No, they closed and it is for sale.
Go to the Nehalem River Inn for a great high end meal that is worth every penny: http://www.nehalemriverinn.com/restaurant.htm
For a not fancy meal (seriously casual), try Pacific Oyster in Bay City: http://www.pacseafood.com/locations/baycity.html
Also very casual, there's Ecola Seafood in Cannon Beach: http://ecolaseafoods.com/
And we had a not too bad meal at Sweet Basil's Cafein Cannon Beach: http://www.cafesweetbasils.com/
Eat anywhere else around there at your own peril. ;o)