Harbor Commission backs lease and license assignments after proposed sale of Santa Barbara Fuel Dock

The Santa Barbara Harbor Commission on Aug. 21 reviewed and recommended the city council approve the transfer of ownership and related lease and license agreements for Santa Barbara Fuel Dock Inc., following notice of a pending sale by the company’s previous owner.

Waterfront Business Manager Cesar Barrios told the commission that JB Dewar Inc., a family fuel and automotive‑products company based in San Luis Obispo, would hold 95% of the ownership shares if the transfer is approved; a second individual would retain a 5% interest. Barrios said the proposed change triggers a required formal lease assignment because it exceeds the 25% ownership change threshold in the existing agreements.

The item covered three distinct documents: assignment of Lease No. 26288 for the fuel dock facility on the City Pier; assignment of Lease No. 26842 for office space at 125 Harbor Way, Suite 8 (with a proposed five‑year extension to the existing term and a proposed base rent of $782 per month for about 218 square feet); and assignment of License No. 28463 for the commercial ice machine on the pier. Barrios said the fuel dock has operated under multiple ownership configurations since the 1950s and that current commercial terms include an existing base rent (carried forward under the assignment), a per‑gallon percentage rent (described by staff as 4¢ per gallon), and a 6% charge on non‑fuel sales from the leased space. He also noted the ice house capacity is about 10 tons of ice per day and that the Waterfront Department handles maintenance of the ice facility.

Commissioners pressed staff on operational continuity, responsibility for recently installed underground fuel tanks, and whether personnel arrangements would change. Barrios said the assignment process carries over existing lease terms to the new ownership and he was not aware of any planned operational changes; he added that the fuel‑dock operator is responsible for maintaining the underground tanks that were installed in recent years. When asked about vetting the proposed owner, Barrios said the assignee supplied financial and operational history; staff noted JB Dewar is a multi‑generation family business with regional fueling operations.

Morgan Voss, vice president of JB Dewar and a fourth‑generation family member, spoke during public comment. Voss said the company intends to maintain staffing levels and hours of operation, emphasized safety and regulatory compliance, and described existing service relationships with McCormick’s (the seller) and local customers.

Commissioner Cohen moved approval of the three assignments and Commissioner Stedman seconded. The motion passed unanimously with all commissioners voting in favor.

What’s next: The commission’s vote forwards the proposed assignments to city council for final approval; staff said the assignment process will continue to require standard city review and council action before ownership transfers take effect.