The Benefits of California Coastal Development: The Case of Morro Bay

The NY Times reports  that a defunct power plant's ugly structure remains on Morro Bay.   You don't have to be Don Trump to recognize that a real estate developer would pay the costs of dismantling it and removing it if he/she could then develop on the vacated land.  Can Jerry Brown and the Coastal Commission figure out such a private/public partnership? Or does Gov. Brown and his local equivalents anticipate that Morro Bay would gentrify after such an efficient reallocation of land and thus he would block such a move.  Look at this picture:



The power plant is not a natural part of of the scene but it is within the Coastal Commission's jurisdiction. Have you read my paper on the role of the California Coastal Commission and its regulatory ruling's unintended consequences of raising home prices and limiting new real estate development?

Here is a lot for sale close to the Bay with a view of the power plant.   $279,000 is not much $ to pay for 1/4 acre of California beachfront property.   In Malibu, such a lot would cost $5 to 10 million dollars.    If the power plant wasn't there and if some exciting retail was there, what would be the impact on the local economy's total property value?   Is there any push towards the efficient allocation of scarce resources (i.e land) in California?