24 Days in Morro Bay: How a 120 Acres of Park Space on the Embarcadero was lost to the Energy Industry
The Story That Has Been Overlooked Along The Central Coast
Since 1941, the residents of Morro Bay have grappled with the controversial history of a 120-acre waterfront property on the Embarcadero, known today as the "3 Stacks" site after the former PG&E power plant that was located there.
This contentious story, long overlooked, began in August 1941, when the U.S. Government seized the 120 acres of coastal property through eminent domain to establish the Morro Bay Amphibious Navy Training Base for $28,000.
After the war ended, the government, through the War Assets Administration, initially leased and eventually sold the property to San Luis Obispo County beginning in 1947 for $78,600, with the adopted Resolution of Intent stating that it would be used as a 120-acre public recreational park.
However, in 1951, the SLO County Board of Supervisors sold this designated park land to PG&E for a power plant after just 24 days of public negotiations.
The process lacked transparency: negotiations with the SLO Supervisors began before any public hearings were held, with a tentative agreement reached within 48 hours of the public first learning about the project and nine days before the SLO County Planning Commission hearing was even held.
The process for approval was also rushed. As reported by the San Luis Obispo Telegram-Tribune (April 14, 1951: Front Page), “If negotiations are successful next Monday, the supervisors plan to meet with the county planning commission on April 25 to speed early approval of the (PG&E power plant) project.”
“If negotiations are successful next Monday, the supervisors plan to meet with the county planning commission on April 25 to speed early approval of the (PG&E power plant) project.”
During this same period, Supervisor and Chairman A.A. Erhart, who also sat on the planning commission, and as board chairman was in charge of setting the county agenda, was in the middle of a special election for the California State Senate to fill the seat of Senator Chris Jespersen due to his recent passing.
The PG&E agreement with the Board of Supervisors was reached on May 7, 1951. 8 days later, Supervisor Erhart would win his special election to the California State Senate.
And for more than 80 years, all of this has been done at this location and at the expense of ancient indigenous villages, graves, and artifacts that have been excavated and desecrated.
The "3 Stacks"—while considered iconic by some—represent a troubling sequence of events, and native indigenous desecration, for the Morro Bay community: the U.S. Government's seizure of land through eminent domain, broken promises about public park space by the SLO County Board of Supervisors, secretive negotiations with the energy industry, a rushed approval process that coincided with a special election, and the continued desecration of ancient Indian villages and graves.
This tainted history continues to be a source of ongoing cultural frustration and community conflict in Morro Bay to this day.
Here is how it happened.
The Early History of Morro Bay
1850 to 1940
Morro Bay, California, transformed from a remote Mexican rancho outpost to a thriving American coastal community between 1850 and 1940. Historically, there were four key phases of development: the transition from Mexican to American governance (1850s), the founding of the modern town by entrepreneur Franklin Riley in 1870, agricultural and economic expansion (1880s-1910s), and diversification into tourism and fishing (1920s-1940s).
Morro Bay's success during this period stemmed from three critical factors: strategic geographic location with a natural harbor, entrepreneurial leadership that capitalized on commercial opportunities, and adaptive economic diversification responding to changing market conditions.
Franklin Riley's layout of Morro Bay in 1868 and establishment of a commercial port and wharf in 1870 proved pivotal, transforming the area from isolated ranch land into a vital agricultural hub.
By 1940, Morro Bay had evolved into a economically diverse community with agriculture, fishing, maritime commerce, and emerging tourism industries. The town's development reflects broader patterns of California's integration into national economic networks, westward expansion, and the transformation of Mexican territories into American communities.
The period concluded with Morro Bay positioned as a stable coastal community with the infrastructure and economic foundation necessary for continued growth during and after World War II.
“The Morro Rock, situated at the entrance to Morro Bay, is a singular feature in this landscape….” “Solitary and alone it stands as it has stood for ages, like a huge sentinel, resisting the white crested waves of the Pacific…”
“The County Of San Luis Obispo”
July 20, 1872: Page 2
The San Luis Obispo Tribune
“We are glad to be able to state that there will most likely be a new Embarcadero or landing started, in a short time, at the Morro Bay.” “We are glad to hear of these projected improvements…” “The natural advantages are excellent.”
“Morro Landing”
October 15, 1870: Page 3
The San Luis Obispo Tribune
“In 1868… Franklin Riley laid out the original townsite of Morro. It was he who planted the hundreds of trees and cared for them so faithfully that today they make a veritable forest.”Truly, this man has left behind… a lasting monument…”
“History Of Morro Dates Back To 1542”
October 11, 1925: Page 1C
The Fresno Morning Republican
Documentation and References
The San Luis Obispo Tribune. “Morro Landing”. October 15, 1870: Page 3. (Download Here)
The San Luis Obispo Tribune. “The County Of San Luis Obispo”. July 20, 1872: Page 2. (Download Here)
The Fresno Republican. “History Of Morro Dates Back To 1542”. October 11, 1925: Page 1C. (Download Here)
120 Acres taken by the U.S. Government through Eminent Domain for $28,000
August 25, 1941 to October 26, 1942
On August 25, 1941, the United States Government filed a Declaration of Taking to eminent domain 120 acres (70 parcels) of property in Morro Bay to begin development of the Morro Bay Naval Section Base.
The Final Judgment and Decree of Condemnation was awarded on October 26, 1942 from the U.S. Southern District Court in Los Angeles. The compensation awarded for the 120 acres was for $28,000.
Construction on the base began in September of 1941 with a dredger arriving in Morro Bay in October.
The Morro Bay Naval Section Base was dedicated on November 16, 1941 and commissioned the following year on May 15, 1942.
The base was later established under the U.S. Amphibious Training Command, United States Pacific Fleet, on February 4, 1944, as the Morro Bay Amphibious Training Base. The final decommissioning of the Morro Bay Amphibious Training Base took place on October 31, 1945.
At the end of World War II, this 120 acres of property was sold as surplus by the War Assets Administration under the 12th Naval District in San Francisco.
Although the buildings and other military items were made available to the public in an open bid process, the general public was not allowed to purchase their land back. Only government agencies were afforded this opportunity.
“The federal government today started condemnation proceedings to gain acquisition of 120 acres of land at Atascadero Beach at Morro Bay, it was announced today in Los Angeles. The land will be used for an inshore patrol base…”
“Morro Project Condemnation Action Started”
August 26, 1941: Front page
The San Luis Obispo Telegram-Tribune
“Plaintiff having filed a Declaration of Taking herein on August 25, 1941, and having coincident therewith paid… the estimated just compensation ($28,000) for the taking of the above numbered parcels…”
Final Judgment and Decree of Condemnation
No. 1734-B Civil: U .S. Southern District Court
Volume 326, Pages 160 - 167
Recorded October 30, 1942, San Luis Obispo County
“The United States Government has acquired 120 acres of land at Atascadero Beach… according to a final judgment and decree in condemnation, recorded yesterday…” “Joint damages awarded were $28,000.”
“U.S. Acquires Land At Atascadero Beach”
October 31, 1942: Page 8
The San Luis Obispo Telegram-Tribune
Documentation and References
The San Luis Obispo Telegram-Tribune. “Morro Project Condemnation Action Started”. August 26, 1941: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Morro Bay Base Commissioning Slated Friday”. May 14, 1942: Page 11. (Download Here)
The San Luis Obispo Telegram-Tribune. “Commission Naval Base At Morro”. May 16, 1942: Front Page. (Download Here)
U.S. Southern District Court. “Final Judgment and Decree of Condemnation: No. 1734-B Civil”. October 26, 1942. As recorded October 30, 1942, San Luis Obispo County Clerk-Recorder. Volume 326, Pages 160-167. (Download Here)
The San Luis Obispo Telegram-Tribune. “U.S. Acquires Land At Atascadero Beach”. October 31, 1942: Page 8. (Download Here)
The San Luis Obispo Telegram-Tribune. “Navy To Abandon Morro Bay: Men to Leave Base Oct. 31 Hartt Reveals”. October 20, 1945: Front Page. (Download Here)
Post Engineer Office. Camp Morro Bay Layout. Page H-91. August 26, 1946. (Download Here)
120 Acres purchased by SLO County for use as a Recreational Park for $78,600
December 1, 1947 to September 1, 1949
In 1947, the SLO County Supervisors began acquiring 120 acres of surplus military property in Morro Bay from the War Assets Administration under the 12th Naval District of San Francisco for a county recreational park.
The Resolution of Intention to acquire this property as a Recreational Area was adopted on December 1, 1947. This resolution made it clear to the people of Moro Bay, and San Luis Obispo County, that this property, once owned by the people of Morro Bay, would now become a regional park.
As titled from the resolution:
“Resolution of Intention to Acquire the United States Navy Amphibious Training Base at Morro Bay, as a Recreational Area in the County of San Luis Obispo” (December 1, 1947: SLO BOS Resolution)
The county finalized the purchase on February 1, 1949, for $78,600 ($25,000 down with a balance due on September 1, 1949, plus 4% interest, for a final total of $79,249.62).
At the time, this new county recreational facility was being touted as one of the finest areas on the Pacific Coast of California between San Francisco and Santa Barbara.
It would be just a few short years later in 1951 in which the original intent of this property would be lost.
“To County Supervisors: Glad to hear you’re trying to acquire the U.S. naval amphibious training base as a county recreational area. It’s a natural for the purpose you have in mind - and it would be a shame to miss the chance to utilize it.”
“County Seeks Morro Base As Play Area”
December 6, 1947: Editorial
The San Luis Obispo Telegram-Tribune
“The Morro Bay navy base… has become a valuable addition to the county’s park system; and extensive future development is under consideration to make it an outstanding recreational area (Sup. Merrick) has announced.”
“Morro Navy Base Open to Public As County Park”
January 13, 1948: Front Page
The San Luis Obispo Telegram-Tribune
“Transfer of the Morro Bay navy base to San Luis Obispo county has opened up one of the finest park and recreation areas on the Pacific coast between San Francisco and Santa Barbara, a survey of possible future developments indicated today.”
“Morro Bay Harbor Worth Millions as Recreation Area”
January 17, 1948: Front Page
The San Luis Obispo Telegram-Tribune
Documentation and References
San Luis Obispo County Board of Supervisors Meeting Minutes. “Resolution of Intention to Acquire U.S. Navy Amphibious Training Base at Morro Bay, as a Recreational Area in the County of San Luis Obispo”. December 1, 1947. As filed with the San Luis Obispo County Board of Supervisors Executive Offices. (Download Here)
The San Luis Obispo Telegram-Tribune. “County Seeks Morro Base As Play Area”. December 2, 1947: Front Page. (Download Here)
San Luis Obispo County Board of Supervisors Meeting Minutes. “Acquisition of Naval Amphibious Training Base at Morro Bay”. December 15, 1947. As filed with the San Luis Obispo County Board of Supervisors Executive Offices. (Download Here)
The San Luis Obispo Telegram-Tribune. “County Gets Permit To Use Morro Base”. December 16, 1947: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Morro Navy Base Open to Public As County Park”. January 13, 1948: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Government Sale: Buildings & Fixtures” (Advertisement). January 26, 1949: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Board Okehs War Assets Price Offer: County Ready to Buy Morro Naval Base”. February 2, 1949: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Government Sale: Land With Improvements” (Advertisement). March 7, 1949: Front Page. (Download Here)
24 Days: 120 Acre Park sold to PG&E to build a Power Plant for $80,000
April 14, 1951 to May 7, 1951
On Saturday, April 14, 1951, the SLO Supervisor A. A. Erhart disclosed the private meetings the board was holding with PG&E officials about selling the 120 acres of park space for a $75,000,000 power plant.
Just 2-days later on Monday, April 16, the SLO Supervisors agree to the tentative sale of the 120 acres for $80,000 with headlines in the Telegram-Tribune declaring the project all but certain.
The rushed tentative agreements that were reached by the SLO Board of Supervisors, just 48 hours after the first public disclosure, were settled upon 9 days before the Planning Commission hearing was even held and 22 days before final approval by the board on May 7, 1951.
As reported by the San Luis Obispo Telegram-Tribune (April 14, 1951: Front Page), “If negotiations are successful next Monday, the supervisors plan to meet with the county planning commission on April 25 to speed early approval of the (PG&E power plant) project.”
PG&E would go on to buy this property in two separate purchases for $40,000 each as some of the property owned by SLO County did not have clear title. The sale of the first parcel in August of 1951 was for $40,000 and the second parcel was sold in December of 1951 after title defects were cleared..
So in the span of just 24 days, the people of Morro Bay and San Luis Obispo County would lose a 120 acre recreational park space along our coastal beaches to the energy industry for the next 75 years.
First Notification
“A $75M steam-electric generating plant is in prospect for Morro Bay….” “(Supervisor) Erhart confirmed that several (PG&E) officials had conferred last week with the board regarding the (120 acre Morro Bay Park) site.”
”PG&E Plans Morro Power Plant”
Saturday, April 14, 1951: Front Page
The San Luis Obispo Telegram-Tribune
2 Days Later
“A huge steam electric generating plant… is assured for Morro Bay” “The purchase offer, submitted by… the PG&E land department, was tentatively accepted by the board, pending a hearing by the county planning commission on April 25.”
”Morro Steam Plant Sure”
Monday, April 16, 1951: Front Page
The San Luis Obispo Telegram-Tribune
24 Days Later
“The recommendation of the Planning Commission relative to the property at Morro Naval Base proposed to be sold to the Pacific Gas & Electric Company is hereby ordered filed.”
“Morro Bay Naval Base Property Proposed to be Sold to P.G. & E.”
Meeting Minutes, May 7, 1951
SLO County Board of Supervisors
Documentation and References
The San Luis Obispo Telegram-Tribune. “PG&E Plans Morro Power Plant: $75,000,000 Outlay For Project”. April 14, 1951: Front Page. (Download Here)
San Luis Obispo County Board of Supervisors Meeting Minutes. “Acquisition of County Property at Morro Bay (P.G. & E.)”. April 16, 1951. As filed with the San Luis Obispo County Board of Supervisors Executive Offices. (Download Here)
The San Luis Obispo Telegram-Tribune. “Morro Steam Plant Sure: Board Agrees On Terms of PG&E Offer”. April 17, 1951: Front Page. (Download Here)
San Luis Obispo County Planning Commission Meeting Minutes. “Acquisition of County Property at Morro Bay (P.G. & E.)”. April 25, 1951. As filed with the San Luis Obispo County Planning and Building Department. (Download Here)
The San Luis Obispo Telegram-Tribune. “Commission Favors Morro Plant”. April 26, 1951: Front Page. (Download Here)
San Luis Obispo County Board of Supervisors Meeting Minutes. “Morro Bay Naval Base Property Proposed to be Sold to P.G. & E.” May 7, 1951. As filed with the San Luis Obispo County Board of Supervisors Executive Offices. (Download Here)
Rushed Land Sale Coincides with Supervisor Erhart’s Campaign for State Senate
March 2, 1951 to May 15, 1951
State Senator Chris Jespersen's death on February 21, 1951, triggered a special election that coincided with the controversial rushed sale of 120 acres of Morro Bay recreational land to PG&E for a power plant. SLO Supervisor Chairman A.A. Erhart won the election amid this rushed approval process.
As we see from the timeline below:
March 2, 1951: Erhart announces candidacy for Jespersen's vacated state senate seat.
April 14, 1951: Erhart reveals PG&E's private meetings with supervisors about the Morro Bay power plant proposal. It was also reported that, “…the supervisors plan to meet with the county planning commission on April 25 to speed early approval of the project.”
April 16, 1951: Board of Supervisors reaches tentative agreement to sell the 120 acres of promised recreational park space to PG&E.
April 24, 1951: The SLO County Planning Commission (including Erhart) approves the land sale. It should be noted that Erhart was also a member of the Planning Commission.
May 7, 1951: The board of supervisors finalizes the sale and approval to PG&E for the Embarcadero property in Morro Bay.
May 15, 1951: A.A. Erhart wins the special election to California State Senate.
Supervisor Erhart Announces Bid for Senate
“A special election to fill the state senatorship vacancy caused by the death of Senator Chris Jespersen will soon be called…”. “Supervisor A.A. Erhart… accept(ed) the nomination and rallied support behind his candidacy.”
”Two Will Seek Seat in Senate”
March 2, 1951: Front Page
The Arroyo Grande Valley Herald Recorder
Sale of 120 Acres of Land Rushed Through County
“Erhart confirmed that several (PG&E) officials had conferred last week with the board regarding the Morro Bay site.” “…the supervisors plan to meet with the county planning commission on April 25 to speed early approval of the (PG&E) project.”
”PG&E Plans Morro Power Plant”
April 14, 1951: Front Page
The San Luis Obispo Telegram-Tribune
Erhart Wins Senate Special Election
“A.A. Erhart, Pismo Beach, was elected to the California State Senate in yesterday’s special election by a margin of 1097 votes...” “Erhart, who is chairman of the county board of supervisors, led both of his opponents… from the first returns.”
“Erhart Elected To State Senate”
May 16, 1951: Front Page
The San Luis Obispo Telegram-Tribune
Documentation and References
The Arroyo Grande Valley Herald Recorder. “Two Will Seek Seat in Senate”. March 2, 1951: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Erhart Completes Senate Filing”. March 26, 1951: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “3 Candidates Qualify for Senate Race”. April 6, 1951: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Three Candidates Certified for State Senate Race”. April 9, 1951: Front Page. (Download Here)
The San Luis Obispo Telegram-Tribune. “Erhart Elected To State Senate: Pismo Beach Man Takes Office Soon”. May 16, 1951: Front Page. (Download Here)