ALBANY : Southern California-based firm likely to pursue other local projects, possibly in Berkeley or Richmond

By Alan Lopez

High-profile Southern California developer Rick Caruso is quitting his effort to build an open-air shopping mall and housing project along the Albany shoreline, a representative confirmed Tuesday.

"We will find other opportunities and other projects in the Bay Area and move on from here," said Matt Middlebrook, an executive with Caruso Affiliated.

The decision followed a failed effort by Caruso to secure a guarantee from the City Council on Monday night that it would complete an environmental impact report for the project, which was planned for empty parking lots at Golden Gate Fields.

"We anticipated going in," Middlebrook said, "that if some certainty wasn't added to the planning process, we knew it wasn't going to be feasible to proceed with an application."

City Councilwoman Jewel Okawachi said she was disappointed.

"I don't blame him for the uncertainties," Okawachi said. "And he can go anywhere. I hear Berkeley wants his development there and Richmond wants the development there. So he doesn't have to stay here."

City Councilman Robert Lieber, a vocal opponent of waterfront development, was skeptical that Caruso was giving up on Albany, saying it would be politically expedient to wait until a more sympathetic council is elected.

"There's a lot of money that's already been spent on this project," Lieber said. "To pull out cold turkey doesn't seem like his style."

Caruso, the 47-year-old son of Dollar Rent A Car founder Hank Caruso, has a reputation for being a shrewd dealmaker who works closely with citizens to earn their approval for his elaborate projects. His most famous development is the Grove, a 575,000-square-foot mall in West Los Angeles.

In January 2005, Caruso Affiliated opened an office on Solano Avenue and began holding dozens of community meetings to find out what kind of project residents wanted.

Under Measure C, the 1990 waterfront protection measure, voters would have the final say over whether the project was built.

In May, Middlebrook said Caruso was planning to increase the amount of open space in the project to about 18 acres and push back the development to 300 feet from the water. It originally was proposed to be 200 feet. The retail portion of the development was pegged at no more than 420,000 square feet, with between 135 and 150 apartments.

The project, which Caruso estimated would pump $2 million annually into city coffers, became the most hotly debated topic in Albany.

It prompted a citizens initiative sponsored by local environmental groups that would prevent development from within 600 feet of the shoreline. A legal challenge to the initiative is scheduled to be heard in Alameda County Superior Court today.

"This is very good news," said Robert Cheasty, a sponsor of the initiative and a former Albany mayor. "I'm happy to hear that Mr. Caruso has other opportunities to pursue. I wish him the best. We need to get to work on planning for the future of the shoreline in a way that makes sense."

But according to an e-mail from City Administrator Beth Pollard, Caruso will keep his office open on Solano Avenue while he pursues other projects.

It remains to be seen what those projects may be. Cisco DeVries, the chief of staff for Berkeley Mayor Tom Bates, said Tuesday that it was "extremely unlikely" that the reaction in Berkeley to the Caruso mall would be any different from its neighbor to the north.

It is also unclear how Golden Gate Fields, owned by Magna Entertainment Corp., will be affected by the announcement. Middlebrook said Caruso would continue to work with Magna on a project at Santa Anita racetrack in Southern California, but it had no future plans for Golden Gate Fields.

Peter Tunney, the top executive at Golden Gate Fields, did not return phone calls.

Reach Alan Lopez at 510-243-3578 or alopez1@cctimes.com.

Significant developments in Caruso Affiliated's effort to build a retail and housing project at Golden Gate Fields.

• JANUARY 2005 --Caruso opens an office on Solano Avenue and begins holding meetings with residents to discuss plans for the development.

• JUNE 2005 -- A privately funded poll shows that 60 percent of residents think waterfront development is a bad or very bad idea. Questions are raised about the credibility of the poll.

• OCTOBER 2005 -- Caruso offers preliminary plans of its proposal for public review.

• JANUARY 2006 -- A coalition of environmental groups announces an effort to place an initiative on the November ballot that will preserve as open space most of the land along the waterfront.

• JUNE 2006 -- Golden Gate Fields sues to stop the initiative from being placed on the ballot, arguing that proponents failed to properly alert the public about it.

• JULY 2006 -- Caruso announces it is dropping its development plans after the City Council refuses to guarantee it will complete an environmental impact report for the project.