Owners of Alex Bar-B-Q sue contractor over demolition of iconic building in Pismo Beach

Lawsuit alleges breach of contract and negligence
Posted at 11:28 AM, Aug 03, 2019
Owners of Alex Bar-B-Q sue contractor over demolition of iconic building in Pismo Beach

The owners of the old Alex Bar-B-Q in Pismo Beach are now suing the construction company that tore down the building forcing the city to shutdown construction.

In a new lawsuit filed Friday afternoon, Playa Dulce, LLC which owns the property sued Kain Building & Design Group alleging breach of contract and negligence seeking at least $1.1 million.

On September 18, 2018, the decades old, iconic building at 853 Shell Beach Road, was demolished. At the time, the city said the new owners, Compass Health, was only permitted to demolish a portion of the building, just the tower, under an emergency permit. Instead, the entire building was torn down.

"Defendants, and each of them, failed to adequately communicate and coordinate with the City of Pismo Beach regarding the demolition, failed
to adequately supervise and manage the Remodel Project," according to the lawsuit filed in San Luis Obispo Superior Court.

Alex’s closed its doors in 2014 after operating in Shell Beach for decades. Compass Health, which operates several other restaurants in San Luis Obispo County, reportedly planned to renovate the old building and bring in a new restaurant.

The demolition of the entire building prompted a community uproar. The project was subsequently halted by the city who revoked all the permits.

The lawsuit states building a new restaurant on that site is not feasible under current applicable law, as there would be inadequate parking for a restaurant and bar.

"As a result of Defendants' breaches of the Oral Contract, Playa DuIce can no longer build a restaurant and bar on the Subject Property and has suffered consequential, special and incidental damages in an amount in excess of $1,150,000, plus interest on said sums at the legal rate of interest as will be proved at trial," according to the lawsuit.