Morro Bay could get 2 new waterfront hotels — and an expanded harbor walkway

Morro Bay could soon see a pair of new boutique hotels on the Embarcadero — and a revamped harbor front to go with them.

The Morro Bay Planning Commission on Tuesday approved a concept plan to renovate the Off The Hook building, 833 Embarcadero, into a new 25-foot-tall development that includes an eight-room boutique hotel on the second floor.

It would also consist of restaurant space, a yogurt shop, public restrooms and ground-floor retail, according to the meeting agenda.

With the planning commission’s approval, the 7,994-square-foot concept plan submitted by TLC Family Enterprises will be forwarded to the Morro Bay City Council for consideration; the project also will require approval from the California Coastal Commission.

Scot Graham, community development director, said Tuesday’s approval is the first step of many before the project will be up for building permit consideration.

Another proposed hotel project is much closer to completion, though.

The commission on Tuesday also approved the “precise plan” for a 10-room boutique hotel on the second floor at Rose’s Landing, 725 Embarcadero. That project is now cleared to apply for building permits.

It’s a building conversion, as opposed to the proposal at 833 Embarcadero, which would see the construction of a new building.

Graham said several restaurants have attempted to operate out of the second floor of Rose’s Landing but failed, in part due to poor street visibility.

Owner Doug Redican’s proposal is a more fitting usage of the space, Graham said.

Both projects are a strong bet to bring in additional transient occupancy tax revenue. Bayfront rooms “typically generate the greatest amount of TOT by percentage,” Graham said.

In addition, they are occupied 75 to 80 percent of the time, he said.

Beyond the tax revenue, both hotel projects will bring an ancillary benefit: The harbor walk will be greatly expanded. Both proposed projects include a harbor-facing walkway expansion.

Graham said future projects, including a possible remodel of the Libertine Brewery, will lead to greatly expanded public waterfront access along the Embarcadero.

“We’re going to (fill) a big portion of one of the gaps that we have on the harbor walk over the next couple of years, so that’s really exciting,” Graham said.

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This story was originally published August 22, 2018 at 5:29 PM.