AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8a
MEETING DATE: November 12, 2025
2 levels. A vital economy is adaptable, creates wealth, and supports both current well-being and future sustainability.”
I applaud the City Council for stating economic vitality is one of its four major goals. I also applaud efforts to develop a future waterfront plan engaging stakeholders to listen to each other while planning for this vital economic engine sector of Morro Bay’s top – if not only -- economic driver, tourism. It all starts with a defined plan, but then a shared community commitment based on a realistic timeline, and financial capability to make it happen.
I hope we can also include a creative plan to develop housing opportunities for the individuals Morro Bay needs to live, work, and create our future wealth for the sustainability of our community. We need to identify and fast track housing opportunities and availability for what is now called “the missing middle.”
Sincerely,
Judy Salamacha
Note: I have been a resident of Morro Bay for over 23 years. I relocated not to retire, but to discover my dream career with local newspapers. I am an active member of the Morro Bay Chamber of Commerce participating in BAC committee and a founding member of the Morro Bay Maritime Museum plus a longtime supportive member of the Historical Society of Morro Bay. I’m blessed to have helped my children relocate and eventually find housing as they found or created careers on the Central Coast. I believe our city’s future is healthier when we maintain what’s best of community’s history and vibrancy. But I’m a realist that understands that means moving forward with new and renewed actions to be competitive as we preserve what makes us unique and attractive to new residents and visitors.
2 Use available resources for resident and visitor serving infrastructure or services that increase revenue for the City.
While I have not been paying close attention, it seems to me that several of the items on the list above - which are proven sources of increased economic activity for cities of all sizes nationwide - have been reviewed and determined to be unworkable in our community for one reason or another.
As mentioned earlier, I strongly suggest the Council wait until the new City Manager is on board and presents their findings to the Council. If there is Council and community alignment on a set of economic development related activities presented by the new City Manager (who will be the person actually responsible for meeting metrics of success), then resource allocation can follow from there.
Please feel free to give me a call if you would like to discuss further.
Lee
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Lee U. Johnson
Morro Bay, CA 93442
November 11, 2025
Dear Honorable Mayor and City Council Members:
Re: Agenda Item 8(a)
I fully support the Council’s focus on the economic health and vitality of our City. I believe it is the most criƟcal issue facing us, and the City needs to act. However, I quesƟon whether this is the right Ɵme to propose an in-house posiƟon to be responsible for addressing it. Isn’t this puƫng the cart before the horse? It would seem to make more sense to wait unƟl the new City Manager is hired. Wouldn’t the new City Manager want to be a part of deciding the best way to address economic development in the City, especially considering the projected structural deficit in the City’s budget?
The City has tried various tacƟcs to achieve economic development in the past, including hiring an internal staff person, with limited results. It would seem prudent to first hire a city manager, then decide on whether an in-house staff or outside consultant would be the best and most cost-effecƟve approach to take.
It would also appear that the Council needs to have more discussions about the best strategy for moving forward. What does “economic development” mean? What are the specific goals to be achieved, whether by a staff member or an external consultant? What are the metrics to measure progress toward those goals? Several studies and reports have been completed in the past for the Council to draw upon.
As a member of the Business Advocacy CommiƩee of the Morro Bay Chamber of Commerce, I also urge you to reach out to the Chamber for its input and insights before moving forward.
I respecƞully request that the Council table this item unƟl a new City Manager is hired. Thank you for focusing on this important issue.
Sincerely,
Marlys McPherson
CiƟzen of Morro Bay
Date: November 8, 2025
To: Honorable Mayor and City Council Members City of Morro Bay Subject: Agenda Item 8.a: Reinstatement of an Assistant City Manager and the Need for Private Sector Business Expertise
Dear Honorable Mayor and City Council Members,
I applaud the City Staff's recommendation to focus on economic development, as detailed in your November 12, 2025 agenda item (8.a). I see this proposed action (via a proposed Asst City Mgr) as a positive effort toward identifying and achieving the City Goal of "Economic Vitality and Fiscal Health".
The Critical Need for Year-Round Economic Diversification As we all know, Morro Bay economy is currently heavily reliant on tourism and its associated hospitality and retail sectors. While this is a basic strength, my primary concern—and the reason I support this initiative in principal—is the urgent need to diversify the economic base to ensure robustness twelve months a year, not just during peak tourist seasons. A more diversified economy is essential for long-term fiscal health and providing sustainable, quality employment for our residents.
I see recognition of Economic Development as the single most important action the City can take now to drive this diversification.
Proposed Qualifications: Prioritizing Business Development Expertise BUT, to succeed, this function must be fully empowered and dedicated, not a temporary or part-time assignment. Given the immediate and complex challenge of transforming Morro Bay's economy, I strongly suggest that the individual selected for the role possess significant, proven experience in the private sector, specifically in areas related to business attraction, retention, and strategic development.
Business Acumen Over Bureaucracy:
While public administration skills are very valuable and necessary in a Morro Bay Economic Development lifecycle, the core objective of this position—to grow, diversify, and strengthen our economy—requires a 'closer' with a business development mindset.
The candidate should demonstrate a track record in attracting investment, negotiating partnerships, and driving economic growth for a community or region.
A casual drive down upper Morro Bay Boulevard reveals a concentration of commercial properties—both for sale and for lease—within a limited two to three-block corridor. The successful redevelopment and/or occupancy of these properties alone would immediately generate new revenue through increased property valuations, business license fees, and the resulting sales tax revenue from new retail/service operations. The influx of revenue from even a partial activation of this one corridor could help offset a portion of the Economic Development Professional's salary and operational costs.
Thank you for your consideration of my perspective on this critical matter.
Sincerely,
Ken MacMillan
Property owner and Business Owner
To: Morro Bay City Council
Date: November 10, 2025
Subject: City Council Agenda Item 8.a, 11/12/2025 Council Meeting From: Bob Fowler, Jim Gross and Ron Reisner
We very much appreciate that Council is addressing the issue of economic development. It is a vitally important issue for the City in addressing its expected financial shortfalls, as well as funding its service and infrastructure obligations to its citizens. In an effort to get ahead of them, now is the time to address future shortfalls. Andrea Lueker did a good job in her Staff Report identifying the steps the Council should take in considering how to approach the economic development role.
It's important that City leadership carefully consider and identify the role and responsibilities the person who is assigned to economic development will be tasked with. For instance, the City of Morro Bay has a large portfolio of properties under its ownership (or under management in the case of Tidelands Trust lands) needing management and redevelopment. These present great opportunities to enhance revenues for the City - but require dedicated attention and a well conceived plan. We are a tourist town, and sales taxes and transient occupancy taxes play an outsized role in City revenues. Providing leadership through an economic development manager will help enhance opportunities to increase revenues.
Since the City is presently engaged in finding a new City Manager, it is critically important the new City Manager be engaged in the establishment of the economic development goals, plans and decisions, and be central to recruiting for the position or positions that will have primary responsible for executing those goals, plans and decisions. It is the Council's role to address economic development policy. It will be the new City Manager who will oversee and supervise the ongoing effort to realize those policies. The new City Manager's input and advice to the Council, and well as their participation in creating the economic development function, will be critical to its eventual success.
The means to measure and monitor success toward economic development goals is central to the City’s efforts toward those goals. This should include a means to directly measure the ROI ($350K in the case of the proposed Assistant City Manager) of any position that is focused on the City's economic development. As a part of planning for this effort, we encourage Council insist on specific metrics of performance that can use to measure the effort's success. Increases in TOT and sales taxes are obvious measurements that can be reported on, but if the economic development effort is to include property management of City owned and managed properties, then those properties need to be identified, and specific and timely goals need to be included in the plan.
Economic development needs for the City of Morro Bay are extensive, and the plan should recognize the amount of work it will require. Council is encouraged to consider whether an Assistant City Manager with additional/other City management responsibilities can handle all of the necessary economic development tasks - or if a dedicated staff member or other arrangement is required.
Note: The letter writers above are members of the Business Advisory Committee of the Chamber of Commerce. Although the writer’s messaging expressed here is informed by their Chamber affiliations, the thoughts and opinions expressed are their own.
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8b
MEETING DATE: November 12, 2025
1 Heather Goodwin
From: Andrea Lueker
Sent: Wednesday, November 12, 2025 9:07 AM
To: Council
Cc: Emily Conrad; Greg Kwolek; Nate Stong
Subject: Pulling Morro Creek Rehabilitation Item from the City Council Agenda Tonight Good Morning,
After meeting with staff this morning, I have asked the Mayor to pull this item from the agenda in order to gather some additional information regarding permitting and alternatives as well as touching base with the ACOE (difficult due to the shutdown). I hope to have a special meeting on this issue in the very near future, prior to the December 9, 2025 City Council meeting and also would encourage that public comment be taken on this issue tonight during the General Public Comment period as there may be some members in the audience for the item.
Sincerely
Andrea
Andrea K. Lueker
Interim City Manager
City of Morro Bay
[email protected]
805.772.6206
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8c
MEETING DATE: November 12, 2025
2 hopefully PD will also be able to enforce laws against the clients that engage in and pay for any illicit activity.
is there any opportunity to ensure the landlords for these establishments also have some accountability?
Thank you for your thoughtful consideration of this topic.
Courtney Shepler