1990 in Review : Santa Monica : Restaurant Reopens at Sand and Sea Club Site

Santa Monica voters last month turned down a proposal to convert the former private Sand and Sea Club into a luxury hotel and community center. But the public is now able to dine at the beachfront site in the former club’s restaurant, which opened last week.

Fred Deni, who owns the Back on Broadway restaurant in Santa Monica and formerly operated the restaurant for the Sand and Sea Club, has a three-month management agreement to run the restaurant for the city. After that, Deni will operate on a month-to-month basis, said Lynne C. Barrette, assistant city manager.

Deni, who will pay the city $4,000 a month or 10% of his gross receipts, whichever is greater, said the 100-seat restaurant initially will serve omelets, salads and sandwiches. He said he wants to eventually provide more entrees, such as pastas.

The City Council is expected to begin holding public hearings early next year to decide what to do on a long-term basis with the site at 415 Pacific Coast Highway. The options will not include a large hotel or restaurant because voters also approved a ballot measure last month prohibiting the development of such facilities along the beach.

Among the proposals being considered is converting the facility to a public club with daily fees. Paddle-tennis courts and the parking lot have been reopened for public use. However, a swimming pool ordered shut down in October by the county Health Services Department remains closed.

The city took over the club Oct. 1 in anticipation of the proposed hotel, and to satisfy a state request that the private club be replaced with a higher revenue-generating facility. The club has leased the five-acre property--which is owned by the state, but managed by the city--since 1960.

City officials said it is not clear whether the state will still insist that the property generate at least $500,000 in annual revenue. The City Council had approved the hotel proposed by restaurateur Michael McCarty, in part because it would have generated nearly $3 million in fees and taxes to the city.

But a threatened referendum by residents opposing the hotel persuaded the City Council to place final approval of the hotel on the Nov. 6 city ballot. The measure--which asked voters to repeal the council approval--won with 62% of the vote.