HomeMy WebLinkAboutOrdinance No. 2026-05 | Chapter 5D Vacant Commercial Space in Downtown Gilroy | Adopted 07/27/2026ORDINANCE NO. 2026-05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY REPEALING AND REPLACING GILROY
CITY CODE CHAPTER 5D, VACANT COMMERCIAL
SPACE IN THE DOWNTOWN HISTORIC AND
DOWNTOWN EXPANSION DISTRICTS
WHEREAS, pursuant to California Constitution Article XI, Section 7, and the City
Charter, Section 600, the City Council has the authority to enact ordinances which promote the
public health, safety, and general welfare of its residents; and
WHEREAS, the City Council adopted Ordinance No. 2012-02 on February 6, 2012,
creating Chapter 5D entitled “Vacant Commercial Space in the Downtown Historic and
Downtown Expansion Districts”, for the purpose of reducing the adverse effects of vacant
commercial buildings in the Downtown Historic and Expansion Districts, by requiring ground
floor windows to be maintained with interesting and/or artistic visual displays, registration of
vacant commercial spaces, and monitoring for substandard and/or unkempt commercial
buildings and the appearance of long-term vacancies in commercial buildings; and City Code,
Chapter 5D, pertaining to downtown vacancies; and
WHEREAS, Chapter 5D contained a sunsetting provision (Section 5D.13) whereby the
entire chapter was to terminate and be of no further force and effect upon the termination date of
the Seismic Safety Ordinance (Ordinance No. 2011-07); and
WHEREAS, the Seismic Safety Ordinance’s final extension period, effectuated by
Resolution No. 2015-56, ended on December 16, 2016, at which time Chapter 5D’s sunset
provision took effect, and the requirements and enforcement provisions to address vacant
commercial spaces in the downtown districts expired; and
WHEREAS, In 2023, the City Council of the City of Gilroy created the Downtown Ad
Hoc Committee to review identified issues to be addressed in the downtown districts. Two of
these issues were vacant commercial buildings and the use of plywood in the downtown districts;
and
WHEREAS, the Downtown Ad Hoc Committee issued recommendations to the Gilroy
City Council to re-activate Chapter 5D of the Gilroy City Code and modifications to the same to
enhance its effectiveness at addressing the above-mentioned issues; and
WHEREAS, commercial buildings that remain vacant for extended periods may
adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and
contribute to blighted conditions that negatively impact the community; and
WHEREAS, the City Council desires to strengthen the City’s vacant commercial space
regulations by requiring a building report card for registered vacant commercial spaces,
prohibiting unfinished window and facade coverings, regulating temporary plywood
installations, updating registration fees and fines, expanding collection remedies, and removing
the sunset provision; and
WHEREAS, the City Council finds that these amendments will further the public health,
safety, and welfare by promoting the maintenance, appearance, and accountability of vacant
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Chapter 5D Ordinance
City Council Regular Meeting | July 27, 2026
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commercial spaces in the downtown area.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 5D of the Gilroy City Code is hereby repealed and replaced to read as follows:
CHAPTER 5D
VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND
DOWNTOWN EXPANSION DISTRICTS
5D.1 Purpose.
Commercial buildings that are vacant for an extended period of time may adversely affect
surrounding businesses, detract from the appearance of a vibrant downtown, and may contribute
to blighted conditions that negatively impact the entire community. The purpose of this chapter
is to minimize these adverse effects by preserving and improving the appearance of downtown
Gilroy by requiring ground-floor windows of vacant commercial buildings in the Downtown
Historic and Downtown Expansion Districts to be aesthetically pleasing when viewed from the
street and sidewalk.
5D.2 Scope.
The provisions of this chapter shall apply to all structures in the Downtown Historic District and
the Downtown Expansion District, unless otherwise stated, including, but not limited to,
properties that have been the subject of a foreclosure sale wherein title has been transferred to the
beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under
a deed in lieu of foreclosure or sale. All responsible persons shall comply with the requirements
of this chapter.
5D.3 Administration.
This chapter will be administered by, and may be enforced by, the community development
director or his or her designee, who may adopt administrative rules and regulations consistent
with its terms.
5D.4 Definitions.
For the purposes of this chapter:
“City” means the City of Gilroy.
“Commercial space” means any portion of a structure in the Downtown Historic District or
Downtown Expansion District that is not intended for residential use.
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“Downtown Historic District” and “Downtown Expansion District” mean the respective zoning
districts of the city, as defined in the Gilroy Zoning Ordinance.
“Occupied”. A commercial space is deemed to be “occupied” when a permitted, nonresidential
tenant or user resides in or is physically located in, and is lawfully and actively operating in, the
space for at least thirty (30) days and meets the proof of physical occupancy criteria as set forth
in Section 5D.6(g).
“Responsible person” means any person, firm, association, corporation, business entity, trustee,
or receiver, or agent thereof, which owns, leases, rents or has lawful possession of a structure in
the Downtown Historic District or in the Downtown Expansion District.
“Vacant commercial space” means any portion of a street-level commercial space that is not
occupied and has not been occupied for a period of ninety (90) consecutive days at the time the
ordinance codified in this chapter becomes effective or any time ther eafter.
5D.5 General minimum maintenance requirements.
Responsible persons shall at all times maintain all structures they own, lease, rent or lawfully
possess in the Downtown Historic District and Downtown Expansion District pursuant to the
Gilroy City Code, the Gilroy Zoning Ordinance and the current construction codes contained in
Chapter 6, as amended by the city council.
5D.6 Vacant commercial space registration.
(a) At least one (1) responsible person for each vacant commercial space must register that space
with the city in accordance with this chapter within ten (10) consecutive days of the date the
space becomes vacant commercial space.
(b) In order to register a vacant commercial space, as required by this chapter, a responsible
person must submit to the community development director, or his or her designee, all of the
following information in writing:
(1) The street address and assessor’s parcel number of the vacant commercial space;
(2) The name, address, and daytime and evening telephone numbers of each responsible
person for the vacant commercial space, including any owner or tenant;
(3) The period of time the vacant commercial space is estimated to remain vacant; and
(4) Any other information requested by the community development director or his or her
designee for the administration of this chapter.
(c) The registration of a vacant commercial space subject to this chapter must be renewed
annually no later than January 1st of each year that the space was vacant.
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(d) The registration of a vacant commercial space subject to this chapter must be renewed within
ninety (90) consecutive days of its change of ownership.
(e) Initial and renewal registrations must be submitted on forms to be provided by the
community development director, which forms shall be filled out completely and signed by at
least one (1) responsible person.
(f) Building Report Card. Upon completion of registration, the department shall produce a sign
no less than eighteen inches by twenty-four inches (18" x 24") posted on the front of the exterior
building or structure so it is legible from the public-right-of-way with the following information:
(i) name, address, and twenty-four-hour contact telephone number of the owner, responsible
party, or property management company; and (ii) the statement "THIS PROPERTY MANAGED
BY" with the appropriate name inserted and "TO REPORT PROBLEMS OR CONCERNS
CALL" with the twenty-four hour telephone number listed. The sign shall also identify the date
the structure became vacant and identify any building or city code compliance violations
requiring correction.
(g) Upon satisfactory proof to the community development director, or his or her designee, that a
vacant commercial space is and has been occupied for at least thirty (30) consecutive days, the
vacant commercial space will be unregistered. Proof of physical occupation may include, but is
not limited to, proof of the presence of usable furniture, office equipment, retail inventory or
other equipment and inventory in the street-level commercial space that is consistent with the
structure’s intended use, and the regular presence of persons using the street-level commercial
space for its intended use. Proof of physical occupancy must also include documentation of
occupancy, which may include, but is not limited to, an executed lease agreement, or valid state
and local business licenses indicating the subject space is the official business address of the
person or business claiming occupancy.
(h) The determination of the number of vacant commercial spaces a structure contains for
purposes of registration will be made by the community development director or his or her
designee. The number of vacant commercial spaces will be determined by the physical areas that
have separate entrances to the commercial space from a public entry or a joint tenant corridor
and/or entry to the commercial space.
(i) The provisions of this chapter shall not apply to a vacant commercial space if the following
apply:
(1) The window display area space is the subject of a current, valid building permit for repair
or rehabilitation and the responsible person provides proof, such as receipts, invoices or
executed contracts, that the repair or rehabilitation is proceeding without significant delay.
5D.7 Window displays for commercial spaces not occupied for (90) ninety days.
Whether or not a vacant commercial space is registered pursuant to this chapter, if any
commercial space in the Downtown Historic District or Expansion District has been unoccupied
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for more than ninety (90) consecutive days at the time this chapter becomes effective or any time
thereafter, then responsible persons shall immediately construct and/or install at least one (1) of
the following types of displays on or inside all ground-floor windows that face sidewalks, streets,
alleys, or public open spaces:
(a) Faux window dressings containing goods or services with the visual characteristics of a
vibrant business using background panels or other methods to screen views of the unoccupied
space from the street, sidewalk and public areas;
(b) Works of art or other displays of cultural, historical, or educational value, using background
panels or other methods to screen views of the unoccupied space from the street, sidewalk and
public areas;
(c) Window paintings featuring visually appealing scenes depicting or suggesting business or
cultural activities;
(d) Drywall, sheeting, plastic, butcher paper, plain paper or other raw coverings are strictly
prohibited. All windows, openings, doors, facades, awnings, must be finished in appearance or in
compliance with at least one of the above methods; or
(e) Other measures consistent with these examples, if approved in writing by the community
development director or his or her designee, in his/her discretion.
(f) Any decorative artwork and mural designs proposed for use must be appropriate for all ages
in the community. The community development department will provide examples of
appropriate designs to interested responsible persons.
5D.8 Regulations on the use of plywood.
(a) Plywood may be utilized if the building façade needs to be removed, or as a temporary
measure to restrict unpermitted entry when doors, windows, or other potential entry points
are exposed and need to be secured.
(b) Plywood must be decorated in compliance with the requirements provided in Section 5D.7.
Such decoration shall be completed within ninety (90) days of installation.
(c) Plywood must be removed one (1) year after installation.
(1) No additional permits will be approved until any active permit is completed, the
temporary front is removed, and all applicable fines are paid.
(2) Properties may request a one-year extension if there are extenuating circumstances. The
community development director or their designee may approve such extensions in
writing at their discretion.
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5D.9 Fees and fines.
(a) Commercial space registration. At least one (1) responsible person shall pay an annual
registration fee for each registered vacant commercial space that is separately owned or leased.
In the case of a newly constructed or remodeled building in which individual spaces are not
separately owned or leased, a single initial and annual registration fee shall be paid to cover all
commercial spaces within the building. At least one responsible person must pay an initial
registration fee to the city at the time the space is registered, and must pay an annual renewal
registration fee by January 1st each following year that the space or spaces remain vacant.
Registration fees will not be prorated. These registration and fee requirements are applicable to
any vacant commercial space in the Downtown Historic District or Expansion Distr ict that at the
time the ordinance codified in this chapter becomes effective or any time thereafter. The fees will
be as follows:
(1) Initial registration: seven hundred fifty dollars ($750.00).
(2) Annual renewal registration: one thousand five hundred dollars ($1,500.00).
(3) The fees are intended to defray the costs of administering this chapter and may be
changed by the city council to meet these costs.
(b) Failure to register, or renew the registration of, vacant commercial space in violation of
Section 5D.6 shall incur a fine of one hundred fifty dollars ($150.00) per week, or portion
thereof, until compliance with the registration requirements is complete.
(c) Plywood, or any portion thereof, that remains undecorated after ninety (90) days in violation
of Section 5D.8 (b) shall incur a fine of five hundred dollars ($500.00) per month or portion
thereof.
(d) Plywood that remains beyond one (1) year after installation in violation of Section 5D.8 (c)
shall incur a fine of two hundred fifty dollars ($250.00) per month, or portion thereof, until all
plywood is removed.
(e) Any other violation of this Chapter shall incur a fine as detailed in Chapter 1.7 of the Gilroy
City Code.
5D.10 Delinquent fees, fines, interest and penalties—collection.
(a) If a responsible person fails to pay the registration fee by the due date, the city is authorized
to take action to collect the registration fee including a ten percent (10%) per month late
payment penalty and its costs of collection, including attorneys’ fees, by use of any and all
available legal means; in which case such penalties and costs incurred by the city as a result
of the collection process will be assessed to the responsible person or responsible persons in
addition to the registration fee.
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(b) The city may pursue any and all legal and equitable remedies for the collection of fees and
fines, including interest and penalties.
(c) Delinquent fees, fines, interest, and penalties may be recorded as a lien or special assessment
against the property on which the code violation occurred. Prior to recording a lien or special
assessment, the city shall prepare a cost report itemizing the amount owed by the responsible
person. The city shall comply with the State Board of Equalization or any other state or
county law pertaining to the recording of any delinquent fines, interest, and penalties as a lien
on the property, or as a special assessment.
(d) The administrative citation process described in this chapter does not preclude the city from
recovering any code violation abatement cost incurred by the city in performing its code
enforcement efforts.
5D.11 Duty to amend registration statement.
Responsible persons for any registered vacant commercial space shall advise the community
development director or his or her designee, in writing, of any changes to the information on the
registration form within thirty (30) consecutive days of the occurrence of the change.
5D.12 Inspections.
The community development director or his or her designee, or code enforcement officers, or
both are authorized to conduct inspections to enforce the provisions of this chapter.
5D.13 Enforcement.
(a) The city may enforce the provisions of this chapter by any of the provisions of the Gilroy
City Code, which are in addition to any other remedies provided for by law. Said remedies shall
be cumulative and not exclusive.
(b) It shall be unlawful for any responsible person to violate or fail to comply with any
provisions of this chapter. Each responsible person commits a separate offense for each and
every day they commit, continue or permit a violation of any provision of this chapter.
(c) Any responsible person violating any of the provisions of this chapter shall be deemed guilty
of an infraction, and upon conviction, shall be punished as set forth in Government Code Section
36900, as it now exists or may hereafter be amended.
(d) All responsible persons are jointly and severally responsible with respect to compliance with
all provisions of this chapter and for any payments required to be made to the city under this
chapter, including but not limited to registration fees, late penalties, and costs of collection and
enforcement, including attorneys’ fees and costs. If the commercial space is subject to a lease,
the city shall have discretion to determine whether to enforce this chapter against the commercial
space owner, the tenant, or both of them.
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Chapter 5D Ordinance
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SECTION II
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to
be invalid or unconstitutional, such decision shall not affect the validity of the remaining
portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would
have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase
hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or
phrases may be declared invalid or unconstitutional.
SECTION III
Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force
and effect thirty (30) days from and after the date it is adopted.
PASSED AND ADOPTED this 27th day of July, 2026, by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILTON
APPROVED:
Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, City Clerk
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Ordinance No. 2026-05
Chapter 5D Ordinance
City Council Regular Meeting | July 27, 2026
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Chapter 5D Ordinance
City Council Regular Meeting | July 27, 2026
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CERTIFICATE OF THE CLERK
I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2026-05 is an original ordinance, or a true and correct copy of a City Ordinance,
duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on
Monday, July 27, 2026, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official
Seal of the City of Gilroy this Wednesday, July 29, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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