The Gilroy City Council on Dec. 16 voted unanimously to extend an urgency interim moratorium that prohibits issuance or approval of new tobacco retail permits in the downtown specific plan area for an additional 10 months and 15 days.

The mayor opened the public hearing, saying she initially requested a downtown moratorium to give the council and staff time to study a perceived surge in smoke-shop applications and related enforcement challenges. Councilmembers pressed staff and the city attorney on whether a citywide moratorium could be adopted at the same meeting; staff explained the statutory moratorium process and advised that a separate citywide moratorium would require a distinct action and findings under state law.

Members discussed how the ordinance would treat existing businesses and applications in the pipeline. City staff said new permit applications received in the downtown area would be accepted but not issued while the moratorium stands; permits already issued would likely be grandfathered, but businesses operating without a current permit would not be grandfathered. The council asked staff to examine chain-of-ownership issues and to clarify how lapsed permits or operating-without-a-permit situations should be handled.

During public comment, residents urged the city to restrict tobacco retail and smoke‑shop activity downtown, arguing some outlets sell paraphernalia and illegal products. One commenter cited California Health and Safety Code section 11364 (possession of drug paraphernalia) in urging stricter controls; the speaker’s assertions were presented as his research and claims, and were not adjudicated at the meeting.

On the floor, Councilmember Marks moved to adopt the moratorium extension (including the required environmental determinations) and to have staff prepare the statutorily required 10‑day report; Councilmember Fugazi seconded. The motion passed by roll call, 7–0. The mayor directed staff to return with a proposed citywide moratorium ordinance for the Jan. 5 meeting.

What happens next: staff will prepare the 10‑day report and a draft citywide moratorium ordinance for the council’s Jan. 5 agenda. Any new or pending permit applications in the downtown specific plan area will be subject to the terms of the adopted moratorium.