Santa Claus is setting his sleigh's course for downtown Gilroy where he'll light the Christmas tree Saturday evening following the town's annual downtown holiday parade.

The parade, which drew about 2,000 onlookers last year, will begin at 5 p.m. and will travel from Eighth Street to Fourth Street along Monterey Street, culminating with Santa's countdown for the Christmas tree lighting.

Some 42 entries marched in last year's parade and Albert Lambert, parade chairman, said he is expecting a similar amount this year. Parade participants will include Gilroy Gardens, Lauri Gray's School of Dance, the Elks Lodge, Gilroy youth sports, Gilroy schools, the Gilroy High School marching band, and possibly mounted police units and the Grinch, Lambert said.

Entertainment begins at 4 p.m., with performances on stage at the corner of Fifth and Monterey street by Donald "Elvis" Prieto, dancers from Lauri Gray's studio and members of the Suzuki Violin Studio directed by Suzanne Lambert.

Mayor Al Pinheiro, who will emcee the parade along with Gilroy Visitor's Bureau Executive Director Jane Howard, said the parade is a can't-miss event that highlights downtown while celebrating the spirit of Christmas.

"It's a great community event where people get together and show their community spirit," Pinheiro said. "Especially during these days we need to be together as much as possible to feed off each other about the holidays and our community spirit."

Pinheiro, who has lived in Gilroy since 1964, used to work at Karl's Shoe Store at Fifth and Monterey - where Mafalda's is now located - while attending Gilroy High School.

"Downtown has always had a special place in my heart," he said.

While downtown has changed a lot since then, events like the sidewalk sales and car shows are an example of what keeps downtown's spirit strong, Pinheiro added.

"This parade is one of them. It's wonderful to see the kids so excited and happy. It's all about community," he said.

Gray, whose dancers have participated in the parade for at least the past dozen years, said the parade is truly a special community event.

"What makes it special to me is it's something the entire town can participate in. It's a cheerful time for all of the participants. And I get to meet all the participants in the parade," she said.

Following the tree-lighting, youngsters are invited to take pictures with Santa at the Chamber of Commerce, located across the street from the Christmas tree. While waiting in line, children will be given free popcorn and coloring books. Inside the Chamber, children also can take part in watching animated holiday movies and decorating cookies with the Young Chefs Academy.

Downtown businesses also are expected to stay open later for holiday shoppers, Lambert said.

Sue's Coffee Roasting Company at Fifth Street will be open as well and will feature a performance by Hans Rearick from 7 to 9 p.m.

Lambert encourages all Gilroyans to take part in the holiday festivities.

"There's so much going on in the world, we're just hoping to have some fun," Lambert said.