Malibu Businesses Face Lease Cancellations Amid Governor Newsom's Recovery Pledges

Malibu, CA – Several long-standing businesses in Malibu, including the iconic Reel Inn, Topanga Ranch Motel, Wiley's Bait and Tackle, Cholada Thai, and Rosenthal Wine Bar, have received notice of lease cancellations from the California State Parks Department following their destruction in the recent Palisades Fire. This development comes as Governor Gavin Newsom has repeatedly emphasized a "record-breaking recovery and rebuilding" effort for the fire-ravaged region.

The cancellations have sparked concern among local business owners and residents. According to a tweet from Kevin Dalton, "Gavin Newsom promised record breaking recovery and rebuilding following the Palisades Fire, meanwhile his state park department just canceled the lease on the iconic Reel Inn as well as the Topanga Ranch Motel, Wiley's Bait and Tackle, Cholada Thai and Rosenthal Wine Bar in Malibu."

California State Parks cited the catastrophic property loss from the Palisades Fire and the subsequent use of the land as a staging area for Los Angeles Department of Water and Power (LADWP) restoration projects as reasons for not renewing the leases. The Reel Inn, a beloved seafood shack operating for nearly 40 years, was among those informed they could not rebuild. Reel Inn owner Andy Leonard expressed disappointment, stating that their desire to rebuild was met with a letter confirming the lease termination.

In the wake of the fires, Governor Newsom signed executive orders to streamline rebuilding efforts, including waiving certain California Environmental Quality Act (CEQA) and California Coastal Act requirements. He also committed $101 million to jumpstart affordable housing development in Los Angeles, prioritizing displaced residents. Newsom has frequently highlighted the "fastest major disaster cleanup in American history," with debris removal substantially completed months ahead of schedule.

Despite the Governor's broad recovery initiatives, the specific actions by the State Parks Department regarding these Malibu businesses present a contrasting narrative. The affected sites, particularly the Topanga Ranch Motel, also hold historical significance, having been acquired by the parks department for expansion of Topanga State Park. While State Parks has indicated a willingness to explore future paths, the immediate impact is the permanent closure of these establishments at their original locations.