Manhattan Beach edition Issue #1 · September 4, 2026

Manhattan BeachIntel

Manhattan Beach's push to overhaul its decades-old business license tax collapsed at the August 4 City Council meeting — Council reached consensus not to send it to voters, opting instead to study the issue further over the next two years. It was one of the biggest debates at City Hall this summer. Plus: a Farmer's Market push for the north end, a Planning Commission variance that got real neighborhood scrutiny, and a seat opening up on the City Council. About 5 minutes.

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What Matters This Week

  • Business license reform collapses at the 11th hour — no ballot measure this November
  • Councilmember Lesser is not running for reelection
  • North MB gets a potential Farmer's Market — staff directed to study code amendments
  • Marine Avenue Park getting $322K in improvements
  • Planning Commission approves 5-0 variance on 25th Street teardown
  • Special event subsidies: city formalizes who gets free city services

City Council

MB's business license code — unchanged for decades — stays that way, for now

At the August 4 City Council meeting, Council considered placing a business license reform measure on the November 3, 2026 General Municipal Election ballot. The current business license tax code, staff acknowledged, has been 'largely unchanged' for decades and increasingly creates inequities — smaller businesses pay a higher effective rate than larger ones under the existing flat-fee structure.

The proposed reform would have shifted toward a gross receipts model: businesses would pay based on revenue rather than a flat annual fee, with rates varying by category. Staff called it revenue-neutral, projecting at most a slight net increase to the city's current $5.7 million in business license tax revenue. But the debate was anything but quiet — residents, business owners, and lobbyists all showed up. The South Bay Association of Realtors and the California Grocers Association both raised objections, with the Realtors arguing the measure could run afoul of AB 5's exclusion of real estate agents from business-license taxation. One longtime business owner told the Council the proposed rates could make MB the 11th-highest taxed city in the state for business licenses.

Council didn't have the votes. After roughly two hours of staff presentation and public comment — nearly all of it opposed — it became clear the measure lacked the four of five votes needed to advance. Rather than force a vote, Council reached consensus to shelve it and directed staff to scope out a longer process instead — Mayor Franklin floated a task force or commission spending the next two years building a version with broader buy-in. There will be no business license measure on the November 3 ballot.

What the reform would actually do

Under the current system, most businesses pay a flat annual fee. Under the proposed model, businesses would pay $2 per $1,000 in gross receipts (for general retail and services), with lower rates for low-margin categories like retail and wholesale, and higher rates for professionals and contractors. Businesses with gross receipts under $100,000 would pay a flat $200. The cap on the largest businesses would be set at $25,000. Landlords and property owners raised concerns about how rental income would be treated.

Watch the August 4 meeting

City Council — August 4, 2026 (Granicus) →

Source: City Council — August 4, 2026

City Council

Councilmember Lesser is not seeking reelection

At the start of the August 4 meeting, Councilmember Lesser announced that he will not be a candidate on the November 3 ballot. 'Serving as a City Councilmember and Mayor of Manhattan Beach has been one of [the greatest honors],' he said, before indicating he plans to pursue other interests after his term ends. The filing period for candidates to run for his seat closed August 12.

The November 3 election will determine who fills at least one seat on the five-member Council.

Source: City Council — August 4, 2026

City Council

North Manhattan Beach could get a Farmer's Market — if the code allows it

At the August 18 City Council meeting, an item came up (agenda item 17) where Councilmembers Lesser and Howorth asked for a third vote to direct staff to study code amendments that would allow a Farmer's Market in the north end of town. They got it. Staff will now look at what would need to change.

Downtown Manhattan Beach already has a Farmers' Market — speakers noted it's a key fundraising vehicle for a local organization. North MB has nothing comparable. One speaker made the case directly: 'The north end has nothing like' the downtown market. The council's direction to staff doesn't guarantee a market — it just means staff will come back with options.

Source: City Council — August 18, 2026

City Council

Marine Avenue Park getting $322,893 in improvements

The Council approved a construction contract with UBD, Inc. for $322,893 to improve Marine Avenue Park. The project was on the consent calendar — meaning it passed without individual discussion — so the specific scope (benches, paths, lighting, play equipment) wasn't detailed at the meeting. The project is budgeted.

Source: City Council — August 4, 2026

Planning Commission

25th Street teardown approved 5-0 after neighborhood pushback on setback

The Planning Commission voted 5-0 on August 26 to approve a variance allowing a new two-story home to be built just south of 25th Street with a reduced front yard setback — 10 to 15 feet instead of the required 20 feet. The property is a 4,683-square-foot lot currently improved with a 912-square-foot home from the 1940s. The new home would be 2,735 square feet with a three-car garage.

The item had already been before the Commission at a May meeting, where commissioners expressed concerns about neighborhood character and the original 10-foot setback request. The applicant came back with a revised plan: the garage gets the 10-foot setback, but the rest of the house would sit at 15 feet. Commissioners noted that most other homes on that side of the 25th Street block already have setbacks ranging from 0 to 20 feet, making the request consistent with the actual neighborhood pattern even if it doesn't meet the code standard.

Watch the August 26 Planning Commission

Planning Commission — August 26, 2026 (Granicus) →

Source: Planning Commission — August 26, 2026

City Council

City formalizes how it decides who gets subsidized events

The August 18 Council meeting included a discussion on a new standardized process for evaluating 'legacy' special event subsidies — the city's practice of providing in-kind support (staff time, road closures, equipment) for established annual events at little or no cost to the organizer. The goal is a consistent framework rather than ad hoc decisions each year. No events were cut or added; this was about establishing the process going forward.

Source: City Council — August 18, 2026

School Board

MBUSD adopts budget revisions and takes out short-term borrowing — and the board has a litigation backlog

The Manhattan Beach Unified School District Board of Trustees has been busy on two fronts: managing a state budget adjustment and working through a significant stretch of closed-session litigation. At the August 12 meeting, the board adopted 45-Day Budget Revisions for FY 2026-27, following Governor Newsom's signing of the state budget on June 29. The board also approved Resolution 2026-24, authorizing the issuance of Tax and Revenue Anticipation Notes — short-term borrowing to cover the gap between when the district spends money and when state funding arrives, a standard district finance practice.

The August 12 agenda also included approval of the Final Guaranteed Maximum Price for districtwide construction projects and a separate fencing GMP — both part of the ongoing Measure MB capital program. The board additionally approved a new job description for the Executive Director of Educational Services and appointed Dr. Linz as Board Secretary.

At the September 2 meeting — the first of the new school year — the board's public agenda was lighter. It included a 'Welcome Back' presentation for 2026-27, adoption of a Multivariable Calculus textbook for MCHS, acceptance of the annual Measure MB Citizens' Oversight Committee report, a new CCAP partnership with El Camino College for dual enrollment, a lease renewal for the Beach Cities Learning Center, and a revised Facility Fee Schedule.

The closed-session litigation — what we know

Both the August 12 and September 2 agendas listed multiple closed-session items: anticipated and existing litigation involving Dr. Gonzalez-Castillo and Dr. Murakawa-Leopard. The board has not made any public announcements about the outcome or nature of these matters — which is standard for personnel and litigation items. The pattern across multiple meetings, with both names appearing repeatedly, suggests these are ongoing disputes rather than resolved ones. South Bay Intel will continue to track any public disclosures.

Source: MBUSD Board of Trustees — August 12 & September 2, 2026

Upcoming dates

Upcoming Dates

Wed, Sep 9 · 6:00 PM
City Council Regular Meeting
Tue, Sep 15 · 3:00 PM
Planning Commission
Wed, Sep 16 · 5:00 PM
MBUSD Board Meeting

One thing to watch

Business license reform — what's next

The reform is shelved for this election cycle, not dead for good — Mayor Franklin suggested a task force or commission could spend the next two years building a version with broader Council consensus. The South Bay Association of Realtors' objection centered on AB 5, which they argued excludes real estate agents from business-license taxation the way the draft measure proposed; the California Grocers Association raised separate concerns about food retailers. Watch for whether a task force actually gets formed, and who's appointed to it.

The Council seat race

Councilmember Lesser is not running. That means at least one open seat on the November 3 ballot. Candidate filing closed August 12 — we'll track who's in the race.

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