Harbor Board Defers Pelagic Lease Showdown to Closed Session After Tenant Alleges Misconduct

The San Mateo County Harbor District's February meeting featured a high-stakes dispute over a hospitality lease at Pillar Point Harbor — complete with allegations of government harassment, a cancer disclosure, and threats of legal action — before the board voted 4-1 to suspend eviction and take the matter behind closed doors. The board also approved its sixth consecutive clean audit, advanced major coastal erosion projects, and greenlighted community events at the harbor."

• Pelagic Restaurant Group lease dispute heads to closed session after tenant alleges harassment, ADA violations, and government misconduct; board suspends eviction on a 4-1 vote

• Sixth consecutive clean audit approved with $17.1M in revenues, $19.1M in cash, and no auditor recommendations

• Coastal erosion projects advance as the district prepares to pitch the Princeton Shoreline Project and WRDA 2024 funding to the One Shoreline board

• Dredging emerges as top coast-wide priority after GM's trip to Washington D.C. for the CMAC conference

• Mid-year budget shows strong fiscal position with revenue on track and working capital projected $1.1M above the adopted budget

The longest and most contentious item of the meeting pitted the harbor district against its own tenant, the Pelagic Restaurant Group, which operates three facilities at Pillar Point Harbor: the Pelagic Cantina, the Ketch Harbor Pub, and a fish market. What began as a lease default discussion escalated into a parade of legal allegations from Pelagic's associates and a divided board struggling to chart a path forward.