TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ryan Heise, Acting Community Development Director
Nhung Huynh, Senior Management Analyst
SUBJECT:Title
Consideration of Redevelopment Options for Parking Lot 3 (Acting Community Development Director Heise).
(Estimated Time: 1 Hr.)
DISCUSS AND PROVIDE DIRECTION
Body
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RECOMMENDATION:
Staff recommends that the City Council consider options for the redevelopment of Parking Lot 3 and provide direction to staff.
FISCAL IMPLICATIONS:
Fiscal implications are discussed within the attached report. At this time, funding sources have not been identified for each option. Staff will return with potential funding sources based on City Council direction.
BACKGROUND:
The Lot 3 parking structure is a City-owned facility at the southwest corner of Morningside Drive and 12th Street in Downtown Manhattan Beach. The three-story structure was constructed in 1971, contains 145 parking spaces critical to visitors and businesses in the Downtown area, and predates modern planning and building codes, which include crucial seismic safety measures.
Prior to February 2024, the Public Works Department’s Work Plan included an item focused on obtaining a feasibility study for the reconstruction of Lot 3. At the February 13, 2024, City Council Work Plan meeting, the City Council identified Parking Lot 3 as a priority project and directed staff to evaluate a variety of redevelopment options for the property, including but not limited to development of commercial buildings on the site (i.e. a hotel) and consideration of parking elsewhere in downtown. At that point, the Lot 3 work plan item evolved into an economic development study and was transitioned to the Community Development Department.
In July 2024, City staff elected to close the structure indefinitely, following a series of onsite inspections and structural assessments indicating that advanced deterioration had significantly compromised the integrity of the structure. At the September 3, 2024 meeting, City Council a declared a local emergency at the Lot 3 Parking Structure and authorized the City Manager to secure, demolish, and replace the structure. In November 2024, demolition commenced to remove the parking structure, and develop a temporary surface parking lot with approximately 70 parking spaces until the long-term vision for the site has been determined by the City.
Relevant Limitations and Considerations
The most significant limitation on redevelopment of Parking Lot 3 is the 26-foot height limitation established by the Local Coastal Program (LCP) for this parcel within the Downtown Commercial zoning district. Any change to the height limit would require an amendment to the City’s LCP, which is subject to approval by the California Coastal Commission. It should also be noted that the Coastal Commission would likely require parking spaces to be replaced elsewhere in the vicinity if: 1) The City chose to develop Parking Lot 3 with uses other than parking or, 2) If a parking garage with a reduced number of available parking spaces is provided.
Another factor which must be taken into consideration is whether space for a trash enclosure is necessary within any new structure/building, as the previous structure included a trash enclosure in the southwest corner. Additionally, the recently demolished structure projected over the right-of-way on three sides, which allowed for more usable space on the top floor. It is possible that any new structure(s) on the site could do so again, however, the degree to which that could occur has not been determined.
One additional consideration to be accounted for is that certain “disposals” (sale or lease for 15 or more years) of the site for non-public uses could mean that the property would be subject to requirements of the Surplus Land Act (SLA). The SLA requires public agencies to take certain steps, including designating property as “surplus property,” and providing notice of the availability of the land to certain qualified entities, including “housing sponsors,” prior to it being sold or leased for non-public purposes. Such qualified entities would have 60 days to express their interest in acquiring the property for affordable housing or parks and open space.
DISCUSSION:
In May 2024, following the City Council’s direction from February 2024, the City hired Kosmont Companies to evaluate potential scenarios and alternative options for the redevelopment of the Parking Lot 3 site, with the intent to recommend to the City the highest and best use for the site’s redevelopment. Kosmont’s tasks included reviewing background information related to the utilization of the City’s existing parking spaces and evaluating proximate private property in Downtown that may be suitable for joint use, shared parking, or other redevelopment options. Based on the information reviewed, Kosmont has developed a high-level analysis with a series of potential alternative scenarios comparing cost, complexity, and feasibility with pros and cons of each option (Attachment 1). The analysis provides the following potential scenarios as follows:
Scenario 1: New Self-Park Garage: Replace existing Parking Lot 3 Structure
• Kosmont indicated that this is the most straightforward, conservative, reliable and possibly quickest solution, but would likely result in reduced parking capacity unless additional height or subterranean level is added.
Scenario 2: Automated Garage
• This scenario would require a commercially viable and reliable system that can operate in a marine environment, but could provide commercial amenities and connection to Metlox, and increase parking count.
Scenario 3: Hotel Reuse on Site
• A hotel would provide annual revenues to the City (approx. $750K annually) and could include subterranean parking for hotel use. However, if no public parking is provided, parking would need to be replaced elsewhere. If public parking is provided in a potential subterranean parking it could create complicated long-term operating and maintenance conflicts.
Scenario 4: Public Parking on Alternative Sites
• The City could monitor area properties for acquisition opportunities or consider investment in shared parking opportunities if larger sites are redeveloped.
Staff is requesting the City Council review the presentation, discuss the presented options, and provide direction to staff on next steps. Depending on the specific direction from City Council on the desired use(s), Community Development staff would turn the project over to the Public Works Department to prepare a Request for Proposals (RFP) for feasibility studies.
PUBLIC OUTREACH:
Future outreach will be determined following City Council direction.
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 6 categorical exemption pursuant to Section 15306 (Information Collection) of the State CEQA Guidelines because it consists only of basic data collection to be used in support of a future project which the City has not yet approved, adopted or funded. 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.
ATTACHMENT:
1. Parking Lot 3 Analysis