City of Morro Bay
Request for Proposals
Redevelopment of
Lease Site 86/86W
801 Embarcadero
Morro Bay, CA 93442
Project: MB-2025-HD01
September 25, 2025
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 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 October 16, 2025, at 10:00 a.m. PST
PROPOSALS DUE:
Thursday December 18, 2025, 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-HD01
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 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 substantial 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 subsequent lease agreement will become effective once approved 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 affordable 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.
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.
•
Development of a Public Plaza in the adjacent City owned parcel.
•
Strengthens the area’s appeal to visitors, boosts the local tourism economy
•
Restore and/or enhance the environment, where applicable.
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•
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 Downtown Waterfront Strategic 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 to ensure maximization of public benefit 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. Lease
extensions are regularly granted during lease terms when improvements are made to the Property.
The recently approved lease for this Property had a 40 year term which was to commence after
occupancy.
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.
