By Jorge Casuso

Editor's note: This article has been updated to include information concerning an amendment to the lease that remains unclear.

April 30, 2026 -- The City Council unanimously approved a lease for the California Roadhouse Tuesday night after a final push by the hospitality workers union to alter its terms.

The final lease, however, includes a last-minute verbal amendment concerning worker protections that remains unclear and must be approved by the new tenant.

The lease for the City-owned space on the Pier seemed a done deal after Roadhouse owner Sean Ahaus offered to rehire all the workers who had lost their jobs when the previous tenant, Rusty's Surf Ranch, shut down last year during a unionizing drive ("Council to Vote on Roadhouse Lease," April 27, 2026).

Ahaus' offer came after negotiations stalled when UNITE HERE Local 11 -- which had held demonstrations and threatened legal action over the lease -- pushed to include the terms of a Worker Protection Ordinance approved in February that could not be applied retroactively.

In the end, the labor-friendly Council approved a lease that "met the goals" of the ordinance "by promoting employment continuity and supporting workforce stability while preserving operational flexibility for the tenant," according to the staff report.

"This was a tough process," said Councilmember Jesse Zwick. "I think that we did get a solution. This is a great example of how we can have a thriving economy and a protected workforce."

"I'm excited for this opportunity," said Councilmember Ellis Raskin. "I'm proud we've reached a point where we could get a win-win."

Councilmember Lana Negrete, however, warned that the process that led to the lease set "a very dangerous precedent" by forcing a new operator into "predetermined hiring decisions before they even open."

"We've allowed outside forces to enter into lease negotiations and force a right to recall that is not applicable legally to this entity," Negrete said.

Negrete noted that the right to recall workers only applies "when there was an existing business that was still operating," Negrete said. "We are going above and beyond. This isn't even legally applicable."

Under the lease terms, all former Rusty's workers who apply "are rehired and guaranteed at least 90 days of employment, during which they may only be terminated for good cause, lawful cause, or a bona fide reduction in force," staff wrote.

The worker provision "also requires written job offers, objective retention standards, and detailed recordkeeping, allowing the City to monitor and verify compliance."

But the amendment made by Raskin raises questions concerning the application of the municipal code to the lease.

Mayor Caroline Torosis told The Lookout the amendment "just said we aren't opining on the applicability of the recall and retention ordinances."

In her comments during the meeting, Torosis emphasized the City's right as the landlord to set the terms.

"The Santa Monica Pier belongs to the people of the city, and we are the landlords, and we have made a policy decision to protect workers" in the hospitality industry that helps the city prosper.

"We as landlords get to set the terms," she said.

The unanimous vote caps a normally straightforward process that began nine months ago and will bring a restaurant with daily live music back to the shuttered space on the Pier that Rusty's had occupied for 30 years.

Before the vote, two dozen supporters of both the union and the Roadhouse faced off after the item was pulled from the Consent Calendar for discussion.

More than half a dozen union supporters -- including members of Clergy and Laity United for Economic Justice CLUE) -- urged the Council to hire all of Rusty's workers back.

"The worker retention law require they be offered jobs, not just interviews," said Pastor Bridie Roberts, the Community Organizing Director for UNITE HERE Local 11.

"We are concerned that the proposal falls short of guaranteeing the same rights that the law and every other worker retention law provides."

The union testimony was countered by a dozen supporters of the Roadhouse that included members of the Ahaus family and regulars at VITO, a local restaurant Ahaus co-owns.

"There's jobs, and then there's dreams," Sean's younger brother Mohan told the Council. "You can get new jobs, but not a lot of opportunities come to make our dreams come true. This is Sean's dream."

Ahaus' wife, Melissa, told the Council her husband "doesn't just want to open a business. He wants to do things the right way for the right reasons.

"Santa Monica is not just gaining a new storefront," she said. "You're gaining a new neighbor that has integrity and was born to do this. It's going to be so cool."

Jeff and Debbie Jeffries, who are regulars at VITO, said Ahaus' vision and passion for the Roadhouse will "make the Pier come alive."

"Santa Monica is starving for live music," said Jeff, who is a jazz musician. "Let's get it moving."