The Santa Barbara Harbor Commission on Oct. 2025 voted unanimously to recommend that city staff negotiate a five-year lease with Conway Vineyards Incorporated for 1,942 square feet of retail space at 217 G Stearns Wharf.

City staff described the space as including about 1,942 square feet of indoor retail area and roughly 442 square feet of exterior dock/deck space that is also used by the public. Waterfront Business Manager Cesar Barrios said Conway Vineyards, which operates as Deep Sea Conway Family Wines, has leased space on the wharf since October 2010 and is a tenant in good standing with no outstanding defaults.

Barrios told commissioners the proposed five-year term is shorter than prior long-term leases so the city and tenant can reassess market conditions more frequently. He said base rent is to be determined with the goal of setting a market rate; the lease would continue a standard percentage-rent structure with 10% of gross receipts and include an annual Consumer Price Index adjustment. Barrios also noted the standard general liability insurance requirement of $2,000,000 would apply.

Commissioners asked about Conway’s prior rent and the role of percentage rents in waterfront leases. Barrios said Conway has paid about $11,000 per month under the prior lease. He and Waterfront Director Mike Wilshire explained the city uses a base-plus-percentage model for many food-service and retail tenants to allow lower base rents during slow periods while sharing upside when businesses do well. Commissioners discussed the trade-offs between stable, higher base rent vs. percentage rent and noted the waterfront is in the process of updating a citywide leasing policy.

With no public comment, Commissioner Cohen moved and Commissioner Nelson seconded the recommendation that staff negotiate the five-year lease. The motion passed unanimously; Commissioners Cohen, Nelson, Stedman and Chair Adam Stanowick voted yes, with Commissioners Anderson and McCray absent.

The commission’s recorded action was a recommendation to staff to negotiate terms; the final lease and precise base-rent amount remain to be negotiated and returned to the city for execution or further approval as required.