What started as some low-key dirt work on the edge of Gilroy has turned into a full-blown fight over immigration detention. Crews have begun clearing and fencing a 25-acre parcel just outside city limits that federal records flag as the planned site of an ICE detention facility, and Santa Clara County officials say they are ready to sue to stop it. The sudden activity has rattled nearby farmworkers and immigrant-rights organizers, who gathered at a county news conference this week to demand answers.
What the records show
Federal procurement notices and lease documents point to 7240 Holsclaw Road as the parcel tied to a General Services Administration search for detention space. East Bay Times reports the federal lease was awarded in January 2025, valued at roughly $27 million. California Secretary of State filings, available in California Secretary of State records, list the awardee as ECG 6 LLC at a Wilshire Boulevard address.
Work begins, neighbors alarmed
Neighbors and organizers told reporters they watched crews roll in, install tall privacy fencing and tear out greenhouse structures at the Holsclaw Road site, according to San José Spotlight. Rebeca Armendariz, a former Gilroy councilmember and organizer, put it bluntly to the outlet: “If their plans are to build an ICE facility there, our plans are to stop them.”
Gilroy Mayor Greg Bozzo said the work “started about a week and a half” before May 14, as reported by East Bay Times. Local farm employers told reporters the lack of communication around the project has only fueled anxiety among migrant workers already wary of immigration enforcement.
County vows a court fight
At a Thursday news conference, County Counsel Tony LoPresti and County Executive James Williams sharply criticized the proposal and promised to challenge it in court. Williams told reporters, “The county’s zoning ordinance does not allow detention centers to be built or operated on this property,” and LoPresti said his office would examine every legal avenue if the federal government or its contractor tries to move forward, according to San José Spotlight.
Fits a broader federal push
The Gilroy proposal is part of a broader ICE strategy to convert warehouses and large industrial buildings into detention hubs, a move that has already drawn lawsuits and inspector general scrutiny in other states. The Washington Post has detailed similar acquisitions and legal battles in Maryland, Georgia and Texas, underscoring why local officials here are bracing for a prolonged fight if work continues.
What comes next
County leaders say they have alerted state officials and are coordinating with community groups while the counsel’s office prepares its legal strategy. The county has a recent track record of going to court over federal immigration actions, and officials say they intend to move quickly if federal contractors attempt further site work.
Elmwood Capital Group, a Beverly Hills real estate firm connected to the awardee in public filings, lists a 25,000-square-foot San Jose project in its portfolio but has not responded to requests for comment. For now, fencing is up, the land is clearing, and both sides appear to be settling in for a drawn-out showdown over what gets built on Gilroy’s southern edge.
