TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Masa Alkire, Community Development Director
FROM:
Adam Finestone, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
Project Pulse Study Session on the Redevelopment of City-Owned Properties Located at 400 Manhattan Beach Boulevard (Former U.S. Bank Building) and 1155 Morningside Drive (Parking Lot 3)
Body
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RECOMMENDATION:
Staff recommends that the Planning Commission conduct a study session to discuss and provide input on potential redevelopment options that have been developed through the Project Pulse process for the City-owned properties located at 400 Manhattan Beach Boulevard (Former U.S. Bank Building) and 1155 Morningside Drive (Parking Lot 3).
BACKGROUND:
Parking Lot 3 (1155 Morningside Drive)
During a routine inspection of Parking Lot 3 in the summer of 2024, the Public Works department identified structural issues that resulted in the immediate closure of the top floor of the parking structure, and ultimately the entire structure. In November 2024, the Parking Lot 3 parking structure was demolished and an interim surface parking lot was subsequently constructed at the property at the direction of the City Council.
The City Council also directed staff to identify locations for new temporary parking spaces around downtown to further offset the loss of parking from the demolition of the structure. Those temporary off-site parking spaces were installed in November 2024 and the interim parking lot opened in June 2025. Currently, a total of 125 parking spaces have been established to partially offset the 145 spaces lost as a result of the demolition of Lot 3.
Economic Development Analysis
At its December 9, 2024, meeting, the City Council received a presentation from City staff regarding potential redevelopment options for Parking Lot 3. The potential redevelopment options presented at the meeting and detailed in a report prepared by the Kosmont Companies were as follows:
• New public parking structure (including automated, self-park, above-grade, and subterranean options)
• Public parking structure with limited commercial use
• Hotel
• Public parking on alternative sites (utilize Lot 3 for non-parking uses and identify alternative downtown sites for development of new parking spaces to recapture lost parking and address new demand)
The staff report from the December 9, 2024, City Council meeting, including the Kosmont Companies’ report, is included as Attachment 2 to this report.
400 Manhattan Beach Boulevard
On April 15, 2025, the City of Manhattan Beach closed escrow on a property located at 400 Manhattan Beach Boulevard (“400 MBB”). The property is occupied by a vacant commercial building (formerly U.S. Bank) with a surface parking lot and three former drive-thru ATM lanes.
At the May 6, 2025, City Council meeting, the City Council approved temporary uses for 400 Manhattan Beach Boulevard until a permanent use is identified. The approved temporary uses include the use of the existing parking lot as overflow parking for the City’s commercial/merchant parking permit program, and the installation of bicycle racks at the site. Twenty-six parking spaces have been striped in the lot for commercial parking permit holders and the bicycle racks were installed along the Manhattan Beach Boulevard frontage in June 2025.
Project Pulse
Due to the close proximity of the two properties, similar site characteristics (such as size and zoning), the City had the opportunity to consider that initial list of options for both Parking Lot 3 and 400 Manhattan Beach Boulevard, and for the purposes of building synergy between the two sites, would benefit from not considering the redevelopment of Parking Lot 3 in isolation. In the spring of 2025, City staff established “Project Pulse” as a coordinated approach for the redevelopment of these two City-owned properties in downtown Manhattan Beach. The redevelopment options initially presented for the Parking Lot 3 site were still available for consideration; but the City now had the opportunity to think more broadly. The name Project Pulse represents a commitment on behalf of the City to keep its collective finger on the pulse of the community with regard to the future of development in downtown Manhattan Beach.
A community kick-off meeting was held on May 21, 2025, to introduce the Project Pulse work effort to the community and offer an opportunity for initial public input on redevelopment options. (A copy of the presentation from that kick-off meeting is included as Attachment 3 to this report).
At an adjourned City Council meeting on August 26, 2025, City Council held a study session on Project Pulse to discuss the redevelopment of both properties and consider an associated public engagement program. The City Council discussed the redevelopment options that had been discussed originally for Parking Lot 3 (prior to the acquisition of 400 Manhattan Beach Boulevard), options suggested by community members during the May 2025 Project Pulse kick-off meeting, as well as options suggested by the public during the meeting.
At the end of the meeting, the City Council refined the list of potential redevelopment options for City staff to seek additional community input on, as follows:
1. Commercial development
2. Cultural arts/community space
3. Hotel
4. Mixed-use development
5. Multi-family residential
6. Open space/park
7. Parking structure
8. Social club
9. Visitor center
Additionally, City Council approved an associated public engagement program that outlined the community outreach and engagement methods that City staff would use to collect input on the redevelopment of both properties. A copy of the staff report and presentation materials from the August 26, 2025, City Council study session are included as Attachment 4 to this report.
City staff conducted the first phase of this public engagement program during Fall 2025, which included the following methods for collecting stakeholder input:
• 2025 Community Opinion Survey
• Hometown Fair booth (October)
• Farmer’s Market booth (October, November, December)
• Meetings with community partners (Downtown Business and Professional Association, Chamber of Commerce, and North Manhattan Beach)
• Focus groups (residents and downtown businesses/commercial property owners)
Across the Fall 2025 public engagement activities where participants had the opportunity to vote for specific uses for each property, the overall results are broken down as follows:
• Parking Lot 3
o Parking structure (160 votes)
o Open space/park (131 votes)
o Mixed-use development (104 votes)
o Cultural arts/community space (76 votes)
o Multifamily residential (31 votes)
o Commercial development (25 votes)
o Hotel (22 votes)
o Social club (6 votes)
o Visitor center (6 votes)
• 400 Manhattan Beach Boulevard
o Open space/park (172 votes)
o Mixed-use Development (140 votes)
o Cultural arts/community space (76 votes)
o Commercial development (60 votes)
o Parking structure (50 votes)
o Multifamily residential (24 votes)
o Hotel (22 votes)
o Visitor center (8 votes)
o Social club (4 votes)
Fall 2025 Public Engagement Program Results
For Parking Lot 3, the most popular option was a parking structure, with open space/park being the second most popular, and mixed-use development being the third. For 400 Manhattan Beach Boulevard, open space/park was the most popular option, with mixed-use development being the second, and cultural arts/community space being the third most popular. The least popular options for both properties were hotel, social club, and visitor center.
At its January 20, 2026, meeting, the City Council received a report outlining the results of the first phase of the public engagement program. Through the ensuing discussion, Council narrowed down the list of potential redevelopment options to continue exploring and directed staff continue implementing the public engagement program and to return with more information. A copy of the staff report and presentation materials from the January 20, 2026, City Council meeting is included as Attachment 5 to this report.
Public Engagement Program: Current Status
City staff are currently implementing the Winter 2026 phase of the public engagement program. The current and remaining phases of that program are outlined below:
• Winter 2026
o City Council meeting (January)
o FlashVote survey
o Older Adults Program presentation and meeting
o Planning Commission study session
• Spring 2026
o Design charette (400 Manhattan Beach Boulevard)
o Design charette (Parking Lot 3)
o Community workshop for both sites
• Summer 2026
o City Council meeting(s) to select future uses for both properties
DISCUSSION:
Current Redevelopment Options
At the January 20, 2026, City Council meeting, the Council considered information gathered from the City’s Fall 2025 public engagement efforts and the redevelopment options for both properties were narrowed to the following:
For Parking Lot 3, the City Council directed staff to continue exploring a project with the following components:
• Parking structure - two levels, underground
• Mixed-use development above-ground
o Commercial (include retail)
o Open space/park
For 400 Manhattan Beach Boulevard, the City Council directed staff to continue exploring a project with:
• Mixed-use development
o Commercial (include retail)
o Open space/park
As part of the Winter 2026 phase of the public engagement program, City staff is seeking input from the Planning Commission and the community on the potential redevelopment options that the City Council refined in January.
General Considerations
During the community outreach and City Council meetings last year, general considerations were identified related to redevelopment of the properties, including site characteristics, alternative parking sites, and potential sources of revenue generation.
Site Characteristics
Parking Lot 3 (located at the corner of Morningside Drive and 12th Street) and 400 Manhattan Beach Boulevard (located at the corner of Manhattan Beach Boulevard and Morningside Drive) are close in proximity to each other and are both across the street from Metlox (451 Manhattan Beach Blvd).
In addition to their close proximity, the properties are similar in size, and have the same zoning designation of Downtown Commercial under the Manhattan Beach Certified Local Coastal Program (MBLCP). This means that they not only share the same list of allowable land uses, but also the same development regulations. Due to these similarities, the potential redevelopment options under consideration for both properties had been the same during the first phase of community outreach.
While the two properties share similarities, they also have their differences with respect to:
• Frontage and access
• Neighboring uses
Parking Lot 3 has its primary frontage along Morningside Drive, with additional frontages on 12th Street and Center Place (an alley). 400 Manhattan Beach Boulevard has its primary frontage along Manhattan Beach Boulevard, with additional frontage on Morningside Drive. Parking Lot 3 is surrounded by commercial uses on all sides, while 400 Manhattan Beach Boulevard is surrounded by residential uses to the south and southwest and commercial uses on all other sides.
Alternative Parking Sites
Due to the demolition of the public parking structure at Parking Lot 3, there is a need to consider how and where those 145 parking spaces will be replaced long-term. The interim surface lot at the Parking Lot 3 site currently provides 69 parking spaces. When combined with the 56 new temporary parking spaces created around downtown in the fall of 2024, there is a deficiency 20 spaces compared to prior to the demolition.
The City Council has directed staff to explore including two levels of underground parking as part of the overall redevelopment project for Parking Lot 3. The previous parking structure was three-levels above-ground and projected over the public right-of-way on three sides (12th Street, Morningside Drive, and Center Place). A modern parking structure of two levels would replace around 116 parking spaces, falling short of the total number of parking spaces that need to be replaced. The City has also been conducting a parking management study for the Downtown (and North Manhattan Beach) area, which quantifies the demand for parking both now and in the future.
If the quantity of public parking provided at the former parking structure at Parking Lot 3 is not replaced at one or a combination of the two Project Pulse properties, the City may need to consider providing that replacement parking at alternative locations in the downtown vicinity.
Mixed Use-Development
The City Council identified that they would like project Pulse to move forward with exploring mixed-use redevelopment options for both properties. Therefore, City staff is seeking additional public and Planning Commission input on the mix of land uses that should be considered for each site.
There were some commercial uses that the City Council removed from the list of potential options and are no longer under consideration for either property. Specifically, the Council directed staff to eliminate the following uses:
• Hotel
• Multifamily residential
• Social club
• Visitor center
The options still under consideration to be part of a mixed-use development are:
• Commercial
o Retail
o Restaurant
o Office
o Other commercial uses allowed in the Downtown Commercial zone
• Open space/park
City staff is seeking input from the Planning Commission and additional feedback from the community on a preferred combination of uses, given the updated direction that the City Council provided at the January meeting. A different combination of uses could be considered for each site.
Parking
For Parking Lot 3, the most popular redevelopment option was a parking structure. For 400 Manhattan Beach Boulevard, a parking structure was much lower (fifth) on the list of redevelopment options.
Based on City Council direction, the City is exploring concentrating more public parking at the Parking Lot 3 site, than at the 400 Manhattan Beach Boulevard site; but the concept of providing some amount of parking at 400 Manhattan Beach Boulevard (whether public parking and/or parking for potential commercial tenants) is still under consideration.
City staff is seeking input from the Planning Commission and additional feedback from the community on a public parking component at Parking Lot 3 and some amount of parking (whether it be public parking, parking for the tenants of the development, or both) at 400 Manhattan Beach Boulevard.
CONCLUSION:
Staff is requesting that the Planning Commission discuss, provide input, and receive public comments on the current list of redevelopment options for both properties, including the potential mix of commercial uses, as well as the potential of providing parking at one or both properties.
The Planning Commission and community feedback received at this study session will be provided to the City Council for their consideration at a future meeting.
PUBLIC OUTREACH:
A significant amount of public outreach has been conducted, and continues to be conducted, related to the Project Pulse work effort, as outlined in the public engagement program approved by the City Council in August 2025. The Planning Commission study session that is the focus of this report was identified as one of the many public outreach opportunities.
A courtesy notice for the March 11, 2026, Planning Commission meeting was published in the Beach Reporter on February 26, 2026. A courtesy notice was also emailed to interested parties (including the Chamber of Commerce and the DBPA) on March 2, 2026. On March 3, 2026, postcards were mailed to all property owners and occupants within a 300-foot radius of both sites. Additionally, staff utilized the City’s social media platforms during the weeks of March 1, 2026, and March 8, 2026, to inform the public of the upcoming study session. As of the writing of this staff report, staff has received two public comments, which are included as Attachment 6 to this report.
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 goal of this discussion is to make progress towards developing a concept for both properties, future redevelopment project(s) that the City Council identifies for each property may be subject to CEQA and will be analyzed as appropriate at that time.
ATTACHMENTS:
1. Location Map
2. December 9, 2024, City Council Staff Report (Web-Link Provided)
3. May 21, 2025 Project Pulse Kick-Off Meeting Presentation
4. August 26, 2025 - City Council Staff Report (Web-Link Provided)
5. January 20, 2026 - City Council Staff Report (Web-Link Provided)
6. Public Comments Received