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of its lease. As the largest sales tax generator in the City, the closure of Bayfair Mall as a result of the failure of Macy's would have had a significant financial impact on the City. Macy's entered into a 10-year operating covenant with the Agency thus guaranteeing the continuation of that tax revenue and the health of the Mall. Recently Century Theaters leased sufficient lands at the Mall to construct a multi -screen theater (without any appreciable Agency assistance) and such improvements are expected to continue to revive the Bayfair Mall. In 1995, the former City Manager was approached by the Lloyd Wise Company (Developer), owner of auto dealerships in Oakland, with a new proposal. The Developer wanted to redevelop the vacant and blighted properties on Marina Boulevard into a regional auto mall. At the time, the idea was to draw shoppers from outside of San Leandro and entice them to spend their sales tax dollars in the City by purchasing automobiles locally. While the Marina Square Shopping Center was doing well, the remainder of Marina Boulevard consisted of gas stations, body shops, an underutilized training center parcel, a closed food manufacturing plant, vacant properties, fast food establishments and an auto junk yard. As a freeway interchange and gateway to the City, Marina Boulevard not only did not present the image the City desired, but it was uneconomic, physically blighted and unsupportive of the Marina Square Center. Recognizing that private enterprise acting alone could not create the economic engine the City desired, the Agency acquired three parcels of property from owners who had already closed their businesses and moved elsewhere. The Developer also purchased property from willing sellers along Marina Boulevard. The Redevelopment Agency entered into a Disposition and Development Agreement in 1996 to purchase three key properties and convey them to the Developer for construction of the Nissan, Kia and Hyundai dealerships. The Agency also formed the Economic Development Agency and loaned the Developer $900,000 to assist in the acquisition of additional property for the Honda dealership. The dealership is a success and the Developer repaid the loan to the EDA in full. In the exercise of its zoning powers, in 1997, the City of San Leandro adopted the S-Overlay zone establishing land use review criteria for the area along Marina Boulevard between the freeway and San Leandro Boulevard. At that time, the City recognized that the success of the auto mall might attract new businesses to the area. The City desired to exercise sufficient land use control to ensure development along Marina compatible with the auto mall. New car sales and service were the desired uses under the S-Overlay. The Developer's success attracted other dealers to the area. In 1999, GM announced that it would close most of its nationwide network of training centers. One of those to be closed was the Training Center on Marina Boulevard. GM was interested in locating a dealership on Marina Boulevard. At the same time, the Developer had approached GM and the Agency with an ^n 2 o�n