Santa Monica Voids Lease Negotiations with California Roadhouse

SANTA MONICA—On July 7, the city of Santa Monica voided their lease negotiations with the business owners of California Roadhouse to occupy the restaurant space located at 256 Santa Monica Pier. According to Santa Monica City Manager, Oliver Chi, the lease agreement process has reportedly been called off due to non-compliance. The company failed to meet employee protections required to utilize the space. The process began six months ago in November 2025, with negotiations to bring in a new restaurant into the vacant Rusty’s location on the Santa Monica Pier. On January 7, the City of Santa Monica again announced that the Historic Santa Monica Pier building was to become Route 66 themed California Roadhouse. Following a delay from the Unite Here Local 11 Labor Union, prompted officials to pull them off the March 24 agenda. On April 13, the city gave an update indicating that the leasing process had been stalled. July marks the one-year anniversary since Chi took over as City Manager accepting an annual salary of $410,604. This is reportedly the fifth city that Chi has held the top position, the first being Rosemead at 27. He oversees a city budget of close to $8 million and approximately 2,000 employees. For those in the restaurant industry looking to occupy the vacant 4,000 square foot pier space, there are strict rules to abide by. The cost is $27,000 per month with a three percent annual increase. Business owners sign a lease agreement with the understanding that they must give preference to former pier restaurant employees before hiring new personnel. This practice is referred to as a worker-recall ordinance. Tenant Improvements are expected and the city may allocate funds from time to time up to $500,000 for improvements. Improvement allowances are audited to prove the work paid for has been completed. Leases may include maintenance waivers to help business owners and operators to manage the upkeep of their patio grades to match the rest of the pier. Leases must pass a unanimous vote from the City Council and the City Manager finalizes the leases terms of agreement. By Sharon