Politics & Government

TalkBack: Readers Fume At City Subsidy For Bay Fair

Is the city on the hook for a $70,000 rent guarantee made by its now dissolved redevelopment agency?

(Editor's note: Readers reacted to a about a lawsuit that seeks to force the city to cover a $70,000 a month rent guarantee made by San Leandro's redevelopment agency before it was dissolved by state law.

Briefly, mall owner Madison Marquette has stopped paying rent on the parking lot where the Saturday Farmer's Market is held. The land owner has sued the mall owner and the city. Macy's is involved. It's Bay Fair lease expires in July. And a mall subsidy once paid out of redevelopment funds is going away. You can .)

The story provoked a good exchange. Here is a sampling of the comments:

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Fran Leidy, a redevelopment agency critic, characterized the mess as par for the course, but noted the key legal issue: can the city's general fund be tapped to meet a redevelopment obligation as the landowner contends. "The city has no obligation to pay out of its general fund," she wrote. But she's happy to see the agency go away. "All these other greedy leeches looking for a handout can forget it."

David Nierengarten, Patch's occasional fiscal conservative blogger (hint, hint) was succint. "It's hard to expect payment from an agency that no longer exists. Blood from a stone and all that. Blood from a non-existent stone is even harder to draw," he wrote, adding: "If Madison Marquette is still solvent, seems like they should be paying it in any case."

Find out what's happening in San Leandrowith free, real-time updates from Patch.

Dan Dillman, who is over what kind of shows he can hold at the Bal Theatre, was sympathetic to the land owner. "(They) gave up a portion of their land for the city, Century 16 (Theaters) and Bay Fair in exchange for the lease contract," he wrote. "I don't think the city should have ever entered into this agreement from the beginning, but they did, so sadly they are obligated to the contract."

Chris Crow, and current city council candidate, said the potential cost of the rent guarantee "was by far the largest obligation the redevelopment agency (RDA) undertook . . . I wonder when it ever made sense to saddle the RDA with so much responsibility."

Thomas Clarke, a frequent conservative commenter, focused on the possible loss of Macy's, saying it would further weaken the mall. "Macy's has a long tradition of leaving unprofitable locations when the leases are up," he wrote. "If the incentives from the past dry up, I would not be surprised to see Macy's gone. Have you been there recently? Look at the exterior and the interior. They closed off the Plus Sizes Mall shop some time ago. Walk through the third floor some time. Big empty. It is a long time since Bay Fair was a high performing store for Macy's."

Tony Santos, former San Leandro mayor, criticized the critics. "None of the writers here know anything about agreements reached many years ago, even before Madison Marquette purchased Bay Fair . . . contracts are very complex and before anyone comments, they should study the history of these very complex agreements. (I am) doubtful the city will have to pay anything, but that would be for court to decide."

Finally, Jamie Radley, a Patch regular, probably captured the sentiment of the average San Leandro resident when she wrote: "This is too confusing for me to follow. Just don't take away my Farmer's Market!"


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