Imagine walking down Fisherman’s Wharf, and where a business used to be, there is only a bustle of deconstruction, buildings being torn down and pilings pulled from the mud.
According to recommendations proposed by staff to Monterey City Council in an Aug. 27 study session, this spectre could become reality.
The city of Monterey owns the deck and pilings in the wharf’s common areas, but it doesn’t own any of the commercial buildings or the pilings beneath them – only the mud beneath the water. But as the city looks to standardize leasing policies before three long-term wharf leases expire this month, one proposed change could let the city take control of a business’ entire structure upon expiration of a lease.
“It’s going to be contentious,” says Rick Marvin, housing and property manager for the city. “That is one of the reasons we’ve presented these policies in a public forum.”
Sam Balesteri, owner of Balesteri’s Wharf Front gift shop, is among those whose lease will expire Sept. 30. He’s operated the store since 1965, long before the wharf was a tourist destination.
“This building was never here,” Balesteri says, sitting outside his shop. “This was an old fish market.”
Although he’s currently in the process of making upgrades to his property, he’s not opposed to the possibility of pulling up the stakes if the city tries to take it. “Maybe I’ll tear my building down,” he says.
Angelo DiGirolamo, owner of the Bruce Ariss Wharf Theater, is less uncertain about what he would do if the city tried to take ownership:
“I’d take down the whole building, pilings and all.”
While DiGirolamo’s lease is among those that won’t expire until 2041, his fiery stance underscores a common sentiment among longtime wharf business owners: We built this place, and it’s not yours to take.
“Anytime you have a site where leases have been in effect for 30 to 50 years, oftentimes under the same family’s control, change is going to be difficult,” Marvin says. It is industry standard for landlords to take control of structures once a lease expires, he adds.
In recommendations presented to the council, wharf business owners would have 90 days to remove structures before the deed passes to the city.
Other major policy recommendations include changing the way subleases are handled. For now, tenants who sublease some or all of their properties collect the entire difference between the rent they pay to the city and the rent they collect from their sublessee.
Under the city’s proposal, an undetermined portion of those profits would be shared with the city. The city is also proposing the creation of a capital reserve charge for leased properties, in which the city would collect monthly fees from leaseholders to pay for repair and maintenance of common areas.
Monterey City Council is set to vote on the proposed policies Sept. 16.
“We need to look closely at the policies and make sure they are fair for everyone,” Councilwoman Nancy Selfridge says. “I feel like we have to look at each lease separately.”
Balesteri hopes the council looks kindly on his lease agreement. “They should have a little heart in the decisions they make,” he says.