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by Jeffrey Cohan, Blade staff writer
The Blade (Toledo, OH)
01-01-98
Mayor Carty Finkbeiner and a local developer have begun the New Year in a shopping-mall showdown.
The developer, Isaac Group Holdings, Inc., has deposited $6.01 million in an escrow account to exercise its option on 430 acres of Toledo-owned property, farmland just west of the I-475/U.S. 23 interchange in western Maumee.
But the mayor is refusing to turn over the deed until General Growth Properties, the Isaac's Chicago-based development partner, offers assurances that an "upscale" mall will be built on the property.
Neither General Growth nor the Isaac company has committed to develop such a facility there.
At a New Year's Eve news conference, Mayor Finkbeiner accused the Isaac family of "ducking out of any responsibility."
"In the last three months, the Isaacs have been less than forthcoming about the details of this mall, to put it mildly," he said.
The conflict has been building to a crescendo.
The Isaac option on the property expired on New Year's Eve. But on Monday, with 48 hours to spare, the holding company put the money for the purchase into an escrow held by Port Lawrence Title and Trust Co.
"We are awaiting a deed from the city of Toledo," said Zac Isaac, vice president of the development corporation and son of George Isaac, the chairman.
He declined to specify what actions his corporation might take if the city does not fulfill its obligation to turn over the deed.
General Growth, one of the nation's largest mall developers, intends to purchase 130 of the 430 acres from the Isaacs. But the Chicago developer has not identified the stores that would anchor a mall there.
"We're in the process of talking to these folks, General Growth folks, I mean, but that has not been resolved," said Ed Yosses, the city law director.
"As a lawyer, I try to resolve differences, and I think we're moving in that direction," he said.
The mayor desires an upscale mall, with anchor tenants of the caliber of Lord & Taylor and Nordstrom.
But the option, signed by Mayor Finkbeiner in 1995, essentially gives the property's purchasers free rein to build whatever they want.
The city, in negotiating the option agreement, failed to include any provision that would force the buyer to build an upscale mall.
The mayor, with a team of city attorneys and economic-development officials, has spent part of the holiday season negotiating with John Bergstrom, a General Growth vice president.
On Tuesday, Mayor Finkbeiner sent Mr. Bergstrom a list of a dozen acceptable anchor tenants for General Growth to pick from. In addition to Lord & Taylor and Nordstrom, the list included Neiman Marcus, Dillard's, Filene's, Saks Fifth Avenue, Ikea, Kauffman's, Macy's, Lazarus, and Parisienne.
Mr. Finkbeiner said the city will give General Growth an opportunity to add stores of similar caliber to the list.
But because the mall proposal remains in a nascent stage, months will likely pass before General Growth can identify specific anchors. The city will have to settle for a pledge from General Growth to select from the list.
"We believe the discussions with General Growth have been positive during the last few days," the mayor said.
"We'd like to get things nailed down within the next seven to 10 days."
Mr. Finkbeiner said he plans to visit a General Growth mall out of state next week.
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