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Council approves Pier lease for California Roadhouse with worker-recall terms
Summary
The City Council authorized a lease for the proposed California Roadhouse at 250 Santa Monica Pier, including staged tenant improvements and explicit worker recall and retention language requiring a 90-day hiring window to offer prior Rusty's employees positions.
The Santa Monica City Council on May 12 authorized a lease agreement with California Roadhouse, Inc. for the 4,000-square-foot restaurant space at 250 Santa Monica Pier previously occupied by Rusty's Surf Ranch. The lease sets base rent at about $27,000 per month with a 3% annual escalation, staged tenant-improvement support of $500,000 and limited rent/CAM waivers intended to align patio areas with adjacent property. Council members voted unanimously to approve the lease after securing explicit worker-recall protections.
City staff said the operator will receive the tenant-improvement allowance in stages tied to construction milestones and that all lease improvements become city property at the end of the term; the city retains audit rights and a five-year clawback on the T.I. funds if the operator fails to meet agreed conditions.
Crucially for employees displaced when Rusty's closed, the lease requires the Roadhouse to open a hiring window within 90 days before opening. Former Rusty's staff who apply during that period must be offered positions and may be retained for a minimum 90‑day period; employees who receive satisfactory reviews must be considered for continued employment beyond that period. Council directed staff to ensure the lease language mirrors the city's worker recall and retention ordinance.
Supporters and opponents addressed the council at length during public comment. Unite Here Local 11 and former Rusty's employees urged strict application of the city's recall law, insisting offers must be job offers (not only interviews). The prospective operator, Sean Ahos, and many local patrons and workers said he treats staff well and promised to rehire members of the former workforce. Council members debated where the balance of risk lay, then made staff changes to the draft to ensure the city's ordinance protections are embedded in the lease.
City staff said the proposal was vetted through a competitive solicitation that drew more than 100 inquiries and nine formal proposals; staff recommended California Roadhouse as the best fit to reactivate the Pier with dining and live music. The council emphasized that the Pier is a public asset and that lease terms can and should reinforce local policy goals, including worker protections and long-term activation.
The council authorized the city manager to negotiate, finalize and execute the lease consistent with the terms discussed and to return if any final terms diverge from council direction. The motion carried with unanimous support.
