Planning Commission approves amended South Bay Galleria Phase 2 with housing bonus, waivers and lot reconfiguration

The Redondo Beach Planning Commission voted 6–0 (one vote not specified on the record) on Aug. 21 to approve amended entitlements for Phase 2 of the South Bay Galleria mixed‑use project, including an addendum to the project’s 2019 environmental impact report, changes to the conditional use permit and planning‑commission design review, a revised vesting tentative tract map, and a one‑year extension of an existing vesting period.

The approved Phase 2 plan covers two parcels at the southwest corner of the Galleria, and would add 15 townhomes plus a multi‑story building with 335 residential units (most studios and one‑bedroom units), 8,351 square feet of commercial space and up to roughly 845 parking spaces in below‑ and above‑grade garages. The applicant committed to reserving 10 percent of the new units (35 units) for very‑low‑income households.

City planning manager Sean Scully, who presented the staff report, summarized the entitlements before the commission: "We're gonna begin our public hearing tonight. ... public hearing for consideration of an addendum to the environmental impact report for the South Bay Galleria mixed use Project" and later stated that "the phase 2 development qualifies for the use of an addendum. It, would not result in any new significant impacts, would not substantially increase the severity of previously identified ... and would not introduce new mitigation measures." Scully also reviewed requested waivers under the state density bonus law, noting the project seeks relief from the code limits on height and stories and a waiver for private open‑space shortfalls for some units.

The applicant team told the commission that market and financing conditions after COVID, and shifts in retail demand, prompted the additional housing. Stewart (Stuart) Knoll, a principal with the development team, said the team "spent a lot of money on design, on the remodel of the existing mall, on the 300 apartments, the public realm. They are now all in a position of being permit ready. So if we secure financing, we could be in the crowd." He said the owner that provided project financing is Kennedy Wilson and that the Phase 2 application was submitted in February 2024 after outreach and additional site design.

Much of the public comment and several commissioners’ questions focused on traffic impacts to surrounding residential streets (notably Kingsdale Avenue), the sale or reconfiguration of the parcel planned for 15 townhomes, and the limits that state housing laws place on local discretion. Multiple speakers from the neighborhood urged the commission to slow or stop further residential increase at the Galleria site because of traffic and quality‑of‑life concerns. Resident Susie Reitz, a Kingsdale resident, told the commission she had led a petition in 2019 against denser development and warned of continued cut‑through traffic: "If you don't think there will be additional impact, traffic, safety concerns, adding 650 or 700 residences at the Galleria ... is a huge problem."

Commissioners and staff spent substantial time discussing what parts of the proposal are discretionary and what parts are constrained by state law. Outside counsel Diana Verrett, retained as a housing specialist, told the commission that recent California statutes limit local governments’ ability to deny or condition housing projects that meet objective standards. Verrett said AB 2097 prevents a local agency from imposing minimum parking requirements within a half‑mile of a major transit stop and that under the state density bonus law and related statutes the city may only deny requested waivers if it can make a specific adverse public‑health or safety finding supported by substantial, objective evidence. As she put it: "The city would need to have evidence of one of those three things in order to deny the requested waivers under density bonus law."

Several commissioners pressed the applicant and staff on practical issues: whether the 350 residential parking spaces (one per unit) would be guaranteed, how many commercial parking stalls would be provided or replaced, whether parking could be unbundled from units so unused assigned spaces could be reallocated, how affordable units would be distributed among studios and one‑ and two‑bedroom units, and how the development would step down along Kingsdale to minimize impacts on adjacent houses. The commission added conditions during deliberations that address several of those concerns, including a requirement that resident parking can be unbundled and that residents be allowed to use Phase 2 commercial parking spaces as needed (the applicant agreed to that condition).

The commission also approved a reconfiguration of the existing lot lines so the townhome parcel is delineated (a change the applicant said is needed for financial feasibility and potential condo sale option). The applicant's land‑use attorney told the commission the subdivision/lot reconfiguration is commonly required by lenders to allow the sale or separate financing of for‑sale townhomes and that the overall Galleria retains master conditions that will govern architecture, signage and a coordinated development brand.

Before the final vote commissioners repeatedly asked whether they were able to lawfully deny elements of the project if they concluded they caused undue local harm. Staff and outside counsel repeatedly advised that while commissioners may vote against the project, state housing laws sharply limit the grounds for denial, and any denial would need to be supported by substantial evidence showing specific adverse impacts to public health or safety that cannot be mitigated.

Votes at a glance: the commission adopted the draft resolution (amending the 2019 entitlements for Phase 2, accepting the EIR addendum, approving the vesting tentative tract map amendment and one‑year extension, and granting waivers under the density bonus law) with changes the commission directed at the meeting; the motion passed on a roll call with Ayes recorded from Commissioners Light, Young, Gattis, Conroy, Hazeltine and Chair Craig; Commissioner Boswell's recorded statement during the roll call did not clearly state a vote on the record. The official motion text recorded in the meeting was to adopt "resolution number 2025‑07 PCR07 with the proposed conditions added tonight." The resolution as adopted included amendments discussed in open session, and the applicant accepted several of the added conditions.

What happens next: the project approval preserves the entitlements and allows the applicant to pursue building plan check and permits. Staff noted Phase 1 (the mall renovation and the initial 300 units) is proceeding through plan check and could be permit‑ready. The Phase 2 approvals include design review as conceptual; final building and architectural plans must be reviewed for substantial conformance with the conceptual package and will be approved by the Community Development Director prior to issuance of building permits. The applicant and the city will return to administrative steps (lot map recordation, final design review and permit issuance) as the project progresses.

The decision marks a milestone in a long, multi‑year redevelopment plan for the Galleria site, but the approval leaves open remaining technical, traffic and implementation work and preserves the city's obligation to follow both local conditions of approval and controlling state housing laws.