By Jorge Casuso
April 27, 2026 -- After half a year of stalled negotiations, the Santa Monica Roadhouse lease that would bring live club music back to the Pier seems set for approval by the City Council Tuesday.
The "negotiated lease" for the City-owned space will be voted on in public session as a Consent Calendar item that is usually approved with no discussion.
The vote comes two weeks after Roadhouse owner Sean Ahaus told the Council during public testimony that he would rehire all the former employees of Rusty's Surf Ranch after it shut down amid a unionizing effort.
Ahaus said Sunday he had not seen the final version of the lease that was verbally agreed to by City Manager Oliver Chi but is optimistic it will be approved.
"We verbally went over the deal points," Ahaus said. "Verbally it seems like we agree. We're just waiting to see what's on the page."
If approved, the vote ends a six-month standoff after the Santa Monica Pier Corporation recommended the Council approve an earlier version of the lease last October that led to protests and threatened litigation by UNITE HERE Local 11.
The pro-labor Council took no action on the lease during three closed sessions this year, as the union lobbied to apply a worker recall law approved by the Council in February, long after lease negotiations with Pier Board started last summer.
A version of the lease sent to Ahaus by the City Manager last Wednesday included a clause under the heading "Retention Period; Termination Standard."
It read: "An Eligible Worker retained pursuant to this Section shall be employed under terms and conditions established (by) Predecessor Operator, consistent with applicable law and shall not be discharged except for good cause or other legal cause based on individual performance or a bona fide reduction in force."
Ahaus, who had noted the City the worker retention law does not apply retroactively, responded.
"What exactly are all the terms and conditions established by the Predecessor Operator, for Eligible Workers that you are asking I follow?
"Aside from much needed clarification, I believe we're all in agreement with about 99% of the other key deal points here."
In the email, Ahaus noted that the Roadhouse submitted a letter of intent that included "our desire to offer even greater employment opportunities than you've been requesting."
Under the negotiated five-year lease the Council will take up on Tuesday, the worker recall law that went into effect on March 12 only applies on "a going-forward basis."
"This approach is consistent with how ordinances are generally applied and case law, particularly given there are consequences for violation of the ordinance, including monetary damages," staff wrote in its report.
The new law requires hospitality businesses on the Pier and nearby hotels on City-owned property to offer open positions to laid off workers ("Council Approves Narrowed Labor Policy," February 2, 2026).
While the workers from Rusty's "do not qualify for retention rights" under the new law, staff said, the proposed negotiated lease ensures that "eligible former employees receive a meaningful opportunity to return to work at the leased premises."
Under the negotiated terms, the California Roadhouse will pay $26,728 a month for the approximately 4,100-square-foot space at 256 Santa Monica Pier that includes a 1,073-square-foot patio.
The permitted use includes a casual dining restaurant that can sell alcohol, with "a curated live music daily program," according to the report to the Council from staff.
The lease also includes a one-time City capital contribution of up to $500,000 "to fund eligible capital improvements and permanently affixed furniture, fixtures, and equipment."
The improvements would become the property of the City after the end of the lease, which the Roadhouse has an option to extend for an additional five years.