TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Masa Alkire, Community Development Director
FROM:
Adam Finestone, Planning Manager
Ted Faturos, Senior Planner
Fel Cortez, Assistant Planner
SUBJECT:Title
Consideration of a Use Permit Amendment to Allow for the Expansion of an Existing Eating and Drinking Establishment Within an Existing Building, Including the Legalization of a Small Unpermitted Expansion to the Structure, Located at 1140 Highland Avenue (Parakeet Café), and Associated Environmental Determination Finding the Project Categorically Exempt from Further Review Pursuant to the California Environmental Quality Act (Planning Case Nos. PE-26-00274/UP-26-00040).
A) CONDUCT THE PUBLIC HEARING
B) ADOPT RESOLUTION NO. PC 26-XX
Body
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RECOMMENDATION:
Staff recommends that the Planning Commission: (1) conduct the public hearing; and (2) adopt the attached resolution approving a Use Permit Amendment, subject to conditions, and finding the project categorically exempt from further review pursuant to the California Environmental Quality Act.
APPLICANT:
Parakeet Café (Austin Chavira, on behalf of Salt & Timber Consulting)
3006 Laurel Avenue
Manhattan Beach, CA 90266
BACKGROUND:
On April 22, 2026, the Community Development Department received an application for a Use Permit Amendment to allow for the expansion of an existing eating and drinking establishment use within an existing building, including the legalization of a small unpermitted expansion to the structure (“Project”) located at 1140 Highland Avenue (“Property”).
Prior Actions
On May 8, 2002, a Use Permit Amendment and Coastal Development Permit were approved by the Planning Commission (Resolution No. PC 02-14) to allow beer and wine sales in conjunction with food service. The resolution incorporated provisions from, and superseded, all previous Use Permit approvals for the subject restaurant operation.
In July 2014, an Interim Zoning Ordinance (IZO) was adopted as an Urgency Ordinance for the Downtown area. The IZO, Ordinance No. U 14-0016, established a moratorium on changes of use in the downtown area during the drafting of the Downtown Specific Plan. The IZO was extended in 2015 and ultimately expired on July 15, 2016. The Downtown Specific Plan was adopted by the City Council in December 2016 but failed to gain certification from the California Coastal Commission and was ultimately repealed by the City Council in September 2018.
On June 16, 2015 (during the time in which the IZO was in effect), a Hardship Exemption from the IZO was approved by the City Council to allow a change of use to convert a portion of a vehicle repair space into retail space.
Site Overview
The Property is currently a permitted 5,830 square-foot commercial building containing a restaurant space with ancillary retail in the rear of the unit (formerly Un Caffè Altamura), an adjacent retail use (Gum Tree), a vehicle/equipment repair area in the rear of the building abutting Center Place (vacant - used for private use by property owner), and general office uses on the second floor. The Property is in the Downtown Commercial (CD) zoning district, Area District III, and has a General Plan designation of Downtown Commercial. In addition, the Property is located within the non-appealable portion of the Coastal Zone. The site is surrounded by retail and office uses to the north, a restaurant use to the south across Center Place, a commercial parking facility to the east, and retail and personal service uses to the west (across Highland Avenue). The vicinity map (see Attachment 2) demonstrates the site configuration and surrounding uses.
PROJECT OVERVIEW
• Location: 1440 Highland Avenue
• General Plan Land Use: Downtown Commercial
• Zoning: CD (Downtown Commercial)
• Area District: III
• Land Use (tenant space):
o Existing: Eating and Drinking Establishment and retail (currently vacant)
o Proposed: Eating and Drinking Establishment
• Tenant Space Size:
o Existing: 1997 square feet
o Proposed: 2072 square feet
• Alcohol License:
o Existing: On-Sale Beer & Wine (Type 41 ABC License)
o Proposed: No change
• Hours of Operation
o Permitted Under Existing Entitlement:
§ 6:00 a.m. - 10:00 p.m. Sunday through Thursday
§ 6:00 a.m. - 11:00 p.m. Friday & Saturday
o Proposed: No change
• Parking
o Existing requirement: 5 spaces
o Proposed requirement: No change
Governing Regulations
The project is reviewed for compliance with applicable regulations, including the City’s General Plan, Local Coastal Program, Downtown Design Guidelines, and prior entitlements.
Manhattan Beach General Plan
The General Plan is a long-range policy document that identifies the community’s vision for its collective future and establishes the fundamental framework to guide decision-making about development, resource management, public safety, public services, and general community well-being. This vision is expressed in goals and policies that allow this vision to be accomplished. All projects are reviewed to ensure the project aligns with the General Plan’s goals and policies. The City’s General Plan was adopted December 2003. General Plans contain required “elements”, or chapters, including a Land Use Element, which is used to guide the City’s development, maintenance, and improvement of land and properties.
The project was evaluated for conformance with the following applicable Land Use Element goals and policies:
• Land Use Plan Goal LU-6: Maintain the viability of the commercial areas of Manhattan Beach.
• Land Use Plan Policy LU-6.1: Support and encourage small businesses throughout the City.
• Land Use Plan Policy LU-6.2: Encourage a diverse mix of businesses that support the local tax base, are beneficial to residents, and support the economic needs of the community
• Land Use Plan Goal LU-7: Continue to support and encourage the viability of the Downtown area of Manhattan Beach.
• Land Use Plan Policy LU-7.4: Encourage first-floor street front businesses with retail, restaurants, service/commercial, and similar uses to promote lively pedestrian activity on Downtown streets, and consider providing zoning regulations that support these uses.
Manhattan Beach Local Coastal Program (MBLCP)
A portion of the City is subject to the California Coastal Act. The California Coastal Act authorizes coastal jurisdictions to establish Local Coastal Programs (LCPs) that, as described by the California Coastal Commission’s website, “specify appropriate location, type, and scale of new or changed uses of land and water. Each LCP includes a land use plan and measures to implement the plan (such as zoning ordinances). While each LCP reflects unique characteristics of individual local coastal communities, regional and Statewide interests and concerns must also be addressed in conformity with Coastal Act goals and policies.” The California Coastal Commission certified the City’s LCP in 1996.
The proposed project is located in the Coastal Zone; therefore, the project was reviewed for compliance with the MBLCP, including but not limited to the following chapters:
• MBLCP Chapter A.16 - governs commercial districts, including the CD district where the Project is located.
• MBLCP Chapter A.64 - governs parking throughout the Coastal Zone, including where the Project is located.
• MBLCP Chapter A.84 - governs use permits, which are required for use classifications typically having unusual site development features or operating characteristics requiring special consideration so that they may be designed, located, and operated compatibly with uses on adjoining properties in the surrounding area.
Downtown Design Guidelines
The Downtown Design Guidelines were adopted by the City Council in 2018 and are “intended to perpetuate quality development that will complement and enhance the project area’s eclectic style and small-town character.”
Prior Entitlements
Prior entitlements established limitations on the amount of the project site that could be used for specific uses and hours of operation for some of those uses, including eating and drinking establishments.
PROJECT DESCRIPTION
Austin Chavira, on behalf of Salt & Timber Consulting and the proposed tenant, Parakeet Café, is requesting a Use Permit Amendment to allow for the expansion of an existing eating and drinking establishment. The prior tenants operated an eating and drinking establishment, with an ancillary retail use in the rear of the tenant space. The project scope proposes the legalization of the unpermitted conversion of retail area to eating and drinking establishment use. In addition, as part of the review of the application, it was determined that a small, unpermitted addition (approximately 75 square feet) had been made to the south side of the building (adjacent to Center Place), and this Use Permit amendment would authorize the legalization of that space. The applicant is also proposing changes to the restaurant floor plan to accommodate code requirements associated with their request to expand the existing restaurant space, including the construction of a new trash enclosure.
DISCUSSION:
Project Analysis
The following Project features warrant additional consideration by the Planning Commission.
Expansion of Eating and Drinking Establishment Use
As described above, the Project proposes to expand the eating and drinking establishment use through conversion of prior retail space and legalization of a small, unpermitted building addition. The conversion from retail space to eating and drinking establishment use and the unpermitted building addition were effectuated by the prior tenant. Parakeet Café is seeking the use permit amendment and required building permits to legalize the previously unpermitted expansion. The expansion includes the remodeling of interior dining area, a new kitchen area, updated bathrooms, new storage areas, and a new trash enclosure, which is located in the vacant vehicle/equipment repair area. The previous combined restaurant/retail space was 1,997 square feet (1,164 square feet restaurant and 833 square feet retail), and the proposed restaurant space is 2,072 square feet (achieved through conversion of the 833 square feet of retail use and legalization of a 75 square feet expansion of the building described further below). Staff finds that the expansion of the eating and drinking establishment use will not result in adverse impacts to the properties and uses in the area, as the expansion is within an enclosed building and legalizes prior unpermitted expansions (both in overall floor area and in area dedicated to restaurant use) that have operated in the space for some time with no significant complaints. Additionally, the property is not adjacent to any residential uses, and no change in permitted hours of operation or alcohol license type is proposed.
Minor Expansion of Building Footprint
As described above, the Project also proposes to legalize a small, unpermitted expansion of buildable floor area (BFA) of 75 square feet. As mentioned above, the prior tenant increased the building area without permits, resulting in the 75 square foot expansion. The lot area of the site is 4,500 square feet and has a floor area factor (FAF) of 1.5. (FAF is a ratio of the square footage of BFA compared to the square footage of the lot). As such, the maximum BFA of the site is 6,750 square feet. The expansion proposes to increase the BFA of the building to 5,970 square feet, well below the maximum permitted for the site. Additionally, the expansion complies with setback requirements, height limitations, and other applicable development standards.
Consistency and Compliance with Governing Regulations
Manhattan Beach General Plan
As noted above, the Project was reviewed for consistency with applicable General Plan goals and policies. The project has been determined to be consistent with the following goals and policies for the reasons described below:
• Land Use Plan Goal LU-6: Maintain the viability of the commercial areas of Manhattan Beach.
The viability of commercial areas depends on a range of factors, including having various types of services and restaurants. The proposed expansion of eating and drinking establishment use will continue to offer a dining option at this location for the community and visitors, supporting the Downtown commercial businesses.
• Policy LU-6.1: Support and encourage small businesses throughout the City.
Allowing the existing eating and drinking establishment to expand enhances the viability of the business. Many other existing eating and drinking establishments in the Downtown have undergone tenant improvements and expansions over time. The applicant’s request is consistent with such uses.
• Policy LU-6.2: Encourage a diverse mix of businesses that support the local tax base, are beneficial to residents, and support the economic needs of the community
Downtown Manhattan Beach has a mix of restaurants and services. The expansion of the existing restaurant could attract more patrons to the eating and drinking establishment, and provide expanded dining opportunities for residents and visitors. Additionally, eating and drinking establishments are required to collect sales tax, a portion of which goes back to the City.
• Land Use Plan Goal LU-7: Continue to support and encourage the viability of the Downtown area of Manhattan Beach.
Downtown Manhattan Beach has a variety of commercial uses including, but not limited to, coffee shops, restaurants, and retail stores. As proposed, the expanded eating and drinking establishment is complementary to these uses, as patrons may visit other Downtown businesses, thus contributing to the economic vitality of Downtown Manhattan Beach.
• Policy LU-7.4: Encourage first-floor street front businesses with retail, restaurants, service/commercial, and similar uses to promote lively pedestrian activity on Downtown streets, and consider providing zoning regulations that support these uses.
The existing use is a first-floor eating and drinking establishment use, with the business’s façade facing a commercial corridor (Highland Avenue) in the heart of Downtown Manhattan Beach. The eating and drinking establishment will be open during daytime and evening hours, encouraging pedestrian activity. The applicant is maintaining the existing ground-floor dining area adjacent to the sidewalk, thus continuing to encourage a lively environment on the street.
Manhattan Beach Local Coastal Program
Pursuant to MBLCP Section A.16.020, a use permit amendment is required for any change of use to, or expansion of, an eating and drinking establishment within the CD zoning district. Thus, in order to eliminate the previously approved retail use and expand the existing eating and drinking establishment use, an amendment to the existing use permit for the site is required.
Development standards applicable to the Project site are primarily found in Section A.16.030 of the MBLCP. The proposed project scope complies with development standards included in that section as indicated in the Project Overview and Project Analysis above.
Chapter A.64 of the MBLCP addresses parking requirements in the Coastal Zone. Pursuant to A.64.050(A), for building sites equal to or less than 10,000 square feet, if the FAF exceeds 1:1, only the excess floor area over the 1:1 ratio shall be considered in determining the required parking prescribed by Section A.64.030. The proposed change of use from retail to eating and drinking establishment in the rear of the tenant space does not increase the parking requirement for the subject property (see parking calculation sheet G-012 of the Project Plans (Attachment 9)).
Pursuant to Section A.84.020 of the MBLCP, the Planning Commission is the decision-making authority for Use Permits and Use Permit Amendments and shall consider the request at a public hearing, prior to rendering a decision on the application.
Downtown Design Guidelines
The existing building and proposed addition comply with the applicable Downtown Design Guidelines, including the following:
• Site Layout and Building Orientation: The building’s existing main pedestrian entry is oriented along Highland Avenue. The proposed 75 square feet addition of the tenant space is located along the side of the property abutting Center Place. The proposed addition constitutes a negligible expansion of the building footprint and does not alter the site layout and building orientation, thus the Property is continuing to conform to the Downtown Design Guidelines in this manner.
Interdepartmental Review
The Building and Traffic Divisions, along with the Public Works, Fire, and Police Departments, reviewed the request. The reviewing divisions and departments raised no concerns or objections to the proposed project that have not been addressed either on the plans or through conditions of approval included in the draft resolution included as Attachment 1 to this report.
Required Findings
Pursuant to MBLCP Section A.84.060, in order to approve a use permit or an amendment thereto, the Planning Commission must make certain findings to ensure that the use operates in a manner that is compatible with uses on adjacent properties and in the surrounding area. The required findings are addressed below:
1. The proposed location of the use is in accord with the objectives of this title and the purposes of the district in which the site is located.
The subject site is currently permitted as a restaurant in the front and retail in the rear of the tenant space. The applicant is proposing to expand the existing restaurant into the retail space, effectively eliminating the retail use from the tenant space. The applicant is also proposing to increase the existing building by 75 square feet. As stated in the MBLCP Section 10.16.020, an “Eating and Drinking Establishment” use is permitted through a Use Permit in the CD zoning district. Resolution No. PC 02-14 superseded prior entitlements and maintained the previously approved eating and drinking establishment use. The previously approved change from vehicle repair use to retail use would be superseded with the expansion of eating and drinking establishment use.
2. The proposed location of the use and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan; will not be detrimental to the public health, safety or welfare of persons residing or working on the proposed project site or in or adjacent to the neighborhood of such use; and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the city.
The General Plan encourages a “vibrant downtown” that offers “services and activities for residents and visitors.” The Property’s General Plan land use designation is Downtown Commercial, and eating and drinking establishment uses are consistent with the intended mix of uses in the Downtown Commercial District. The project is compatible with neighboring uses as it is a minor expansion of an existing use on the Property, and is surrounded by other commercial uses on all sides. Furthermore, the Project was reviewed by the Building & Safety and Traffic Divisions, the Public Works, Police, and Fire Departments, and Waste Management, none of which raised concerns or objections that have not been addressed on the plans or through conditions of approval. Therefore, the Project will not be detrimental to the public health, safety, or welfare of persons residing or working on the site, or in or adjacent to the neighborhood of such use and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the City.
When taken together, the requested physical changes described above (expansion of restaurant use and small building addition) do not result in a significant intensification of use because the site will continue to be used as a public serving commercial use. Additionally, the building is on a commercial street, is not adjacent to any residential uses, and would operate in a similar manner to other eating and drinking establishments in the vicinity, and conditions of approval, including conditions requiring the provision of an adequate trash enclosure on the site, have been proposed to address any potentially adverse impacts.
3. The proposed use will comply with the provisions of this title, including any specific condition required for the proposed use in the district in which it would be located.
The Project proposes to change the prior use of the rear area of the tenant space from retail space to an eating and drinking establishment, which is the same use already permitted in the front of the tenant space through the existing Use Permit. Per MBLCP Section A.16.020, the CD zoning district allows “Eating and Drinking Establishment” uses, which includes sit-down restaurants, through the approval of a use permit. A Use Permit Amendment is also required when a proposed project requires changes to the original Use Permit’s conditions of approval.
The restaurant is a commercial use that is existing-to-remain at the site. The project scope is limited to expanding the eating and drinking establishment use to the rear of the tenant space and adding 75 square feet of BFA. Conditions of approval have been proposed to ensure compliance with the required findings for a Use Permit and to serve as an additional governing entitlement (in conjunction with Resolution No. PC 02-14) for the development and operation of the subject site.
4. The proposed use will not adversely impact nor be adversely impacted by nearby properties. Potential impacts are related but not necessarily limited to: traffic, parking, noise, vibration, odors, resident security and personal safety, and aesthetics, or create demands exceeding the capacity of public services and facilities which cannot be mitigated.
The proposed use is located on a previously developed site along Highland Avenue and is consistent with uses surrounding the site, which include a variety of commercial uses. Project characteristics related to parking, noise, vibration, odors, security, personal safety, and aesthetics are addressed in the project design, Municipal Code requirements, and conditions of approval. Furthermore, the use will not create demands exceeding the capacity of public services and facilities.
ENVIRONMENTAL DETERMINATION
The City has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Class 1 exemptions include operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures involving negligible expansion of an existing or former use. The request consists of expanding an existing eating and drinking establishment into an existing retail space, eliminating the retail use, and a small expansion of BFA, which represents a negligible expansion of the use. Furthermore, there are no features that distinguish this project from others in the exempt class, and therefore, there are no unusual circumstances. Thus, no further environmental review is necessary.
PUBLIC NOTIFICATION AND COMMENT:
A public notice for the October 28, 2026, public hearing was published in The Beach Reporter, mailed to all property owners within a 500-foot radius of the Property, and posted at City Hall and other City facilities on October 8, 2026. As of the writing of this report, staff has not received any public comments.
ATTACHMENTS:
1. Draft Resolution No. PC 26-XX
2. Vicinity Map
3. Resolution No. PC 02-14
4. June 16, 2015 Staff Report - Hardship Exemption from Downtown IZO (Abbreviated)
5. June 16, 2015 - City Council Minutes (Abbreviated)
6. Ordinance No. U 14-0016
7. Applicant’s Written Materials
8. Downtown Establishments - Alcohol and Hours of Operation List
9. Project Plans