By Editorial

Enough is enough. The city’s preoccupation and the politicalization about what to develop on the high-profile piece of property at Main and First streets clearly demonstrates that local government should not be in the commercial real estate development business.

While the pros and cons of theater vs. hotel vs. spa have been bandied about, some residents have also been vocal recently about no development at all at the site. Keep the consignment store and dry cleaner there, they say, or consider a more viable public use, such as a park, in the years ahead.

It’s a reasonable suggestion, given the controversy over the current proposals. But such debate points to the real problem Los Altos faces trying to manage commercial development for for-profit businesses on city property.

One could successfully argue that only the people’s business, such as parks and libraries, should be conducted on public property.

But if public use is not part of the plan, the city should sell the property. The city could still collect tax revenue from, say, a hotel at the site, and reap a huge amount of cash from the sale. Any liability, in the process, is also transferred from the city to the new owner, including how to deal with the current leases.

The city bought the property in 1995 for $1.8 million, ostensibly to create parking solutions, and then promptly signed a 10-year lease with the current tenants. The property has been recently appraised at more than $3 million. Each of the three developers currently being considered for the site has expressed a preference for buying the property.

Taking the city out of the commercial real estate business removes the potential for political acrimony. Mayor King Lear, for instance, while clearly passionate about having a theater at the site, has turned the discussion into his own campaign issue - he is up for re-election this year.

Other proponents are equally “passionate” about having a theater on the site, but passion and common sense don’t always mix with good results.

Remove city ownership from the equation and the council will be more objective about development at the site. As it is now, the council seems indecisive and reliant on inconclusive research.

We believe the city of Los Altos is not qualified as a commercial property developer or landlord. Let the pros do it.