City of Morro Bay
Request for Proposals
Redevelopment of
Lease Site 86/86W
801 Embarcadero
Morro Bay, CA 93442
Project: MB-2025-HD02
May 21, 2026
SUBJECT:
REQUEST FOR PROPOSALS FOR:
Lease Site 86/86W
801 Embarcadero, Morro Bay, CA 93442
Prospective Proposers:
The City of Morro Bay invites the submittal of proposals from qualified individuals and entities
(Proposer) to redevelop public land and water located on the Embarcadero for Lease Site 86/86W,
located at 801 Embarcadero, Morro Bay, CA 93442 (Property).
The City of Morro Bay intends to select a Proposer to redevelop the Property. The Property will be
available on a long-term ground lease basis after Concept Plans for site redevelopment are approved.
The existing lease on site 86/86W expired on July 31, 2025.
A recent redevelopment plan submitted by the previous leaseholder received Coastal Development
approval from the California Coastal Commission and Conditional Use Permit approval from the City.
A new proposal of similar design and scope (e.g., same building footprint, mix of uses, and public benefits,
etc.) as the previous redevelopment plan will likely benefit from a streamlined permitting process
through initiation of existing entitlements or request for minor amendment process. The City is in the
process of proactively requesting an extension for the Coastal Development Permit which is currently
set to expire in June 2026.
Instructions and forms to be used in preparing a proposal are found in the information included in
the RFP document. The activity schedule for the RFP is included.
For more information and a copy of the City of Morro Bay Harbor Department Lease Management
Policy, as well as a copy of the City’s standard lease format, visit the Harbor Department’s page of
the City website under “Harbor Administration and Leases.” If you cannot agree to the requirements
exactly as set forth in the RFP, then please do not submit a proposal.
For general questions, please contact Chris Munson, Harbor Director, by email at
cmunson@morrobayca.gov. Specific questions relevant to the RFP must be submitted as- directed
in the “Invitation to Participate” section of the RFP. It is the responsibility of any Proposer to
review the City’s website for any revisions or answers to questions regarding the RFP prior to
submitting a proposal in order to ensure all proposals are complete and responsive.
PRE-PROPOSAL MEETING: Thursday June 18, 2026, at 9:00 a.m. PST
PROPOSALS DUE:
Thursday September 30, 2026, by 4:00 p.m. PST
Sincerely,
Chris Munson – Harbor Director
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Redevelopment of
Lease Site 86/86W,
801 Embarcadero, Morro Bay, CA 93442
Project: MB-2025-HD02
TABLE OF CONTENTS
INTRODUCTION ................................................................................................ 4
SECTION I SITE HISTORY ......................................................................... 6
SECTION II SITE DATA ............................................................................... 7
SECTION III INVITATION TO PARTICIPATE............................................ 9
SECTION IV SELECTION PROCESS.......................................................... 11
SECTION V REQUEST FOR PROPOSALS SUBMITTAL PACKAGE .... 14
SECTION VI TENTATIVE PROPOSAL SCHEDULE ................................ 18
SECTION VII ATTACHMENTS.................................................................... 19
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INTRODUCTION
Purpose
The City of Morro Bay (City) as trustee of sovereign tide and submerged lands administers all State
Tidelands along the Morro Bay waterfront that were granted to the City upon incorporation. The City
invites proposals from qualified individuals and development teams (Proposer(s)) for redevelopment
of Lease Site 86/86W, public land and water located at 801 Embarcadero, Morro Bay, CA 93442,
recently operating as a restaurant and brewery, and hereinafter referred to as the “Property” or the
“Site.”
The City’s goal is to transform this currently underutilized waterfront site into a vibrant, economically
sustainable, and publicly accessible destination consistent with the Public Trust Doctrine, the
California Coastal Act, and the City’s adopted planning documents. Proposals must enhance public
access to and enjoyment of the waterfront, be financially feasible, and provide meaningful community
benefits, while protecting the environmental, navigational, and recreational values of the harbor.
The Site includes land and water lease sections and will be available for long-term lease after Concept
Plans for the selected Proposer’s proposal are approved and a lease negotiated and executed. The term
(length) and conditions of the long-term lease to be awarded as a result of this Request for Proposals
(RFP) will be negotiable, depending on the investment and redevelopment plan of the Proposer. The
lease agreement would become effective upon final approval by the City Council.
Objectives
The Morro Bay City Council has determined it is in the best interest of the City and public to
consider redevelopment proposals for the Site. The City desires to have the Property redeveloped
to continue to provide visitor-serving opportunities that provide access to the bay, as well as an
economic return to the City, while meeting modern design criteria that incorporate current planning
and building codes for uses that are the most beneficial to the Embarcadero visitor-serving and
business environments.
While proposals are expected to address the identified objectives, the City is open to proposals that
think “outside the box” and meet the intent of the City’s objectives and increase the viability of the
development.
Key Development Objectives:
• Best and highest use of both the land and water portions of the S ite to maximize
revenues and return on investment.
• Improved viewshed and façade.
• Optional development of a Public Plaza in the adjacent City owned parcel.
• Optional consideration of lease line boundary extension.
• Strengthens the area’s appeal to visitors, boosts the local tourism economy
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• Restore and/or enhance the environment, where applicable.
• Include public amenities (e.g., public restroom, Harborwalk extension, public seating, interpretive
signage).
• Design to be resilient to sea level rise and coastal hazards.
• Proposals must conform to the City’s Waterfont Master Plan and Local Coastal
Program, including, but not limited to:
- Minimum 8-foot wide sidewalks and 10-foot wide lateral public access along the
waterfront – Maintain and enhance continuous public waterfront access.
- Architectural, and perhaps functional, emphasis on fishing village / marine heritage /
working waterfront / national estuary themes.
- ADA compliance.
- Incorporation of sustainability or “LEED” features, such as (but not limited to) solar,
rainwater retention, drought-tolerant landscaping, recycling and waste management
and stormwater runoff best management practices.
The City desires to solicit proposals that will advance public benefits from the redevelopment and
enter into a long-term lease agreement for the Site. To do so, it is seeking Proposers who have the
proven experience, financial resources, and professional expertise to deliver the highest quality and
economically feasible project that is consistent with and best implements the land and water uses
outlined in the City’s Downtown Waterfront Strategic Plan, General Plan, Local Coastal Program,
Harbor Department Lease Management Policy and City Council Goals and Objectives.
Since the Property is located within State tidelands which were granted to the City, the maximum
allowable lease term is 50 years per the land grant conditions. However, the City currently favors
terms shorter than the 50-year maximum allowable to minimize the likelihood that the Property will
fall into disrepair and to promote further improvements in the lease site prior to expiration. New
leases (extensions) are regularly granted for Tenant’s in good standing when Property improvements
are proposed as a condition of the new lease agreement. The previously approved lease for this
Property would have had a 40-year term following completion of the project.
Proposers shall clearly state the lease term they are requesting for their proposed redevelopment
project and provide a detailed justification for the requested term. Justification may include, but is not
limited to, the scale of capital investment, anticipated construction costs, complexity of the
development, financing requirements, and the project’s long-term economic, recreational, and
community benefits. The City will evaluate the proposed term in light of the project’s consistency
with Public Trust purposes, the benefits provided to the community, and the reasonableness of the
requested duration relative to the investment.
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This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.
