Sole Bidder Wants to Open Tavern-Style Restaurant at Anchor Rose Space; City Begins Lease Talks

The Santa Barbara Harbor Commission has unanimously recommended lease negotiations for a new tavern-style restaurant at 113 Harbor Way, which previously housed Anchor Rose. The commission also recommended lease negotiations for a small ground-floor office for the Santa Barbara Maritime Museum.

The Harbor Commission reviewed the bid from On the Land LLC, which is proposing a new tavern-style restaurant and plans to operate it under the proposed name Harbor Tavern. The company emerged as the sole bidder for the waterfront property in the 3,527-square-foot upper floor space.

The concept of the restaurant inspired by classic American harbor taverns, emphasizing a warm, intimate, and slightly dark atmosphere that evokes traditional tavern-style dining.

Commissioners noted that the restaurant is intended to feel welcoming and accessible, accommodating guests in casual attire such as “deck boots and shorts” to create a relaxed waterfront experience.

On the Land LLC plans to invest between $500,000 and $700,000 in tenant improvements, including interior upgrades to align with the tavern concept and create a cohesive, inviting space.

The kitchen and operational layout have been reviewed to ensure the space can support the proposed restaurant concept. The proposal includes sample lunch and dinner menus centered on classic American harbor-style cuisine.

The restaurant is projected to generate roughly $3.5 million in annual revenue, which could provide about $350,000 in rent to the Waterfront Department.

The proposal was submitted through a formal Request for Proposals (RFP) process, in which On the Land LLC was the sole applicant.

The vacancy following Anchor Rose’s closure in December 2025 led to an estimated $1 million revenue shortfall for the Waterfront Department.

Because of the building’s historic nature, long-term leasing has been complex, prompting officials to consider temporary pop-up businesses to offset losses while evaluating permanent tenants.

Ground Floor Lease to Maritime Museum

The Commission also recommended lease negotiations for a 156-square-foot ground-floor office space for the Santa Barbara Maritime Museum.

The space will support Dart Coffee operations and will be used for administrative tasks, dry storage, and refrigeration.

Oversight of the office will be handled by Executive Director Dean Noble, while David Dart manages daily operations. The space was previously used for storage by former tenants.

In January 2026, the City of Santa Barbara Waterfront Department listed the upper-level restaurant space at 113 Harbor Way and invited proposals from interested operators.

Both leases will now enter negotiations, with draft agreements returning to the Harbor Commission before final City Council approval.