TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Masa Alkire, Community Development Director
Adam Finestone, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
Project Pulse Status Update Related to the Public Engagement Program and Redevelopment Options for City Owned-Properties Located at 400 Manhattan Beach Boulevard (Former US Bank Building) and 1155 Morningside Drive (Parking Lot 3) (No Immediate Budget Impact) (Community Development Director Alkire).
(Estimated Time: 45 mins.)
DISCUSS AND PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council receive this update, discuss and provide additional direction regarding the redevelopment of City-owned properties located at the 400 Manhattan Beach Boulevard and 1155 Morningside Drive (Project Pulse).
FISCAL IMPLICATIONS:
Sufficient funds are budgeted to complete the current phase of public engagement efforts, including design charettes. Funding for detailed design services and construction of projects at either site has not yet been allocated, and staff will return with potential funding sources for that work based on City Council direction at a future meeting.
BACKGROUND:
In April 2025, the City acquired the property located at 400 Manhattan Beach Boulevard due to its location in the City’s downtown, proximity to the City’s Civic Center, and the multitude of opportunities it would present for the City in terms of community benefits, preservation of local character, revenue generation, and investment in long-term value. In the spring of 2025, City staff established “Project Pulse” as a coordinated approach for the redevelopment of that property and the City-owned Parking Lot 3 property at 1155 Morningside Drive. The name Project Pulse represents a commitment on behalf of the City to keep its collective finger on the community’s pulse regarding the future development of downtown Manhattan Beach.
At the May 6, 2025, City Council meeting, the Council considered establishing interim uses for the 400 Manhattan Beach Boulevard property. At the conclusion of the discussion, the Council directed staff to allow use of the parking lot at the site as overflow parking for the City’s merchant parking permit program, and to install bicycle racks along the Manhattan Beach Boulevard frontage. Other interim uses were discussed at this meeting and again briefly in December 2025, however most options would require the City to process a Coastal Development Permit and possibly a Use Permit. As such, no further direction has been provided on potential interim uses.
At the August 26, 2025 City Council meeting a study session on Project Pulse was held to discuss the redevelopment of both properties and consider a public engagement program. The City Council took the following actions at the study session:
• Refined the list to nine potential redevelopment options for staff to seek additional community input on
• Approved a public engagement program identifying the community outreach and engagement methods that staff would use to collect input on the redevelopment options
• Directed staff to explore potential amendments to the development regulations to increase the allowable building height from 26 feet to 30 feet (consistent with the Metlox development) and to return with the findings of that research and recommendations prior to initiating any legislative action
In Fall 2025 City staff conducted the first phase of the public engagement program. The Council received a report outlining the results of that first phase at its January 20, 2026, meeting. At that meeting the Council narrowed down the list of potential redevelopment options to continue exploring and directed staff continue with the public engagement program and to return with more information. The January 20, 2026 City Council report and presentation materials are included as Attachment 2 to this report.
DISCUSSION:
Winter and Spring 2026 Public Engagement Program
Since the January 20, 2026, City Council meeting, City staff have continued implementing the public engagement program, including conducting a Planning Commission study session and a FlashVote Survey. A presentation to the Older Adults Program is scheduled for April 28, 2026.
Planning Commission Study Session
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 Commission hearing, both the public commenters and the Commission raised concerns about the current need for parking in the downtown. The Commission asked if a parking structure-only concept could still be considered for the Parking Lot 3 site. The Commission was supportive of re-establishing concentrated public parking at the Parking Lot 3 site. For 400 Manhattan Beach Boulevard, the Commission and some public commenters expressed concerns about introducing public parking (even if limited in nature) to this property, given the close proximity to residential uses. Public comments also expressed a desire that noise and traffic safety at the corner of Manhattan Beach Boulevard and Morningside Drive should be considered when contemplating redevelopment at 400 Manhattan Beach Boulevard. The Commission also suggested limiting the combination of commercial uses at each property and not replicating the same combination of uses at both properties.
Additionally, the Commission inquired about potential costs for underground parking compared to above-ground parking and the cost of an underground connection to Metlox. Staff informed the Commission that a parallel process to obtain the services of an engineering consultant to explore the feasibility of, and potential cost for, an underground connection to Metlox was in-progress. Public Works is currently finalizing an agreement with a consultant to provide these services, and staff will present the results of that feasibility analysis at a future Council meeting. Attachment 3 is the March 11, 2026 Planning Commission study session staff report.
Design Charettes (May 2026)
Conducting design workshops with the community and generating conceptual plans are central to the Spring/Summer 2026 phase of the public engagement program. The City has retained Gensler to provide these initial architectural services and charette related public engagement services. The design charrettes will be held in mid-to-late May, with exact dates and times still being finalized. When confirmed, staff will announce the dates and times and will communicate them to a broad audience through various communication methods, including an announcement at the next City Council meeting.
The design charettes will explore the following opportunities for a mixed-use development concept at 400 Manhattan Beach Boulevard:
• Commercial uses (including retail)
• Open space/park
• Limited parking
For the Parking Lot 3 site, based on the comments received at the March 2026 Planning Commission study session, staff believes it is appropriate to consider an all-parking option for the site in addition to the parking and mixed-use development concept the Council identified in January. As such, the following development concepts will be explored at the design charrette:
• Concept 1
o Parking structure - two levels, underground
o Mixed-use development above-ground
§ Commercial (include retail)
§ Open space/park
• Concept 2
o Parking structure - partially above-ground (up to two levels) and two levels underground
Staff will return to Council after the charettes for direction on which of the two concepts for Parking Lot 3 should proceed to the schematic design phase. The schematic designs for both properties will return to Council for consideration in August 2026.
FlashVote Survey
The City will utilize FlashVote to obtain additional feedback related to the current list of potential redevelopment options from City residents. The City currently uses FlashVote as a means of acquiring statistically significant data as part of community outreach efforts. Flashvote questions will ask about community preferences regarding: the mix of commercial uses at the properties, the potential for concentrated public parking, and the types of open space to be considered. The input received will be used to help inform planning of the design charettes. As of the writing of this report, survey results are not yet available. The results of the survey will be included in future Project Pulse updates to Council.
Potential Code Amendment Related to Allowable Height
At the Council’s August 26, 2025 meeting, staff introduced the option of increasing the height limit for one or both properties. The City Council directed staff to explore potential amendments to the development regulations to increase the allowable building height from 26 feet to 30 feet, including potential impacts, and to coordinate with the California Coastal Commission, before returning to City Council for further direction.
The intent would be to allow an increase in the maximum allowable height on the properties from 26 feet to 30 feet as long as the projects include either subterranean or at-grade parking (to match regulations on adjacent sites). This increase in the height allowance would make three-story development on both properties more feasible.
It should be noted that the prior parking structure at Parking Lot 3 was built in the 1970s and did not comply with current code requirements. Additionally, it included elements that exceeded the height limit, and it projected over the public right-of-way on three sides. To construct a modern parking structure within the current height limit (either with or without a commercial component), the structure would be limited to two stories. Based on a previous analysis, this would limit the structure to approximately 105 spaces.
As demonstrated in Attachment 4 to this report, there are already properties in the downtown area that currently have a 30-foot height limit. These include the Metlox property, and the properties immediately north of Parking Lot 3. As such, allowing a height increase from 26 feet to 30 feet would not be out of character for the immediate area because there are neighboring properties already built to that height limit; accordingly, impacts would be minimal.
City staff-initiated conversations with California Coastal Commission staff last year to gauge their level of support for potential code amendments. Specifically, City staff identified a possible change in the maximum height limit from 26 to 30 feet, and an allowance for height over-runs for elements such as elevator shafts and lighting at both Project Pulse properties. Coastal Commission staff was generally supportive of the amendment, though the Commission itself would make the final decision.
If it is important to the City Council to have flexibility to pursue more public parking, and potentially a rooftop amenity at the Project Pulse properties, the City Council can direct staff to begin working on an amendment to the City’s Local Coastal Program (LCP). Should the City Council direct staff pursue such a code amendment, staff would revise the map shown in Attachment 4 to include additional properties in the category that allows a 30-foot height limit as long as parking is provided on-site and would build-in allowances for minor elements to exceed the height limit.
CONCLUSION:
Staff is seeking City Council direction on the following:
1. Code amendments to accommodate the redevelopment of both sites - this would entail LCP amendments to 1) increase the height limit for specified properties in the CD zone from 26-feet to 30-feet on the condition that an on-site parking structure is provided at-grade or underground; and 2) allow limited exceedances of the height limit for minor elements such as elevator shafts and site lighting.
If Council directs staff to begin working on these LCP amendments, staff will conduct a public hearing before the Planning Commission to consider the amendments, followed by a public hearing with the City Council after that. If the amendments are approved by the City Council, staff would submit them to the California Coastal Commission for certification.
PUBLIC OUTREACH:
A significant amount of public outreach has been conducted and will continue to be conducted for Project Pulse. This includes courtesy notices, email blasts to interested parties (including the Chamber of Commerce and the Downtown Business and Professionals Association), postings on the City’s social media platforms, and mailings to property owners and residents ahead of both the Planning Commission study session on March 11, 2026, and this City Council meeting. An announcement has also been published in the April newsletter for a presentation before the Older Adults Program on April 28, 2026. As of the writing of this staff report, staff has not received any public comments.
ENVIRONMENTAL REVIEW:
Discussing the matter and receiving direction from City Council 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 goal of this discussion is to make progress towards developing concepts for both properties, future redevelopment project(s) that the City Council identifies for each property will be subject to applicable provisions of CEQA and will be analyzed at that time. If specific code amendments are suggested, those amendments will also be reviewed for compliance with CEQA.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Location Map (Project Pulse Sites)
2. January 20, 2026 - City Council Staff Report (Web-Link Provided)
3. March 11, 2026 - Planning Commission Staff Report (Web-Link Provided)
4. CD Zoning District Height Map
5. PowerPoint Presentation