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<SEC-DOCUMENT>0000893220-08-002754.txt : 20081208
<SEC-HEADER>0000893220-08-002754.hdr.sgml : 20081208
<ACCEPTANCE-DATETIME>20081015080656
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000893220-08-002754
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20081015

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CEDAR SHOPPING CENTERS INC
		CENTRAL INDEX KEY:			0000761648
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				421241468
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050
		BUSINESS PHONE:		5167676492

	MAIL ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD /MD/
		DATE OF NAME CHANGE:	20001128

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNI INVEST USA LTD
		DATE OF NAME CHANGE:	20000407

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CEDAR SHOPPING CENTERS, INC.<BR>
44 SOUTH BAYLES AVENUE<BR>
PORT WASHINGTON, NY 11050-3765</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">October&nbsp;15, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E., Mail Stop 4561<BR>
Washington, DC 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD><u>Cedar Shopping Centers, Inc.</u><br>
<u>Form&nbsp;10-K for the year ended December&nbsp;31, 2007</u><br>
<U>Forms 10-Q for the quarters ended March&nbsp;31, 2008 and June&nbsp;30, 2008</U><BR>
<U>File No.&nbsp;001-31817</U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;VanDoorn:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference is made to your follow-up letter dated October&nbsp;9, 2008 bearing the captioned file number
and headings. The following is respectfully submitted by Cedar Shopping Centers, Inc. (the
&#147;Company&#148;) in response thereto:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Form&nbsp;10-K</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;11. Executive Compensation</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;<U>Your Comment</U>: We note your response to prior comment five and your proposed revised
disclosure (to be used in future filings). However, it is still not clear how your comparison of
AFFO performance targets to actual results resulted in the actual payouts for each named executive
officer. We note your disclosure that &#147;&#091;t&#093;arget bonuses were established at a percentage of base
salary according to the executive&#146;s level of responsibility.&#148; Because each of your executive
officers appears to have a different target bonus amount, providing bonus awards on an aggregate
basis is not sufficiently clear. In future filings, please clarify for <U>each</U> named executive
officer the target bonus amount, include a discussion of how actual AFFO compared to the target
AFFO, and discuss how that comparison resulted in the actual payout amount for <U>each</U> named
executive officer. It should be clear from your narrative disclosure how the amounts listed in your
summary compensation chart were derived.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
October&nbsp;15, 2008<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Response</U>: In response to the Staff&#146;s comment, the Company proposes to revise relevant
disclosures in future filings as per the additions (underscored)&nbsp;to the following section excerpted
from the Proxy Statement contained in the Notice of Annual Meeting of Stockholders To Be Held June
17, 2008, as originally filed (the &#147;Proxy Statement&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>&#147;Annual Bonus</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We seek to align the interests of the named executive officers by evaluating executive
performance on the basis of specified financial tests. Target bonuses <U>for 2007</U> were
established at a percentage of base salary according to the executive&#146;s level of responsibility,
<U>which were 100%, 120%, 66% and 78% for Mr.&nbsp;Ullman, Mr.&nbsp;Richey, Ms.&nbsp;Walker and Ms.&nbsp;Mozzachio,
respectively</U>. Of the bonus for the CEO, 30% would be discretionary and tied to strategic
planning, governance, relationship with the Board of Directors, succession planning, and other
factors deemed relevant by the Committee. We attempt to achieve an appropriate mix between cash
payments and equity awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its continuing review of appropriate performance measures in 2006, the Compensation
Committee determined that the bonus award should be based entirely on a calculation of the
Company&#146;s adjusted funds from operations (&#147;AFFO&#148;). The Committee believes that such AFFO
calculation is the appropriate benchmark for incentive compensation. The payout scale for 2007 was
a 3% increase (or decrease) in bonus for each 1% increase (or decrease) in actual performance from
the base target. No bonus would be paid if our actual results were less than 80% of the target. The
maximum payout would be 200% of the target bonus. AFFO is defined as funds from operations (&#147;FFO&#148;),
as reduced by straight-line rents and amortization of intangible lease liabilities, and increased
by non-real estate amortization and the effect of restricted stock awards. For 2007, the Committee
increased the AFFO result for the one-time charge related to the retirement of our former chief
financial officer and for the hiring of a new chief financial officer, which had the effect of
increasing the annual bonus amount by approximately $90,000 in the aggregate for the named
executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each year, a portion of the annual bonus is deferred in the form of restricted stock to be
issued in accordance with the terms of our 2004 Stock Incentive Plan (the &#147;2004 Stock Incentive
Plan&#148;), which is discounted 15% from the market price and which cliff vests on the third
anniversary of the grant date, subject to acceleration of vesting under the 2004 Stock Incentive
Plan upon retirement, death or disability or upon the occurrence of a change in control. For 2007,
the portion of annual bonus allocated to restricted stock was 50%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2007, the Committee set $1.04 per share of AFFO as the performance target for receiving
the bonus, a significant increase over the $0.89 per share of AFFO realized by the Company in 2006.
<U>Actual AFFO for 2007 was determined to be $0.992 per share </U>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
October&nbsp;15, 2008<BR>
Page 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>which, after applying the payout scale described above, resulted in a 13.8% reduction from
the base amount of the target bonus for the named executive officers. The number of shares
applicable to the restricted stock portion of such adjusted annual bonus was in turn increased by
the effect of the discount from the market price of such shares on the date of grant.&#148;</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Company proposes to revise relevant disclosure in future filings as per the
addition of a reconciling table to footnote (2)&nbsp;to the Summary Compensation Table included in the
EXECUTIVE COMPENSATION section contained in the Proxy Statement (the data provided below is for
2007, applicable to the respective named executives for illustrative purposes, and does not include
Messrs.&nbsp;O&#146;Keeffe or Kreider as their bonuses were established and specifically quantified pursuant
to their respective consulting and employment agreements):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;(2) This column represents (a)&nbsp;the total bonus earned in 2007, 50% of which was paid in cash and
50% of which was paid in the form of restricted shares of common stock issued at a 15% discount to
the market price as of the close of business on January&nbsp;2, 2008...&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">Target Bonus Calculation</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Achievement</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Effect Of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Base</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Adjustment</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Market Price</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Net</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">(-13.8%)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">Discount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">Amount</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leo S. Ullman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">456,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(63,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">428,337</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas B. Richey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(44,654</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302,349</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brenda J. Walker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(24,560</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,292</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nancy H. Mozzachio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(26,123</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,875</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the above, the Company hereby acknowledges that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1. The Company is responsible for the adequacy and accuracy of the disclosure in the filings;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;Staff comments or changes to disclosure in response to staff comments do not foreclose the
Commission from taking any action with respect to the filings; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;The Company may not assert staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
October&nbsp;15, 2008<BR>
Page 4

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If, after review hereof, you should have any additional questions or should require any additional
information, please contact the undersigned at (direct)&nbsp;516-944-4525. Thank you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Very truly yours,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ LEO S. ULLMAN
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Leo S. Ullman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chairman, Chief Executive Officer and President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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