This is Morro Bay, where Night City is located:
The Creator:
I'm surprised that this is news; I wrote this out years ago and it's no secret. I picked the location because it matched the general terrain and geology I wanted, and was at a choke point on the Cali coast that would be perfect for the Free State. The names were generally picked out of a hat from all the places I've lived in California over the years--there's no real rhyme or reason there.
Here's a reconstruction of what I was doing back then in 1980-something...
Yes, the Rock is to the very north of Night City in my original design. I just didn't point it out at the time. In my personal campaigns, it's been built into a fortress/arcology kind of like a mini Gibraltar. But your mileage may vary.
However, remember that Night City is a heavily fictionalized locale and there's no reason that the end result has to look like Morro Bay. I've given CDPR plenty of room to mess with stuff as they see fit. So don't take this musing about a 30 year old decision too seriously, neh?