By Mary Beth Hislop

The Mardinis stand behind the cash register where they once sold a $17 million Lotto ticket. “It was an exciting time then,” Sahar said.

The writing is on the wall for many businesses in the southwest corner of downtown – sooner or later, they’ll have to go, as the Packard Foundation redevelops the land on which they sit.

Between the ghost-townlike feel of this Los Altos neighborhood and the effects of a sluggish economy, the going is coming sooner for Joe and Sahar Mardini. After 21 years in Los Altos, the owners of Jerry’s Liquors and Delicatessen are calling it quits. Their last day of business is April 15.

“Now we end up with no money,” Joe Mardini. “Business just sucks.”

After some careful research, the Mardinis purchased the liquor store on San Antonio Road in 1987 from Jerry Larkin, the Jerry in “Jerry’s,” who established the business in 1968. Back then the business was bustling with regular customers and children who lived in the neighborhood.

Business hit its peak in 1997 when the Mardinis sold a winning $17 million Lotto ticket.

“It was an exciting time then,” Sahar said.

But times have changed. After Larkin died, Joe said his widow sold the building to the David and Lucile Packard Foundation. The foundation has purchased properties in the triangle bordered by Whitney and Second streets and San Antonio Road to build office space, according to Packard Foundation Vice President Chris DeCardy.

“We do have plans, over time, to put a foundation building there,” DeCardy said.

He said the foundation wants to consolidate its 90 full-time staff and contractors, who are separated in two buildings – one at 300 Second St. and another at 175 San Antonio Road – and create a closer campus near the Second Street facility.

DeCardy said several businesses have opted not to renew leases, so some of the buildings stand empty.

This has been a problem for the Mardinis, who have seen a dramatic drop in business from employees working in the immediate area.

DeCardy said it’s not easy to lease space in old, dilapidated buildings.

“Unfortunately, (the buildings have) reached the end of their useful life,” he said.

Increasing the difficulties for the Mardinis is the slowdown in the housing sector. Another large customer base was construction workers, who were big fans of the deli’s thick and fresh sandwiches, made in speedy time at a reasonable price, Sahar said.

“We were always No. 1 with them,” Sahar said of the workers, who have all but disappeared. “It’s the whole economy.”

Sahar said they are barely getting by each month. Although the foundation has negotiated a rent reduction for the Mardinis, it’s not enough to keep them in the black, Joe said.

Sahar said they are selling their liquor license, as well as memorabilia that has been on display in the store since the days when Larkin worked there. The Mardinis will focus their time on their other store in Menlo Park, Mardini’s Deli/Cafe. Customers craving their famous falafels or Italian sub sandwiches can drop by – “They’re the same exact sandwiches,” Sahar said.

In the meantime, the Mardinis thank all their customers who have remained loyal through the years.

“A special thanks to all for everything,” Joe said, “to all the city and the police department.”

Contact Mary Beth Hislop at marybethh@latc.com.