Features

Battle lines are being drawn in what may prove to be an epic conflict—one that pits small-town Albany against a wealthy and powerful developer from LA. 

Across the nation, malls of various designs have taken root, devastating small business districts, changing the character of cities large and small, and exercising an unchecked political and economic influence, one that threatens our nation's democracy. 

Caruso Affiliated is the latest incarnation of this trend with one difference: Their projects create “new downtowns,” and are known for their attention to style and detail. Yet a mall is a mall, regardless of whether it is elegant or poorly planned. The impact they have is the same—small businesses get battered, cities lose their charm and identity, and political power—even on the local level—is dominated 

by big money. 

Supporters of the Caruso mall contend “there is no retail to speak of in Albany,” suggesting the existing small business district be abandoned and converted into one that is “service-industry oriented.” 

The fact is there are over 65 retailers on San Pablo and Solano Avenues in Albany, most of them independently-owned-and-operated. There are also 64 restaurants in town, the vast majority family-owned. 

If an L.A. mall was built beside the Bay, what would happen to those businesses? Most would be hurt, many may be closed and boarded up. 

Consider this: When El Cerrito Plaza was completed three years ago, most merchants in Albany experienced an immediate drop in business. Retailers and restaurants also felt a dramatic decline in sales after Bay Street in Emeryville opened their doors. The only thing that has kept small businesses alive is Albany's small town ambiance and the fact that small merchants and restaurateurs offer unique merchandise, creative cuisine and personal service not available elsewhere. 

Rick Caruso and his spokesman, Matt Middlebrook, have asserted that wherever they built “town centers,” such as “the Grove” in L.A., businesses within a five mile radius have prospered. 

It defies logic to believe an upscale theme-park mall built beside Golden Gate Fields would have a positive impact on small companies in the East Bay. How could small business districts possibly compete with a corporate mall that would have a million dollar view of the bay, unlimited parking, and firms that have multi-million dollar advertising budgets? 

When there was a measure on the ballot in Glendale, California, to prevent Mr. Caruso from building a mall there, his firm spent $1.8 million to defeat it. How much will they spend to get their way in Albany? 

One cannot help but also be concerned about the potential impact an LA-size mall would have on the Bay, the wetlands, and on traffic on I-80 and the San Pablo Avenue corridor, already experiencing gridlock. 

That being said, Albany would not be Albany without Golden Gate Fields. In the past it has contributed to community organizations and provided the largest source of local tax revenue. Small businesses have also supported community organizations in town, and pay more than their fair share of taxes. And unlike big corporations, mom-and-pop shops spend their earnings locally. 

There are alternatives to the Caruso plan, one being a hotel and conference center built along the scale of the Doubletree in the Berkeley Marina. The remaining property, as much as 30 acres currently blacktop, could become a park. 

Cities receive 100 percent of hotel taxes compared to one percent of sales tax. Golden Gate Fields would benefit from such a development, as would the city. Tourists and horse racing aficionados would have plenty of reasons to shop and dine at local small businesses. 

Many believe big corporations cannot be stopped and that the Caruso plan is a “done deal.” That simply is not the case. We can—we must—prevent the East Bay from becoming another L.A. To do so we must seize the reins of our democracy and demonstrate that when citizens speak up and get organized, it is the people who talk and big money that walks. 

James Carter is the former executive director of the Albany Chamber of Commerce.