You haven't really said what you don't like about the current design.
And you said you want a separate gathering area from the LR. It seems to me that you already have that with the "dining room" that is currently a seating area that nobody uses.

Why would you like another gathering area? Is it because the living room feels too isolated?

If it were me, I'd raise the living room floor to the same height and take out the fireplace. Then, I'd open up the space, between the kitchen and family room (maybe a half wall, with support posts on each end?) and redesign the kitchen. Incorporate the breakfast room into a larger kitchen and have the space more open to the dining room (which you'll want to use now) and the living room. If you still want a small seating area in the kitchen, think banquette or small table with two chairs (maybe more for coffee than meals).

If you want to put a fireplace (maybe gas?) back into the living room, I'd look at the long wall (bathroom on other side) and put a fireplace there, maybe with flat screen TV over it. You could have some shelves/storage on either side...and I think you'd use all your spaces, much more often.

Hope this helps :)

Here's a quick 5 minute idea. I like the idea of putting the cooktop against the back side of the fireplace and maybe exposing the brick to add character. Adding the prep sink and seating with a view for the cook to the family area will connect the two spaces well and let the prepping time be connected to the family time. There's a baking area next to the wall oven and the everyday storage is to the left of the sink against the wall. There's built in storage/shallow bar area in the dining area for special items and the DR has a better traffic pattern to the kitchen. Scoot the patio door to the right and place the fridge next to the wall oven. This will let you use the DR as the DR easier and give you buffet space on the peninsula dividing the space. It's a straight shot out to through the doors to the exterior, and the fridge is accessible to both exterior and interior. If you wanted to have a range, then your fridge could to where the china storage is now next to the entry and that would be more accessible to the family room area. Then you could put an undercounter beverage fridge next to the patio door and your china could go above that on the wall.

See? This is what I like about these forums...the nudges to think a bit differently create those "Ah ha" moments! Thanks!

The reason I wanted a different gathering space that is apart from the LR is when we have groups over it gets acoustically overwhelming and there is no division (TV vs no TV, for instance. Other than the kitchen/LR wall, there is no divide. The "dining" area has never had a table since the breakfast area is where we eat.

I really do appreciate the time and effort in your responses! My husband will love the seconding of the motion to knock down the fireplace! He hates that thing!

So you actually want more walls instead of less?
Add a wall between the "dining room" and LR.

Are you happy with the kitchen/breakfast area?

Is the current fireplace ugly or overwhelming? Is it brick/stone/other? If it's ugly, a photo would help so that people can give you ideas on making it look better instead of ripping it out.

Happy to provide photos of this ghastly space! I almost enclosed a photo of my pushbutton cooktop as a bonus, but restrained myself!
{{!gwi}}

{{!gwi}}

It's a very nice MCM space! I actually like the brick. It's a nice texture. What doesn't work for me is the carpet and the sheets on the windows. The wall color is way too blah too. I think that all the whole space needs is to match the wood floors so that it has continuity and some color on the walls. And more MCM touches. And, of course, a kitchen remodel, I'm sure. But the fireplace works with the home style really well.

LOL. Ok, yes it is bland. Maybe my brain isn't awake, but what is MCM? And yes, the carpet is on the hit list. Actually, the wood is too due to a major water issue in the hallway. I like the beech floor, but will probably go a bit darker next time. Aaack! Sounding more like interior design than remodel--'cept that 70s kitchen!

Sounding more like interior design than remodel

That's what I'm starting to think. The only remodel I'd do is 'unsinking' the livingroom.

I think you have to sit down and think about what it is that you don't like about the space. You haven't really complained about anything or commented on what isn't working. It's hard for others to tell you how to solve a problem when all you say is 'I don't like it the way it is'.

Mid Century Modern. It's a bit of a catchal phrase thet refers to the more streamlined and modern style ranches that were prevalent from 1950=1970. It's a highly sought after look if done well. Think AMC's Mad Men series and catch up on it if you haven't already.

You don't want to destroy the unique positive features of this home! Work within the guidelines that the home's style gives you. The fireplace is a great inspiration, and if there is any way to save those floors and just expand them into the rest of the home, I'd try my darndest to do that. Wood in any of the bedrooms that could be harvested for instance?

Just a plain coat of paint in something like a retro natural intense green (Martha Stewart Chardonnay Bottle) with those wood floors and add in some wood blinds and the look would be 1000% improved. A big long Chesterfield tufted low back sofa in a saddle leather and some Panton chairs around a Saarinen table with a Sputnik ceiling fixture. Slab front kitchen cabinet doors in a natural cherry and concrete counters in a cream that matches the fireplace would be terrific!

MCM is popular, but I'm not a fan. I prefer something a little more rustic/traditional, which might work in your space. Did you paint the beams white? It seems like you have a lot of white...probably trying to lighten up that fireplace!

I like the style of your dining chair (what I can see of it LOL) and if you like that style, maybe play that up a bit. Seems like the biggest thing is to take out that fireplace and level the living room floor. This would make such a difference and then...remodel the kitchen.

Green's kitchen has some possibilities, but I'd want the fridge on the wall (by the entry door) maybe a prep sink in the corner...then add another window, with the range, in between. The oven could stay in the same spot. Then, I'd put the main sink/dishwasher about where Green has the range. With the fireplace gone, you could really open up the kitchen to the rest of the living space. Just an idea :)

So, Green seems to be nudging towards the style I saw on a site called Atomic Ranch. Interesting, but not sure.

The beams were originally painted a dark color. Yes, we did the white. The room is in its sparse state in this photo, I thought that would show the layout better.

I think I need to get over the two distinct rooms unless I want to build out...and where I live I am not willing to have them do an archeological sampling plus the rest of the laundry list of reports/fees to do that (unincorporated Monterey County,CA...tract home that has been here since the 60s, built on old tomato fields...don't get me going). Plus, how much space do we really need? I got over the McMansion concept a long time ago. :)

Thanks for the words of wisdom.

The house itself is MCM and doing something traditional in such a space wouldn't feel right. I agree with the direction that GD suggests, especially the slab cherry cabinets. Those are gorgeous! For the kitchen remodel itself, post your layout on the Kitchen Forum for additional feedback. I do like the idea of having the brick be the backdrop to the cooking area, but I think there are too may "bar" areas in GD's suggested layout. I'd pick one area to have stools for your company and leave the rest alone as simply open to the other room with pony wall.

Jubilante- Maybe go over to the kitchen forum and check out the thread on 'Design Around This' rustic/modern. If it's too rustic, think about painting the wood (like you did the beams) and go more rustic/cottage. I think that would look very nice in your space.

Many disagree, but I think 'designing your rooms to fit your exterior' is very limiting and for many of us...would result in cookie cutter interiors. You probably can't pull off Versailles in an average home, but country/cottage/rustic modern/transitional would all work. Again, IMHO :)

It's not just the exterior of this home that's MCM. It's every inch of the inside.

Furnishings and decorations don't necessarily need to reflect the house, but anything architectural--like a kitchen--should.