However, as the neighborhood grapples with declining foot traffic and concerns over crime, many people told CBS News Bay Area that Jack London Square is experiencing its worst downturn in decades.

"Crime is an issue that's going to be a problem, especially for a place like Jack London Square that heavily relies on tourists, local tourists, people coming from Napa, Livermore," Wiggins explained.

Derreck Johnson, who owns a restaurant in Jack London, says the Waterfront Hotel closing is a big deal because small mom and pop stores are dependent on big anchors.