South Valley Officials Oppose Proposed ICE Facility

Santa Clara County officials and South Valley residents are mounting a legal and political campaign against a proposed federal immigration detention facility on unincorporated land just outside Gilroy. Public records reviewed by local news outlets show the General Services Administration awarded a contract on Jan. 8, 2025 tied to a site at 7240 Holsclaw Road, east of the Gilroy Premium Outlets. County leaders said they were not notified when the federal government moved to secure the property, and they said the parcel is not zoned for detention use. The dispute has now spread beyond Santa Clara County, with Monterey County supervisors voting this week to formally oppose the plan. ### Where is the proposed facility, and what do records show? Federal procurement and property records cited by San José Spotlight and KQED point to 7240 Holsclaw Road, an unincorporated site outside Gilroy city limits and about 11 miles south of an ICE field office in Morgan Hill. The records indicate a detention-related solicitation that at one stage envisioned a facility with detention space, a sally port and offices. More recent records tied the contract to Holsclaw Road. (gilroydispatch.com) KQED reported Santa Clara County Counsel Tony LoPresti said the county confirmed the Department of Homeland Security secured a $26.5 million lease for 24.5 acres over 20 years from an entity linked to Elmwood Capital Group, a Beverly Hills real estate firm. San José Spotlight separately reported the Jan. 8, 2025 contract was awarded to an LLC sharing Elmwood Capital Group’s mailing address. (kqed.org) ### Why are county officials saying the project can be blocked? Santa Clara County Executive James Williams said the county’s zoning ordinance does not allow detention centers to be built or operated on the Holsclaw Road property. Williams told local outlets the county would seek to prevent any effort to move forward in violation of local law. (kqed.org) Tony LoPresti said at a May 14 rally in San Jose that his office was preparing to challenge the project and was coordinating with California Attorney General Rob Bonta as it assembled a legal response. KTVU reported LoPresti said the county was prepared to sue if necessary. KTVU also cited legal experts as saying a federal detention center could not simply be built without compliance with local zoning rules and likely congressional approval. (gilroydispatch.com) That assessment was attributed to the station’s reporting, not presented by county officials as a court ruling. ### What has happened on the ground near Gilroy? Rebeca Armendariz of Working Partnerships USA told KQED she saw workers at the property knocking down greenhouses and putting up fences. (kqed.org) Maritza Maldonado of the Immigrant Protection and Empowerment Network made similar remarks to KTVU, saying construction workers were on the site installing private fencing. (ktvu.com) The Mercury News and Gilroy Dispatch both reported work had begun or activity was underway at the site, sharpening the conflict between local officials and federal agencies. Gilroy Dispatch described the parcel as agricultural land outside city limits. ### What have federal agencies said? The Department of Homeland Security has not publicly confirmed the Gilroy-area project. (kqed.org) A DHS spokesperson told KQED, “As with any transition, we are reviewing agency policies and proposals,” and did not directly answer whether the department was building a facility there. A DHS spokesperson separately told San José Spotlight, “We have no new detention centers to announce at this time,” while adding that ICE was working to expand detention space in states across the country. (gilroydispatch.com) Neither the General Services Administration nor representatives for Elmwood Capital Group responded to questions from that outlet, according to the report. (kqed.org) ### Who is joining the opposition? Sylvia Arenas, the Santa Clara County supervisor whose district includes Gilroy and Morgan Hill, said the county would use every available tool to fight the proposal. Gilroy City Council Member Zach Hilton also issued a statement opposing the project, according to Gilroy Dispatch. (sanjosespotlight.com) Monterey County supervisors voted unanimously on May 20 to oppose the proposed detention center near Gilroy, according to Local News Matters and other regional reports. That action widened the dispute from a Santa Clara County land-use fight into a broader regional campaign by neighboring local governments. (gilroydispatch.com) Monterey County’s vote on May 20 is the clearest next step so far, and Santa Clara County officials have said litigation remains on the table if work continues at Holsclaw Road. DHS and GSA have not announced a public hearing or formal project rollout for the site, based on the reports reviewed here. (localnewsmatters.org)