Council delays Ocean Walk lease assignment after members press for stronger enforcement

The Council discussed a proposed assignment of the Ocean Walk ground lease (Resolution 171‑25) and decided to postpone action until the Jan. 21, 2026 meeting to allow staff and councilmembers to negotiate stronger enforcement language.

Assistant City Manager Coppin and staff reviewed a punch list of maintenance items at Ocean Walk (grease traps, lighting, cracked sidewalks and other safety/maintenance deficiencies). Staff reported 8 of 11 punch‑list items are complete and that the proposed new lessee has agreed to finish remaining work. Several councilmembers said the original lease lacked sufficient enforcement remedies and asked for assignment terms that would make the transfer contingent on completion of listed items within set deadlines or create explicit remedies if items are not corrected. The city attorney advised the council that, under the existing contract, assignment cannot be unreasonably withheld; if the council denies assignment without legal basis, the prior lessee remains responsible.

Council agreed to postpone the item to January and directed staff to meet individually with council members and return with clearer enforcement options — including a schedule, milestones, and an enforcement mechanism — to present at the January meeting.