TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Adam Finestone, Acting Community Development Director
FROM:
Justin Urbanski, Associate Planner
SUBJECT:Title
Study Session on a Potential Minor Height Limit Increase for City-Owned Properties Located at 400 Manhattan Beach Boulevard (Former U.S. Bank Building) and 1155 Morningside Drive (Parking Lot 3) to Accommodate Future Redevelopment.
DISCUSS AND PROVIDE DIRECTION
Body
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RECOMMENDATION:
Staff recommends that the Planning Commission conduct a study session to discuss, receive public comments, and provide input on a potential minor increase in allowable building height for City-owned properties located at 400 Manhattan Beach Boulevard (Former US Bank Building) and 1155 Morningside Drive (Parking Lot 3).
BACKGROUND:
In 2024, during a routine inspection of the former three-story, 145-space parking structure at Parking Lot 3, located at 1155 Morningside Drive, the Public Works Department identified structural concerns that resulted in the immediate closure of the top level of the structure and, ultimately, the entire structure. In November 2024, the parking structure was demolished, and an interim surface parking lot was constructed at the site, which opened in June 2025.
In April 2025, the City Council authorized the purchase of the former US Bank property located at 400 Manhattan Beach Boulevard. The purchase represented a forward-thinking investment that aligns with the City’s vision for economic resilience and community enhancement. The decision to acquire the property was driven by its strategic location, potential community benefits, and the ability to preserve community character. Revenue generation opportunities and long-term value were also identified as reasons for the purchase.
In spring 2025, City staff established Project Pulse as a coordinated approach for the redevelopment of the two City-owned properties identified above. Due to the proximity of the two properties and their similar characteristics (such as lot size and zoning), the City has been considering the redevelopment concepts for both sites concurrently to help ensure compatible and complementary outcomes for these important sites in the City’s Downtown.
Since fall 2025, City staff has been implementing a public engagement program to solicit public input on the future uses of both Project Pulse sites. City staff has conducted numerous public outreach meetings, including study sessions with the Planning Commission and City Council for Project Pulse, as described below.
At the adjourned August 26, 2025, City Council meeting, staff introduced the idea of amending development regulations to allow a minor increase in the height limit for one or both of the Project Pulse properties. The City Council directed staff to explore potential amendments to increase the allowable building height from 26 to 30 feet, provided that a subterranean or at-grade parking structure is provided. The City Council requested that staff identify potential impacts and obtain input from the California Coastal Commission before returning to the City Council for further direction. Copies of the staff report and minutes from that meeting are included as Attachments 2 and 3 to this report.
On March 11, 2026, the Planning Commission conducted a study session to discuss Project Pulse. The information considered by the Planning Commission included:
• Background and development history of both sites
• Project Pulse timeline and community outreach completed to-date
• Redevelopment options considered to date and current options still under consideration
• Parking management study report
At the study session, both the public commenters and the Planning Commission identified the need for additional parking in downtown Manhattan Beach. The Commission and some members of the public expressed concerns about providing public parking at 400 Manhattan Beach Boulevard (even in a limited manner), given its adjacency to residential uses to the south. The Commission and the public were supportive of concentrating public parking at the Parking Lot 3 site, and recommended that an all-parking option be considered. The staff report from that meeting is included as Attachment 4 to this report.
At its April 21, 2026, meeting, the City Council received an update on the Project Pulse work effort. At that meeting, the City Council directed staff to proceed with initiating a code amendment to increase the maximum allowable building height from 26 feet to 30 feet at both Project Pulse properties on the condition that a subterranean or at-grade parking structure is provided, as well as to allow additional height for minor architectural elements such as elevator shafts, lighting, and safety barriers. Copies of the staff report and minutes from that meeting are included as Attachments 5 and 6 to this report.
The final Project Pulse community event to collect input on the potential redevelopment options was a design preview open house on July 15, 2026. The goal of the event was to collect community input on preliminary design concepts prepared by the City’s design consultant for both sites. City staff and its consultant are refining the concepts and plan to present them to the City Council next month to obtain formal direction on future uses of the properties. Depending on the City Council’s direction, the design concepts may be impacted by the height limit that is the subject of this report.
DISCUSSION:
Zoning and Surrounding Land Uses
Both subject properties are located within the Downtown Commercial (CD) zoning district. Parking Lot 3 is surrounded by 12th Street to the north, Morningside Drive to the east, Center Place to the south, and commercial uses to the west. The Property is surrounded by CD-zoned properties on all sides. To the east, across Morningside Drive, is Metlox, a commercial development with a mix of restaurant, office, and retail uses, and a two-level underground public parking garage. Neighboring properties to the north (across 12th Street), south (across Center Place), and west are developed with various commercial uses, including offices, retail, and restaurants.
400 Manhattan Beach Boulevard is a former bank at the southeast corner of Manhattan Beach Boulevard and Morningside Drive. It abuts other CD-zoned properties to the north (across Manhattan Beach Boulevard), east, and south, and CD and High-Density Residential (RH-zoned) properties to the west (across Morningside Drive). Surrounding land uses include multifamily housing to the south, both multifamily and commercial uses to the west, mixed retail and restaurant uses to the north (Metlox), and a grocery store to the east (Vons).
Existing Development Regulations
Both subject properties are located within the City’s Coastal Zone, which means their development regulations are governed by the City’s certified Local Coastal Program (LCP). LCP Section A.16.030 identifies development regulations, including building height limits, applicable in the CD zone. A majority of the CD zone, including the Project Pulse properties, has a height limit of 26 feet (or two stories). However, there are several properties, including Metlox and the properties immediately north of Parking Lot 3, that have a height limit of 30 feet (or three stories), provided they either have a pitched roof or provide an at-grade or subterranean parking structure. The existing height limits are depicted in Attachment 7 to this report.
Potential Height Increase
City staff has identified minor amendments to the LCP related to height limits for the Project Pulse properties that could provide flexibility when considering redevelopment options. Specifically, the amendments would:
• Increase the maximum allowable building height for both sites to 30 feet (or three stories) as long as a parking structure (at-grade and/or subterranean) is provided on site, while maintaining the existing 26-foot height limit if no parking structure is provided.
• Allow certain minor site elements (light poles, elevator shafts, railings, etc.) to exceed the height limit.
Maximum Height Increase
For context, the prior parking structure at Parking Lot 3 was built in the 1970s and did not comply with current zoning or building code requirements. It provided three levels of above-ground parking, and while the upper parking deck surface was within the height limit, certain elements (like the light poles) were 35-40 feet in height (exceeding the site’s current 26-foot height limit). Additionally, the prior structure projected over the public rights of way on three sides (12th Street, Morningside Drive, and Center Place) and, as such, was able to accommodate 145 parking spaces. If a new parking structure was constructed within the current height limit, it would be limited to two stories and could accommodate approximately 105 spaces.
A 30-foot height limit would allow flexibility not only for a parking structure but also for a mix of other uses to accompany it. A 30-foot height limit could accommodate a three-story structure, which would be consistent with some neighboring properties (as discussed further in the Neighborhood Context section below).
400 Manhattan Beach Boulevard is also subject to the 26-foot building height limit. While current preliminary land use and design concepts do not include an at-grade or subterranean parking structure at the site, staff find it prudent to include the property as part of the LCP amendment to provide future flexibility. Because the property is owned by the City, the City maintains control over what is built on the site, either now or in the future, and is committed to the robust public engagement process that has been a hallmark of the Project Pulse work effort.
Height Exceedances for Limited Site Elements
The LCP currently allows vent pipes and radio and television antennas to exceed the maximum allowable height by ten feet, chimneys by five feet, and solar energy systems by 12 inches. When considering the redevelopment of the two Project Pulse properties, it is possible that certain other minor elements may need to exceed the height limit, especially in instances where there are active rooftop uses such as a parking deck or usable open space. To accommodate the ultimate design of projects at the Project Pulse properties, staff has identified the following potential structural elements that may require flexibility, and has suggested development standards for each:
• Elevator shafts, stairwells and associated equipment: five feet above height limit;
• Mechanical Equipment: five feet above height limit
• Safety barriers (guardrails/parapet walls): 42 inches over height; transparent or semi-transparent materials (open railings or glass; no solid/opaque materials unless required pursuant to California Building Code)
• Landscaping: five feet above height limit
• Lighting: ten feet above height limit
Neighborhood Context
Residential and commercial properties in downtown Manhattan Beach, including those surrounding 400 Manhattan Beach Boulevard and Parking Lot 3, range from one to three stories in height, and are generally consistent with the allowable height limits allowed based on existing regulations (30 feet for residential uses; 22 - 30 feet for commercial uses). As shown in Attachment 7, a majority of commercial properties in the CD district have a height limit of 26 feet, with the exception of the Metlox property and the properties bounded by Morningside and Crest drives and 12th and 13th streets, which have a height limit of 30 feet for buildings with a parking structure (at-grade or subterranean) or pitched roofs, and 22 feet for buildings without either of these features.
Parking Lot 3 is adjacent to 30-foot-tall buildings to the north (Morningside Business Center and the Rock’n’Brew world headquarters) and east (Metlox). To the south and west of Parking Lot 3 are one- and two-story retail, restaurant, and office buildings. There are no residential properties immediately adjacent to Parking Lot 3, so impacts to residential properties in the area are limited.
400 Manhattan Beach Boulevard sits immediately south (across Manhattan Beach Boulevard) from Metlox, and west of the Vons property, both of which are approximately 30 feet tall. (Note that the Vons property was constructed prior to the establishment of the 26-foot height limit for the property and is currently considered legal nonconforming with regard to height.) To the west of 400 Manhattan Beach Boulevard is a single-story multi-tenant commercial property that is approximately 22.5 feet tall and a multifamily residential structure that is 30 feet tall, and to the south is a two-story multifamily residential structure. As such, changing the height limit for 400 Manhattan Beach Boulevard could impact residential uses in the vicinity. However, the increase would only come into play if an at-grade or subterranean parking structure is provided, which is not currently envisioned for the site based on the preliminary designs being developed through the Project Pulse work effort. Additionally, because the City controls the site, it can be developed in a manner that addresses the potential impacts by increasing the setback on the south side of the property.
A map showing the proposed height limits for the downtown area is included as Attachment 8 to this report.
View Study
To better understand visual impacts, staff had a view study prepared to demonstrate the potential differences that could result from the height increase. The study provides massing exhibits for potential 26- and 30-foot-tall buildings at both Parking Lot 3 and 400 Manhattan Beach Boulevard, in addition to existing conditions. Exhibits are provided from three locations in the vicinity of each property and are included as Attachment 9 to this report. It is important to note that the exhibits do not include actual buildings on each site (other than the existing conditions); rather, they provide boxes that demonstrate the maximum vertical and horizontal dimensions that a structure could occupy at each height limit.
At Parking Lot 3, a 26-foot-tall structure would be similar in height to the previous parking structure’s third-level deck. However, the second and third floors of the previous structure cantilevered over the public rights of way on three sides, so the horizontal massing was significantly greater than it would be with a new building that does not project beyond the property lines. As shown in the view study, impacts to coastal views associated with the increased height limit would be minor, and would be limited to a handful of residential properties on the east side of Ardmore Avenue.
The current bank building at 400 Manhattan Beach Boulevard sits roughly in the middle of the Property with parking lots on the north and south side of the lot. View impacts to surrounding areas resulting from new development would be most noticeable at the intersection of Manhattan Beach Boulevard and Valley/ Ardmore. A new structure could be built up to the property line abutting Manhattan Beach Boulevard, whereas the current structure is setback and has less massing abutting the street. Since the Property is owned by the City, future development could incorporate design elements into the new building, like setbacks and massing, to limit the impacts on views.
CONCLUSION:
Staff is requesting that the Planning Commission receive public comments on potential code amendments related to the height limit and allowable height exceedances for both City-owned properties, discuss the proposed revisions, and provide input. Staff will utilize the input received to prepare code language that will be presented to the Commission at a public hearing this fall. The Planning Commission’s recommendation will then be forwarded to the City Council, and upon a vote and approval, to the Coastal Commission for final consideration.
PUBLIC OUTREACH:
A courtesy notice for the August 12, 2026, Planning Commission meeting was published in the Beach Reporter on July 30, 2026, and at City Hall at least ten calendar days prior to the study session. As of the writing of this staff report, no public comments have been received.
ENVIRONMENTAL REVIEW:
Discussing the matter and receiving direction from the Planning Commission is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines; therefore, the activity is not subject to CEQA pursuant to Section 15060(c)(3). While the discussion of an LCP amendment for the purpose of providing feedback on recommendations on potential code language changes is not subject to CEQA, any future LCP amendment considered by Planning Commission and City Council will be subject to CEQA and will be analyzed as appropriate at that time.
ATTACHMENTS:
1. Location Map
2. August 26, 2025, City Council Meeting Staff Report (Web-Link Provided)
3. August 26, 2025, City Council Meeting Minutes (Web-Link Provided)
4. March 11, 2026, Planning Commission Meeting Staff Report (Web-Link Provided)
5. April 21, 2026, City Council Meeting Staff Report (Web-Link Provided)
6. April 21, 2026, City Council Meeting Minutes (Web-Link Provided)
7. Existing Downtown Commercial Height Map
8. Proposed Downtown Commercial Height Map
9. Height View Study