Gilroy council says Sharks Ice facility too expensive

After seven and a half years of talking about bringing a Sharks-led ice hockey and skating facility to Gilroy, city officials have decided the idea is economically infeasible — effectively killing development of the recreation space.

The City Council last month unanimously agreed to an ad hoc committee’s findings that the ice skating facility proposed for the Gilroy Sports Park has no economically feasible path to development. The plan would have brought a 100,000-square-foot facility with two sheets of ice, a restaurant, snack bar, pro shop and other uses on an approximately 9.1-acre portion of the sports park.

But despite the apparent end of the project, city officials and Sharks Sports & Entertainment representatives are leaving the door slightly ajar to potentially revisit the partnership.

“Both the city of Gilroy and Sharks Sports & Entertainment remain interested in pursuing the project if financial conditions change or if other partners come to the table,” city spokesperson Rachelle Bedell told San José Spotlight. “The project could be reconsidered if financial conditions change significantly or new funding or partnership opportunities emerge. At this time, however, no financially feasible path has been identified.”

The ad hoc committee, including Councilmembers Zach Hilton, Terence Fugazzi and Tom Cline, formed in August 2025 to determine if the project could be preserved. The committee presented its findings and recommendations at the Oct. 5 council meeting, concluding the initial estimates had been outpaced by inflated construction costs and not being able to not fully fund the facility’s projected net operating revenues to support the debt required to build it.

“We spent a year exploring all options to meet the funding gap, including proposals from Sharks partners,” Hilton told San José Spotlight. “The Sharks didn’t want to build a facility they weren’t proud of and I’ve consistently heard from residents that we’re not interested in spending or bonding city money to meet the funding gap.”

The city began negotiations with Sharks Sports & Entertainment in May 2019, and councilmembers approved a term sheet outlining an operating agreement in June 2022.

The site design was projected to cost $64 million, with a larger facility estimated at $84 million. The city’s borrowing capacity of $49 million left a $15 million gap on the smaller facility, and $35 million on the larger one. The city would also be on the hook for $10 million for utilities, site and street improvements and other related work. Gilroy already spent more than $1 million in predevelopment costs.

There are three Sharks Ice-run facilities in the Bay Area, including San Jose, which serves as the Sharks practice headquarters, in Fremont and at the Oakland Ice Center. The Sharks still view Gilroy as a viable location for a fourth facility.

“Sharks Sports & Entertainment remains committed to helping expand recreational ice sports throughout the Bay Area and believes South County is a strategic, growing market,” Sharks spokesperson Ben Guerrero told San José Spotlight.

While there had been some excitement early on within the community about bringing a professional sports brand into the city, it appears to have dwindled with time. Not a single resident spoke during the council meeting for or against it.

Gilroy resident Reid Lerner, an architect and former city planning commissioner, said it was about time the city squashed the project.

“The Sharks Ice facility was a bad deal for the city and the environment,” Lerner told San José Spotlight. “The city has already spent too much money on this albatross.”

Contact Giovanni Albanese Jr. at [email protected].