Morgan Hill - As the closure of Albertsons grocery store leaves a gaping hole at Morgan Hill Plaza, city leaders are discussing whether to add the powers of eminent domain to the redevelopment agency.
Their goal would be to rejuvenate what they see as "blighted" areas controlled by multiple property owners, such as the old shopping center located at Dunne Avenue and Monterey Road.
"Those seven property owners aren't motivated to do anything," said Morgan Hill City Councilman Steve Tate.
Tate said the city has tried and failed in the past to rejuvenate Morgan Hill Plaza. There was even talk of buying the land for as much as $11 million and reselling it to a different private developer. But getting more than one property owner on the same page proved more difficult than the city had hoped. Now the oft-politicized specter of eminent domain has risen as the city's redevelopment agency is due to be extended - or left to expire - by the city council later this year.
"We are thinking about when we extend the redevelopment agency, we'll grant eminent domain for obviously blighted parcels," Tate said.
Morgan Hill Plaza was developed in 1972 by Duckett-Wilson. The company still owns most of the property, not including the two anchor stores, the liquor store, the Valero gas station and a separately-owned apartment complex.
"We've been there 30 years," said Tom Wilson, director of property management for Duckett-Wilson. "We'd prefer to be here another 30 years."
Wilson - who should not be confused with company co-founder Robert Wilson - defended the plaza's economic vitality.
"I think it's doing very well," Wilson said. "The tenants are happy. These are the kind of businesses that have a loyal customer base."
Still, Wilson said the departure of Albertsons earlier this month makes him a little uneasy.
"We'll continue to maintain the plaza, keep it clean and neat, but you'd rather have a tenant that has customers coming and going every day," he said. "That's very preferable."
A representative for Albertsons' property manager, Retail West, said offers have been made to sublet the store, but the spokesperson would not release names of interested parties.
Still, Tate and other city council members believe the main problem with Morgan Hill Plaza is not its lack of grocery store, but its lackluster appearance.
Morgan Hill City Councilman Larry Carr said the shopping center "is an important one" that needs to be brought to the attention of the redevelopment agency.
Jim Dumas, the city's senior project manager for the Department of Business Assistance and Housing Services, referred to the shopping center as a "key node."
"There's always been talk about what to do," Dumas said. "We might have to purchase the land and turn it over to another developer. That's such a cornerstone."
The redevelopment agency, which was enacted in 1980, is set to expire this year. The city council has already directed city staff to write a proposal for an extension of the redevelopment agency. The council will likely consider the issue in November.
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