Harbor Commission recommends negotiations with Corazon Sal de Mar for Anchor Rose downstairs space

The Santa Barbara Harbor Commission on Feb. 20 unanimously recommended that city staff begin lease negotiations with Corazon Sal de Mar for the 2,954‑square‑foot downstairs restaurant space at 113 Harbor Way, the former Anchor Rose location.

Waterfront Business Manager Cesar Barrios told commissioners that staff received two proposals for the downstairs space and convened a seven‑member panel of subject matter experts to evaluate them. The panel, which included members of the Harbor Commission RFP work group and waterfront and parks staff, ranked Corazon Sal de Mar highest; the waterfront director supported forwarding the recommendation to city council for lease negotiations.

Barrios said the proposers plan an elevated Mexican‑seafood concept led by Chef Ramon Velasquez and operations partner Dudley Michael. Staff reported the proposer estimates an initial investment of about $750,000 for interior remodel, bar build, furniture and equipment, and projected annual revenue of 3,500,000; Barrios said detailed financial and credit references will be requested and verified during the negotiation phase.

Commissioners asked about scoring, credit documentation and conflicts of interest. Barrios acknowledged neither proposal provided credit reports at submittal; staff said credit references are typically obtained once a proposer is selected and negotiations begin. Commissioners also raised whether a proposer already operating other harbor restaurants creates an undue concentration; staff said they considered business diversification in scoring and that lease assignments or ownership changes greater than 20% would require Harbor Commission review.

Commissioner Cohen moved to direct staff to begin negotiations with the recommended applicant; Commissioner Stedman seconded. The motion passed unanimously with Commissioner Anderson absent. If negotiations proceed, staff will return a draft lease for Harbor Commission review before the item goes to city council for final approval.

Action steps: staff will initiate negotiations, request credit and financial documentation from Corazon Sal de Mar, and prepare a draft lease for future Harbor Commission review and city council consideration.