TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Michael Codron, Interim Community Development Director
Adam Finestone AICP, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
Discuss and Provide Direction to Staff Regarding Interim Uses of the City’s Recent Real Property Acquisition Located at 400 Manhattan Beach Boulevard (Minimal Budget Impact) (Interim Community Development Director Codron).
(Estimated Time: 15 Mins.)
DISCUSS AND PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council discuss the proposed interim uses for the City’s recent real property acquisition located at 400 Manhattan Beach Boulevard and provide direction to staff.
FISCAL IMPLICATIONS:
Direct fiscal impact associated with the proposed interim use of the property at 400 Manhattan Beach Boulevard is limited to costs of approximately $5,000 associated with installation of bicycle racks on the site. Additionally, indirect positive fiscal impact would be realized through increased parking revenue at metered spaces that become available when permit holders park in non-metered spaces at 400 Manhattan Beach Boulevard. The amount of this revenue is estimated to be between $12,675 to $25,350 per month.
BACKGROUND:
On April 15, 2025, the City of Manhattan Beach closed escrow on a property located at 400 Manhattan Beach Boulevard (Property). The Property consists of three parcels (Assessor’s Parcel Numbers 4179007016, 4179007004, and 4179007005) and is approximately 16,570 square feet (0.38 acres) in size. It is occupied by a vacant commercial building (formerly U.S. Bank) with a surface parking lot and three former drive-thru ATM lanes.
Upon the City taking possession of the Property, it was noted that the parking lot was being used by the public because there had been no oversight of the lot since the former tenant vacated the property. Until direction is provided by the City Council as to the interim use of the lot, staff has taken immediate action to restrict the lot for use by commercial parking permit holders. More information on this action is provided in the Discussion section below.
DISCUSSION:
The Property is located in Area District III and is zoned Downtown Commercial (CD), with a General Plan land use designation of Downtown Commercial. The Property is on the southeast corner of Manhattan Beach Boulevard and Morningside Drive and is within the non-appealable portion of the City’s Coastal Zone.
Section A.16.020 of the Manhattan Beach Local Coastal Program (LCP) identifies land uses that are permitted in the CD zoning district, either by-right or subject to a use permit. Included in that list are a variety of public and semi-public, commercial, and temporary uses, including commercial parking facilities, which are permitted subject to a use permit.
Commercial parking facilities are defined in LCP Section A.08.050 as “[l]ots offering short-term or long-term parking to the public for a fee. Provision of off-site parking for the purpose of fulfilling a parking requirement…shall not solely constitute a commercial parking facility use.” Commercial parking permits are issued for use by merchants and their employees and constitute parking necessary to fulfill a parking requirement. Thus, allowing City-owned properties to be utilized as additional locations for the City-operated commercial parking permit program is consistent with the LCP and is considered a by-right use. Furthermore, a Coastal Development Permit is not required because the commercial parking permit program is an existing component of the City’s Parking Management Program for the Coastal Zone. Adding the Property to the list of locations where the existing permit program can be utilized would not trigger the need for a Coastal Development Permit.
At this time, the parking lot has been restriped to provide 26 spaces, including use of the drive-through ATM lanes that are not in-use. Using the lot as a temporary commercial parking permit lot provides additional parking spaces for permit holders, thus freeing up public parking spaces in other overflow commercial parking permit lots where public parking for a fee is already a permitted use. This will assist in alleviating the temporary loss of public parking spaces that resulted from the demolition of Parking Lot 3.
Additionally, the Property presents an opportunity to provide additional bicycle parking in downtown. The provision of bicycle parking has been identified as part of the outdoor dining program work effort as a parking strategy to address parking demand downtown. Staff has identified the lawn in front of the existing parking lot on the Property (along Manhattan Beach Boulevard) as a prime location for bicycle parking. Staff is requesting City Council direction to pave a portion of the lawn area and install bicycle racks. Staff anticipates being able to install ten bicycle racks, which would accommodate 20 bicycles, including electric bicycles.
CONCLUSION:
Staff is seeking City Council direction on interim uses for the recently acquired property at 400 Manhattan Beach Boulevard. At this time, staff has taken immediate action to provide indirect revenue-generating use of the property by allowing its use as a temporary parking lot for the City’s existing commercial parking permit program, thus freeing up paid parking spaces elsewhere downtown. Staff is requesting City Council authorization to continue this interim use and to install bicycle racks on the site, as described above, until a permanent use is determined based on a thorough public engagement campaign. Should the City Council wish to use the Property in another manner at this time, staff will bring back additional options for the Council’s consideration.
PUBLIC OUTREACH:
Formal public notice is not required for this item; however, the item was included in the agenda for this meeting, which was posted in accordance with the law.
As part of a larger effort to determine the future uses of City-owned property downtown, City staff will conduct a community meeting on May 21, 2025, to gather initial input from the public on potential permanent uses for both the Property and Parking Lot 3. Additional public meetings are anticipated to inform the City Council’s ultimate decision as to future permanent uses for both properties.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed 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) and Class 11 categorical exemption pursuant to Section 15311 (Accessory Structures) of the State CEQA Guidelines. The request consists of utilizing an existing, surface parking lot for an existing commercial parking permit program and the installation of limited bicycle racks as accessory structure(s) at the existing property. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Location Map
2. PowerPoint Presentation