Route 66’s old-school charm faces a new housing threat in California

• Housing dilemma in California options put the historic charm of Route 66 directly against modern urban development pressures.

• A commercial proposal aims to demolish an iconic 1959 Googie building in Santa Monica to construct 138 new apartments.

• The local Landmarks Commission will decide on Dec. 14 whether to grant historical protection to the former Penguin Coffee Shop.

An iconic 1959 Googie-style building housing Mel’s Drive-In faces imminent demolition threats after a developer submitted a proposal to build a residential complex on the 0.5-acre lot at 1670 Lincoln Blvd., right where historic Route 66 reaches its official coast-to-coast terminus. Irvine-based developer ValueRock Realty formally filed the application on Sept. 18 with municipal authorities to clear the commercial structure and its parking lot, planning an 8-story, 85 ft mixed-use building directly on the corner of Olympic Blvd.

Furthermore, preliminary documentation details 138 residential units and 5,672 sq ft of retail space, heightening a major housing dilemma in California regarding how cities balance urban density with historic preservation. Consequently, the residential blueprint breaks down into 20 studios, 90 1-bedroom apartments, and 28 2-bedroom apartments, setting aside 14 units for lower-income households while offering the remaining 124 units at market rate.

The housing dilemma in California and Route 66 preservation

Initial application forms submitted by the developer seek incentives and waivers under state density bonus law to surpass the base height limit of 65 ft, highlighting how the ongoing housing dilemma in California forces city planners to evaluate every available acre. Likewise, public financial records show that ValueRock acquired the property for $6.2M in 2020 and listed it for sale at $26M in 2025 through Newmark Pacific; however, upon announcing the purchase, the company noted that the community considered the site a historic landmark, creating a formal contradiction when stating in its September filing that it knew of no historic resources on the property.

In response to the development project, advocacy organizations like the Santa Monica Conservancy and the Los Angeles Conservancy filed a joint nomination to designate the former Penguin Coffee Shop as a local landmark, pointing out that municipal law mandates a minimum 75-day waiting period after a demolition application for buildings over 40 years old. Equally, if the commission approves the designation on Dec. 14, the owner retains the option to appeal the decision before the City Council, while preservationists point to local precedents like incorporating vintage structures at 829 Broadway and the old Rapp Saloon, alongside the fact that the lease for Mel’s Drive-In runs through June 2029.

“It’s not about saving a modern restaurant. It’s about preserving really important Googie architecture,” states Nina Fresco, vice president of the Santa Monica Conservancy.

The illuminated neon sign of Mel’s Drive-In captures the timeless mid-century Googie architecture and classic diner aesthetic celebrated by road trippers exploring Route 66.

Googie architectural details and restoration of the historic structure

• Original 1959 structural design crafted by renowned architecture firm Armet & Davis to host the Penguin Coffee Shop along Route 66.

• Distinctive roofline features defined by a steeply pitched roof and sweeping glass windows typical of mid-century roadside modernism.

• Commercial evolution of the site reflecting the broader housing dilemma in California as commercial zones face constant pressure to convert into high-density residential developments.

• 2018 reopening process led by Mel’s Drive In, a San Francisco founded chain that took over in 2016 and restored stone cladding and terrazzo floors.

• Alignment with federal standards by following U.S. Secretary of the Interior guidelines and installing a penguin statue atop the neon sign.

“We are going to be here until 2029,” confirms Marilina Borchio, general manager of Mel’s Drive-In in Santa Monica.

Historic highway context and upcoming landmark decision

Recent preservation initiatives emphasize that the location carries deeper cultural importance by sitting at the intersection identified as the official final terminus of U.S. Highway 66, an iconic roadway designated on Nov. 11, 1926, before leaving the federal highway system in the 1980s. Additionally, while many travelers finish their journey at the Santa Monica Pier, the upcoming centennial of the highway reignited tourist interest, earning the site a $10k grant in 2025 from the National Trust for Historic Preservation for centennial signage, proving that preservation efforts can thrive even amidst a pressing housing dilemma in California.

 

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Una publicación compartida por Mel’s Drive In | Since 1947 (@melsdrivein)

On a decisive note, the public hearing on Dec. 14 will determine whether the building gains historic protection or if the apartment project moves forward, establishing a landmark precedent for urban planning. Community members and city officials now await the official verdict from the City of Santa Monica that will decide whether this historic corner maintains its mid-century automotive aesthetic or transitions into new coastal housing infrastructure along Route 66, providing valuable insight into local urban development and how history shapes the ongoing housing dilemma in California.