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# SM mall owners ready to listen up
- URL: https://www.smdp.com/sm-mall-owners-ready-to-listen-up/
- Published: 2006-06-05T15:00:00.000Z
- Updated: 2026-10-23T18:14:57.000Z
- Author: Kevin Herrera
- Tags: Business, Promenade, #archive-import

*Place in the sun to stay, with major alterations*

SM PLACE — Seemingly humbled by community disdain, the owners of Santa Monica Place have abandoned plans to demolish the mall and replace it with a 10-acre mixed-use complex that was to include high-rise office towers and condominiums.

Instead, The Macerich Co., the publicly traded Santa Monica-based real estate investment trust that owns the mall and about 75 others, has announced it is opting for a more modest remodel of the aging Frank Gehry-designed mall located at the southern end of the Third Street Promenade.

“Last time around, I think we got a little bit ahead of ourselves,” said Bob Aptaker, vice president of real estate for Macerich. “We thought we knew what the community wanted, but we were wrong and we apologize.”

Macerich had proposed in late 2004 to raze the mall and replace it with three, 21-story buildings that would have included condos, as well commercial and retail space.

The plan was strongly opposed by residents, who said the buildings would not only be out of step with Santa Monica’s small-town atmosphere, but would have also created more traffic in a city that is desperately trying to find solutions to congestion.

The City Council voted against the Macerich proposal, sending company officials back to the drawing board.

Macerich had to put its plans on hold last year when Federated Department Stores Inc. announced it was merging with May Co., the parent of Robinsons- May. As part of the $11 billion merger, Federated said it would close all Robinsons-May stores in malls where there was also a Federated-owned Macy’s. Santa Monica Place fell into that category.

Uncertain what would happen with one of the mall’s anchors, Macerich waited for Federated to make a move before continuing with the redevelopment process.

Federated announced last month that it was selling the Robinsons-May location to Macerich, opening the door for the redevelopment, or what Macerich officials call “re-merchandising” of the space.

“We know now that we must work within an existing footprint of the mall and focus on creating a project that is of a reasonable scale, maximizes the wonderful views, connects with the Third Street Promenade, and one that is environmentally sound,” said Tracey Gotsis, senior vice president of marketing for Macerich. “First and foremost, we want to reach out to the community and hear what they have to say.”

That announcement was seen as a big boost to residents’ efforts to control growth in the city, which has experienced a significant increase in the number of residential and commercial developments, particularly in the downtown area where the mall is located.

Diana Gordon of the Santa Monica Coalition for a Livable City, which sued City Hall to gain access to communications between city staff and Macerich during the previous planning process, said her community watchdog group is “gratified that Macerich has gotten the message that residents want a development that is in keeping with the size and scale of the current mall and that it has finally abandoned plans for luxury residential towers on a partially owned city site.

“We’re also pleased that they have acknowledged that they have made a serious mistake and that they are committed to a real public process this time around — unlike last time,” Gordon added.

> “We’re also pleased that they have acknowledged that they have made a serious mistake and that they are committed to a real public process this time around — unlike last time.” — DIANA GORDON THE SANTA MONICA COALITION FOR A LIVABLE CITY

There is almost universal agreement that something needs to be done with the mall — now seen as a boxy, uninviting relic of the 1980s, when indoor malls were the norm. Now, focus has been shifted to outdoor shopping centers or villages, where shoppers can park their cars and browse in open-air environs.

The mall, which has struggled in recent years to retain tenants, many of whom are now on short-term leases, was last remodeled in 1990.

Macerich, which purchased the property in 1999, hopes to find a better mix of retailers and reconfigure the mall to give it a stronger connection to the Promenade and a redevelopment of the Civic Center just south of the mall. The Civic Center site across from City Hall will include low-income housing.

The mall’s ground-level food court may be moved to a third-floor patio overlooking the ocean.

Gotsis said Macerich is in the conceptual phase of the remodel and plans to hold community meetings within the next 60 days to gather input from residents on a proposal that will be based on comments made by the community during the last planning process.

“We feel that we are working on a good concept that takes into account many of the comments made last time around,” Aptaker said.

Officials with Macerich said they have already held meetings with some community groups, local media and City Hall.

Gordon Anderson, Assistant City Manager, said he and City Manager Lamont Ewell met with Macerich officials last Thursday. According to Anderson, the message from City Hall was clear.

“The process has to start with the community,” Anderson said. “Macerich indicated they fully intended to do so and that they were starting (Friday) by meeting with various groups … so we felt they were starting off right.”

Anderson said City Hall and Macerich are close to reaching an agreement that would bring the mall’s two parking structures in-line with the city’s other structures. Currently, those who use the mall’s parking are allowed three free hours before 6 p.m. If shoppers fail to move their cars after three hours, they can be hit with a $47 parking ticket.

As for the city-owned and operated structures, shoppers can park for two hours free, and then pay $1 each additional 30 minutes, or a $7 maximum daily. Those entering after 6 p.m. pay a flat $3 fee.

The agreement is being made so that Macerich and City Hall can rid visitors of what they call “parking ticket anxiety,” said Randy Brant, senior vice president of Macerich.

“We want to create a parody with our decks and the city’s,” Brant said. “Often, customers don’t plan ahead, or perhaps they’re in a movie that goes over three hours. We don’t want to have them coming back to their cars and having to pay a for a parking ticket.”

Brant said the mall structures will operate just like those operated by the city, complete with gates at all entrances where drivers will receive a parking stub to record when they enter the structure.

*Originally published in the Santa Monica Daily Press print edition on June 5, 2006.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/060506.pdf?ref=smdp.com)