The fight to update Monterey’s leasing policies appears to have paid off – for now.

The interior of Balesteri’s Wharf Front, the recently closed gift shop at the foot of Fisherman’s Wharf, is badly in need of a makeover. Carpet is stained, woodwork is mismatched and there’s an oddly placed toilet in a low-ceiling attic.

Next door, at a space Sam Balesteri subleased to his son Ben – who operated the former Coffee House – the condition is similarly outdated, including a grated, open-air vent to the water below.

The lease to both spaces was held by Balesteri from late 1964 until Dec. 15, 2016 – 50 years. It is the kind of long-term, below-market-rate lease that drew the condemnation of former Monterey planning commissioner Bill McCrone, a retired real estate attorney who became a waterfront watchdog after taking a look at wharf leases in 2010.

His crusade culminated with an overhaul of the city’s leasing policies in March 2015. But, after a lobbying campaign by wharf interests, City Council repealed those policies Feb. 21 and replaced them with vague language stating the leases should be fair to both citizens and tenants, and should encourage “retention of local long-standing and well-performing businesses.”

The first wharf lease since the policies were repealed was inked March 22 and took effect April 1. It’s with Salinas-based businessman Rodney Riggs, who owns a handful of local businesses. After an extensive remodel, which Riggs estimates will cost about $400,000, he plans to open a candy store in the aforementioned spaces formerly rented by Balesteri.

Despite the leasing policies being repealed, Riggs’ lease is highly competitive, and guarantees vastly more revenue to the city than Balesteri’s lease.

“On the whole, I think it’s an excellent effort,” McCrone says.

The minimum monthly rent for Riggs’ lease is $7,940, while Balesteri – who also subleased to Palucca Trattoria, which recently signed a lease with the city at a minimum of $2,500 per month – had a monthly minimum monthly rent of $680 for all three spaces.

Businesses generally pay more than the base rent each month, according to a formula based on revenue. Balesteri paid 3-4 percent of revenue, and Riggs will pay 6 percent.

The latter number, in McCrone’s opinion, is below market rate. According to Assistant City Manager Hans Uslar, the city took Riggs’ promised investment into consideration. A list of planned upgrades is attached to the lease, with no apparent requirement or timeline; Monterey Administrative Analyst Janna Aldrete, who oversees property management, says the upgrades are implicit in the lease.