City Council approves California Roadhouse lease on Pier with hiring protections for former Rusty’s staff

The Santa Monica City Council on Tuesday approved a lease agreement with California Roadhouse, the operator selected to re‑open a restaurant space at 250 Santa Monica Pier, authorizing the city manager to finalize terms that embed the city’s worker‑recall protections.

City staff told the council the roughly 4,000‑square‑foot lease carries a base rent of about $27,000 per month, annual 3% increases, and a $500,000 tenant improvement allowance that will be distributed in staged disbursements and subject to audit rights and a clawback. The lease also includes limited rent and common‑area maintenance waivers to align patio grades and facilitate operations on the Pier.

The lease was amended through council discussion to mirror Santa Monica’s February recall/retention ordinance for the special circumstances of a closed prior business. Because Rusty’s Surf Ranch closed in 2024, staff explained the new operator will run a formal hiring window within 90 days before opening; former employees who apply during that window will be offered positions and retained for at least 90 days. After 90 days the operator must provide a written performance evaluation and give continued employment to staff who meet the standard.

Sean Ahos, who identified himself as owner of the California Roadhouse, thanked the council and said the concept is intended to bring live entertainment and jobs to the Pier. “We believe our proposal will bring a much‑needed outlet for live entertainment and job growth to our community while simultaneously considering and balancing the needs of a small business such as California Roadhouse together with those of our local and much‑appreciated workforce,” he said.

Union and worker advocates urged the council to require full compliance with the city’s retention law. Pastor Bridey Roberts of Unite Here Local 11 told the council, “Santa Monica’s worker retention and recall law requires that former workers be offered jobs, not just interviews. We are concerned the proposal falls short of guaranteeing the same rights that the law provides.” The lease language adopted by the council was changed to ensure former Rusty’s employees who apply are offered positions, not merely interviewed.

Council members debated balancing protections for the Pier workforce with the financial viability and market risk of a new operator. Supporters pointed to the city’s authority as landlord of the Pier to attach terms that reflect community values. Opponents’ concerns—mainly procedural—centered on whether the worker‑recall rules strictly apply to a newly negotiated lease where the prior operator had already closed. After amendments and assurances from the city attorney and manager about how the hiring window and staged improvements would be administered, the motion to authorize the lease passed by roll call vote; council directed staff to finalize the lease consistent with the city’s recall/retention ordinance.

The council also discussed the city’s financial exposure for improvements and confirmed that the tenant improvements become city property at the end of the lease, with staged payments and audit authority to limit risk.

Next steps: staff will finalize the lease documents with the operator and return any ministerial paperwork required to execute the agreement. The new tenant must post required hiring notices and proceed with the hiring window described in the lease.