Alameda City Council Orders Study of a Vacancy Fee

The Alameda City Council voted 5-0 on September 15, 2026, to have city staff study a vacancy fee on big empty store spaces, like closed grocery stores and pharmacies, and report back by March 2027. Harbor Bay Landing on Bay Farm Island is the shopping center that got the council talking.

• What: A study of a "large-format, commercial vacancy fee" in Alameda, CA
• Who asked: Councilmember Tony Daysog, through a council referral
• Vote: 5-0, by voice vote, at the September 15 regular meeting
• Next step: Staff research and recommendations due back to council by March 2027
• Where it would apply: Citywide, not one property

What is the Alameda vacancy fee idea?

It's a possible charge on owners who leave a big, foot-traffic store space sitting empty.

Daysog's referral aims at stores people visit again and again, like grocery stores and pharmacies. He told the council small business owners wouldn't be subject to it. He also said he thinks very few shopping centers in Alameda fit the idea.

Is this about Harbor Bay Landing?

It's what sparked the talk, but the city attorney's office said any fee would have to apply to the whole city.

Mayor Marilyn Ezzy Ashcraft said she's concerned about the Harbor Bay Landing Shopping Center and asked whether a tax could reach back in time. The Acting City Attorney said taxes generally aren't retroactive and there are constitutional limits, but staff can look into it.

Councilmember Greg Boller, who lives in Harbor Bay, said the study shouldn't stop the city from doing other things to help. He also noted the center is private property. The mayor said some talks may happen in closed session soon.

Would Alameda voters have to approve a vacancy tax?

A general tax would, yes. The Acting City Attorney said it would have to go on the ballot and follow state rules under Propositions 218 or 26.

That's why staff will look at a wide range of fees and taxes, not just one. Some fees, like a code enforcement penalty, might work differently.

Not everyone's sold on it working. The mayor said cities with a vacancy tax haven't found it fills empty stores. City Manager Gerry Beaudin said staff hadn't researched it yet. He also found a vacancy tax item in the city's Strategic Plan marked complete and couldn't track down how that happened.

What happens next

Staff will bring research and recommendations to council by March 2027. The council minutes say the city manager also plans to return before then on the Strategic Plan question. You can read the full record on the September 15 council meeting page.

For more on Bay Farm's shopping center, see La Penca Azul reopening at Harbor Bay Landing, or follow our Alameda development news.