The almost century-old Morro Elementary property is on its way to city ownership after the San Luis Coastal Unified School District accepted Morro Bay’s offer to buy the site.
Appraised at $10.2 million, the 1930s-era building holds historical, cultural, open space, and recreational value to the city. Funding reductions in 2001 forced the school’s closure.
On March 10, the City Council unanimously adopted a resolution approving a $5.3 million purchase price and sale agreement with the school district—the culmination of negotiations that officially started in May 2025.
“I walked that site, and I felt something special there,” Councilmember Bill Luffee said. “I think the community is going to get everything they want there, housing, preservation of the school, just a complete site. It’s going to be a lot of work; it’s a legacy project. But now we can talk about it openly and we can get your input because it’s going to be a community event.”
Luffee and fellow Councilmember Zara Landrum comprised the two-member subcommittee that worked with the city community development director and citizens group Friends of Morro Elementary to negotiate with the school district.
Luffee’s comments came partially in response to feedback from former Morro Bay City Councilmember and Friends of Morro Elementary member Betty Winholtz who said that the City Council didn’t engage with the community.
“Now that you can, I’m hoping you will,” she said at the meeting. “You all ask questions, and you get answers. When we ask questions, you don’t always answer them. … I’m disappointed that you haven’t talked about the Naylor Act or the soccer fields. … I think that will be a discussion in the community engagements.”
The Naylor Act requires a school district that proposes to sell or lease land used for outdoor recreation to offer a portion of that land at discounted sale or lease to a city or county that has jurisdiction.
Morro Bay could acquire up to 30 percent of the elementary school site that’s surplus property for 25 percent of the fair market value.
‘I think the community is going to get everything they want there, housing, preservation of the school, just a complete site. It’s going to be a lot of work, it’s a legacy project.’
—Bill Luffee, Morro Bay City Council member
Last August, the City Council authorized an offer to buy 2.9 acres of the Morro Elementary property’s grass sports field for a little more than $630,000 per the Naylor Act.
City Attorney Brian Stack confirmed at the March 10 meeting that the purchase agreement doesn’t propose to close on the Naylor Act offer, but rather the entire property would be bought by the city for $5.3 million. By enacting various policies, it’s up to the council to decide what activities can take place on different parts of the property.
Though Morro Elementary has been closed for 25 years, the building isn’t empty. It’s now home to a public Montessori school, some preschools, a special needs program, an adult graduation program, and Shoreline Cavalry Chapel.
Stack added that city ownership of the property would let these groups choose if they want to stay on at the site.
“If there are going to be tenants remaining on the property, the school district would assign their interest in the lease to us, and we would agree to that assignment,” he said. “The city’s request for the time being is for those that want to stay, like the Montessori, to have the status quo remain.”
Although the school district accepted the offer, it’s scheduled to consider the purchase agreement on March 17. Its approval of the agreement will trigger a “due diligence” period that expires on Aug. 31. Morro Bay would be required to put down a deposit of $500,000, which would be credited to the full cost of purchase.
While Friends of Morro Elementary has been raising money to help with the purchase, the city is paying all upfront costs. Winholtz told New Times that the nonprofit raised more than $50,000, spending almost $20,000 as of March 11 toward getting the site nominated to the National Register of Historic Places.
Friends of Morro Elementary member D’Arcy Hayes said the group will continue fundraising for future costs related to the nomination.
“Now that the city is in escrow with the school district, and the city is seeking funding sources, it is timely for the City Council’s motion to sign a memorandum of understanding with the Friends be fulfilled,” Hayes said. “Then the Friends fundraising can participate in the purchase.”
Community meetings to discuss future uses of Morro Elementary are set for April and July. A plethora of ideas are swirling around the community.
“The common one, of course, is the preservation of the historic buildings, and using the buildings for a civic center in some form,” Hayes said. “Combine the balance of the school property with the city-owned property on Shasta Avenue up to Piney Way, there are a multitude of housing options, open space, and yet-to-surface ideas. Community input, along with community needs and fiscal feasibility, will all be in consideration in the shaping of the future of Morro Elementary.” ∆
Without doubt, this center should be named for Wilmar Tognazzini, the long time celebrated principal of Morro Bay Elementary who inspired so many students with his love of music, of science, of learning–he was an icon in the Morro Bay community, and deserves to have his legacy preserved.