and created changes in workforce location patterns and demand for different types of commercial real estate.

Industrial
Throughout California, industrial properties have seen high demand along with low vacancy rates. Much of the industrial building and construction activity has been driven by logistics and distribution/fulfillment related activity. However, Silicon Valley has also been a center for advanced manufacturing growth driven by product demand from data centers. (Figure 9)
Gilroy
Since 2015, Gilroy has seen its industrial square footage expand by nearly 900,000 square feet, with over 600,000 square feet of space added since 2023. For much of the previous decade, the vacancy rate for industrial space has been below 3.0 percent.

However, this vacancy rate went up to 7.1 percent in 2024 and 6.0 percent in 2025. This indicates that the new inventory coming into the market over the last two years has not yet been fully absorbed. In addition, the lease rates have also been trending upward. In 2022, the average rent per square for industrial space in Gilroy was $7.86, and increased to $15.79 in 2025.

Information from commercial brokers indicate that the industrial demand for Gilroy is more focused around logistics types of uses than the types of advanced manufacturing uses that have seen growth in other parts of Santa Clara County north of San Jose.

Figure 10 shows the locations of Gilroy’s existing industrial buildings.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 65 Commercial Real Estate Indicators and Site Development Considerations Figure 9. Existing Conditions - Industrial 10-Year Summary Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
2025 243 7.71M 6.00% $15.79 125 4.89M 10.70% $15.74 493 16.49M 9.10% $6.54 30 1.21M 1.30% - 2024 240 7.48M 7.10% $13.14 125 4.89M 12.00% $16.76 492 16.48M 8.80% $7.41 30 1.21M 1.30% - 2023 238 7.10M 2.00% $11.57 119 4.33M 10.70% $15.05 492 16.48M 1.80% $13.06 30 1.21M - - 2022 238 7.10M 2.40% $7.86 119 4.33M 10.50% $15.01 492 16.48M 1.00% $12.94 30 1.21M - - 2021 236 7.08M 2.70% $8.11 113 3.42M 1.50% $13.05 491 16.47M 1.20% $15.00 30 1.21M - - 2020 235 7.07M 1.40% $8.56 111 3.33M 1.50% $11.49 491 16.47M 1.10% $11.32 30 1.21M 0.40% - 2019 235 7.07M 3.80% $8.93 111 3.33M 1.20% $11.25 491 16.47M 0.40% - 30 1.21M 0.30% $18.00 2018 234 6.87M 2.20% $11.01 111 3.33M 0.80% $14.07 490 16.45M 1.20% $11.97 29 1.07M 0.40% - 2017 233 6.86M 2.30% $11.29 110 3.31M 1.20% $14.72 485 16.23M 1.90% $5.54 28 1.06M 0.70% - 2016 233 6.86M 1.20% $7.99 110 3.31M 0.80% $13.20 484 16.20M 1.50% $7.28 28 1.06M 0.50% - 2015 233 6.86M 5.50% $8.10 110 3.31M 0.60% $11.12 483 16.19M 1.90% $10.92 28 1.06M 0.80% - 10-Year Change 10 849,025 $7.69 15 1,584,652 $4.62 10 299,906 ($4.38) 2 143,900 - Total
Average 3.33% $10.21 4.68% $13.77 2.72% $10.20 0.71% $18.00 Source: CoStar Group; EPS.

Year
City of Gilroy City of Morgan Hill City of Salinas City of Gonzales

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 66 Commercial Real Estate Indicators and Site Development Considerations Figure 10. Industrial Property Locations
Source: CoStar
Morgan Hill
By comparison, Morgan Hill has also seen a recent increase in its industrial inventory, accompanied by a rapid rise in the vacancy rate. Its vacancy rate went from 1.5 percent in 2021 to 10.5 percent in 2022, and has remained above 10 percent since then. The lease rates in Morgan Hill have historically attracted higher average rents than Gilroy, with averages above $11 per square foot over the past decade. However, the current average lease rate of $15.74 is roughly equal to Gilroy.

Salinas
Salinas has the largest industrial inventory along the 101 Corridor south of San Jose with nearly 16.5 million square feet of building space. This inventory has not changed much since 2017. Despite the unchanged inventory, the vacancy rate has gone up significantly, from 1.8 percent in 2023 to 9.1 percent in 2025. Unlike with Gilroy and Morgan Hill, the lease rates in Salinas have gone down since 2023, with the average lease rate of $6.54 per square foot less than half of those other cities.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 67 Commercial Real Estate Indicators and Site Development Considerations Retail
Nationally, retail has seen a substantial rebound from the pandemic, particularly in high value areas. However, the construction activity for retail has been at historic lows, while the lease rates have increased with the lack of new supply coming onto the market. The 101 Corridor has not seen much development activity in retail, while the lease rates saw some increases during the pandemic, with a drop occurring in 2025. (Figure 11)
Gilroy
Gilroy has been a large center for retail activity with 334 retail buildings and 4.56 million square feet of space, with only about 50,000 square feet of space added over the past decade. The vacancy rates prior to the pandemic generally hovered around

5.0 percent, but dropped to 2.1 percent by 2023. The last two years have seen the vacancy rates go above 6.0 percent as some of Gilroy’s retail centers face competitive pressures from other regional players, most notably the newer outlet center in Livermore that directly competes against Gilroy’s longer standing outlet centers. The lease rates in Gilroy peaked in 2023 at $24.53 per square foot, but dropped below $19 per square foot in 2025.

The retail building locations in Gilroy are shown in Figure 12.

Morgan Hill
The retail market in Morgan Hill shows an inventory of 244 buildings with 2.48 million square feet of space. Morgan Hill has seen a net addition of 20 retail buildings and about 130,000 square feet of space over the past decade. Unlike with Gilroy, the vacancy rates in Morgan Hill increased during the pandemic with the vacancy rates going above 6.0 percent, but dropping back down to 5.0 percent in 2025. The lease rates in Morgan Hill have historically been higher than in Gilroy, and that trend remained consistent even as Morgan Hill showed a consistently higher retail vacancy rate.

Salinas
Salinas has an inventory of 753 retail buildings with 9.79 million square feet of space. The vacancy rates in Salinas were historically below 3.0 percent, but have gone above 4.0 percent every year since 2022. The lease rates per square foot have generally been about the same as in Gilroy.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 68 Commercial Real Estate Indicators and Site Development Considerations Figure 11. Existing Conditions - Retail 10-Year Summary Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
2025 334 4.66M 6.20% $18.92 244 2.48M 5.00% $22.99 753 9.79M 6.40% $19.68 45 .22M - $19.80 2024 334 4.66M 7.60% $20.51 242 2.44M 5.20% $27.62 753 9.79M 3.40% $18.69 45 .22M - - 2023 331 4.65M 2.10% $24.53 241 2.43M 5.40% $25.59 752 9.78M 4.30% $18.26 45 .22M - - 2022 329 4.65M 2.10% $21.61 238 2.39M 4.70% $26.76 752 9.78M 4.10% $16.85 45 .22M 1.20% - 2021 329 4.65M 3.10% $16.93 238 2.39M 5.20% $24.09 749 9.78M 2.30% $18.59 45 .22M - - 2020 329 4.65M 3.20% $15.98 237 2.39M 6.10% $26.27 748 9.78M 2.90% $20.74 45 .22M - - 2019 326 4.63M 5.00% $18.64 235 2.38M 3.60% $30.74 747 9.77M 1.90% $17.92 45 .22M - - 2018 326 4.63M 4.30% $17.32 232 2.36M 4.40% $31.17 746 9.77M 0.90% $19.13 45 .22M - - 2017 326 4.63M 4.10% $17.45 225 2.33M 2.60% $29.68 746 9.77M 1.10% $17.79 45 .22M - $12.84 2016 324 4.61M 5.70% $15.36 224 2.33M 4.90% $21.35 743 9.49M 2.00% $21.26 45 .22M - - 2015 324 4.61M 4.70% $15.96 224 2.33M 6.80% $21.90 743 9.49M 2.10% $15.97 45 .22M - - 10-Year Change 10 51,780 $2.96 20 147,700 $1.09 10 298,331 $3.71 - - $6.96 Total
Average 4.37% $18.47 4.90% $26.20 2.85% $18.63 1.20% $16.32 Source: CoStar Group; EPS.

Year
City of Gilroy City of Morgan Hill City of Salinas City of Gonzales

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 69 Commercial Real Estate Indicators and Site Development Considerations Figure 12. Retail Property Locations
Source: CoStar
Office
Central business districts throughout California saw a rapid rise in the vacancy rates for office spaces during the pandemic, and those areas have been slow to recover their utilization and foot traffic as office uses in particular have shifted to remote work. For the communities along the 101 Corridor south of San Jose, the office market has not seen a massive decline in building occupancies or lease rates. At the same time, the office building inventory has been largely static. (Figure 13)
Gilroy
Gilroy has a total inventory of 102 office buildings with a total area of about 670,000 square feet. This has remained unchanged since at least 2015. The vacancy rates went below 2.0 percent in 2020 and stayed below that threshold until 2025 when the vacancy rates increased to 2.5 percent. The lease rates climbed from $20.73 in 2020 to $25.10 in 2025. This indicates a very tight market for office space, with lease rates climbing over the last two years.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 70 Commercial Real Estate Indicators and Site Development Considerations The locations for Gilroy’s office buildings are shown in Figure 14.

Morgan Hill
Morgan Hill’s office inventory consists of 100 buildings with 1.15 million square feet of space. The inventory increased by only 40,000 square feet over the past decade. As with Gilroy, Morgan Hill’s office vacancy rates have generally held below 2.0 percent, except for a brief jump to 4.9 percent in 2024 and recovery to

2.2 percent in 2025. The lease rates in Morgan Hill have historically been higher than in Gilroy. However, over the last two years, Morgan Hill’s lease rates have been more on par with Gilroy.

Salinas
Salinas’ office building inventory has seen a slight increase over the past decade, with a current inventory of 380 buildings and 4.0 million square feet of space.

Salinas’ vacancy rates have been on par with both Morgan Hill and Gilroy since the pandemic. Before the pandemic, Salinas had higher office vacancy rates.

Historically, the lease rates in Salinas have been more similar to Gilroy, but over the last two years has been similar to both Gilroy and Morgan Hill.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 71 Commercial Real Estate Indicators and Site Development Considerations Figure 13. Existing Conditions - Office 10-Year Summary Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
Inventory
(Buildings)
Inventory
(SF)
Vacancy
Rate
Rent
per SF
2025 102 .67M 2.50% $25.10 100 1.15M 3.20% $23.45 380 4.00M 2.30% $23.15 2 7,262 - - 2024 102 .67M 0.90% $22.06 100 1.15M 4.90% $22.64 380 4.00M 1.30% $22.46 2 7,262 - - 2023 102 .67M 1.00% $20.70 100 1.15M 1.90% $28.83 380 4.00M 2.10% $23.25 2 7,262 - - 2022 102 .67M 1.60% $17.87 100 1.15M 1.10% $27.32 379 3.99M 1.90% $21.89 2 7,262 - - 2021 102 .67M 1.80% $15.95 100 1.15M 1.50% $25.97 378 3.97M 1.40% $20.36 2 7,262 - - 2020 102 .67M 1.90% $20.73 99 1.11M 2.00% $21.80 378 3.97M 1.70% $20.30 2 7,262 - - 2019 102 .67M 2.30% $20.95 99 1.11M 0.80% $22.34 376 3.93M 1.60% $20.41 2 7,262 - - 2018 102 .67M 4.20% $17.98 99 1.11M 1.20% $19.71 375 3.93M 3.00% $20.06 2 7,262 - - 2017 102 .67M 5.80% $16.89 99 1.11M 0.90% $21.77 375 3.93M 3.80% $19.58 2 7,262 - - 2016 102 .67M 5.40% $15.84 98 1.11M 1.30% $18.23 375 3.93M 8.30% $17.56 2 7,262 - - 2015 102 .67M 6.60% $16.80 98 1.11M 4.70% $17.41 375 3.93M 10.30% $17.10 2 7,262 - - 10-Year Change - - $8.30 2 44,500 $6.04 5 66,639 $6.05 - - - Total
Average 3.09% $19.17 2.14% $22.68 3.43% $20.56 - -
Source: CoStar Group; EPS.

Year
City of Gilroy City of Morgan Hill City of Salinas City of Gonzales

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 72 Commercial Real Estate Indicators and Site Development Considerations Figure 14. Office Property Locations
Source: CoStar
Development Potential
Industrial Outlook
Based on the projected growth, the industrial sectors will see slow uptake over the next decade. The Gilroy market has seen a significant recent increase in industrial building space that has coincided with an increase in the industrial vacancy rate. The previous industrial real estate trends saw very low vacancy rates that pointed more towards dysfunction in the market dynamics.

While Gilroy is in Santa Clara County, it has not seen the kind of large increase in advanced manufacturing activity that has taken place along the South 880 Corridor market and in other parts of Silicon Valley. This activity has been driven by demand for artificial intelligence (AI) hardware, which has a large concentration in this market. Peripheral markets around the Bay Area serve as more of a supplier role.

The perception is that Gilroy is more of a price-sensitive market for industrial uses, and that the demand for manufacturing spaces has pushed demand for logistics uses further south. Those uses have seen the greatest interest from prospective tenants. Gilroy’s industrial market demand draws from businesses that serve agricultural businesses. Another use category that has seen interest in Gilroy is electronics recycling, which would be another spillover market from locations

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 73 Commercial Real Estate Indicators and Site Development Considerations further north. In most other parts of the state, new industrial construction activity has also largely focused on logistics.

Based on commercial broker interviews, the highest demand for industrial space goes to the areas in Gilroy designated in the zoning code as M2 - General Industrial, because they include the widest range of industrial uses by-right. Those are the main locations of opportunity for new development and filling existing vacancies. According to the brokers, this zoning flexibility carries greater consideration for most prospective tenants than other site characteristics. For example, the allowances for storage yards in the M2 zone make those locations more attractive to tenants from an operational standpoint.

The M1 – Limited Industrial zoning allows many of the same uses as the M2 zone, but does not allow heavy manufacturing, chemical processing, or hazardous materials handling. Other uses, such as food processing, storage yards, feed yards, and electronics/plastics/ceramics manufacturing, are allowed in the M2 zone, but only conditionally allowed in the M1 zone. In addition, the M1 zone allows for professional offices that are excluded from the M2 zone, and adds conditional allowances for day care, medical, and other institutional uses.

For logistics uses in both the M1 and M2 industrial zones, warehousing and wholesale trade are allowed by-right, while distribution is a conditional use.

Fulfillment centers have seen very high demand for industrial space in other parts of the Bay Area, and those types of uses would fall under conditional use approval in Gilroy.

Furthermore, it should be noted that data processing uses are allowed by-right in all of the industrial zones.

The majority of the industrial zoning in Gilroy is on the east side of US 101, and most of the industrial zoning is designated as M2. (Figure 12) The only significant industrially designated area west of US 101 is north of Leavesley Avenue. This area is part of the Murray-Las Animas Avenue Overlay Combining District, which implements additional design review as part of the entitlement process. This overlay district is also part of Gilroy’s Opportunity Zone, which is wholly located on the west side of US 101.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 74 Commercial Real Estate Indicators and Site Development Considerations Figure 15. Gilroy Zoning Map

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 75 Commercial Real Estate Indicators and Site Development Considerations Development Considerations
Since the start of the COVID-19 pandemic, industrial operations have moved rapidly towards increased use of automation and industrial robotics. This has drastically affected warehousing and distribution operations in particular, as increased automation has impacted the types of buildings needed to house a modern advanced warehouse/fulfillment center. According to Link Logistics and other sources, newer more automated warehousing operations now seek a clearheight of at least 40 feet (which is lower than the ceiling height).1 According to the CoStar data for Gilroy’s industrial buildings, none of the available listings show a ceiling height above 36 feet, and over 90 percent of the existing industrial buildings have a ceiling height below 30 feet.

For advanced manufacturing, the general site characteristics have also moved towards taller buildings to accommodate more automated operations. While specific requirements will vary depending on the type of manufacturing occurring at the site, utility infrastructure has increased in importance. Capacity for electrical power, water, sewer, and broadband are all important considerations.

Electrical power capacity in particular has become the primary development constraint in many communities, in part due to the heavy power consumption by data centers. Concurrently, advanced manufacturing activity also present larger electrical power needs.2 Pacific Gas & Electric (PG&E) provides electrical service to Gilroy, and their existing capacity limitations have created uncertainty for tenants looking to locate in Gilroy. While Gilroy has a large-scale Amazon data center going through the entitlement process, the proposed data center includes a separate electrical power substation that would generate power on-site, reducing the load on the power grid.

Based on feedback from broker interviews, the capacity for water, sewer, and broadband service in Gilroy is viewed as sufficient but expensive. This indicates that those infrastructural categories do not present a capacity constraint to development or business activity in Gilroy.

While Gilroy is viewed as a location for more price-sensitive industrial uses, the cost of construction, labor, and land remain high and development will tend to maximize the property for building area. This reduces the land areas that would be set aside for parking, which can potentially constrain those parcels for manufacturing uses that have a higher on-site labor utilization than logistics tenants. In addition, the type of manufacturing that might be viable in Gilroy is not 1 Link Logistics; “Bay Area Industrial Real Estate: AI Manufacturing Hub, Advanced Technology and 880 Corridor Growth”; February 2026.
2 Area Development; “Advanced Manufacturing Isn’t a Buzzword—It’s a Different Location Strategy”; Q1 2026.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 76 Commercial Real Estate Indicators and Site Development Considerations the high value AI components being assembled in Silicon Valley and the South 880 corridor.

One recent trend with build-to-suit industrial buildings in Gilroy is for the ownerdeveloper to build a multi-tenant facility, and lease out the portions of the building space that they do not use for their own business operations.

The largest undeveloped industrial parcel in Gilroy is a 90-acre site at Luchessa Avenue on the east side of US 101. Other available sites in Gilroy that might be used for speculative industrial development are 10 acres or less. The limited supply of vacant land limits the short-term ability to take advantage of future industrial development opportunities.

Workforce supply and training quality also increasingly factor into the site selection process.3It should be noted that Gilroy has a labor surplus in most sectors. Gavilan College also has training initiatives that directly connect to regional training needs.

Retail Outlook
Retail activity in Gilroy has seen some pullback in recent years due to competition in the broader regionally focused retail markets. Gilroy still generates an outsized amount of retail sales per capita. However, its future growth potential with the outlet center remains limited due to newer regional competition, and a portion of the outlet center being sold and subsequently vacated.

The regionally focused retail that captures spending from outside of Gilroy remains on the east side of US 101. The other retail centers outside of the outlets are doing well and have seen high occupancies. The retail centers on the west side of US 101 are more central to Gilroy’s population centers, and have more of a local focus. While downtown also has a retail presence that serves local residents, it has potential to grow alongside future increases in visitor traffic and eventual development of the high-speed rail line through Gilroy.

Interviews with commercial brokers indicate that retail activity has begun trickling back. Potential tenant interest has come from indoor recreational (batting cages, gym uses), dollar stores, and ethnic grocery stores. Gilroy’s potential for new discount retail, outlets, and wholesale retail concepts remains limited.

Additional activity comes through Gilroy’s visitor-serving sectors, which are one of the more prominent industry clusters in the city. However, the perception of Gilroy as a visitor market is that it primarily serves as a “pass through” destination 3 Area Development; “What Companies Need from Modern Manufacturing Sites”; Q1 2026.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 77 Commercial Real Estate Indicators and Site Development Considerations – that is, visits are largely from day trippers or overnight stays for people on their way to a different destination.

Gilroy has attractions that draw visitors from the Bay Area and other nearby regions, such as Gilroy Gardens and special events such as the Garlic Festival. The presence of these attractions creates a concentration of economic activity that Gilroy can build upon. In addition, the 79-acre Gilroy Sports Park provides sports facilities in close proximity to existing hotels, along with a multi-rink ice facility proposed that could also potentially add to the city’s base of visitor amenities.

Expansion of visitor-serving businesses would include a combination of different commercial uses. The outlets have historically served the visitor market, but the visitor attractions in Gilroy are not geographically concentrated into a single part of the city. Most notably, most of Gilroy’s lodging is focused around highway commercial uses, and more amenable to visitors passing through. Downtown has the greatest potential for aggregating visitor-serving uses that would also potentially appeal to local residents, while also serving as a potential central location for destination lodging.

Development Considerations
Gilroy’s regional retail has undergone repositioning in recent years as the outlet center owner, Simon, reprioritizes the development. The former outlet center property at 8555 San Ysidro Road was sold by Simon and split off from the other Gilroy outlet center locations. Its remaining tenants were relocated to other Gilroy outlet center spaces prior to the sale. The shopping center is currently vacant and has seen recent incidences of vandalism and squatters entering the premises. A Columbia clothing outlet had opened a supplemental location at 8555 San Ysidro Road, but it has since closed. No other tenants have leased spaces at the center.

According to the commercial broker handling the center, damage to the property and the lack of site plans provided by the former owner add significant costs to any tenant use looking to locate to the site. In addition, the owner of the site is looking to sell the property. Because of its strategic location along US 101, it represents a key economic development opportunity for the City, whether staying with commercial uses or incorporating mixed-use concepts involving residential development.

Gilroy’s current commercial zoning provides some opportunities for mixed-use development that might also incorporate residential uses for any redevelopment away from single use retail. Both the C1 (Neighborhood Commercial) and C3 (Shopping Center Commercial) zones allow residential development by-right “in conjunction with an existing business.” Any additional units must go through a conditional use process. For the C3 zone, the residential component must be

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 78 Commercial Real Estate Indicators and Site Development Considerations located on a second or third floor; and the site must remain consistent with the “character or quality” of the business uses and provide additional off-street parking.

Otherwise, the C3 zone has broad by-right allowances for most typical retail and commercial uses, along with allowances for health care, education, and other institutional uses.

Office Outlook
The office market in Gilroy has been stagnant over the past decade. With the shift towards services employment that occurred during the pandemic, the market for office space in Gilroy has remained tight. However, the supply of office space has not grown in over a decade.

Development Considerations
Most of the space zoned for professional office is located west of downtown Gilroy. Interviews with commercial brokers indicate that Gilroy has been a strong office market for smaller scale office uses, but the community is not likely to evolve into a destination for larger office-based businesses in the near future.

Moreover, the shift to remote work has created uncertainties for office space in general. While the weaknesses in the office market have largely focused around downtowns in larger cities, shifts to remote work increased demand for housing in outlying suburban areas. Even with this broad trend, Gilroy’s labor force works remotely at a much lower rate than the state and county averages.

The zoning designation for professional offices (PO) is comparatively restrictive, with no allowances for retail/commercial uses and mostly conditional allowances for institutional uses. The C1 and C3 zones allow office uses by-right, so commercially zoned areas would be potentially better suited for mixed-use developments.

Economic & Planning Systems, Inc. 79 Economic Development Context and Next Steps

5. Economic Development Context and Next Steps
City Economic Development Function
Gilroy coordinates economic development activities through the recently formed Economic Development Department (“the Department”). There are currently two City staff members dedicated full-time to economic development – the Economic Development Director and Economic Development Manager. The Department brought economic development functions in-house under the City Administration.

Functions for the Department include business development support, partnerships, incentives, site referrals, and proactive initiatives. The Department also serves as a point of contact for business attraction efforts.

The City formerly funded an independent Economic Development Corporation (GEDC) an independent organization sponsored by the City, Chamber of Commerce, business members, and other partners, that had responsibility for external marketing, business retention, and other functions was disbanded in 2019. The marketing and promotional function of the GEDC has been transferred over to the Gilroy Chamber of Commerce.

The business retention and expansion (BRE) functions are currently under the Department’s responsibilities. There are currently no ongoing proactive business outreach programs.

In addition, the City’s Boards, Commissions, and Committees do not currently have an active appointed or elected body focused on economic development.

For external economic development partnerships, the City provides direct funding to the Chamber of Commerce and Visit Gilroy, and maintains strategic partnerships with other local and regional organizations, such as the Downtown Business Association and Gilroy Gardens.

Visit Gilroy serves as the main tourism promotion organization for the City.

They operate out of the Gilroy Premium Outlets and serve as a California Welcome Center for visitors, providing information about Gilroy as well as other regional destinations. The promotional function for Visit Gilroy has shifted more towards attracting visitors from across the country, rather than regionally under the current leadership.

Gilroy’s economic development partnerships are currently based locally or elsewhere in Santa Clara County. The City does not currently partner with organizations serving Monterey and San Benito counties.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 80 Economic Development Context and Next Steps The City is also interested in further exploring options for downtown improvement initiatives, including a property-based Business Improvement District (PBID) to help fund downtown improvements and provide funding to the Chamber.

In addition to securing grant funds and participating in tax-related programs designed to attract investment, such as opportunity zones, the City also has options to participate in the newer tax increment financing (TIF) options for funding infrastructure improvements that have emerged in California after the elimination of redevelopment in 2011. Tools such as Enhanced Infrastructure Financing Districts (EIFD) and Climate Resiliency Districts (CRD) have seen limited adoption so far, but have been actively discussed in jurisdictions across the state. In order to maximize benefit from TIF, the new district would need participation from the County to share in the property tax allocations dedicated to any funded improvements. Gilroy does not currently have any active TIF districts, and Santa Clara County has not yet set up guidelines for County participation.

Workforce Development
Workforce development provides a connection between the needs of the labor force and the local employment base. Gilroy has partner organizations that train local workers to improve their employable skillsets and serve as a potential career ladder into higher paying jobs. These partnerships also help to make Gilroy a more attractive place to locate by providing the resources needed to increase the number of skilled local workers for specific in-demand occupations. Some of the organizations for workforce development in Gilroy are summarized below.

Gavilan College is a part of the California Community College system and serves as Gilroy’s main institution of higher learning. The college provides pathways to four-year institutions and workforce training for two-year degrees and certificate programs. The campus also does contract education to meet specialized skill development needs, and can serve as a place for training with specific industry needs.

Work2Future is Santa Clara County’s Workforce Development Board, and has a location in Gilroy. Services offered by Work2Future include skills training, career advising, job readiness training, young adult career and educational support, and job placement assistance.

Social Vocational Services provides specialized services to workers with developmental disabilities. They have a location in Gilroy.

WorkConnect is part of Goodwill Silicon Valley, and provides employment postings; assistance with resume writing and interviewing; computer skills training; and connecting employers with potential candidates.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 81 Economic Development Context and Next Steps Opportunity Zone
Gilroy has an Opportunity Zone located on two qualifying Census Tracts directly adjacent to the west side of Highway 101. This program seeks to attract investments in areas with a qualifying income level, by deferring federal capital gains taxes in order to reinvest those funds into Qualifying Opportunity Funds.

The current program is set to expire at the end of 2026.

Starting in 2027, the Opportunity Zone program will be replaced by a different program that will require going through a competitive nomination process for redesignation. Due to limited uptake with the current Opportunity Zone, the City does not intend to pursue redesignation. The nomination process will be coordinated through the Governor’s office, and the 90-day window for nominations will begin on July 1, 2026. Only about 25 percent of eligible Census Tracts can be nominated.

Strategic Plans
Gilroy’s most recent economic development strategic plan was written in 2019, when the GEDC had a lead role with economic development in the city.

Since that time, the COVID-19 pandemic has created a shift in the industry dynamics in Gilroy, with job gains in the service industries and losses in retail and manufacturing. Demand for logistics and data centers have become major driving forces, while Gilroy’s dominant position with retail trade has eroded somewhat. In addition, with the lead economic development role now shifting back to the City, the fundamental delegation of implementation responsibilities has changed.

The policy priorities for Gilroy have centered on staying revenue-positive.

In addition to the local policy context, California recently completed Comprehensive Economic Development Strategies (CEDS) for all 13 economic regions in the state as part of the Jobs First initiative. The completion of the CEDS allows for localities to receive funding from the US Economic Development Administration (EDA) and other federal agencies focusing on programs related to infrastructure, and economic and workforce development.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 82 Economic Development Context and Next Steps Gilroy is part of the Bay Area region’s Jobs First Collaborative (BAJFC). The policy priorities for the Bay Area CEDS include target industries built around structural change and “improved job quality, equity, economic diversification, and climate resilience” in the following sectors:4
• Arts and culture
• Child care and early childhood education
• Construction
• Health care
• Manufacturing
• Sustainable environmental management
Sub sectors where the Bay Area was viewed as having a competitive advantage for job growth focused on technology-driven sectors , including the following:
• Semiconductor and computer manufacturing
• Advanced manufacturing
• Biotechnology
• Transportation electrification
• Battery storage/renewable energy
• Aerospace
• Sustainable agriculture
• Tourism and hospitality
• Artificial intelligence
• Alternative fuel production.

Gilroy has a notable opportunity with agricultural initiatives and has a strong concentration of economic activity in tourism and hospitality.

The strategies identified as “cross-cutting economic foundation strategies” include removing institutional and structural barriers; small business and worker cooperatives; government; and sustaining the BAJFC.
4 California Jobs First; Regional Plan, Part 2: Bay Area Jobs First Regional Collaborative; December 2024.

GILROY PLACE-BASED ECONOMIC DEVELOPMENT STRATEGY DATA UPDATE Economic & Planning Systems, Inc. 83 Economic Development Context and Next Steps Next Steps
This report is intended to serve as a background study that highlights the economic development context for Gilroy, the recent trends and how some of the on-the-ground conditions might affect the potential for economic growth. The next steps in Gilroy’s economic development strategic planning process will move more towards implementation steps and strategic initiatives.

Analyze Opportunities – Gilroy has some specific economic segments that the City can potentially to leverage to create a local advantage. This step would entail looking at and researching specific opportunities related to tourism, agricultural technology, advanced logistics, and entrepreneurship, among others; and seeing how they can tie in with Gilroy’s unique labor and economic base.

Site Concepts – This step will look at potential development concepts that tie in with Gilroy’s market opportunities. The concepts would include a discussion of potential costs, capacity issues, and potential funding approaches.

Stakeholder Engagement – Gilroy does not currently have a standing committee dedicated to economic development or broad economic issues. This step presents an opportunity to form a dedicated committee that would be in place to discuss and make recommendations about the City’s economic development path and business climate. While it can initially serve as a review committee for the strategic planning process as it moves forward, the group can also potentially be designed to remain in place as a permanent City committee.

July 27, 2026 | 5:00 PM Page 1 of 9 City Council
Minutes
City of Gilroy
City Council
Draft Minutes
Monday, July 27, 2026 | 5:00 PM

1. CLOSED SESSION - 5:00 PM

1. Call to Order
The closed session was called to order by Mayor Bozzo at 5:00 PM.

2. Roll Call
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Tom Cline
Council Member Terence Fugazzi
Council Member Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
Absent Council Member Zach Hilton

3. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17 A.11 (4) Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Firefighters
City Negotiators: Matt Morley, City Administrator; LeeAnn McPhillips, Human Resources Director/Risk Manager
Anticipated lssues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805
Assistant City Attorney Jolie Houston announced the closed session item.

Motion
Remain in closed session.

RESULT: Passed
MOVER: None
SECONDER: None
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

2. OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION

July 27, 2026 | 5:00 PM Page 2 of 9 City Council
Minutes
Mayor Bozzo opened public comment at 5:01 P.M.

With no speakers, Mayor Bozzo closed public comment.

3. ADJOURN TO OPEN SESSION
City Council adjourned to open session at 6:00 P.M.

4. REGULAR SESSION - 6:00 PM

1. Call to Order
The meeting was called to order by Mayor Bozzo at 6:01 PM.

2. Roll Call
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Tom Cline
Council Member Terence Fugazzi
Council Member Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
Absent Council Member Zach Hilton

3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.

4. Pledge of Allegiance
Council Member Cline led the Pledge of Allegiance.

5. Invocation
Pastor Malcolm MacPhail with New Hope Community Church led the Invocation.

6. Orders of the Day
Mayor Bozzo announced the removal of Item 8.8 from the Consent Calendar.

7. Employee Introductions
City Administrator Matt Morley introduced Human Resources Director Michael Horta & Utilities Director Derek Cray.

Police Chief Brandon Sanchez introduced Detention Services Officer Jonathan Arroyo, Police Crime Analyst Juliana Tam, and Police Records Technician I Giselle Rodriguez.

Public Works Director John Doughty introduced Engineer I Victor Romo.

July 27, 2026 | 5:00 PM Page 3 of 9 City Council
Minutes
Finance Director Cindy Murphy introduced Accounting Assistant I Julie Mancera.

5. CEREMONIAL ITEMS - Proclamations and Awards

1. Retirement Proclamation for LeeAnn McPhillips
Mayor Bozzo presented LeeAnn McPhillips with her retirement proclamation.

6. PRESENTATIONS TO THE COUNCIL

1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
Mayor Bozzo opened public comment at 6:23 P.M.

Charleene Puder - Shared concerns about information being provided to the community pertaining to the Amazon Data Center.

Georgine Scott-Codiga - Asked how best to have dialogue with City Council about issues within the community.

Susan Bassi - Expressed concerns surrounding recent public records that she submitted to the city and the responses she received.

Ron Kirkish - Acknowledged Sharon Goei for her work as Gilroy's Community Development Director and also acknowledged former city employees for the great work they had done while working for Gilroy.

Armando Benevides - Asked for a new data center ordinance to help establish a framework for future projects.

Diana Bentz - Encouraged residents to come to the upcoming Open Government Commission Meeting on August 13th.

Landon Sepulveda - Spoke opposing the Amazon Data Center.

Annedore Kushner - Spoke opposing the Amazon Data Center.

Dionne Eidson - Spoke opposing the Amazon Data Center.

Michelle Nelson - Spoke opposing the Amazon Data Center.

Connie Rogers - Spoke opposing the Amazon Data Center.

Batman of San Jose - Spoke opposing the Amazon Data Center.

Catwoman - Spoke opposing the Amazon Data Center.

July 27, 2026 | 5:00 PM Page 4 of 9 City Council
Minutes
Britt Smith - Shared information surrounding the Amazon Data Center.

Juliet Twomey - Spoke against the city not choosing to join the lawsuit against ICE.

Jonathan - Spoke opposing the planned ICE Detention Center.

Ariya - Spoke opposing the planned ICE Detention Center.

Kimberly - Spoke opposing the planned ICE Detention Center.

Camilla Jones - Spoke opposing both the Amazon Data Center and the planned ICE Detention Center.

Ethan Bowe - Spoke opposing both the Amazon Data Center and the planned ICE Detention Center.

Dashiell Leeds - Spoke opposing the Amazon Data Center.

With no further speakers, Mayor Bozzo closed public comment.

7. REPORTS OF COUNCIL MEMBERS

1. Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and Community Development Advisory Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit

July 27, 2026 | 5:00 PM Page 5 of 9 City Council
Minutes
Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate)
Council Member Bracco - Expressed that his thoughts are with those affected by the recent shooting that took place in Morgan Hill, CA.

Council Member Fugazzi - No report.

Council Member Marques - Reported on the Santa Clara County Habitat Governing Board's recent meeting.

Council Member Ramirez - Acknowledged the Gilroy Downtown Business Association for how successful Downtown Live has been and its impact on the city.

She also recognized the Gilroy Unified School District and its partnership with the YMCA and Youth Alliance for their Summer Power School Program.

Council Member Cline - Spotlighted the Garlic Festival and thanked everyone who helped make it a successful weekend.

Mayor Bozzo - No report.

8. CONSENT CALENDAR
Mayor Bozzo opened public comment at 7:19 P.M.

Georgine Scott-Codiga - Asked that Item 8.12 be pulled from the consent calendar.

Mary Yates - Asked that Item 8.12 be pulled from the consent calendar.

With no further speakers, Mayor Bozzo closed public comment.

Motion
Approve the consent calendar items 8.1 through 8.7 and 8.9 through 8.12.

RESULT: Passed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

1. Approve the Meeting Minutes of the June 15, 2026 City Council Regular Meeting and the June 29, 2026 City Council Special Meeting

July 27, 2026 | 5:00 PM Page 6 of 9 City Council
Minutes

2. Approval of Amendment to Axon Fleet 3 Agreement to Procure Six Additional In-car Camera Systems and Maintain Patrol Operations During Fleet Replacement

3. Adopt a Resolution Authorizing Recordation of Affordable Housing Covenants on Four City-Owned Parcels

4. Appointment of Harjot Sangha as City Administrator Pro Tempore Pursuant to Gilroy City Charter Section 705

5. Claim of Jaime Perez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

6. Approve the Second Amendment to the 17-Mile Construction Services Inc Contract for Improvements at 641 Old Gilroy Street (Jessup Property), Increasing the Contract Amount by $8,358 for a Total Contract Value of $226,058

7. Acceptance of a $120,766 Grant from the Department of California Highway Patrol Cannabis Tax Fund Grant Program for Driving Under the Influence Enforcement Activities and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2027 Budget Amendment

8. Approval of a Partnership with KABOOM! for the Replacement of the Hanna Playground at Las Animas Veterans Park

9. Adoption of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts

10. Approve the Fourth Amendment to the Agreement with Chrisp Company for On-Call Striping and Pavement Marking Services

11. Reduced Prima Facie Speed Limits on Specific Designated Streets Approaching School Zones to 25 Miles Per Hour

12. Approval of Policy on Public Comment and Meeting Decorum During City Council Meetings

9. BIDS AND PROPOSALS

1. Award a Three-Year Contract to Advanced Integration & Controls (AIC), with the Option to Extend for Two Additional One-Year Periods, for a Total Contract Amount of $450,000 for Water and Wastewater SCADA Controls System Integration and Support Request Services
Utilities Operations Manager Tyson Enzweiler provided a presentation and report.

Mayor Bozzo opened public comment at 7:38 P.M.

July 27, 2026 | 5:00 PM Page 7 of 9 City Council
Minutes
With no speakers, Mayor Bozzo closed public comment.

Motion
Award a three-year contract to Advanced Integration & Controls (AIC) for a total amount not to exceed $450,000 with the option to extend two additional one-year terms for water and wastewater SCADA controls system integration and support request services, authorize the City Administrator to execute the contract and all associated documents, and authorize the City Administrator to execute up to two subsequent one-year contract amendments, subject to review and recommendation by the Utilities Director.

RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

10. INTRODUCTION OF NEW BUSINESS

1. Approval of AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit Memoranda of Understanding and Related Salary Schedules for the Period of July 1, 2026 - June 30, 2029; and the Unrepresented Confidential, Full-Time, Non-Exempt, and Hourly, PartTime/Temporary/Seasonal Employees Salary Schedules for the Same Period.

Interim Human Resources Director and Risk Manager LeeAnn McPhillips provided a presentation and report.

Mayor Bozzo opened public comment at 7:38 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Approve the Memoranda of Understanding with AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit for the period July 1, 2026–June 30, 2029.

RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

July 27, 2026 | 5:00 PM Page 8 of 9 City Council
Minutes
Motion
Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 General Unit.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Dion Bracco
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
Motion
Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 Supervisory Unit.

RESULT: Passed
MOVER: Council Member Carol Marques
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
Motion
Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Confidential, Full-Time, Non-Exempt employees.

RESULT: Passed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
Motion
Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Hourly, Part-Time/Temporary/Seasonal employees.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Carol Marques

July 27, 2026 | 5:00 PM Page 9 of 9 City Council
Minutes
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

11. CITY ADMINISTRATOR'S REPORTS
City Administrator Matt Morley expressed how he is grateful for a successful Garlic Festival weekend and that he was happy to see how well the Police and first responders were received by the community. He also acknowledged staff's efforts towards SB707 compliance and thanked them for their hard work.

12. CITY ATTORNEY'S REPORTS
No report.

13. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 7:43 P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

August 3, 2026 | 5:00 PM Page 1 of 9 City Council
Minutes
City of Gilroy
City Council
Draft Minutes
Monday, August 3, 2026 | 5:00 PM

1. CLOSED SESSION - 5:00 PM

1. Call to Order
The closed session was called to order by Mayor Bozzo at 5:00 PM.

2. Roll Call
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Tom Cline
Council Member Terence Fugazzi
Council Member Zach Hilton
Council Member Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo

3. CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Significant exposure to litigation pursuant to Paragraph (2) of Subdivision (d) of Government Code Section 54956.9 and Gilroy City Code Section 17A.11 Subdivision (3); Two Cases
City Attorney Andy Faber announced the closed session item.

Motion
Remain in closed session.

RESULT: Passed
MOVER: None
SECONDER: None
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None

2. OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION
City Attorney Andy Faber opened public comment at 5:01 P.M.

With no speakers, City Attorney Andy Faber closed public comment.

3. ADJOURN TO OPEN SESSION
City Council adjourned to open session at 6:00 P.M.

August 3, 2026 | 5:00 PM Page 2 of 9 City Council
Minutes

4. REGULAR MEETING - 6:00 PM

1. Call to Order
The meeting was called to order by Mayor Bozzo at 6:00 PM.

2. Roll Call
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Tom Cline
Council Member Terence Fugazzi
Council Member Zach Hilton
Council Member Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo

3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.

4. Pledge of Allegiance
Council Member Bracco led the Pledge of Allegiance.

5. Invocation
Pastor Trevor Van Laar with Gilroy Presbyterian Church led the Invocation.

6. Orders of the Day
Item 10.1 was moved to a future meeting date not yet determined.

7. Employee Introductions
None.

5. CEREMONIAL ITEMS - Proclamations and Awards

1. Screen-Free Week Proclamation
Mayor Bozzo presented the Screen-Free Awareness Week Proclamation to Shaan Chhibber.

6. PRESENTATIONS TO THE COUNCIL

1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
Mayor Bozzo opened public comment at 6:10 P.M.

Greg Felios - Invited the community out to both National Night Out on August 4th and to participate in the upcoming Recreation Assessment.

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Connie Rogers - Spoke opposing the approval of the Amazon Data Center.

Armando Benavides - Requested that Council consider a moratorium for the Amazon Data Center.

Mary Yates - Spoke opposing the approval of the Amazon Data Center.

With no further speakers, Mayor Bozzo closed public comment.

7. REPORTS OF COUNCIL MEMBERS

1. Council Member Bracco – Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee Council Member Marques – Gilroy Sister Cities, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – ABAG, CalTrain Policy Group (alternate), Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Cities Association of Santa Clara County, Gilroy Youth Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA, Santa Clara Housing and Community Development Advisory Committee Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate), Cities Association of Santa Clara County (alternate)

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Council Member Bracco - No report.

Council Member Fugazzi - Reported on Visit Gilroy's work to actively train their AI services and provided facts on some areas in which Gilroy's economy is growing.

Council Member Marques - No report.

Council Member Hilton - Reported from Silicon Valley Clean Energy on their upcoming event held in Sunnyvale on August 31st. He also shared that the board approved two new pilot programs (ELEC 2.0 no rate for customers and the SVC EV rate).

Council Member Ramirez - No report.

Council Member Cline - Recognized Gilroy Gardens for the great work that they do to make it a great place to visit.

Mayor Bozzo - No report.

8. CONSENT CALENDAR
Mayor Bozzo opened public comment at 6:25 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Approve the consent calendar.

RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None
ABSENT: None

1. Approve a Professional Service Agreement with Visit Gilroy/Gilroy Welcome Center for Tourism Business Improvement District management

2. Adopt a Resolution Approving the West Santa Clara Landscape Resiliency Project Project-Specific Analysis and Addendum to the California Vegetation Treatment Program Environmental Impact Report, Adopting CEQA Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program, and Authorizing Filing of a Notice of Determination

3. Approval of City's Response to 2025-26 Civil Grand Jury Final Report "Pothole Damage: Improving Claims Processes within Santa Clara County"

August 3, 2026 | 5:00 PM Page 5 of 9 City Council
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4. Approval of City's Response to 2025-26 Civil Grand Jury Final Report "VTA’s Management and Oversight of BART Silicon Valley Phase II"

9. BIDS AND PROPOSALS

1. Award a Professional Services Agreement to Kimley-Horn for a Not-to-Exceed Amount of $237,117 for the Development of the City of Gilroy Comprehensive Roadway Safety Action Plan, Add the Project to the Capital Improvement Program, and Adopt a Budget Amendment Resolution to Appropriate Grant and Gas Tax Funds to the Project
City Engineer Nisha Patel provided a presentation and report.

Mayor Bozzo opened public comment at 6:43 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Award a Professional Services Agreement to Kimley-Horn for an amount not to exceed $237,117.25 for the development of the City of Gilroy Comprehensive Roadway Safety Action Plan (Project) No. 26-RFP-PW-529, authorize the City Administrator to execute the contract and associated documents, and add the Project to the Fiscal Year 2027 (FY27) Capital Improvement Program (CIP) with Project Number 801180.

RESULT: Passed
MOVER: Council Member Carol Marques
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Dion Bracco, Council Member Terence Fugazzi ABSENT: None
Motion
Adopt a resolution amending the FY26 budget within Gas Tax Fund (205) to appropriate $189,693.80 in FY 2024 SS4A Grant Funds to the Project, along with $47,423.45 in local match from the Gas Tax Fund balance, for a total of $237,117.25.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Zach Hilton
AYES: Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Dion Bracco, Council Member Terence Fugazzi ABSENT: None

August 3, 2026 | 5:00 PM Page 6 of 9 City Council
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10. PUBLIC HEARINGS

1. Public Hearing on Downtown Gilroy Street Banner Policy and Program Guidelines and Fee Schedule Amendment
This item has been moved to a future meeting date not yet determined.

2. Consideration of the Report of Abatement of Weeds and Refuse within the City of Gilroy and Adoption of a Resolution Confirming the Imposition of Assessment Liens against the Land
Fire Marshal Jonathan Crick provided a presentation and report.

Mayor Bozzo opened the public hearing at 6:50 P.M.

With no speakers, Mayor Bozzo closed the public hearing.

Motion
Adopt a resolution allowing the assessment of fees, minus any qualifying objections, as reported by the Santa Clara County Weed Abatement Program.

RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None

3. Adoption of an Urgency Ordinance of the City Council of the City of Gilroy Establishing a Temporary Moratorium on the Issuance of New Tobacco Retailer Permits Citywide Through December 31, 2026
Deputy Director of Community Development Bryce Atkins provided a presentation and report.

Mayor Bozzo opened the public hearing at 7:00 P.M.

With no speakers, Mayor Bozzo closed the public hearing.

Motion
Read the ordinance by title only and waive further reading.

RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council

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Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
Motion
Adopt an Urgency Ordinance of the City Council of the City of Gilroy establishing a temporary moratorium on the issuance of new Tobacco Retailer Permits Citywide through December 31, 2026.

RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Terence Fugazzi
ABSENT: None

11. UNFINISHED BUSINESS

1. Consideration of Tobacco Retailer Permit Prohibited Areas Around YouthOriented Facilities Deputy Director of Community Development Bryce Atkins provided a presentation and report.

Mayor Bozzo opened the public comment at 7:29 P.M.

With no speakers, Mayor Bozzo closed public comment.

Council provided direction to staff to bring back an ordinance, as soon as possible, to implement the updates to Chapter 13 relating to tobacco retailer permit enforcement enhancements without youth-oriented facilities prohibition areas.

Motion
Reconsider Item 10.3 on the agenda.

RESULT: Failed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Terence Fugazzi
AYES: Council Member Dion Bracco, Council Member Terence Fugazzi NAYS: Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
ABSENT: None

12. INTRODUCTION OF NEW BUSINESS

August 3, 2026 | 5:00 PM Page 8 of 9 City Council
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1. Report on GilroyConnect/SeeClickFix: Service Level Agreement Performance Update, Benchmarking Comparison, and Communication Protocols Deputy Director of Community Development Bryce Atkins provided a presentation and report.

Mayor Bozzo opened public comment at 8:09 P.M.

With no speakers, Mayor Bozzo closed public comment.

Report received.

2. Consider Recommended Actions Before Adopting a Zoning Code Amendment to Section 30.41.31 (Specific Provisions – Noise) (FAIR Memo – Hilton) Planning Manager Michael Fossati provided a presentation and report.

Mayor Bozzo opened public comment at 8:49 P.M.

Armando Benavides - Expressed concerns surrounding the noise that will come from the Amazon Data Center.

With no further speakers, Mayor Bozzo closed public comment.

Motion
Create noise standards for restaurant drive-throughs.

RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
Motion
Remove the word "prohibited" from the Zoning Code, Section 30.41.31.

RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None

August 3, 2026 | 5:00 PM Page 9 of 9 City Council
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Motion
Under commercial, industrial, and residential noise impacting the City of Gilroy citywide, the outside use of power tools, yard, landscaping and similar equipment is prohibited, not subject to the L10, between the hours of 10:00 P.M. and 8:00 A.M.

Monday through Friday, and 10:00 P.M. and 9:00 A.M. Saturday and Sunday.

RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Terence Fugazzi
AYES: Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Mayor Greg Bozzo
NAYS: Council Member Dion Bracco and Council Member Kelly Ramirez ABSENT: None

13. CITY ADMINISTRATOR'S REPORTS
No report.

14. CITY ATTORNEY'S REPORTS
No report.

15. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 9:15P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

5.1. City of Gilroy

STAFF REPORT
Agenda Item Title: Award of a Professional Services Agreement to Chandler Asset Management, Inc. to provide Investment Management and Advisory Services effective September 1, 2026 through June 30, 2029, and Authorize the City Manager to Execute the Agreement, with two optional one-year extensions.

Meeting Date: August 17, 2026
From: Matt Morley, City Administrator
Department: Finance
Submitted by: Cindy Murphy, Finance Director
Prepared by: Cindy Murphy, Finance Director
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Staff recommends that the City Council award a Professional Services Agreement with Chandler Asset Management, Inc. for investment management and advisory services in an annual not-to-exceed amount of $130,000, effective September 1, 2026. Staff further recommends authorizing the City Administrator to execute the agreement and any related amendments.

EXECUTIVE SUMMARY
Staff recommends transitioning to the services of a professional investment manager and advisor to enhance the management of the City's investment portfolio, improve administrative efficiency, and optimize investment earnings while maintaining the City's priorities of safety, liquidity, and prudent investment management as per our Investment Policy.

BACKGROUND
The City's cash and investment portfolio has historically been managed internally with

5.1. the assistance of independent municipal advisors, placement agents, and the SymPro treasury and investment management system. While these resources provide analytical, transactional, and reporting support, the City retains primary responsibility for investment management and portfolio oversight.

ANALYSIS
In recent years, the City benefited from a rising interest rate environment, which enhanced returns on its investment portfolio. As interest rates begin to decline, maintaining portfolio performance will require greater diversification across investment strategies and maturities to capture additional yield opportunities. Accordingly, staff recommends transitioning to a more actively managed investment portfolio to help optimize returns while continuing to adhere to the City's investment policy.

Chandler Asset Management, Inc. has been selected as the recommended Investment Manager and Consultant pursuant to Section 4.10 – Cooperative Purchases of the City of Gilroy Purchasing Policy. Under subsection 5 of this section, the City may utilize contracts for goods and services where pricing and terms have been established through a competitive procurement process conducted by another public agency, provided applicable requirements are satisfied.

Staff has determined that the requirements of the City's Cooperative Purchasing Policy have been met and proposes to utilize a cooperative purchasing agreement, commonly referred to as “piggyback contracting,” based on the competitive Request for Proposals (RFP) process recently conducted by the City of Indio. Through that process, Chandler Asset Management, Inc. was selected based on its qualifications, experience, and ability to provide professional investment management services.

Under the proposed agreement, Chandler Asset Management, Inc. will provide comprehensive investment management and advisory services, including cash flow and maturity analysis, credit analysis of investment instruments, preparation of quarterly and annual performance reports, monitoring of compliance with applicable federal and state laws and City policies, and an annual review of the City's Investment Policy. These services will provide the City with additional investment expertise, enhanced portfolio oversight, and ongoing support in managing the City's cash and investment portfolio.

ALTERNATIVES
Council may choose not to award the agreement with Chandler Asset Management, Inc. and continue with the City's current self-managed investment portfolio approach. Staff does not recommend this option, as utilizing professional investment management services provides additional expertise and resources that may improve portfolio management efficiency and enhance investment outcomes.

5.1. FISCAL IMPACT/FUNDING SOURCE
No budget amendment is required. Costs associated with the proposed agreement can be accommodated within existing budgeted appropriations and will be partially offset by the elimination of current contractual and administrative costs related to the City's existing investment management processes.

The proposed agreement with Chandler Asset Management, Inc. includes an annual not-to-exceed amount of $130,000. This cost incorporates services currently provided through separate agreements and resources, including SymPro ($17,275 annually), municipal advisor fees ($11,000 annually), and placement agent fees ($10,000 annually), resulting in estimated annual offsets of approximately $38,275.

In addition to administrative efficiencies, transitioning to professional investment management may provide opportunities to enhance portfolio performance. As of March 31, 2026, the City's investment portfolio reported an effective rate of return of 3.54%.

During the same period, Chandler Asset Management's composite portfolios reported yields to maturity ranging from 3.95% to 4.03%. A difference of approximately 0.40% on a $100 million portfolio equates to an estimated $400,000 in potential annual investment earnings that may not be realized under the City's current investment strategy.

NEXT STEPS
If approved by Council, the agreement will be executed effective September 1, 2026.

Attachments:

1. Chandler Invest Mgmt Advisory Svcs

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AGREEMENT FOR SERVICES
[Professional Services]
This Agreement for Services (the “Agreement”) is entered into as of September 1, 2026 (the “Effective Date”), by and between the City of Gilroy (“CITY”), a municipal corporation duly organized and existing under the laws of the State of California, and Chandler Asset Management, Inc. (“CONTRACTOR”).

ARTICLE 1. TERM OF AGREEMENT
The term of this Agreement shall commence on the Effective Date and continue in effect through June 30, 2029, with an option to extend for two (2) additional one-year terms (“End Date”), unless sooner terminated in accordance with the provisions of Article 8. Should no Effective Date be specified above, then the Effective Date of this Agreement shall be the date this Agreement is executed by the authorized CITY representative. The term of this Agreement may be extended by amendment in accordance with Article 9.A. It is intended that termination of this Agreement be contemporaneous with the final acceptance of all services described in Exhibit B by the Gilroy City Administrator or designee.

ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
Both parties understand and agree that CONTRACTOR, and any person working for or under the direction of CONTRACTOR, is an independent contractor and not an employee, agent, joint venturer, or partner of CITY. Nothing in this Agreement shall be construed as creating an employer-employee relationship between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. CONTRACTOR is not an employee for state or federal tax purposes.

CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’s employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits, or any other employment benefits.

CONTRACTOR retains the right to perform services for others during the term of this Agreement.

ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR shall perform the services (the “Services”) in accordance with Exhibit A (“Specific Provisions”) and as outlined in Exhibit B (“Scope of Services”) within the time periods described in Exhibit C (“Milestone Schedule”) in accordance with the requirements of this Agreement.

B. Method of Performing Services
CONTRACTOR will determine the method, details, and means of performing the above-described Services. CITY has no right to control the manner or determine the method of accomplishing CONTRACTOR’s Services. CONTRACTOR will supply all tools and instrumentalities required to perform the Services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY.

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C. Employment of Workers
CONTRACTOR may, at the CONTRACTOR’s own expense, employ such workers as CONTRACTOR deems necessary to perform the Services required of CONTRACTOR by this Agreement, subject to the limitations on assignment and subcontracting contained in Article 5.E, below. CITY may not control, direct, or supervise CONTRACTOR’s workers in the performance of those Services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these workers and for all State and Federal income tax, unemployment insurance, Social Security, disability insurance, and other applicable withholding.

As an independent contractor, CONTRACTOR shall indemnify, defend, and hold CITY, its officers, officials, representatives, agents, employees, and volunteers harmless, pursuant to Article

5.D from and against any and all third-party claims arising from allegations that an employeeemployer relationship exists between CITY and an employee or subcontractor of CONTRACTOR or of any of its subcontractors.

ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the Services to be performed by CONTRACTOR, CITY shall pay CONTRACTOR the amounts set forth in Exhibit D (“Payment Schedule”). Such compensation shall be without right to any additional compensation of any kind or type whatsoever, including, without limitation, in quantum meruit. CONTRACTOR shall not be compensated for, and CITY shall not be obligated to pay for, any Services performed by CONTRACTOR without prior, written authorization from CITY, that exceed the total compensation amount provided herein. In the event of a conflict between the amount set forth in this Article 4.A and Exhibit D regarding the amount of compensation, this Article 4.A shall prevail. In no event shall the total compensation paid to CONTRACTOR for the complete and satisfactory performance of the Services in accordance with this Agreement exceed $130,000.00 annually.

B. Invoices
CONTRACTOR shall submit invoices for all services rendered. CONTRACTOR shall invoice CITY no more than once every thirty (30) days.

C. Payment
Payment will be due according to the payment schedule set forth in Exhibit D. No payment will be made unless CONTRACTOR has first provided CITY with a written invoice describing the work performed and any approved direct expenses (as provided for in Exhibit A, Section III) incurred during the preceding period. CITY shall have no obligation to pay for any work or direct expenses not invoiced within ninety (90) days of the date such work was performed or such expenses were incurred. Expenses shall not be invoiced until incurred.

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If CITY objects to all or any portion of any invoice, CITY will notify CONTRACTOR of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected prior to resolution of the objection by mutual agreement of both parties hereto.

D. Costs and Expenses Incident to Performance
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of Services for CITY, including, without limitation, all costs of equipment used or provided by CONTRACTOR, all fees, fines, licenses, bonds, or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR’s costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing Services for CITY, except for those expenses constituting approved “direct expenses” referenced in Exhibit A, Section III.

ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Compliance with Laws
CONTRACTOR shall comply with all applicable Federal, State, and local laws and regulations in fulfilling CONTRACTOR’s obligations under this Agreement.

Without limiting the generality of the foregoing, CONTRACTOR shall comply with the provisions of California Labor Code Section 1735, and California Government Code Section 12940, obligating every worker and/or subcontractor under a contract or subcontract to CITY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of any employee, applicant for employment, or any potential subcontractor.

Pursuant to Gilroy City Code Section 1.15, construction, alteration, demolition, repair and maintenance work performed under certain public works contracts is subject to all State laws regarding payment of prevailing wages, including, without limitation, Labor Code Section 1770 et seq. (“State Prevailing Wage Laws”). For construction work that cumulatively exceeds $25,000 and for alteration, demolition, repair and maintenance work that cumulatively exceeds $15,000, CONTRACTOR and its subcontractors must comply with State Prevailing Wage Laws. ☐ ____________(initial) If the box to the left of this sentence is checked and the line beside it initialed by CITY, CONTRACTOR and its subcontractors must comply with State Prevailing Wage Laws and the provisions set forth in Section G of Exhibit A apply.

INDEMNIFICATION: CONTRACTOR acknowledges and agrees that regardless of whether or not the box above is checked and the line initialed, it is ultimately the responsibility of the CONTRACTOR and all subcontractors to determine for themselves whether any Services provided under this Agreement must comply with State Prevailing Wage Laws. To the fullest

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extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless, through counsel approved by CITY (which approval will not be unreasonably withheld), CITY, its officers, officials, representatives, agents, employees, and volunteers, against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities, and expenses, including attorneys’ fees, that arise out of, pertain to, or relate to any determination made by CITY, its officers, officials, representatives, agents, employees, and volunteers, whether explicitly or implicitly through any number of actions or representations, related to any classification that a project constitutes a public works project which must comport with State Prevailing Wage Laws.

B. Professional Standard of Care
CONTRACTOR shall perform all Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the County of Santa Clara and the State of California.

CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR will not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’s review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’s negligent performance of any of the Services furnished under this Agreement.

C. Insurance
CONTRACTOR shall procure and maintain insurance as described in Exhibit E for the duration of this Agreement (and any additional time as may be required in Exhibit E for particular coverage).

D. Indemnification of Liability, Duty to Defend
CONTRACTOR’s indemnification and defense obligations, as provided herein, are in addition to, and are not limited by, the indemnification provision detailed in Article 5.A related to the State Prevailing Wage Laws and the insurance obligations provided in Article 5.C and Exhibit E.

To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless, through counsel approved by CITY (which approval will not be unreasonably withheld), CITY, its officers, officials, representatives, agents, employees, and volunteers, against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities, and expenses, including attorneys’ fees, that arise out of, pertain to, or relate to the performance of the Services or this Agreement, including all claims relating to the failure to pay wages, or the injury or death of any person or damage to any property, however caused, regardless of any negligence of CITY, excepting only such injury or death of any person, damage to any property, or any other loss, damage, or expense caused by the gross negligence or willful misconduct of CITY, its officers, officials, representatives, agents, employees, or volunteers.

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To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless, through counsel approved by CITY (which approval will not be unreasonably withheld), CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including, without limitation, reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’s employees.

Notwithstanding the foregoing, to the extent that this Agreement is a “construction contract” within the meaning of Civil Code Section 2783, then CONTRACTOR’s obligations to defend, indemnify, and hold harmless CITY, its officers, officials, representatives, agents, employees, and volunteers shall not extend to any injury or death of any person, damage to any property, or any other loss, damage, or expense caused by the sole or active negligence or willful misconduct of CITY, its officers, officials, representatives, agents, employees, or volunteers.

Furthermore, to the extent that CONTRACTOR is a “design professional” within the meaning of Civil Code Section 2782.8, CONTRACTOR’s duty to indemnify provided above, including CONTRACTOR’s duty and cost to defend, shall be limited to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONTRACTOR.

E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.

F. State and Federal Taxes
As stated in Article 2, CONTRACTOR is not CITY’s employee. Thus, CONTRACTOR is responsible for paying all required State and Federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that:
 CITY will not withhold FICA (Social Security) from payments to CONTRACTOR;
 CITY will not make State or Federal unemployment insurance contributions on behalf of CONTRACTOR;
 CITY will not withhold State or Federal income tax from payments to CONTRACTOR;
 CITY will not make disability insurance contributions on behalf of CONTRACTOR;
 CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR.

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G. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, CONTRACTOR shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) as the same may be amended from time to time. CONTRACTOR shall also require such compliance of all subcontractors performing work under this Agreement, subject to the limitations on assignment and subcontracting contained in Article 5.E, above. CONTRACTOR shall defend, indemnify and hold harmless, through counsel approved by CITY (which approval will not be unreasonably withheld), CITY, its officers, officials, representatives, agents, employees, or volunteers, against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including, without limitation, reasonable attorneys’ fees, that may arise out of any violations of the Act by CONTRACTOR, its subcontractors, or the officers, employees, agents or representatives of either.

ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY will respond to all reasonable requests of CONTRACTOR and provide access at reasonable times, following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’s duties under this Agreement.

B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment will not release CONTRACTOR from any of CONTRACTOR’s duties or obligations under this Agreement.

ARTICLE 7. TIME OF COMPLETION
A. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

B. Commencement of Services
CONTRACTOR shall commence the Services described in Exhibit B on the date specified in the CITY’s “Notice to Proceed,” issued pursuant to Exhibit A, Section II.A.

C. Contract Time
CONTRACTOR shall diligently complete its Services within the time provided in Exhibit C.

D. Adjustments to Schedule
The term of this Agreement and/or the time periods described in Exhibit C may only be extended by amendment to this Agreement executed by CITY and CONTRACTOR in accordance with Article 9.A.

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ARTICLE 8. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY will have the option of terminating this Agreement by providing written notice of termination in accordance with Article 9.J, within thirty (30) days after receiving such notice of sale.

If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR.

B. Termination by CITY Without Cause
Notwithstanding any other provision of this Agreement, CITY may terminate this Agreement without cause at any time upon giving ten (10) days written notice to CONTRACTOR in accordance with Article 9.J. CONTRACTOR shall immediately stop work upon receipt of such notice except as may be necessary to safeguard and protect a project site, and shall be entitled to compensation per this Agreement for work performed prior to work stoppage.

C. Termination by CITY for Material Breach by CONTRACTOR Should CONTRACTOR breach any provision of this Agreement and such breach be material, CITY may, but is not obligated to, terminate this Agreement by providing written notice to CONTRACTOR in accordance with Article 9.J. For the purposes of this section, material breach of this Agreement includes, but is not limited to the following:

1. CONTRACTOR’s failure to professionally and/or timely perform any of the Services contemplated by this Agreement.

2. CONTRACTOR’s breach of any of its representations, warranties or covenants contained in this Agreement.

Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR’S material breach of this Agreement, then in addition to any other rights and remedies CITY may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete those tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONTRACTOR for the performance of those tasks pursuant to this Agreement.

D. Termination by CONTRACTOR for CITY’s Failure to Make Agreed-Upon Payments
If CITY fails to pay CONTRACTOR all or any part of the compensation set forth in Article 4 of this Agreement by the date due, then if and only if such nonpayment constitutes a material breach under this Agreement, CONTRACTOR may, but is not obligated to, terminate this Agreement if

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such breach is not remedied by CITY within thirty (30) days after written demand for such payment is given by CONTRACTOR to CITY in accordance with Article 9.J.

E. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR will be entitled to payment only for work satisfactorily completed through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amount set forth in Article 4.A of this Agreement for its Services which have been fully, competently and timely rendered by CONTRACTOR. CONTRACTOR shall within ten days of receipt of notice of termination deliver to CITY all work done toward completion of the Services required hereunder in the format of electronically stored files where available (including, without limitation, documents, spreadsheets, video and images, AUTOCAD or other design files, and the like) and shall act in such a manner as to facilitate the assumption of CONTRACTOR’s duties by any new contractor hired by the CITY to complete such Services, including the use of the files required to be delivered hereunder.

ARTICLE 9. GENERAL PROVISIONS
A. Amendment & Modification
No amendment, modification, alteration or change to the terms of this Agreement will be effective unless and until made in a writing signed by both parties hereto.

B. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.

C. Binding on Successors and Assigns
The covenants, terms, conditions and provisions of this Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, and assigns of both parties hereto.

D. Interpretation
The captions and headings of the various articles, sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.

This Agreement contains the contributions of both parties, each of whom has had the opportunity to consult competent counsel, and it is expressly agreed and understood that the rule stated in Civil Code Section 1654, that ambiguities in a contract should be construed against the drafter, shall have no application to the construction of this Agreement.

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E. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no employee, officer, or elected official of the CITY or of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR, and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.

F. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of Services hereunder by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.

No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and are not binding upon CITY.

G. Exhibits Incorporated
All exhibits referred to in this Agreement and attached to it are hereby incorporated by reference.

In the event there is a conflict between the terms in the body of this Agreement and any of the terms of any exhibit to this Agreement, the terms in the body of this Agreement shall control.

H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in State and Federal courts located in Santa Clara County, California.

I. No Third Party Beneficiary
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties will have any claim or right of action hereunder for any cause whatsoever.

J. Notices
Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered by U.S. Mail, registered or certified, return receipt requested, postage prepaid, or by overnight delivery service showing receipt of delivery, or by personal delivery, or by facsimile (fax) or email. Notices or demands shall be addressed as follows:

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CITY: City of Gilroy
Attn: City Administrator
7351 Rosanna Street
Gilroy, CA 95020
Fax: 408-846-0500
With a copy to: City of Gilroy
Attn: Director, Finance Department
7351 Rosanna Street
Gilroy, CA 95020
Fax: 408-846-0500
CONTRACTOR: Chandler Asset Management
Nicole Dragoo, Chief Executive Officer
9255 Towne Centre Drive, Suite 600
San Diego, CA 92121
or to such other address as either party may from time to time specify in writing to the other party in accordance with this paragraph.

Notices shall be deemed to have been given upon the earlier of actual receipt; or the next business day after delivery to an overnight delivery service; or three (3) days after the deposit in the U.S. mail; or the same day notice is faxed or emailed (if faxed or emailed before 5:00 p.m.), and on the next business day (if faxed or emailed after 5:00 p.m.) K. Severability
If any provision of this Agreement, including any exhibit hereto, is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the court is authorized and instructed to modify this Agreement so that the transactions and agreements contemplated herein are consummated as originally intended to the fullest extent possible.

L. Survival Clause
CONTRACTOR’s obligations to defend, indemnify, and hold harmless CITY, and CITY’s rights and remedies, as provided in this Agreement, survive the expiration or any termination of this Agreement, including, without limitation, CONTRACTOR’s obligations under Article 5, and CITY’s rights and remedies under Article 9.B and Exhibit A, Section IV.B.

M. Waiver
Waiver by CITY of any breach, violation of, or failure to perform any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, by CONTRACTOR, or any CITY delay in enforcement of the same, will not be deemed to be a waiver of any other

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term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law, by CONTRACTOR.

N. Counterparts; Electronic Signatures
This Agreement may be executed in counterparts, each of which shall be deemed an original. This Agreement and any other documents to be delivered in connection herewith may be electronically signed. Any digital or electronic signatures (including pdf, facsimile or electronically imaged signatures provided by DocuSign or any other digital signature provider) appearing on this Agreement or such other documents shall have the same force and effect as handwritten signatures for the purposes of validity, enforceability and admissibility.

Executed at Gilroy, California, on the date and year written below.

CONTRACTOR: CITY:

Chandler Asset Management, Inc. CITY OF GILROY
By: By:

Name: Nicole Dragoo Name: Matt Morley
Title: Chief Executive Officer Title: City Administrator Social Security or Taxpayer Date: August , 2026
Identification Number 33-0570869
Approved as to Form ATTEST:

City Attorney City Clerk