AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6b & 6f
MEETING DATE: August 25, 2026
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6c
MEETING DATE: August 25, 2026
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6d
MEETING DATE: August 25, 2026
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6e
MEETING DATE: August 25, 2026
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8a
MEETING DATE: August 25, 2026
August 24, 2026
Dear Mayor Wixom, City Council Members Eckles, Edwards, Landrum, and Luffee, Since the Council's decision on March 10, 2026 to pursue the purchase of the former Morro Elementary School Site, at the encouragement of some members of the community, we have been waiting – with great interest – for the Due Diligence Report to inform the general public about the purchase’s impact on City finances.
We do compliment the City on setting a City Goal to fully explore this purchase and establishing a process that led us to the point of a decision on August 25, 2026 at the City Council Meeting.
It is good to finally have extensive - if preliminary - financial data to inform this very important use of City resources – both in dollars spent and staff time allocated.
Now, based on the Due Diligence report and the Staff report, we believe it is clear. The City simply cannot financially afford to take this risk and acquire this property. No matter the creative options for financing, or selling other City property, or acquiring grants, or tax credits, or expecting a windfall of unanticipated revenue.
No matter how much proponents of the purchase hope the City will step in, we believe that you have the financial information that you need to decide that this is not the fiscally responsible action to take on behalf of the entire community.
As stated in the City’s own reports, even in the best case scenario, if all the stars align for the purchase (and creation of a new City Hall campus on the site), the City will still have a short fall of between $2.8 to $7.8 million. How will the City make up that lost revenue moving forward into the future?
How will we afford to pave streets, repair critical infrastructure, maintain existing facilities, strengthen Harbor facilities, fund staff costs and pensions, and respond to environmental threats (severe weather, wildfire, earthquakes)? As you well know through the budget process, we struggle today to afford those essential City services.
And, now that we have the financial data to show the City going into debt to make the purchase—we don’t believe the majority of the City’s residents would agree that it’s better to spend $14.7 million to buy the school site in order to create a new City Hall Campus rather than paving our streets, or creating opportunities for much needed new housing, or providing basic City services.
At this point:
● The City Council and the City’s residents have not seen a budget that includes this acquisition and all the related costs.
● The Due Diligence report was only released on August 12 and no special meeting was held for the public to weigh in on the report prior to this major Council decision on August 25.
● There have been no feasibility studies.
● There is no proposed design plan for the property nor do we know if the property will be designated as historic.
● There is no analysis of the trade-offs in reduced City services or in selling City owned property such as closing the Library (!!) and selling that parcel for redevelopment to fund the purchase as mentioned in the Due Diligence Report. ● The current appraisal does not provide an estimated value of the property based on the potential of a historic designation for the school campus plus retaining the open space. Are we even paying the correct price if this is the plan? It’s important to note: We do understand the desire of the members of the Friends of Morro Elementary to advocate for beneficial reuse for the former Morro Elementary School site. It could be an exciting project without the City’s participation if the Friends group works toward fundraising, as a nonprofit organization, to purchase the property outright such as other local nonprofits have done to fund their missions. Pacific Wildlife Care is a recent example of a successful capital campaign in our community.
Also, we are reluctant to agree that a majority of the public support this purchase since the financial details are just now coming to light and there is no time for a vote of the people in Morro Bay such as occurred in Los Osos regarding the former Sunnyside Elementary which resulted in the County acquiring that property due to a majority vote in support.
In closing, the Council has fulfilled its duty to evaluate this opportunity. And now, based on the information developed, it is clear the City cannot afford to purchase the former Morro Elementary site however disappointing this decision will be for the proponents.
We urge you not to add another unfunded liability to our City and its residents.
Sincerely,
Christine Johnson, Former Morro Bay City Council Member Lee Johnson, Former Economic Development Manager, City of San Luis Obispo
2 Thank you,
Courtney Shepler
2 The library building was funded and built by this community under the leadership of the Friends of the Library. The completed building was then donated to the City of Morro Bay based on the understanding and agreement that the building and property would always serve as a library.
At the time, the City did not want to assume the financial responsibility of funding and staffing the library. As a result, an agreement was reached with the County to provide those services.
That arrangement allowed the City to fulfill its commitment to the community while ensuring that the building would continue to serve its intended purpose.
The library, therefore, represents far more than a parcel of land. It represents the vision, generosity, labor, and financial commitment of generations of community members who came together to ensure that Morro Bay would have a permanent library. The building itself stands as a tangible reminder of what this community values.
For the City to consider the library property for residential development or any other use outside of its library function would, in my opinion, violate the spirit—and potentially the terms—of the agreement made with the community when the building was donated to the City.
The library building and property should be non-negotiable in any future planning process.
Any discussion of redevelopment associated with the Morro Elementary School site should make it clear that the Library parcel is not available for housing or other development inconsistent with its intended and promised use.
I respectfully ask the City Council to ensure that the history of this building and the agreement made with the community are fully documented, reviewed, and honored before any future decisions are made.
The Morro Bay Library is not simply real estate. It is a promise made to this community.
Please honor that promise and ensure that the library building and property remain dedicated to library purposes, as they were intended when this community came together to make the library a reality.
Sincerely,
Karen S. Robert
Former Morro Bay Friends of the Library Board of Directors Former President, Friends of the Library
2006-2011
2 3. The $8.5 million Spectra/Net Positive ROM Construction Budget Estimate for the proposed City Hall includes some expenses that seen unnecessary. The largest expense listed, (equal to the 11-months construction budget) is “Office Furniture & Equipment” (14.1) for $660,000. As the City already owns office furniture sufficient for City Hall operations, this item should be removed from the estimate, or else revised to indicate the minor expense of moving furniture from one location to the other.
4. Certain items in the Budget Estimate can be postponed to a later time in a phased approach to tenant improvements. The $300,000 designated for “Exterior Site Improvements” (13.1) includes redoing 50,000 sf of parking and driveway is one expense that is not immediately necessary for tenant improvements. Existing parking on the site is already an improvement over parking facilities and availability at either City Hall or the Vets Hall, where official meetings are currently held. Expenses for “kitchen cabinets” and “kitchen island” (14.2) should also be considered in a later phase and are not part of the basic improvements needed for a safe and functioning City Hall. These kitchen-related items are grouped in the “Millwork” category with necessary items such as “public counters” for a total of $330,000.
5. In the Due Diligence report’s section on “Open Space Relationship” (p.39) it states: “The community engagement record described in Section 7 registered strong and near-unanimous support for preservation of the sports fields and open space on the Property.” Other parts of the record however water down that finding and erroneously conclude that the public consistently supports retaining “a portion” of the sports field. This assertion is also found in the Staff Report.
We urge the Council, City Manager and staff to please refrain from diluting or otherwise deemphasizing the actual majority community sentiment, which explicitly calls for preservation of the sports fields in full, not just a “portion”. Highly utilized for youth sports and valued for a variety of other purposes, this area can potentially be monetized into an additional revenue-generating asset. Ideally, housing development can be located on: 1) the current City Hall property 2) other portions of the school site 3) City owned properties that are already paved over/developed in some way. We urge you to prioritize those locations as preferred alternatives to development on the existing open space.
Thank you for your consideration,
Brian and Nicole Dorfman
Morro Bay
RE: Acquisition and Use of Morro Bay Elementary Site
Mayor Wixom, Council Members and fellow neighbors:
I am writing this letter because I am unable to attend the August 25th council meeting at which you will consider whether to proceed with the acquisition of the elementary school site. Your decision regarding the acquisition and the myriad decisions that must be made by you because of the acquisition will have a significant impact on Morro Bay and its residents. I know that all of you take this very seriously and understand how significant, and complicated, this process will be.
My comments are premised on the assumption that you will complete the acquisition. You have spent considerable time and resources to get to this point. You have valuable information to inform your decision.
This letter is intended to speak to the residents of the city, particularly those following this process closely. For all of you, I have a few recommendations:
First, read throughly the Due Diligence Report prepared by EM/BC Planning Strategies. It is a thorough, thoughtful and well-designed report that should be taken seriously by all that have opinions about acquisition and use of the property. I applaud the council members and staff for commissioning the report. The report is not perfect as it makes some incorrect assumptions and fails to address other issues that bear discussion.
Nonetheless, it is a valuable tool as we move forward with the process.
Second, even if you do not read the report, you should appreciate how complex the process will become once the acquisition occurs. While each of us have strong opinions about this issue, we should express those with accompanying facts and a recognition that the council must balance many issues in reaching decisions.
Third, we need to respect the council and staff as they work thorough this process.
Note that almost any use of the property will require a number of official steps, including potential zoning changes, coastal program changes, an environmental impact report and coastal commission approval. Under the best of circumstances this will take as much a year or more to complete. In fact, the city does not have complete control of the timing.
Delays are inevitable and we should not blame the council or staff for situations beyond their control.
The fiscal issues are also complex and will engender all manner of practical and perceptual challenges. Advocating for a particular use or a means of financing is great, but I believe that needs to come with trust that the council and staff will use all of the resources and expertise at their disposal to protect the community’s desires and interests.
None of us has all the answers or are in possession of all information the council needs to navigate this process. We need to contribute to the process, not berate, or deride those having to do the hard work.
What the council is about to take on is a BIG DEAL. It will be expensive, contentious and even risky. If you want it to be done in a way that enhances and protects the community interests, then work with and support the staff and the council to help them get there.
James Gross, Morro Bay
2 We all want to use the old school building for something and not tear it down, so we hope you can come up with more ideas.
Thank You
Pat and Tom Mangione
Dear Mayor and Councilmembers,
I am writing to share my concerns about the decision you are about to make regarding the purchase of the old Morro Elementary School property. These are questions I believe should be answered before moving forward with this project:
1. Why is the Council buying property without a planned use and postponing needed capital improvement and maintenance projects when it is facing a future budget deficit? Isn’t that spending money the City doesn’t have for something it doesn’t need? The City has a bad track record of developing the property it owns.
2. How will the purchase and project be funded? There is no funding plan in the Due Diligence or Staff Report. The FY 2026/27 budget was balanced by removing the expenses associated with the property acquisition (as well as eliminating other expenses and increasing revenues above staff recommendations). How will the budget be balanced if the purchase is made?
3. If it is acquired, how will the property be used? Public input thus far has been minimal and dominated by a small vocal group advocating for a project that could cost $14.7 million.
How will you determine what public sentiment is once the City’s fiscal realities are communicated more widely? In a similar situation of acquiring surplus school property, Los Osos put a plan for the property on the ballot and citizens voted to pay for it themselves. A better approach in my view.
4. Does the City have the commitment of an eligible private partner? The Due Diligence Report is clear that one will be needed to develop the property.
5. The Due Diligence report says that application for Historic Preservation designation is based on a group of four buildings, not any specific one. These cover a portion of the entire parcel and must have boundaries. If land within those boundaries would be better suited for another purpose, such as housing, is it possible to change the boundaries without loss of the designation?
6. Why does the City need to own the property when it already has control over the property through zoning, the entitlement process, and project approval? The primary responsibility of a City Council is to ensure that the public’s money is spent prudently to provide the services that citizens and the community as a whole need. Unlike the federal government that can deficit spend, local governments must balance their budgets. I urge the Council to make this decision based upon what this community needs and can afford.
Respectfully,
Marlys McPherson
Morro Bay
1 Heather Goodwin
From: Suzy Reynolds
Sent: Monday, August 24, 2026 1:09 PM
To: Council
Subject: Morro Elementary purchase
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City Council
We wholeheartedly support the purchase of Morro Elementary School. It is in a wonderful locaƟon, is historically significant, has mulƟple possibiliƟes for use, the construcƟon is solid, and it is a beloved local insƟtuƟon. It needs to remain a part of Morro Bay’s legacy.
On a personal note, I was lucky to begin my teaching career in Room 7 in 1974.
Please vote yes to the purchase.
Suzy and Doug Reynolds
Morro Bay, CA 93442
Sent from my iPad
2 I have heard/read that the City Council is considering selling our Library when the SLO County’s current lease expires. I stand opposed to selling the library ‘decision' specifically. I have personal experience of just how popular and well-attended our public library is and cannot believe selling it is the best decision for Morro Bay citizenry. Nor do I believe that this decision would be popular amongst Morro Bay citizens.
Additionally, I believe some of the folks most often on record seem to hold the belief that nothing in Morro Bay should ever change. Including this school.
Should the City find the means to purchase it, I am confused by this stance by a few on-record citizens and concerned by the implied limitations for Morro Bay.
As I understand this Due Diligence Report to explain the current zoning is for housing. And the potential future possibility exists that even the City may want to develop a remainder of the property for ‘housing’ if the City finds a way to move forward with this purchase and rehabilitation.
My conclusion: without a detailed financial plan throughly explaining the impact upon Morro Bay, I do not support the purchase of this property at this time.
1) I believe this very large financial decision requires a much more in-depth plan as to how to achieve financial viability without taking money out of existing Morro Bay goals and objectives. 2) I do believe this decision should have been brought to the Morro Bay citizens to vote upon (such as Los Osos did recently). As all the people in the City have not been heard from. Many may erroneously believe the City has found a way without compromising existing city infrastructure, to pay for this project. 3) Additionally, I would expect to see a pro and con evaluation of existing City-owned properties and alternative possibilities for enlarging City Hall before leaping to the conclusion we should spend ~ $8mm refitting this property for City Hall.
Thank you.
Tina M. Wener, Resident