TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Masa Alkire, Community Development Director
FROM:
Adam Finestone, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
One-year review of a Use Permit Amendment that allowed the expansion of an existing eating and drinking establishment, including second-story outdoor dining in conjunction with the on-site sales and service of alcohol (beer, wine, and distilled spirits) and live entertainment located at 309 Manhattan Beach Boulevard, and associated environmental determination finding the project categorically exempt from further review pursuant to the California Environmental Quality Act (Planning Case No. PE-26-00265).
A) CONDUCT THE PUBLIC HEARING
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RECOMMENDATION:
Staff recommends that the Planning Commission conduct the public hearing for a one-year review of the Use Permit Amendment that allowed the expansion of an eating and drinking establishment, in order to consider the applicant’s request to continue operating under the expanded hours of operation for the second story.
APPLICANT:
Greg Newman, on behalf of Esperanza
36 13th Ct
Hermosa Beach, CA 90254
BACKGROUND:
On February 25, 2026, the Community Development Department received an application from Greg Newman, on behalf of Esperanza, requesting continued use of the expanded operating hours for the second story beyond the one-year trial period, which is scheduled to end on June 11, 2026.
Prior Actions
On August 14, 1984, the Board of Zoning Adjustment adopted Resolution No. BZA 84-37, approving a Use Permit for a substantial remodel and renovation to an existing restaurant/bar on the first floor in conjunction with on-site sales and service of alcohol (beer, wine, and distilled spirits), live entertainment, and hours of operation from 7:00 a.m. to 2:00 a.m. daily at 309 Manhattan Beach Boulevard. No change was proposed to the existing residential use on the second floor.
On March 27, 2019, the Planning Commission adopted Resolution No. PC 19-03 (“PC 19-03”), amending the Use Permit and replacing Resolution No. BZA 84-37. Prior to 2024, this was the sole entitlement governing the project site, which approved a major remodel of the existing restaurant on the ground floor to accommodate the new commercial tenant (Esperanza). There were no changes proposed to the hours of operation, alcohol service, live entertainment, or the residential use on the second floor. (A copy of PC 19-03 is included as Attachment 2 to this report).
On October 9, 2024, the Planning Commission conducted a duly-noticed public hearing and adopted Resolution No. PC 24-13 (“PC 24-13”), amending the Use Permit and approving a Coastal Development Permit. PC 24-13 allowed expansions to the existing eating and drinking establishment, including second-story outdoor dining, on-site sales and service of alcohol, and live entertainment. (A copy of PC 24-13 and the staff report are included as Attachment 3 and Attachment 4 to this report). PC 24-13, along with the previous PC 19-03, jointly governs the project site. During that public hearing, the Planning Commission discussed and approved expanded operating hours for the second story to be utilized on a one-year trial basis. Specifically, Condition No.16 of PC 24-13 states the following:
The applicant shall be allowed to operate indoors on the second floor until 2:00 a.m. and outdoor until 11:00 p.m. seven days a week for a trial period of 12 months from the time operation of the second-floor use commences. Prior to expiration of the 12-month period, the applicant may request that the Planning Commission consider at a noticed public hearing that the hours for the trial period shall supersede the hours in Condition No. 9, and determine if revisions to the conditions of approval are warranted.
Should the Planning Commission disapprove continued use of the expanded operating hours (specifically the closing times) for the second story, the operating hours will revert to Condition No. 9 as follows:
Indoor: 4:00 p.m. - 12:00 a.m. midnight daily
Outdoor: 4:00 p.m. - 10:00 p.m. daily
The operating hours in Condition No. 9 were the original hours recommended for approval by City staff for the Planning Commission’s consideration at the public hearing in 2024. There is no proposed change to the opening time for the second story; the subject request is limited to the closing time, as Condition No. 16 only permitted later closing times for the indoor and outdoor patio areas.
Site Overview and History
The Property is currently permitted with a 3,393 square-foot, two-story building containing an existing restaurant (Esperanza). 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 restaurant, retail, and office uses to the north, restaurant uses to the west, restaurant/bar uses to the east, and retail uses to the south (across Manhattan Beach Boulevard). The Vicinity Map (see Attachment 1) demonstrates the site configuration and surrounding uses.
The current tenant, Esperanza, began operation at the subject site in July 2021. The business operates under a Type-47 Alcoholic Beverage Control (ABC) license. A Type-47 ABC license authorizes the on-site sale and consumption of distilled spirits (including beer and wine). The license holder must operate and maintain the licensed premises as a bona fide eating place, including maintaining suitable kitchen facilities and making actual and substantial sales of meals for consumption on the premises, and minors are allowed on the premises.
Under the current planning entitlements that govern the Property (PC 19-03 and PC 24-13), the subject establishment is permitted to operate as follows:
• Existing Land Use: Eating & Drinking Establishment (No Change)
• Space Configuration:
o First Floor: 2,060 sq. ft. interior, 307 sq. ft. outdoor patio
o Second Floor: 1,333 sq. ft. interior, 594 sq. ft. outdoor patio
• Parking:
o Required: Five spaces
§ Two Merchant Parking Permits
§ Three off-site spaces
o Provided: Six spaces
§ Two Merchant Parking Permits
§ Four off-site spaces through a parking lease agreement at an adjacent property
• Existing Alcohol License: On-Sale Beer, Wine, & Distilled Spirits (Type 47 ABC License)
• Permitted Hours of Operation:
o First Floor (Indoor & Outdoor): 7:00 a.m. - 2:00 a.m. daily
o Second Floor:
§ Expanded Hours During One-Year Trial Period
• Indoor: 4:00 p.m. - 2:00 a.m. daily
• Outdoor: 4:00 p.m. - 11:00 p.m. daily
§ Hours Without One-Year Trial Period
• Indoor: 4:00 p.m. - 12:00 a.m. midnight daily
• Outdoor: 4:00 p.m. - 10:00 p.m. daily
In 2024, the Applicant applied for building permits to formally expand the eating and drinking establishment use to the second story. After those permits were issued and the associated construction was completed, the City issued a new Certificate of Occupancy on June 11, 2025, allowing operations and service to begin on the second story. The one-year trial period related to hours of operation on the second floor began on that date and is scheduled to end on June 11, 2026.
DISCUSSION:
In preparation for the required one-year review, and as authorized in Condition Nos. 21 and 23 of PC 19-03 and Condition Nos. 4 and 5 of PC 24-13, staff completed the following steps:
1. Consult with Code Enforcement staff to ascertain any documented violations of applicable Manhattan Beach Municipal Code (MBMC) provisions, Local Coastal Program (LCP) provisions, or conditions of approval by the subject operator, and status thereof;
2. Consult with the Police Department to obtain a list of “calls for service” documented under the address of the subject establishment; and
3. Review the applicable conditions of approval in PC 19-03 and PC 24-13 to verify the operator’s compliance with conditions of approval.
First, staff’s consultation with the Code Enforcement staff yielded the following results:
• On June 26, 2025, Code Enforcement staff observed construction activity (workers storing materials, equipment, and doing work for the subject property) in the public right-of-way (Center Place alley). Code Enforcement staff provided a verbal warning to the workers. Subsequently, the materials were removed, the work ceased, and a site re-inspection was conducted. The Code Enforcement case was closed on July 9, 2025. Thus, this violation is no longer outstanding.
Second, staff’s consultation with the Police Department regarding “calls for service” documented under the subject address (June 1, 2025 to March 15, 2026) yielded the following results (see Attachment 6):
• Of the 12 documented calls for service, eight pertained to sounding alarms and personal property theft.
• On August 14, 2025, dispatch received a call requesting fire and police response regarding a male subject who had passed out in the Center Place alley behind the establishment, but was now alert and talking. Fire responded to the location, and it was determined that the incident was due to a medical condition.
• On August 22, 2025, dispatch received a call regarding an unhoused male sitting on the floor in front of the subject establishment. Police responded to the location and made contact with the male subject, but no arrests were made.
• On November 4, 2025, dispatch received a call regarding a female subject possibly under the influence of drugs and inside of a vehicle at or around the 300 block of Manhattan Beach Boulevard. No arrests were made and this was unrelated/not attributed to the subject operator.
• On February 12, 2026, dispatch received a call requesting fire and police response regarding a male subject. Fire responded to the location and it was determined the male subject had experienced a seizure while at the subject establishment.
Lastly, staff reviewed the subject operator’s compliance with the conditions of approval in PC 19-03 and PC 24-13, which are primarily focused on restaurant operations, the service of alcohol, regulations on live entertainment, the use of the second-story interior and exterior spaces, noise, and refuse. As authorized under Condition No. 23 of PC 19-03 and Condition No. 5 of PC 24-13, staff conducted a site visit in late May 2026 to inspect the property for compliance with the conditions of approval. The following observations were made during the site visit:
§ Condition No. 17, PC 19-03 (Exterior music and amplified sound association with the commercial use is prohibited on any decks and patios) and Condition No. 11, PC 24-13 (Live entertainment, amplified sound, and speakers are prohibited at the outdoor dining patio).
At the second-story outdoor patio, two outdoor speakers were mounted on the building (facing Manhattan Beach Boulevard). These speakers will need to be removed.
Previously, during City inspections in 2025 for the construction of the second-story expansion, staff observed wall-mounted outdoor speakers at the second-story patio. Staff identified the non-compliance with this same condition, and the speakers were removed. Since the applicant was then in compliance with the conditions, staff approved moving forward with obtaining their new Certificate of Occupancy for the site.
§ Condition Nos. 2 and 7, PC 24-13:
o The Project shall be in substantial conformance with the plans and project description submitted to, and approved by, the Planning Commission on October 9, 2024, as amended by these conditions. Any substantial deviation from the approved plans and project description, as conditioned, shall require review by the Community Development Director to determine if further approval from the Planning Commission is required.
o The project shall be operated in conformance with all applicable provisions of the MBMC, MBLCP, and this Use Permit Amendment and Coastal Development Permit.
Due to the expansion of the eating and drinking establishment use, the applicant was required to provide code-compliant refuse enclosure(s) for trash, recycling, and organic materials. In 2025, a new, second trash enclosure was constructed in accordance with approved plans for PC 24-13 to accommodate the minimum service levels (including container sizes) required, as the existing refuse enclosure at the time was non-compliant. Staff observed that the new enclosure was being utilized for linen and other miscellaneous storage, rather than for the additional container required due to the expanded use. The new refuse enclosure needs to be returned to its approved condition as required (see Attachment 5 for the approved plans).
Based on the foregoing information, the applicant is in compliance with all other conditions of approval in PC 19-03 and PC 24-13. The applicant has agreed to address the above and correct the non-compliance issues.
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 alteration of existing private structures or facilities, involving negligible expansion of an existing or former use. The project request, which consists of continuing to operate the second story of the existing eating and drinking establishment use under expanded hours beyond the one-year trial period, 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 OUTREACH
A public notice for the June 10, 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 on the City’s website on May 28, 2026. As of the writing of this report, staff received one public comment (see Attachment 7).
CONCLUSION:
Staff concludes that, based on the information provided from Code Enforcement and Police Department staff and the on-site inspection conducted in May 2026, the applicant is currently in compliance with the conditions of approval in PC 19-03 and PC 24-13, with the exception of the noncompliance with Condition Nos. 2 and 7, PC 24-13 (new refuse enclosure used as miscellaneous storage instead of intended use) and Condition No. 17, PC 19-03 and No. 11, PC 24-13 (installation of prohibited outdoor speakers). The applicant has agreed to address the identified non-compliance issues.
Staff recommends that the Planning Commission conduct a public hearing for a one-year review, marking compliance with Condition No. 16 of PC 24-13. Specifically, consideration and approval to continue utilizing the expanded operating hours for the second story granted under Condition No. 16, thereby superseding the hours listed in Condition No. 9 with respect to second-story operations. Condition No. 16 provides the Planning Commission an opportunity to consider whether any revisions to the conditions of approval are warranted. Should the Commission determine this is warranted, staff will prepare a resolution with the amended condition(s) and return to the Planning Commission at a future date for their consideration of the resolution.
ATTACHMENTS:
1. Vicinity Map
2. Resolution No. PC 19-03
3. Resolution No. PC 24-13
4. October 9, 2024 - Planning Commission Staff Report (Web-Link Provided)
5. 2024 Approved Plans - 309 Manhattan Beach Boulevard
6. Calls for Service List
7. Public Comment