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by Jeffrey Cohan, Blade staff writer
The Blade (Toledo, OH)
12-25-97
Mayor Carty Finkbeiner has signed a contract that leaves him almost powerless to bar developer George Isaac from building a run-of-the-mill shopping mall on Toledo-owned land in western Maumee.
Ed Yosses, city of Toledo law director, confirmed yesterday that Mr. Isaac's option on the land does not require the developer to satisfy the mayor's desires for an upscale mall.
"I think it's fair to say that there is nothing in the agreement that would do that," Mr. Yosses said.
The option -- which Mr. Finkbeiner gave Mr. Isaac in 1995 and extended in 1996 -- only requires the Maumee-based developer to pay the $6.51 million purchase price for the 430-acre site. Essentially, the option gives Mr. Isaac free rein to build whatever he wishes on the site, located off of U.S. 24 just west of the I-475/U.S. 23 interchange.
But Mayor Finkbeiner vows to wage a court fight, if necessary, to keep the property out of Mr. Isaac's hands -- unless the developer commits to building an upscale mall.
"I'll be going to court if I have to, to testify that Mr. Isaac defined to me personally that this would be a regional, upscale mall that would surpass anything we have in northwestern Ohio," Mr. Finkbeiner said last night. "George is either going to keep his word to us or be involved in a battle with us."
But Mr. Isaac's "word" might not matter. In the option contract, Mayor Finkbeiner explicitly agreed to terminate "any oral or written representations, discussions, or agreements made prior to or contemporaneously with the execution of this agreement."
"Furthermore, the terms of the agreement shall not be waived or modified without the express written consent of both parties," the contract states.
Zac Isaac -- vice president of Isaac Group Holdings, Inc., and George Isaac's son -- dismissed the mayor's latest remarks as an empty threat.
"He has no standing or legal grounds whatsoever for his position at this time," Sac Isaac said.
The issue could come to a head next week. The Isaacs' option expires Thursday, Dec. 31.
"We will have closing funds with the title company on Monday and expect to receive a deed from the city on or before Dec. 31," Zac Isaac said.
The Isaacs intend to sell 130 of the 430 acres to General Growth Properties, Inc., a Chicago-based mall developer.
"We believe there will be an upscale, regional-mall development," Zac Isaac said.
But General Growth officials have refused to offer any details about their plans or identify any future tenants.
Mayor Finkbeiner said he wants anchor tenants of the caliber of Lord & Taylor and Nordstrom.
"We have Toledoans traveling to Detroit, Ann Arbor, and occasionally even Chicago to shop at stores we don't have in the Toledo area," he said.
The mayor fears that a run-of-the-mill mall could do serious harm to some of the more vulnerable Toledo malls, such as the Southwyck Shopping Center.
He also objects to the fact that the Isaacs intend to sell the mall site to General Growth rather than act as a co-developer.
"If Mr. Isaac is doing this as a middleman, then shame on him," the mayor said. "He's not going to become a land speculator with our land. He just isn't going to get away with that."
But there appears to be nothing in the option contract preventing the Isaacs from selling all or part of the site after they acquire it.
Mr. Finkbeiner said last night he would consider extending the option another 30 days to give the Isaacs or General Growth time to identify the anchor tenants for the proposed mall.
"I want to be fair to them," the mayor said.
The 430-acre site constitutes a large chunk of the 1,197-acre area that the city purchased for $14.3 million in what was then Monclova Township. The city of Maumee has since annexed about half of the land, including the proposed mall site.
Zac Isaac said his company intends to develop a mix of retail, office, and light industrial buildings on 300 of the 430 acres.
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