200 S. Anaheim Blvd.
Suite #162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: NOVEMBER 28, 2023
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: ANNUAL REVIEW OF DEVELOPMENT AGREEMENT
NO. 2016-00001 FOR THE 1700 SOUTH HARBOR BOULEVARD
HOTEL PROJECT
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, determine on the basis of the evidence submitted by Good Hope International, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2016-00001 for the 2023 review period for the 1700 South Harbor Boulevard Hotel Project located in The Anaheim Resort.
DISCUSSION:
A Development Agreement is a contract between the City and property owner that provides certainty to the developer that the approved project will be exempt from future changes to zoning laws and requires the developer to provide benefits to the city in exchange for that certainty. In July 2016, the City of Anaheim and Good Hope International executed Development Agreement No. 2016-00001 (“Agreement”) to permit the construction of an eight-story, 580-room hotel with accessory uses, including up to 50,000 square feet of meeting space, up to 25,600 square feet of restaurant space, and an at-grade and subterranean parking structure (Project). A map of the property and the Agreement are included as Attachments 2 and 3, respectively.
Subsequent to City Council approval, the Agreement for the Project was the subject of a referendum, which qualified, as Measure J, on the November 2018 Municipal General Election Ballot. The majority of the voters approved the measure, which validated the City Council’s approval of the Agreement. Because of the referendum, the Development Agreement for the Project went into effect on December 14, 2018. On January 14, 2020, the City Council approved Good Hope International’s request to amend the Agreement to extend the term by five years, to a total of ten years from the effective date of the agreement. In 2021, the property owner requested a 180-day extension pursuant to Section 7.3 (Force Majeure; Extension of Time of Performance) of the Agreement, which staff approved. In October 2022, the property owner requested a two-year extension, also pursuant to Section 7.3 of the Agreement, which the City Council approved. With the extensions, the term of the Agreement is June 12, 2031. The public benefits provided by the Agreement consist of a requirement that the developer provide the City with a Public Improvements Commitment for $100,000 Annual Review of Development Agreement No. 2016-00001 (1700 South Harbor Boulevard) November 28, 2023
to fund certain public improvements that the City will construct near the Project. Pursuant to the Agreement, the City Council is required to determine annually if the property owner has complied in good faith with the terms and conditions of the Agreement. Demonstration of good faith compliance includes conformance with all terms and schedules set forth in the Agreement.
If the Council finds that the property owner has demonstrated good faith compliance, the review for that period is complete.
The Agreement required payment of the Public Improvements Commitment before the issuance of a demolition or grading permit for the Project, whichever comes first. Demolition of the existing hotel has not occurred; however, the developer provided the payment to the City in October 2019.
The City Council previously approved an Operating Covenant Agreement (OCA) under the City’s Hotel Incentive Policy, which the Council established to encourage the development of American Automobile Association (AAA) rated Four- and Five-Diamond hotels. The OCA is not a part of the Development Agreement's annual review.
The property owner has submitted the attached letter (Attachment No. 1), dated October 30, 2023, requesting a determination of good faith compliance with the Agreement. Staff confirmed that the property owner has complied with their obligations under the Agreement. Therefore, staff recommends that the City Council determine that the property owner has complied in good faith with the terms and conditions of the Agreement for this review period.
IMPACT ON BUDGET:
There is no budgetary impact. The property owner is paying the cost of this annual review.
Respectfully submitted,
Ted White
Director of Planning and Building
Attachments:
1. Annual Review Letter
2. Aerial Map
3. Development Agreement