SOQUEL >> Michael’s on Main, the popular Mid County restaurant and live music venue that has been closed since 2022 due to fire damage, will not return to the building it called home for 21 years and may never reopen at all.

Erik Barbic, the manager of Holiday Corners, LLC, which owns the property at 2591 Main St. in Soquel, told the Sentinel that a new tenant —a yoga and fitness studio — has signed a lease and is working through the planning and permitting process with the county.

“The building lies in a FEMA flood plain which has a number of restrictions on construction,” Barbic wrote in an email to the Sentinel. “Unfortunately, the building costs of putting a restaurant back were not feasible within the constraints so we pivoted to find another user.”Soquel Creek, which has flooded in the Soquel area during heavy storm periods, runs through the back side of the property, not far from a sprawling deck and walking area above the creek’s embankment.

Michael Harrison, who has owned Michael’s on Main since 2016, said he held out hope for months after the fire that his restaurant would eventually make a return. But about 16 months after the incident, when his business interruption insurance money was coming to an end, he heard from his insurance provider that the property owner had not yet secured the rebuilding permits. Eventually, the lease was terminated.

“I was still holding on thinking we were going to get reopened and they (the property owner) finally decided they were going to go in another direction,” said Harrison. “I don’t have any hard feelings toward them (the property owner).”

Harrison has searched around town for other locations to start over, but so far to no avail.

“At the end of the day, the bottom line is that we are simply not going to be able to reopen at that location,” said Harrison. “I have looked around for something else, but it was kind of a Goldilocks location for the business model that we were using it for.”

The county’s Department of Community Development and Infrastructure told the Sentinel in a statement that rebuilding regulations in Federal Emergency Management Agency-designated floodplain areas don’t have much wiggle room.

The department wrote that it, “deeply understands the challenges property and business owners face when rebuilding after a disaster, especially when sites are located in an area where floodplain regulations are involved. Public safety is a top priority, and properties within FEMA-designated floodplains must comply with strict standards to reduce future flood risks and protect structures and their occupants.”

The statement continued, “The County remains committed to assisting property and business owners through the permitting process while ensuring projects align with safety regulations and community needs.”

Since the fire more than two years ago, Harrison said the live Grateful Dead tribute performances he hosted at the restaurant, known as “Grateful Sundays,” were relocated to the Crepe Place in the Seabright neighborhood, which he’s confident the loyal “deadheads” are happy with.

Harrison didn’t completely rule out his continued involvement in the restaurant industry, but the prospects aren’t looking good. He said he’s searched around locally for another location to reopen, but nothing has seemed like a good fit.

“I’m 73 (years old), I’m retired and, even though I’ve looked at a few of the empty restaurants around town, I haven’t really found one that I would have been able to do anything close to the business model that I had,” said Harrison. “I haven’t found something that I really felt passionate about.”

Harrison added that he might produce three or four music shows a year, but for the most part, he’s enjoying retirement.

“We had a remarkably good time and it was a wonderful community gathering place,” said Harrison. “But we just haven’t found a location that would be able to offer anything like that.”

Fire crews were called to the restaurant one early morning in September, 2022, as flames were seen ripping through the rooftop. According to Harrison, after an investigation by two insurance companies and a local fire department, the fire’s cause is still unclear, though it is thought to have originated from an equipment failure in the kitchen area. He said about half of the building, which was uninhabited at the time of the fire, was destroyed.

Harrison said the original Michael’s on Main was established in 2001 by Michael Clark, but that the property had been used as a restaurant for about 40 years.

That is about to change, as the forthcoming tenant has a new vision for the property and its potential.

Jason Book, CEO of Hot Elevation Studios, told the Sentinel that the yoga and fitness boutique that has been operating on 41st Avenue for the past 15 years will relocate to the Soquel property which he called an “oasis-like location.” Hot Elevation has signed a lease, he said, and the business is working through the permitting process with the county in hopes of making the move later this year.

“We’re incredibly excited to bring a fitness offering that is going to be very, very unique and particular to the East Side of Santa Cruz County,” said Book. “A place that delivers best in class experience, customer experience … to the extent that it would be a destination spot for visitors, for couples planning date nights. In other words, we’re planning on creating something that is visually and experientially very beautiful.”

Book said the studio will offer hot yoga classes, pilates, barre workouts, PRX and cycling classes, among other things.

“We are excited to have a business as successful as Hot Elevation Studios select the property for the new vision of their studio,” wrote Barbic.