Santa Monica’s City Council voted 7-0 to authorize negotiations with Santa Monica Brew Works over the former Rusty’s Surf Ranch space at 256 Santa Monica Pier. The action clears a path toward a lease, but does not establish that one has been executed. The proposed Surf Shack restaurant would include live music; city staff described it as the pier’s only dedicated live music venue, according to the Santa Monica Daily Press.
The music plan fits a much longer history of entertainment on the pier, though the earlier venues are historical context, not precedents for this lease. The Santa Monica Daily Press reports that Charles Looff added a Pleasure Pier with rides and games in 1916, and that the La Monica Ballroom could hold as many as 5,000 dancers by 1924. Pacific Park opened in 1996 as the first new amusement park on the pier since the 1930s, the paper reported. Those milestones show the pier’s entertainment role has taken different forms over time; they do not, by themselves, establish demand for a new restaurant or live music venue.
Worker protections remain part of the proposal
The proposed terms come after a previous tenant deal unraveled amid disagreement over protections for Rusty’s displaced employees. California Roadhouse was selected from nine proposals in April 2026, but the city ended talks in June 2026 after disputes over labor provisions and changes the company sought, according to the Daily Press and the Santa Monica Lookout.
Santa Monica adopted worker recall and retention requirements for certain hospitality businesses on city-owned property in 2026. The rules require covered employers to offer openings to qualified laid-off workers and provide a 90-day retention period after specified ownership changes, according to Santa Monica Next. The proposed Brew Works lease also includes a labor peace clause and a hiring process for eligible former Rusty’s employees: they would receive notice of a 30-day application window, applicants would be guaranteed interviews, and qualified applicants could receive written offers based on the restaurant’s needs, the Daily Press reported.
One issue remains unresolved in the council’s action: city staff said the worker ordinance did not legally apply to the former Rusty’s space because it had closed before the rules took effect, but the council did not formally decide that question when it approved the Brew Works terms, according to the Lookout. The proposed lease nevertheless retains worker provisions, including protections tied to hiring and organizing.
Different rent and repair responsibilities
The Brew Works proposal sets base rent at $5 per square foot for the interior space, with annual increases of 3%; the city estimates about $215,000 in rent in the first paying year. The city would also provide up to $750,000 for tenant improvements and take responsibility for major building systems, including the roof, plumbing, electrical and HVAC. By comparison, the abandoned Roadhouse proposal was projected to generate about $325,000 annually after its first year and included up to $625,000 for improvements, according to the Daily Press.
The proposed five-year lease includes two five-year extension options. Council member Lana Negrete raised concern that businesses might expect a formal competition, while staff described the selection as a process allowed under the city’s pier leasing guidelines: Santa Monica Pier Corp. received notice of the Brew Works proposal, but the city did not run a formal request for qualifications for this space, the Daily Press reported. Negotiations will determine whether the proposal becomes a signed lease.
