Gilroy Says Amazon Will Be Tenant of New “Delivery Center’ on Highway 152

Amazon is the likely tenant of a new distribution center in Gilroy, bringing up to 200 jobs to the South County, according to Gilroy city officials.

The Gilroy Planning Commission on Oct. 21 gave its OK to a project that would add a large-scale delivery center, warehouse and commercial space on a nearly 60-acre piece of farmland at the intersection of Highway 152 and Camino Arroyo.

While not confirmed by the company, city officials revealed this spring that the delivery center’s tenant will be Amazon, the online retail and web services giant.

The project will head to the Gilroy City Council at a future meeting for consideration.

According to plans submitted to the city by Irvine-based Panattoni Development Company, a 143,153-square-foot delivery center building and a 266,220-square-foot warehouse are proposed on a roughly 59-acre site, in addition to more than 650 van parking spaces and various stormwater management basins.

The delivery center would be constructed during the first phase, according to the plans.

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

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

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

A spokesperson for Amazon declined to comment.

In documents submitted to the city, the project is identified as “DXC1 Logistics,” and is referred to as a “last mile” facility, which receives packages from fulfillment centers that are then loaded into vehicles for delivery.

A project description states that the facility expects to be staffed with 197 full-time positions that start at $15 an hour. The document and plans mention the “Flex” driver program, which is an Amazon initiative, as well as the building’s color of “Prime” blue, another company term.

Panattoni Development Company has worked on a number of Amazon delivery stations in California and throughout the nation. It recently completed a similar project in Hollister at the corner of San Felipe and Flynn roads.

During the Oct. 21 meeting, some commission members expressed concern over how traffic would be impacted on the already-congested Camino Arroyo, but were supportive of the overall project.


  1. What would be remarkable is if this surprises anybody.

    Get that overdue extra lane in each direction on US 101 between Gilroy and San Jose ready soon.

  2. Camino Arroyo Is already a very dangerous intersection. I was thinking 152 and Fraser lake Road was going to be a total nightmare due to the addition of Amazon and Holister. This only makes the traffic worse on 152. Unbelievable who comes up with these stupid ideas? Let’s fix our roads first before even proposing a project that would impact traffic

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