The San Luis Coastal Unified School District is one step closer to selling off the old Morro Elementary School site in Morro Bay.
The site off Napa Avenue was built in 1936 and has not served as a public school for over 20 years.
It is currently being leased to a Montessori School, houses other programs like adult education, and serves as open space with its sports fields.
“Parks and Rec uses those fields, my kids use those fields, I’ve coached on those fields," said D'Arcy Castro, Friends of Morro Elementary Board President.
The San Luis Coastal Unified School District unanimously approved a memorandum of understanding (MOU) with the City of Morro Bay at its last board meeting.
“So now we’re at a point where we’re going to negotiate and hopefully be able to purchase that site,” said Bill Luffee, City of Morro Bay Councilmember.
If the property is purchased by the city, it could be used for a variety of purposes: preserving the school, converting it into a community center, or relocating city hall. Yet, nothing will be decided upon until a purchase price is accepted.
“Then we will actually form community forums and workshops to decide really what is the next phase and plan on that,” Luffee said.
Castro said that Friends of Morro Elementary have submitted their report for historical preservation with the help of different people in the community.
“The public, through fundraising, and also we’ve been able to get consultants, so that’s a huge other piece is we have a wonderful historical consultant that has come and has done the report," Castro said.
She added that having the site historically preserved ensures various maintenance and development protections and could also bring some tax benefits.
The City of Morro Bay made a verbal offer to purchase the entire property on Sept. 10, 2025. The amount has not been disclosed but it was most recently appraised at $10.2 million.
Interim City Manager Andrea Lueker said there will be a 180-day time period to negotiate once the MOU is signed by both the school district and the city.
“The taxpayers have paid for this tenfold in this community and we really hope they come to an agreement so that it can stay in the community,” Castro said.
The city council will vote on approving the MOU at its next meeting on Oct. 28.
