TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Michael Codron, Interim Community Development Director
FROM:
Adam Finestone AICP, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
Consideration of a Use Permit to Allow a Change of Use from Food and Beverage Sales to Eating and Drinking Establishment (Restaurant) with Indoor and Outdoor Seating and Proposed Hours of Operation from 7:00 a.m. to 9:00 p.m. Daily at an Existing Commercial Building Located at 904 Manhattan Avenue (Caffe Luxxe), and Associated Environmental Determination Finding the Project is Exempt from Further Review Pursuant to the California Environmental Quality Act. (PLANNING CASE NOS. PE-25-00201/UP-25-00035)
A) CONDUCT THE PUBLIC HEARING
B) ADOPT RESOLUTION NO. PC 25-XX
Body
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RECOMMENDATION:
Staff recommends that the Planning Commission: (1) conduct a public hearing; and (2) adopt the attached resolution approving the Use Permit, subject to conditions, and finding the project categorically exempt from further review pursuant to the California Environmental Quality Act.
APPLICANT
Mark Wain
Caffe Luxxe
904 Manhattan Ave #1
Manhattan Beach, CA 90266
BACKGROUND:
On January 7, 2025, the Community Development Department received an application requesting a Use Permit to allow for a change of use from food and beverage sales to eating and drinking establishment (restaurant) with indoor and outdoor seating and proposed hours of operation from 7:00 a.m. to 9:00 p.m. daily at an existing commercial building (“Project”) located at 904 Manhattan Avenue #1 (“Property”).
Site Overview
The site is currently permitted with a 7,253 square-foot, two-story, multi-tenant commercial building containing a food and beverage sales establishment (Caffe Luxxe), retail, and office uses. 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 commercial uses to the north, south and west (across Manhattan Avenue), and single- and multi-family uses to the east (across Bayview Drive). The Vicinity Map (see Attachment 2) demonstrates the site configuration and surrounding uses.
Project Overview:
• Location: 904 Manhattan Avenue
• Legal Description: Lots 4 and 5, Block 69, Manhattan Beach Tract
• General Plan Land Use: Downtown Commercial
• Zoning: CD (Downtown Commercial)
• Area District: III
• Land Use:
o Existing: Food and Beverage Sales
o Proposed: Eating and Drinking Establishment
• Lot Size: 6,666 square feet (No Change)
• Building Size: 7,253 sq. ft. (No Change)
• Tenant Space Size:
o Existing & Proposed Interior: 781 sq. ft.
o Existing & Proposed Covered Patio Area: 153 sq. ft.
o Proposed Courtyard Seating Area: 258 sq. ft.
• Parking:
o Required: Three stalls
o Provided: Eight stalls (No Change)
• Alcohol License
o Existing: None
o Proposed: None
• Hours of Operation
o Existing: 7:00 a.m. - 6:00 p.m.
o Proposed: 7:00 a.m. - 9:00 p.m.
Governing Regulations
The Project is reviewed for compliance with applicable regulations, including the City’s General Plan, Local Coastal Program (“LCP”), and Downtown Design Guidelines.
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 in 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
A portion of the City is under the jurisdiction of the California Coastal Act. The California Coastal Act authorizes coastal jurisdictions to create 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 LCP, including but not limited to the following sections:
• LCP Chapter A.16 - governs commercial districts, including the CD district where the Project is located.
• LCP Chapter A.64 - governs parking throughout the Coastal Zone, including where the Project is located.
• LCP 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.”
PROJECT DESCRIPTION
Mark Wain, on behalf of Caffe Luxxe, is requesting a Use Permit to allow a change of use from Food and Beverage Sales to Eating and Drinking Establishment (restaurant) with hours of operation from 7:00 a.m. to 9:00 p.m. daily at 904 Manhattan Avenue #1. The applicant proposes no physical changes to the tenant space beyond the addition of seating both indoor and at outdoor patio areas along Manhattan Avenue and in the building’s courtyard.
Caffe Luxxe began operation at the subject site in March 2024. The business occupies 781 square feet of interior space within an existing, multi-tenant commercial building. Prior to opening, Caffee Luxxe changed the use of this tenant space from Retail to Food and Beverage Sales and is currently operating under that use.
DISCUSSION
Project Analysis
The following Project feature warrants additional consideration by the Planning Commission:
Indoor and Outdoor Seating
The tenant space’s existing use is Food and Beverage Sales, which is allowed by-right in the CD zoning district without a Use Permit. Pursuant to LCP Section A.08.050(L), this land use classification is described as follows:
Food and Beverage Sales. Retail sales of food and beverages for off-site preparation and consumption. Typical uses include groceries, liquor stores, or delicatessens.
Exceptions:
1. Food and Beverage Sales establishments (with incidental seating area) may contain a maximum area for on-site food preparation and consumption of 300 square feet or 10% of the total store area (whichever is smaller). The on-site food preparation and consumption area includes: counter (order / pickup) area, food preparation area, and seating area (maximum capacity of four (4) persons). On-site consumption of alcoholic beverages is prohibited.
2. Food and Beverage Sales establishments (with no on-site consumption areas) may contain a maximum of 2,000 square feet in gross floor area and may sell prepared foods or beverages which are consumed off-site. Food and beverage sales may include, but are not limited to: breads, pastries, ice cream, frozen yogurt, candy, juices, and coffee. On-site consumption of alcoholic beverages is prohibited.
In 2024, Caffe Luxxe received a Certificate of Occupancy from the Building and Safety Division and began operation as Food and Beverage Sales under Exception 2 described above. As noted, areas for on-site consumption of beverages or food are prohibited under this exception. The applicant proposes to provide both indoor and outdoor seating at the Property for customers. While Exception 1 above does allow for limited seating, the applicant proposes more seating than allowed under the exception. As such, a change of use to Eating and Drinking Establishment (restaurant) is required. Eating and drinking establishments do not have a pre-established limit on the amount of seating or dining areas a business can have as long as sufficient parking is provided. Parking is discussed in greater detail in the Manhattan Beach Local Coastal Program section later in this report.
The applicant proposes to add seating indoors (within their existing tenant space), at the existing covered outdoor area fronting Manhattan Avenue (currently used as landscaped area), and throughout the existing, interior courtyard shared between the building’s tenants. The Applicant currently operates from 7:00 a.m. to 6:00 p.m. daily, but is proposing to change their operating hours to 7:00 a.m. to 9:00 p.m. daily. There are no proposed changes to the indoor or outdoor square footage of the tenant space and no alcoholic beverage service proposed.
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 eating and drinking establishment use will continue to offer a coffee shop option to the community and visitors to support the Downtown commercial businesses.
• Policy LU-6.1: Support and encourage small businesses throughout the City.
Allowing the existing establishment to change to an eating and drinking establishment use to increase their amount of indoor and outdoor seating enhances the viability of the business. Many other existing eating and drinking establishments in the Downtown provide both indoor and outdoor seating, and the applicant’s request would be 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 addition of both indoor and outdoor seating could attract more patrons to the eating and drinking establishment. 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 eating and drinking establishment is complimentary 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 food and beverage sales use, with the business’s façade facing a commercial corridor (Manhattan Avenue) in the heart of Downtown Manhattan Beach. The establishment proposes to maintain that orientation and further activate their frontage by adding outdoor seating. The proposed eating and drinking establishment use will be open during daytime and evening hours, encouraging pedestrian activity.
Manhattan Beach Local Coastal Program
Pursuant to MBLCP Section A.16.020, a use permit 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 change the use of the Property from food and beverage sales to eating and drinking establishment (restaurant), a 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.
Section A.64 of the MBLCP addresses parking requirements in the Coastal Zone. The proposed change of use from food and beverage sales to eating and drinking establishment for the subject tenant space increases the parking requirement for the overall multi-tenant property. The site currently requires two parking spaces, and the proposed change of use increases that requirement by one parking space, resulting in a parking requirement of three spaces. Providing the additional required parking on-site is feasible for the Project, as the existing building provides a surface parking lot with eight parking spaces. While the parking requirement for the overall site would be increased from two to three parking spaces, there would still be a surplus of parking spaces on-site after the change of use.
Pursuant to Section A.84.050 of the LCP, the Planning Commission is the decision-making authority for use permits and shall consider the request at a public hearing, prior to rendering a decision on the application. Per Section A.84.060 of the LCP, the Planning Commission, as the decision-making authority, must make certain findings for approval of a use permit. An analysis of those findings is provided in the Required Findings section below.
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.” While the tenant space’s design is not being reviewed as part of the applicant’s request to change the use from food and beverage sales to eating and drinking establishment, the existing building complies with the applicable Downtown Design Guidelines. The Guidelines include recommendations regarding building orientation, pedestrian access, visual aesthetics, lighting, signage, and others. The existing tenant space (and overall building) comply with the Guidelines, as the structure is oriented towards Manhattan Avenue. Furthermore, the existing tenant space incorporates a façade design, pedestrian access, signage, and lighting that comply with the Guidelines.
Interdepartmental Review
The Building and Safety Division, along with the Public Works Department, reviewed the request. The reviewing division and department raised no concerns or objections to the proposed change of use.
Required Findings
Pursuant to LCP Section A.84.060, in order to approve a use permit, 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 the surrounding area. The required findings are addressed below.
Use Permit
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 tenant space is currently permitted as a food and beverage sales use on the first floor within an existing commercial building in the CD zoning district. The applicant is proposing to change the use to an eating and drinking establishment in order to provide additional indoor and outdoor seating for customers. As stated in LCP Section A.16.020, an “Eating and Drinking Establishment” use is permitted through a Use Permit in the CD zoning district. There are no existing use permits for this tenant space or overall site. The applicant proposes to establish an eating and drinking establishment use as the primary use at the tenant space; however, the proposal to add indoor and outdoor seating does not alter the primary use of the tenant space or the overall site.
2. The proposed location of the use and the proposed conditions under which the uses 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 uses; 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 district. The Project is compatible with neighboring uses, as neighboring lots to the north, south, and west are developed with commercial uses, and the tenant space has no frontage adjacent to the residential uses to the east. Furthermore, the Project was reviewed by the Building & Safety Division and the Public Works Department, neither of which raised objections or concerns. Therefore, with the proposed conditions of approval, 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.
The requested operational change described above (the addition of indoor and outdoor seating) does not result in a significant intensification of use because the site will continue operating similarly to how it has been under the current land use classification of food and beverages sales. Additionally, the existing tenant space is on a commercial street and would operate in a similar manner to other eating and drinking establishments in the vicinity, and conditions of approval, including conditions regarding hours of operation and operational standards 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 uses in the district in which it would be located.
The Project proposes a change of use to an existing tenant space from food and beverage sales to eating and drinking establishment. Per LCP 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.
The project scope is limited to allowing a greater quantity of indoor and outdoor seating area than is permitted under the existing use of food and beverage sales. Conditions of approval have been proposed which will enable the Commission to make the required findings for a Use Permit and serve as the governing entitlement for the development and operation of the use at 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 in an existing multi-tenant commercial building along Manhattan Avenue and is compatible with uses surrounding the site, which primarily include commercial uses. Project characteristics related to parking, noise, vibration, odors, security, personal safety, and aesthetics were addressed in the original project design and prior tenant improvements. Further, there is no physical expansion of the tenant space or building proposed and the Project is limited to the addition of indoor and outdoor seating, and expanded hours of operation. Project characteristics related to noise, odors, security, personal safety, and aesthetics are addressed in the project design, Municipal Code requirements, and proposed 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 the operation, repair, maintenance, permitting, leasing, licensing, or minor alternation of existing private structures or facilities, involving negligible expansion of an existing or former use. The project request, which consists of changing the use of an existing facility from food and beverages sales to eating and drinking establishment with the addition of both indoor and outdoor seating, represents a negligible expansion of 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 July 9, 2025, 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 on the City’s website, on June 26, 2025. As of the writing of this report, staff has not received any public comments.
CONCLUSION:
Staff recommends that the Planning Commission conduct a public hearing and adopt the attached draft resolution approving the Use Permit, subject to conditions, and finding the project exempt from further review pursuant to Section 15301 of the State CEQA Guidelines.
ATTACHMENTS:
1. Draft Resolution No. PC 25-XX
2. Vicinity Map
3. Project Plans - 904 Manhattan Ave
4. Applicant’s Written Materials