Publication Date: Friday, February 11, 2005
Alma Plaza shopping center sold
Alma Plaza shopping center sold
(February 11, 2005) Sale ends months of speculation over ownership, but future plans still a question mark
by Jocelyn Dong
The Alma Plaza shopping center was sold to an investment group led by local developer John McNellis last week, ending speculation over whether the property owner, Albertsons, would retain the aging 5.6-acre outdoor mall.
Both McNellis and Albertsons confirmed the sale this week. As part of the deal, the Albertsons grocery store at Alma Plaza will be leased to McNellis' group and remain open, they said. McNellis has been managing the property for Albertsons for years.
"We're not certain what we're going to do with the property yet. We'll kind of need to start all over," McNellis said.
The center, located on Alma Street between East Meadow Road and El Verano Avenue, opened in 1962 but fell on hard times in recent years -- to the point where it was categorized as "blighted" by a consultant to the city in 2000. This week, as a gardening crew cleaned up the property, the out-of-date sign along Alma still listed a donut shop and trophy store that closed years ago. Half of the retail spaces are vacant.
The center became mired in controversy starting in 1997, as Albertsons -- then operated as a Lucky's store -- attempted to triple the size of its grocery store to 50,000 square feet and encountered stiff neighborhood opposition.
In 1999, a survey of supermarkets in Palo Alto, Menlo Park and Mountain View ranked the flagging Alma Plaza Albertson's 14 out of 16 in sales per square foot.
By 2003, Albertsons' development plans -- which included rebuilding the center's retail area, adding low-income apartments above the stores, and five single-family homes -- had received the blessing of all city commissions except the City Council. A year ago, however, McNellis asked the city to put a halt to the proposal.
Shop owners this week had not yet been officially notified of the sale, though they've suspected for weeks that a deal was pending. Still, they seemed caught off guard that McNellis had bought the property, and immediately began looking for answers as to the future for the center -- and their livelihoods.
"This is a shock to me," said Tom Kamali, a part-owner of Fandango Pizza, formerly a Round Table pizzeria. "After years and years, we're waiting for the good news. I don't know if this is good news or not. We don't have a lease. Everybody's hope was to get a longer lease."
Kamali's business was affected two years ago by the lack of a lease, when his license to run the pizzeria as a Round Table franchise was revoked.
Despite years of uncertainty, several merchants have been plugging away, including the B.J. Bull eatery and Jacquie's Sew and Sew.
Not having any details of McNellis's plans in front of her Wednesday, Jacquie Knott shrugged a fuzzy capelet around her shoulders and said she would take things one step at a time and "trust in God."
Most merchants were trying to sound optimistic. "I hope this is good for everybody. We're tired of sitting in this misery. We've worked very hard." Kamali said.
Senior Staff Writer Jocelyn Dong can be reached at jdong@paweekly.com.
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