TO:
Honorable Planning Commission Chair and Commissioners
THROUGH:
Michael Codron, Interim Community Development Director
FROM:
Adam Finestone, Planning Manager
Ted Faturos, Senior Planner
Fel Cortez, Assistant Planner
SUBJECT:Title
Consideration of a Planned Development Plan (“PD Plan”) Amendment to allow instructional alcohol tastings and off-sale of distilled spirits in addition to the existing allowance for on-sale and off-sale beer and wine, an expansion to permitted hours for on-site consumption, and an extension of the hours of operation from 7:00 A.M. - 10:00 P.M. daily to 7:00 A.M. - 11:00 P.M. daily, in conjunction with the operation of existing food and beverage sales use and ancillary eating and drinking establishment use within an existing commercial development located at 1700 Rosecrans Avenue, and associated environmental determination finding the project exempt from further review pursuant to the California Environmental Quality Act (Planning Case Nos. PE-25-00216/PDP-25-00004).
A) CONDUCT THE PUBLIC HEARING
B) ADOPT RESOLUTION NO. PC 25-XX
Body
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RECOMMENDATION:
Staff recommends that the Planning Commission: 1) conduct a public hearing; and 2) adopt the attached resolution approving the PD Plan Amendment, subject to conditions, and find the project exempt from further review pursuant to the California Environmental Quality Act (CEQA).
APPLICANT:
Nowhere Manhattan Beach, LLC
1800 E. Martin Luther King Jr. Blvd.
Vernon, CA, 90058
BACKGROUND:
On April 17, 2025, the Community Development Department received an application requesting a PD Plan amendment to allow instructional alcohol tastings and off-sale of distilled spirits in addition to the existing allowance for on-sale and off-sale beer and wine, to extend the hours of operation from 7:00 a.m. - 10:00 p.m. to 7:00 a.m. - 11:00 p.m., including the hours permitted for on-site consumption, in conjunction with the operation of existing food and beverage sales and ancillary eating and drinking establishment use within an existing commercial development (“Project”) located at 1700 Rosecrans Avenue (“Property”).
Prior Actions
On November 21, 1995, the City Council adopted Resolution No. 5203 (see Attachment B to this staff report), approving, on appeal, a “Planned Development Project” at 1700 Rosecrans Avenue to allow the adaptive re-use of a portion of an existing industrial building for general commercial purposes and the continued utilization of existing industrial buildings on site for industrial use.
On August 27, 2008, the Planning Commission adopted Resolution No. PC 08-12 (Attachment C to this staff report), approving a “Planned Development Permit” amendment allowing conversion of an existing warehouse space to food and beverage sales including general alcohol sales, and on-site sale and consumption of beer and wine samples for the tenant space currently occupied by BevMo. The project proposed adding approximately 10,000 square feet of commercial use to the site.
On June 13, 2018, the Planning Commission adopted Resolution No. PC 18-12 (Attachment D to this staff report) approving a “Planned Development Permit” amendment to add an eating and drinking establishment use with beer and wine service to an existing food and beverage sales use. The project, Mother’s Market, added approximately 968 square feet of building space to the site to accommodate the eating and drinking establishment use.
On January 8, 2025, a commercial tenant improvement permit was issued for the tenant space formerly occupied by Mother’s Market to renovate the kitchen, deli, and sales floor, remove interior seating area, and convert 445 square feet of exterior space to an outdoor patio with seating along the eastern side of the tenant space. The permit was finaled in early July 2025, and the current tenant, Erewhon, has subsequently opened to the public. Additionally, a commercial building permit was issued on June 26, 2025 to add a new planter strip and planter boxes, make modifications to the parking layout, and relocate an existing tree and light pole. The modifications to the parking layout did not impact the number of required parking spaces.
Site Overview
The subject Property consists of two parcels totaling 298,271 square feet (APNs: 4138-017-022 and 4138-017-023) located at the southeast corner of Rosecrans Avenue and Redondo Avenue. The Property is zoned Planned Development (PD), is located in Area District II, and has a General Plan Land Use Designation of Manhattan Village Commercial. The Property consists of three separate buildings. The two buildings at the rear (south) of the site contain 66,000 square feet of warehouse space. The building at the front includes three retail/food and beverage sales tenants (Office Depot, BevMo, and Erewhon) totaling approximately 46,610 square feet.
The Property is primarily surrounded by commercial and industrial uses. Additional detail on surrounding uses can be found in the Project Overview table below.
Project Overview:
• Location: 1700 Rosecrans Avenue
• Legal Description: R F 140 POR OF N 1/2 OF NE 1/4 OF NE 1/4 OF LOT 1 SEC 19 T3N R14W
• General Plan Land Use: Manhattan Village Commercial
• Zoning Designation: PD (Planned Development)
• Area District: II
• Parking:
o Required: 275 spaces
o Provided: 286 spaces (no change)
• Land Use:
o Existing: Food and beverage sales w/ ancillary eating and drinking establishment use
o Proposed: No change
• Lot Size: 298,271 square feet (no change)
• Building Size: 46,610 square feet (no change)
• Tenant Space Size:
o Existing interior: 16,543 square feet w/ 60 square feet interior seating
o Existing north patio dining: 374 square feet
o Existing east patio dining: 445 square feet
• Allowable Hours of Operation:
o Existing: 7:00 a.m. - 10:00 p.m.
o Proposed: 7:00 a.m. - 11:00 p.m.
• Allowable Hours for On-Site Beer and Wine Consumption
o Existing: 11:00 a.m. - 10:00 p.m.
o Proposed: 7:00 a.m. - 11:00 p.m.
• Alcohol License:
o Existing: Type 20 and Type 41
o Proposed: Type 86, Type 21, Type 41
• Neighboring Zoning and Land Uses:
o North: Office and Restaurant (City of El Segundo)
o South: Office and Industrial
o East: Eating and Drinking Establishment, Food and Beverage Sales, and Retail
o West: Office and Film Studios
Governing Regulations
The Project is reviewed for compliance with applicable regulations, including the City’s General Plan and Municipal Code.
Manhattan Beach General Plan
The General Plan is a long-range policy document, adopted in 2003, 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. The General Plan contains a series of goals and policies that allow this vision to be implemented. All projects are reviewed to ensure alignment with the General Plan’s goals and policies. 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 General Plan policy:
• Land Use Plan Goal LU-6: Maintain the viability of the commercial areas of Manhattan Beach
o 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.
• Land Use Plan Goal LU-8: Maintain Sepulveda Boulevard, Rosecrans Avenue, and the commercial areas of Manhattan Village as regional-serving commercial districts.
o Land Use Plan Policy LU-8.1: Ensure that applicable zoning regulations allow for commercial uses that serve a broad market area, including visitor-serving uses.
o Land Use Plan Policy LU-8.2: Support the remodeling and upgrading needs of businesses as appropriate within these regional-serving commercial districts.
Manhattan Beach Municipal Code
The Manhattan Beach Municipal Code (“MBMC”) serves, in part, to implement the vision established by the General Plan. Within the MBMC, Title 10 (Planning and Zoning) establishes regulations related to land use and development. Title 10 has several intended functions which include, but are not limited to:
• Providing a precise guide for the physical development of the City in order to foster convenient, harmonious, and workable relationships among land uses;
• Promoting the economic stability of existing land uses that are consistent with the General Plan, and protecting them from intrusions by inharmonious or harmful land uses;
• Permitting the development of office, commercial, industrial, and related land uses that are consistent with the General Plan in order to strengthen the City’s economic base.
The Project was reviewed for compliance with the MBMC, including, but not limited to, the following sections:
• MBMC Chapter 10.32 - governs planned development districts, including the PD zone where the Project is located.
PROJECT DESCRIPTION
On April 17, 2025, Brett Engstrom, on behalf of Nowhere Manhattan Beach, LLC (Erewhon), submitted an application requesting a PD Plan amendment to allow the instructional alcohol tastings (Type 86 ABC license), to expand the existing off-sale of alcohol allowance from beer and wine sales (Type 20 ABC license) to include distilled spirits (Type 21 ABC license), and to maintain the existing allowance for on-sale beer and wine (Type 41 ABC License), in conjunction with the operation of existing food and beverage sales use and ancillary eating and drinking establishment use at an existing commercial development located at 1700 Rosecrans Avenue. The applicant also requests to extend the allowable hours of operation (currently 7:00 a.m. - 10:00 p.m.) to 7:00 a.m. - 11:00 p.m., and to expand the allowable hours of on-site consumption of beer and wine (currently 11:00 a.m. - 10:00 p.m.) to match the proposed hours of operation for the whole tenant space.
As noted above, the applicant recently completed tenant improvements to renovate the kitchen, deli, and sales floor area and to add a new outdoor patio. The improvements included a reduction of the interior seating area from approximately 620 square feet to approximately 60 square feet, and creation of a new 445 square-foot outdoor patio to complement the existing 374 square-foot patio (see project plans included as Attachment H to this staff report). Erewhon opened to the public on July 2, 2025 and the building permit was finaled on July 14, 2025. The applicant is requesting to allow beer and wine consumption (on-sale) in the interior seating area and exterior patios, with hours of consumption matching the proposed hours of operation for the tenant space (7:00 a.m. - 11:00 p.m., daily), and instructional tastings of beer, wine, and distilled spirits (10:00 a.m. - 9:00 p.m., daily), as discussed in more detail below.
Additionally, a separate building permit for exterior improvements was issued on June 26, 2025, for a new planter, modifications to the parking layout, and relocation of an existing tree well and light pole. The proposed work complies with development standards and does not result in a loss of required parking spaces. These exterior improvements are currently under construction and do not affect the applicant’s request.
DISCUSSION:
Project Analysis
The following Project features warrant additional consideration by the Planning Commission:
Changes to Permitted Alcohol Sales and Service
The applicant is requesting the following modifications to allowances for alcohol sales and service at the tenant space:
1. Expand existing off-sale beer and wine sales (Type 20 ABC license) to include off-sale of distilled spirits (Type 21 ABC license)
The applicant is requesting to expand their alcohol sales selection to include distilled spirits in addition to beer and wine. This requires a California Department of Alcoholic Beverage Control (ABC) license upgrade from off-sale beer and wine (Type 20 ABC license) to off-sale general (Type 21 ABC license). This is consistent with operations at most large food and beverage sales facilities (primarily grocery stores) and would not inherently change the nature of operations at the business. The proposed sale of distilled spirits, in addition to the existing on-sale and off-sale beer and wine allowance, provides the business with a method of remaining competitive with other businesses of a similar use classification within City limits and beyond.
As described in the Interdepartmental Review section below, it is not anticipated that this expanded allowance would result in any new and significant nuisances. Additionally, the license type upgrade is necessary to allow instructional alcohol tastings because such tastings would include distilled spirits.
2. Instructional Alcohol Tastings
The California Department of Alcoholic Beverage Control (ABC) began allowing instructional alcohol tastings through a new Type 86 ABC license, in association with an off-sale general (Type 21) ABC license, in 2011. Since that time, the City has authorized instructional alcohol tastings at two grocery stores (Gelson’s and Bristol Farms) in conjunction with the stores’ off-sale licenses. Both stores operate as food and beverage sales uses with ancillary eating and drinking establishment components and various alcohol licenses.
The applicant is requesting a Planned Development Plan amendment to allow the operation of instructional alcohol tastings (Type 86 ABC license) associated with their primary food and beverage sales use, similar to what was previously approved for the Gelson’s and Bristol Farms locations. Per the California Department of Alcohol Beverage Control (ABC) regulations, instructional tastings may only occur during the hours of 10:00 a.m. to 9:00 p.m. ABC regulations also address size/quantity limits for each type of alcohol offered for instructional tastings. Tastings of wine shall not exceed one ounce each, and patrons will be limited to no more than three tastings per day. Tastings of beer shall be limited to no more than 8 ounces per patron per day. Tastings of distilled spirits shall not exceed 0.25 ounces each, and patrons will be limited to no more than three tastings per day.
Tastings would occur within the licensed establishment adjacent to the alcohol display areas, partitioned off, and with signs posted that identify the area for tastings and age requirements. The proposed instructional alcohol tastings provide the business with a method of remaining competitive with other businesses of a similar use classification within City limits and beyond. As described in the Interdepartmental Review section below, it is not anticipated that allowing instructional alcohol tastings would result in any new and significant nuisances.
3. Expand hours permitted for on-sale beer and wine
Existing entitlements for the site permit on-site sales and service of alcoholic beverages. This is associated with the operation of an eating and drinking establishment which is operated as an accessory use to the primary food and beverage sales use, and is similar to operations at other grocery stores in the City, including one that was approved by the Planning Commission in April of this year (The Butchery - 1121 Artesia Boulevard).
The existing entitlement currently permits on-site consumption of beer and wine between the hours of 11:00 a.m. and 10:00 p.m., as long as food service is available. This ensures that the use operates more as restaurant associated with a grocery store, rather than as a bar. For operational reasons, the applicant has requested to expand hours permitted for on-site consumption to match those permitted for the tenant space itself, as discussed further below. Staff believes that maintaining the condition requiring food service to be available at all times when alcohol is available for on-site consumption will mitigate the concerns related to the expanded hours of alcohol service. The tenant does not currently operate with a Type 41 ABC license. The previous tenant relinquished their license upon vacating the site, however the conditions in the previous entitlement still allow for on-site consumption of beer and wine, which the current tenant may take advantage of in the future, subject to obtaining a new Type 41 ABC license. The applicant is proposing to maintain this right, and to expand the hours permitted for on-site consumption to accommodate future changes to the tenant’s operations.
In addition to the requested PD Plan amendment, the applicant must also obtain corresponding Type 86, Type 21, and Type 41 ABC licenses through the California Department of Alcoholic Beverage Control. The applicant would be required to abide by all conditions of the PD Plan (as amended), as well as all ABC requirements and conditions attached to the ABC license(s). In instances where there are conflicts between the conditions of the ABC license and the Planned Development Plan, the more restrictive conditions would apply.
Operating Hours
The applicant is requesting to change the hours of operation from 7:00 a.m. - 10:00 p.m. to 7:00 a.m. - 11:00 p.m. The additional hour of operation will not significantly impact the operation of the site, nor is the additional hour anticipated to result in a substantial increase in calls for service or code violations at the property. The additional hour of operations is not a unique feature to this store, as several of the applicant’s other establishments in Southern California currently operate from 7:00 a.m. - 11:00 p.m. hours.
The Property is located approximately 850 feet from the nearest residential properties. Furthermore, large commercial buildings, roads, and open space areas act as a buffer between the project site and the residential properties. Properties surrounding the project site are all commercial and industrial uses. Therefore, the expansion of hours will have minimal to no effect on the surrounding properties. Additionally, it is not anticipated that the expanded hours would significantly increase traffic or other demands for service.
Consistency and Compliance with Governing Regulations
Manhattan Beach General Plan
As noted above, the Project is governed by the Manhattan Beach General Plan. As such, it was reviewed for consistency with applicable General Plan goals and associated policies. The Project has been determined to be consistent with the following goals and policies for the reasons described below:
Land Use Plan Goal LU-6: Maintain the viability of the commercial areas of Manhattan Beach
• 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.
The viability of commercial areas depends on a range of factors, including having various types of commercial sales and services, including food and beverage sales. The PD Plan allows for a variety of commercial uses, including retail, markets, and restaurants, with associated alcohol licenses. The proposed Type 21 and Type 86 ABC licenses, in conjunction with the existing Type 41 ABC license and expanded hours of operation, will allow for a greater viability of the business and will ensure the business is competitive with similar uses in the City.
Manhattan Beach has two other businesses (Gelson’s and Bristol Farms) that have a food and beverage sales use with ancillary eating and drinking establishment use and various alcohol licenses, similar to what is proposed at the Project. The proposed sale of distilled spirits in addition to the existing on-sale and off-sale of beer and wine, along with the expanded hours, provides the business with a method of remaining competitive with other businesses of a similar use classification within City limits and beyond. Therefore, the Project proposes an amendment that is beneficial to the community.
Land Use Plan Goal LU-8: Maintain Rosecrans Avenue, and the commercial areas of Manhattan Village as regional-serving commercial districts.
• Land Use Plan Policy LU-8.1: Ensure that applicable zoning regulations allow for commercial uses that serve a broad market area, including visitor-serving uses.
The project was previously approved through a Planned Development Plan to allow for General Commercial uses. The Project is a continuation of an existing commercial use, subject to conditions, and has been reviewed for compliance with development standards and zoning regulations.
• Land Use Plan Policy LU-8.2: Support the remodeling and upgrading needs of businesses as appropriate within these regional-serving commercial districts.
The Project proposes upgrades to the tenant’s product offerings by allowing instructional alcohol tasting and sale of distilled spirits in addition to beer and wine sales and service, and an expansion of operating hours. These upgrades are appropriate as they will allow the business to remain competitive amongst businesses with similar use classifications, alcohol licenses, and operating hours.
Manhattan Beach Municipal Code
Section 10.32.070 (B) of the MBMC states that a request for revisions of a previously approved PD Plan shall be considered by the Planning Commission. Condition of Approval No. 1 in Resolution No. PC 18-12 states that “The project shall be constructed and operated in substantial compliance with the submitted plans as approved by the Planning Commission on June 13, 2018…. Any substantial deviation from the approved plans must be reviewed and approved by the Planning Commission.” A PD Plan amendment is thus required as the request would add instructional alcohol tastings (Type 86 ABC license), add the sale of distilled spirits for off-site consumption (Type 21 ABC license) in addition to beer and wine sales, and expand hours of operation, creating an expanded food and beverage sales use with ancillary eating and drinking establishment use that substantially deviates from the Planning Commission’s approval associated with Resolution No. PC 18-12.
Pursuant to Section 10.32.060 of the MBMC, the Planning Commission is the decision-making authority for PD Plan amendments and shall consider the request at a public hearing, prior to rendering a decision on the application. Per Section 10.32.060 of the MBMC, the Planning Commission, as the decision-making authority, must make certain findings for approval of a PD Plan amendment thereto. An analysis of those findings is provided in the Required Findings section below.
Interdepartmental Review
The Traffic, Code Enforcement, and Building divisions, along with the Public Works, Fire, and Police departments, have reviewed the request. Reviewing departments did not voice any concerns with the Project as proposed which have not been addressed. Building plans proposed to renovate the kitchen, deli, and sales floor, to remove interior seating area, and to add an outdoor patio have already been issued and finaled for compliance with all applicable codes and regulations. Conditions of approval are included in the attached Draft Resolution, to ensure consistency with similar uses in the City.
Required Findings
Pursuant to MBMC Section 10.32.060, in order to approve a Planned Development Plan amendment, the Planning Commission must make certain findings. The required findings are addressed below.
1. The PD Plan is consistent with the adopted Land Use Element of the General Plan and other applicable policies and is compatible with surrounding development.
The PD Plan was established by Resolution No. 5203 on November 28, 1995, and allowed for general commercial uses and continued industrial use. This PD Plan amendment proposes continuance of a mix of commercial and industrial uses on the site. The proposed change to the existing PD Plan is to add instructional alcohol tastings (Type 86 ABC license), add the off-sale of full alcohol (Type 21 ABC license) to replace the off-sale beer and wine license (Type 20 ABC license) and modify hours permitted for on-sale beer and wine sales (Type 41 ABC license). Additionally, the amendment would expand operating hours for the use from 7:00 a.m. - 10:00 p.m. daily to 7:00 a.m. - 11:00 p.m. daily, and expand of on-sale beer and wine sales to match proposed operating hours. ABC regulations restrict the hours of instructional alcohol tastings. The proposed changes only affect operational characters of an existing use. Therefore, the Project will continue to be compatible with the surrounding development.
2. The PD Plan will enhance the potential for superior urban design in comparison with the development under the base district regulations that would apply if the Plan were not approved.
This finding is applicable to the establishment of a new PD zone rather than the operational characteristics of the Project. The PD Plan allowed for general commercial purposes on a parcel that was previously zoned IP, and the addition of general commercial purposes established by the PD Plan enhanced the potential for superior urban design and therefore meets this finding. The PD Plan amendment is required for an alcohol license upgrade and change in operational hours to the existing use, and the use will remain a general commercial use.
3. Deviations from the base district regulations that otherwise would apply are justified by compensating benefits of the PD Plan.
This finding is applicable to the establishment of a new Planned Development zone rather than the operational characteristics of the Project. The Project is an amendment to the existing PD Plan.
4. The PD Plan includes adequate provisions for utilities, services, and emergency vehicle access; and public service demands will not exceed the capacity of existing and planned systems.
This finding is applicable to the development of a new Planned Development rather than the operational characteristics of the Project. The Project proposal will not affect utilities, services, and emergency vehicle access; and public service demands will not exceed the capacity of existing or planned systems. The project, therefore, continues to meet this finding.
The Project proposes operational changes to an existing use in an existing Planned Development zone. When not within a Planned Development zone, a project proposing similar operational changes would be subject to a use permit amendment. While the use permit findings are not directly applicable to the Project, they can be consulted to provide additional context when making a decision on the Project. The general purpose of the use permit findings are to ensure that a use is consistent with the General Plan, compatible with the surrounding neighborhood, and does not adversely impact nearby properties. As stated above, the Project is consistent with the General Plan goals and policies for the aforementioned reasons. The Project is compatible with the surrounding neighborhood as it is an expansion to the operations of an existing use in a zone with other commercial uses. The project does not involve any unusual circumstances and will not adversely impact nearby properties.
ENVIRONMENTAL DETERMINATION
The City has reviewed the Project for compliance with the California Environmental Quality Act (CEQA). Staff 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 negligible expansion of existing uses. The Project proposes to add instructional alcohol tastings (Type 86 ABC license), add the sale of distilled spirits (Type 21 ABC license) in addition to beer and wine sales, and increase operating hours by one hour at an existing food and beverage sales use. Proposed on-site improvements are minimal and would not result in land use alterations with negative environmental impacts. 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 NOTIFICATION AND COMMENT
A public notice for the August 13, 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, on July 31, 2025. Staff received no public comment expressing concern/support about the project’s impacts.
CONCLUSION
Staff recommends that the Planning Commission conduct a public hearing and adopt the attached draft resolution approving the PD Plan amendment, subject to conditions, and finding the Project exempt from further review pursuant to Section 15301 of the State CEQA Guidelines.
ATTACHMENTS:
1. Draft Planning Commission Resolution No. PC 25-XX
2. Resolution No. 5203
3. Resolution No. PC 08-12
4. Resolution No. PC 18-12
5. Vicinity Map
6. Applicant Project Narrative
7. SProject Plans