Sausalito Considers Revising 1985 Waterfront Development Law

This blog post takes a closer look at Sausalito’s plan to revisit Ordinance No. 1022. That’s the 1985 rule that limits development along the city’s working waterfront to help preserve its maritime character.

Sausalito’s got a $30 million annual budget, but infrastructure needs keep growing. Sea-level rise is a real threat here, and officials are searching for creative ways to boost city revenue without hiking property taxes for homeowners.

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The conversation keeps circling back to Marinship, the big WWII shipyard up north. Folks are asking: how do you keep the old-school waterfront vibe while making room for renewal in one of Marin County’s most beloved towns?

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What Sausalito Officials Are Considering to Fund a Resilient Waterfront

Public meetings have made it clear—Sausalito faces a big funding gap for restoring and protecting its aging waterfront. The city needs to find about $1 million a year for resilience projects, but nobody’s eager to add new property tax costs for locals or businesses.

So, they’re rethinking how Marinship might help close that gap, but without losing what makes the working waterfront special. It’s a tricky balance, honestly.

Ordinance No. 1022 sits at the center of this debate. That 1985 rule strictly controls development on Sausalito’s waterfront. Councilmembers keep saying that reviewing the ordinance doesn’t lock them into any particular decision—it just opens the floor for a bigger conversation about resilience, growth, and how to pay for it all in a city that’s got to deal with sea-level rise and shoreline headaches.

Possible Revenue-Generating Tools on the Table

Repeal or modify Ordinance 1022. This could open the door to more maritime investment, but they’d want to keep strong protections for boatsheds, art studios, and affordable live-aboard housing.
Establish a charter to dramatically increase the real estate transfer tax. The idea here is to generate real revenue without bumping up property taxes for people who already live here.
Create a special infrastructure financing district for the Marinship area. That could help pay for seawalls, shoreline adaptations, and other critical resilience projects right where they’re needed.
Targeted changes to zoning in the Marinship corridor—maybe higher floor-area ratios, smaller setbacks, or some second-floor offices. Any changes would need tight guardrails to keep the area’s character intact.
Continue progress on Marinship rezoning. The city recently authorized 400 new residences, but they tied those changes to a broader shoreline adaptation plan shaped by input from maritime businesses.

Public reaction has been, well, intense. Supporters of keeping Ordinance 1022—like the Sausalito Working Waterfront Coalition and other maritime advocates—say the rules protect boatyards, artist studios, and affordable live-aboard housing from gentrification.

Critics push back, arguing that with careful, measured changes, Sausalito could actually strengthen its maritime economy without losing the unique vibe that draws people to the working waterfront in the first place.

City officials insist this is a conversation about resilience and finance, not a rush to rewrite old rules. They’re trying to chart a path that keeps maritime uses alive while making big-picture plans and investments to protect the waterfront from rising seas. It’s a tall order, but they seem up for the challenge.

Balancing Preservation and Growth: Marinship and the Shoreline Plan

Sausalito faces some tough questions, and the bigger Marin County picture is always lurking in the background. The city recently rezoned parts of Marinship, opening the door for 400 new residences. That’s not just a local move—it’s part of a bigger effort to blend housing with the area’s strong maritime roots.

The shoreline adaptation plan is getting a major revision. Maritime businesses are weighing in, making sure the plan actually fits what boatyards, ferries, marinas, and even local artists need to keep the waterfront alive and kicking.

Nearby towns like Mill Valley, Larkspur, Corte Madera, and San Rafael are keeping an eye on Sausalito. They’re all tied to the same climate risks and the waterfront economy that stretches across the Marin Peninsula.

Officials say they need a balanced approach. They want to protect Sausalito’s maritime character while also finding smart, fair ways to finance and plan for the future.

Moving ahead will take real teamwork. Residents, business owners, and neighboring communities all have to pitch in if the working waterfront is going to stay affordable, lively, and resilient—something Marin County can actually be proud of.

Here is the source article for this story: Sausalito to review 1985 law limiting waterfront development

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Joe Harris is the founder of MarinCountyVisitor.com, a comprehensive online resource inspired by his passion for Marin County's natural beauty, diverse communities, and rich cultural offerings. Combining his love for exploration with his intimate local knowledge, Joe curates an authentic guide to the area featuring guides on Marin County Cities, Things to Do, and Places to Stay. Follow Joe on Facebook, Twitter, and Instagram.