TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ryan Heise, Acting Community Development Director
Adam Finestone AICP, Planning Manager
Tari Kuvhenguhwa, Associate Planner
SUBJECT:Title
Conduct a Public Hearing to Consider a Master Use Permit Amendment and Coastal Development Permit to Modify the Established Size Limitations Applicable to Specific Land Uses, Including Eating and Drinking Establishments, Within an Existing Commercial Development (Metlox) Located at 451 Manhattan Beach Boulevard (No Budget Impact) (Acting Community Development Director Heise).
(Estimate Time: 1 Hr.)
A) CONDUCT PUBLIC HEARING
B) CONSIDER DIRECTING STAFF TO DRAFT A RESOLUTION APPROVING THE MASTER USE PERMIT AMENDMENT AND COASTAL DEVELOPMENT PERMIT
Body
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RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing and provide direction to staff regarding the attached draft conditions of approval for a Master Use Permit Amendment and Coastal Development Permit.
EXECUTIVE SUMMARY:
On October 13, 2023, The Community Development Department received an application from Metlox, LLC (“Applicant”) requesting a Master Use Permit Amendment and Coastal Development Permit to modify the established size limitations applicable to specific land uses, including Eating and Drinking Establishments, within the existing footprint of a commercial development located at 451 Manhattan Beach Boulevard.
Most recently, the Applicant requested amendments to the Master Use Permit in 2018, which were partially approved and partially denied. One of the denied requests was to increase the amount of restaurant square-footage permitted at the site.
The City Council denied that request without prejudice and retained jurisdiction over this specific request, meaning that any application making the same request would be considered by the City Council in the future.
The primary purpose of the proposed Master Use Permit Amendment and Coastal Development Permit is to increase the maximum allowable square footages for the “Eating and Drinking Establishment” land use category at the site. No new structures or expansion of existing structures are proposed, and no changes are proposed to the types of land uses allowed at the site.
Due to this limited scope, the Applicant’s current request aligns with the previous request that was denied without prejudice in 2018, with the Council retaining jurisdiction. For that reason, this request is being presented to the City Council for consideration.
According to staff’s review of the subject request, including a parking analysis, the proposed project is consistent with the goals of the City’s General Plan as well as the Local Coastal Program. Staff therefore recommends the City Council direct staff to a draft resolution to approve the Master Use Permit Amendment and Coastal Development Permit for the project, with appropriate conditions.
FISCAL IMPLICATIONS:
There are no fiscal implications directly associated with the recommended action. However, because the City is the owner of the property, should the City Council ultimately approve the Master Use Permit Amendment and Coastal Development Permit, an amendment to the lease between the City and the applicant would be required. While the fiscal implications of said lease amendment are not known at the time of this writing, any such amendment would be brought forth to the City Council for consideration at a future date.
BACKGROUND:
In 2002, a Master Use Permit (Resolution No. 5770) was approved by the City Council and a Coastal Development Permit (A5-MNB-02-257) was approved by the California Coastal Commission for the development of a 63,850 square-foot, two-story commercial development, 40,000 square feet of grade-level public areas including a Town Square, and a two-level, public subterranean parking structure at the Metlox site. Since that time, several amendments to the Master Use Permit were approved for individual tenant spaces as well as the overall property. Those amendments were as follows:
• Resolution No. PC 05-08: Modified the previously-approved alcohol sales and special events permitted to occur at the hotel use.
• Resolution No. PC 06-20: Modified the previously-approved hours of operation and allowed off-site sales and consumption of wine at the Petros restaurant tenant space.
• Resolution No. PC 08-08: Allowed limited on-site sales and consumption of beer and wine at the Le Pain Quotidien tenant space.
• Resolution No. 6275: Modified the previously-approved hours of operation, notification for events, allowed expanded food service operations, approved various noise mitigation measures at the hotel use.
• Resolution No. 14-08: Allowed noise mitigation measures, full food service and marketing, special events on the terrace, modified alcohol service on the Skydeck, and allowed installation of architectural improvements at the hotel use.
• Resolution No. 14-0064: Modified the eating, drinking, and banquet services associated with the hotel, allowed special events to be conducted on the terrace, modified conditions regulating marketing, and allowed installation of noise mitigation measures at the hotel use.
The most recent Master Use Permit amendment was approved in 2018 (Resolution No. 18-0074, included with this staff report as Attachment 5), wherein the City Council authorized the following:
• The future division of Nick’s (eating and drinking establishment) into two restaurants, resulting in a maximum of three restaurants for the Project site.
• Personal Service uses and Personal Improvement Service uses at the tenant spaces currently occupied by Waterleaf and Beehive.
The 2018 Amendment also included a request to expand the permitted restaurant square-footage. The City Council denied this portion of the requested amendment without prejudice and encouraged the applicant to resubmit their request upon future notification of vacancies in tenant spaces proposed for restaurant use. The City Council also retained jurisdiction over this specific request, meaning that any application making the same request would be considered by the City Council in the future rather than by the Planning Commission (which is typically the decision-making body for master use permits and amendments thereto).
On October 13, 2023, the Community Development Department received an application from Metlox, LLC (“Applicant”) requesting a Master Use Permit Amendment and Coastal Development Permit to modify the established size limitations applicable to specific land uses at the Project site, including Eating and Drinking Establishments. The Applicant’s current request aligns with the portion of the previous request that was denied in 2018. For that reason, this request is being presented to the City Council for consideration.
DISCUSSION:
Project Analysis
Land Use Classifications and Permitted Floor Area
The primary purpose of the proposed Master Use Permit Amendment and Coastal Development Permit is to increase the maximum allowable square-footages for the “Eating and Drinking Establishment” land use category at the site. No new structures or expansion of existing structures are proposed, and the subject site remains in conformance with the maximum allowable Buildable Floor Area (BFA) of 63,580 square feet.
Subject to parking availability (as described below), staff is recommending a revised breakdown of the land use categories that would allow an increase in restaurant space (Eating and Drinking Establishments) and more flexibility in the amount of other land uses at the site. The subject request would result in the following breakdown of BFA quantities for each land use based on the proposed project:
• Eating & Drinking Establishments: 17,212 square feet (13,770 square feet seating area)
• Visitor Accommodations (Hotel - No Change): 22,500 square feet
• Remaining Space Available (subject to parking availability): 23,868 square feet
o Retail Sales
o Food and Beverage Sales
o Personal Improvement Services
o Offices, Business and Professional (second floor only)
o Personal Services
o Similar uses that are identified as permitted (by-right) in the underlying zoning district (Downtown Commercial - CD), and not expressly referenced in Master Use Permit Amendment, are subject to the approval of the Community Development Director.
The proposed redistribution of square-footage across permitted land uses for the property would be limited based on available parking as outlined in the attached parking analysis (Attachment 8). A detailed discussion of parking requirements is provided below.
Parking
The LCP allows for a reduction in the number of parking spaces provided for a project under certain circumstances. Specifically, LCP Section A.64.050 states the following:
A use permit may be approved reducing the number of spaces to less than the number specified in the schedule in Section A.64.030, provided that the following findings are made:
1. The parking demand will be less than the requirement in Schedule A [Off-Street Parking Spaces] or B [Off-Street Loading Spaces]; and
2. The probable long-term occupancy of the building or structure, based on its design, will not generate additional parking demand.
In reaching a decision, the Planning Commission shall consider survey data submitted by an applicant […].
In accordance with the existing Coastal Development Permit, the Metlox development is required to provide 330 parking stalls. This parking requirement was based on a parking study prepared prior to development of the project which identified a need for 160 spaces for the commercial uses in addition to a requirement to replace the 170 parking spaces that existed on the site. This parking requirement for the commercial component is less than the amount of parking that would have been required by the LCP at the time of the original land use entitlements in 2002.
As part of the current request, the applicant provided a new parking analysis for the project (prepared by transportation planning and engineering firm Linscott, Law, & Greenspan (LLG)). This analysis evaluated existing parking supply, current parking demand, the proposed project’s parking requirement per the City’s code, and the estimated increase in demand generated by an increase in the most intense land use categories (with a commensurate decrease in other land use categories). The analysis also identified the projected parking surplus available to the public at the Property once the requested amendments are fully implemented.
The number of additional parking spaces that would be required by the Code for the proposed project is 80 spaces. The parking analysis prepared by LLG concluded that, during peak parking demand conditions, the maximum projected increase in required parking spaces would be 59 spaces. This represents a worst-case scenario, where the combination of land uses with the most intense parking requirements would be in operation at the same time.
There are currently 439 parking stalls provided in the Metlox parking facility, which includes a surplus of 109 stalls that are available to the general public. Per the provided parking study, the proposed project is estimated to increase the parking demand by 59 spaces, thus reducing the current public parking surplus from 109 spaces to 50 parking spaces. Those 50 surplus parking spaces would continue to be available to the general public.
As part of LLG’s analysis, the report identified the provision of bicycle parking as a means to offset vehicular demand. Specifically, the report recommended that six new, short-term bicycle parking spaces be provided. A condition requiring the provision of these additional bicycle parking spaces is incorporated into the Draft Conditions of Approval.
Consistency and Compliance with Governing Regulations
The Project is reviewed for compliance with applicable regulations, including the City’s General Plan and Manhattan Beach Local Coastal Program (“MBLCP”).
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.
The viability of commercial areas depends on a range of factors, including having various types of services and restaurants. The proposed changes to the maximum allowable square footages for each use category still encourages a variety of uses at the subject site, including dining, retail, and services to support the Downtown commercial viability.
• 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.
Downtown Manhattan Beach has a mix of restaurants and services. The ability to redistribute allowable uses within the existing commercial development could attract more patrons to the property. Eating and drinking establishments as well as retail businesses 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 modifications to the allowable square-footages for a combination of land uses is complimentary to these uses, as patrons may visit other Downtown businesses, thus contributing to the economic viability of Downtown Manhattan Beach.
• Land Use Policy LU-7.1: Encourage the upgrading and growth of businesses in the Downtown area to serve as a center for the community and to meet the needs of local residents and visitors.
Allowing for modifications to the size limitations of permitted uses within an existing multi-tenant commercial development in a central location in Downtown Manhattan Beach encourages this development to adapt and respond to gradual neighborhood changes and changing market conditions over time.
• 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.
A portion of the existing buildings have facades oriented along commercial corridors (Manhattan Beach Boulevard, Valley Drive, and Morningside Drive). The proposed modifications would continue to encourage customer-serving and pedestrian-oriented land uses on the ground floor and throughout the existing commercial development. The existing restriction at the site that prohibits office uses on the ground floor is proposed to remain unchanged.
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 and policies:
• LCP Chapter A.16 - governs commercial districts, including the Downtown (CD) district where the Project is located.
Pursuant to LCP Section A.16.020, certain land uses are permitted by-right in the CD zoning district and others require a use permit. A Master Use Permit was approved for the subject site in 2002, which established the allowable uses for the proposed commercial development. Subsequent Master Use Permit amendments have refined and/or clarified the allowable uses at the property. The current request would further refine the list of permitted uses and establish new limitations on the maximum square footage permitted for each use type.
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 no changes are proposed to the physical development of the site.
• LCP Chapter A.64 - governs parking throughout the Coastal Zone, including where the Project is located.
Section A.64 of the LCP addresses parking requirements in the Coastal Zone. The proposed modification to the size limitations of specific land uses would increase the current parking requirement for the subject property. As discussed in the “Project Analysis: Parking” section above, because the property has a parking surplus, sufficient parking is available to accommodate the applicant’s request.
• 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.
The Applicant’s request includes modifications to the size limitations for specific land use categories established by the original Master Use Permit, approved in 2002 and most recently amended in 2018. Use Permits (including Master Use Permits) and amendments are governed by Chapter A.84 of the LCP. Section A.84.100 specifies that, “[A] request for changes in conditions of approval of a use permit […] that would affect a condition of approval, shall be treated as a new application.” Thus, a request to modify the conditions of approval is processed as a Use Permit Amendment.
Use Permit Amendments are typically reviewed by the Planning Commission; however, when the City Council considered the prior requested Master Use Permit amendment and denied the requested increase in Eating and Drinking Establishment square footage, they did so without prejudice and specifically retained jurisdiction over the matter in the event that the applicant reapplied for the same request in the future.
• LCP Chapter A.96 - establishes Coastal Development Permit procedures.
A Coastal Development Permit (CDP) is required for the Project because the Project is a “development” as defined in LCP Section A.96.030(I). Unless exempted pursuant to Section A.96.050, all developments are required to obtain a CDP pursuant to Section A.96.040.
Furthermore, pursuant to Section A.84.020 of the LCP, the Planning Commission is typically 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. Pursuant to LCP Section A.96.080(B), the Coastal Development Permit shall be considered along with any other associated entitlements, which in this case is the Use Permit Amendment. Because the City Council retained jurisdiction over the applicant’s request to modify the size limitations on eating and drinking establishments, the CDP shall be considered by the City Council concurrently with the Master Use Permit amendment.
• LCP Policy II.B.5: Development of the former Metlox site shall provide the parking necessary to meet the standards set forth in Section A.64 of Chapter 2 of the Implementation Plan. All required parking shall be provided on the Metlox site.
A thorough analysis of the parking requirements for the proposed Master Use Permit amendment has been provided above and has confirmed that required parking can be provided on the Metlox site.
Interdepartmental Review
The Building and Traffic Divisions, along with the Public Works, Fire, and Police Departments, reviewed the request. The Public Works Department raised concerns regarding the existing trash enclosures, their serviceability, and the projected increase in trash, recycling, and organic waste that would result from an increase in certain land uses, such as eating and drinking establishments. Conditions of approval have been included with the Draft Conditions of Approval (included as Attachment 1 to this report) to address any potential impacts resulting from operation of the Project.
Required Findings
Pursuant to LCP Section A.84.060, in order to approve a master use permit or an amendment thereto, the decision-making authority must make certain findings in order to ensure that the use operates in a manner that is compatible with uses on adjacent properties and in the surrounding area. LCP Section A.96.150 requires findings to be made prior to the issuance of a CDP as well. The required findings are addressed below:
Master 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 subject site is within the CD zoning district and is currently occupied by a variety of land uses in accordance with the existing land use entitlements. These land uses include eating and drinking establishments (restaurants), retail sales, retail/specialty food services, personal improvement services, offices, personal services, and visitor accommodations (hotels). The applicant is proposing to modify the size limitations for most of the allowable land uses at the site (with the exception of visitor accommodations), allowing them more flexibility to redistribute square-footage among those land uses. The applicant’s request would alter the maximum size thresholds allowed for specific land uses but does not alter the primary function or use classifications at the 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. The proposed modifications to the size limitations are applicable only to allowable uses for the subject site and there are no proposed changes to the types of land uses that are permitted at the property. The combination of uses currently allowed at the property, including eating and drinking establishments (restaurants), retail sales, retail/specialty food services, personal improvement services, offices, personal services, and visitor accommodations (hotels) are consistent with the intended mix of uses in the Downtown District. The Project is compatible with neighboring uses, as neighboring lots are developed with commercial uses to the south and west, public and semi-public uses to the north, and open space to the east.
When taken together, the requested modifications to the size limitations of allowable land uses do not result in a significant intensification of use because the site will continue operating as a multi-tenant, commercial development and is not proposing any physical expansion of the existing buildings. There are no new buildings or expansion of existing buildings being proposed. Furthermore, the Project was reviewed by the Building & Safety and Traffic divisions, the Public Works, Police, and Fire Departments, none of which raised concerns or objections which have not been adequately addressed through modifications to the proposed project or 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.
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 they would be located.
The Project proposes to change the size limitations of permitted uses within the existing footprint of a commercial development. The types of allowable uses would remain unchanged from those currently permissible under the existing land use entitlements that have governed the site to-date. Per LCP Section A.16.020 and the existing land use entitlements, there are certain uses permitted at the subject site by-right and conditionally through the approval of a Use Permit at the property. A Master Use Permit Amendment is also required when a proposed project requires changes to the original Master Use Permit’s conditions of approval.
The project site is an existing, multi-tenant commercial property. The project scope is to modify the size limitations for specific land uses and redistribute square footage among those uses within the existing buildings, with no increase in the overall size of the existing commercial development. Conditions of approval have been proposed which will ensure compliance with the required findings for a Use Permit and serve as an additional governing entitlement with the prior land use entitlements (including, but not limited to, Resolution No. 18-0074 and Resolution No. 5770) 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 project is located on a previously-developed site along Manhattan Beach Boulevard and is consistent with uses surrounding the site, which include commercial, public and semi-public, and open space uses. The proposed changes to the size limitations are being applied to land use categories currently permitted to occur at the subject site under existing land use entitlements. Project characteristics related to parking, noise, vibration, odors, security, and personal safety are addressed through LCP and Manhattan Beach Municipal Code requirements, and conditions of approval. Furthermore, the use will not create demands exceeding the capacity of public services and facilities.
The applicant contracted a transportation consultant to prepare a parking analysis, which analyzed the amount of parking required by the code based on the project request, the estimated demand based on the subject request, and analyzed the amount of surplus parking that would remain available for continued use by the general public. Based on their observations and analysis, the consultant provided parking-related recommendations. These recommendations have been incorporated as proposed conditions of approval.
Coastal Development Permit
A. The project, as described in the application and accompanying material, or as modified by any conditions of approval, conforms with the certified LCP.
The subject site is located within Area District III and zoned Downtown Commercial (CD). The General Plan and Local Coastal Program/Land Use Plan designation for the property is Downtown Commercial, which “provides locations for a mix of commercial businesses, residential uses with discretionary review, and public uses, with a focus on pedestrian-oriented commercial businesses that serve Manhattan Beach residents.” The proposed increase in eating and drinking establishment uses for the Property is allowed through a Master Use Permit (or amendment thereto) in the CD zoning district and is consistent with the City’s General Plan land use designation. There are no changes proposed to the types of land use classifications permitted at the project site, but rather to allow changes to the maximum square-footage for each use, within the established square-footage limit for the overall Property. As such, the project as conditioned conforms with the City’s certified LCP.
B. If the project is located between the first public road and the sea, that the project is in conformity with the public access and recreation policies of Chapter 3 of the Coastal Act of 1976 (Commencing with Section 30200 of the Public Resources Code).
As the project site is located east of Ocean Drive, it is not located between the first public road and the sea; therefore, it is not subject to this finding. Further, the existing structures at the Property do not impact public access to the shoreline. Adequate public access is provided and shall be maintained along Manhattan Beach Boulevard, Morningside Drive, 13th Street, and Valley Drive. Furthermore, the project does not create any barriers along Manhattan Beach Boulevard, Morningside Drive, 13th Street, and Valley Drive that prevent public access to the coast.
CONCLUSION:
In consideration of the information contained in this report, staff recommends that the City Council conduct a public hearing and direct staff to bring forward a resolution approving the Master Use Permit Amendment and Coastal Development Permit.
PUBLIC OUTREACH:
A public notice for the January 21, 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 (<https://www.manhattanbeach.gov/departments/community-development/planning-zoning>) on January 15, 2025.
Prior to the publication of this report, staff received one call from a nearby resident, inquiring about the scope of the proposed amendments and expressing concerns about parking. Her comments related to the current parking shortage in downtown as a result of the temporary closure of the Lot 3 public parking facility. She stated that the shortage has led to more people seeking parking in the adjacent neighborhood and anticipates this increasing if Metlox had more restaurants. She expressed appreciation for staff’s creativity in identifying opportunities for more parking downtown, including the installation of approximately 90 additional parking spaces. She requested that parking at Metlox not be considered in isolation and for staff to consider requiring that changes of use, specifically changes of existing tenant spaces to restaurants, not begin until the downtown parking issue is alleviated.
ENVIRONMENTAL REVIEW:
The City has reviewed the Project for compliance with the California Environmental Quality Act (“CEQA”) and has determined that the proposed project was adequately covered in the previously certified Final Environmental Impact Report prepared for the project (State Clearinghouse Number SCH 1999121090, Resolution No. 5659). Thus, no further environmental review or documentation is necessary. Pursuant to CEQA Guidelines Section 15162, no subsequent EIR is required to be prepared for the project.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Draft Conditions of Approval
2. Vicinity Map
3. Resolution No. 5770 (Master Use Permit)
4. Permit No. A5-MNB-02-257 (Coastal Development Permit)
5. Resolution No. 18-0074 (Master Use Permit Amendment)
6. Applicant’s Written Materials
7. Project Site Plans
8. Parking Analysis (May 8, 2024)
9. PowerPoint Presentation