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CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: APRIL 8, 2025
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: PRESENTATION ON REBUILD BEACH AND 39 COMMONS
UPDATE
ATTACHMENT (Y/N): NO ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: NO
ACTION:
That the City Council receive an update on the Rebuild Beach Initiative and the progress of the 39 Commons development.
DISCUSSION:
At the City Council meeting on December 17, 2024, Council Member Ryan Balius requested an update on the Rebuild Beach Initiative and the status of the 39 Commons development.
Overview of Rebuild Beach Progress
The City of Anaheim’s Rebuild Beach initiative is a multi-departmental, multi-year effort to transform a 1.5-mile stretch of Beach Boulevard into a vibrant, livable corridor in West Anaheim. The project is reshaping the area through both long-term redevelopment and near-term improvements. A $25 million utility undergrounding project is underway, set for completion of the city’s scope of work in 2026. This will enhance reliability and aesthetics by moving overhead power and communication lines underground. At the same time, street-level upgrades like energy-efficient LED lighting and beautification work are improving safety and visibility.
A key milestone in the Rebuild Beach effort came in October 2024, when the City officially took over control of Beach Boulevard (also formerly known as State Route 39) from the State of California. This transfer of ownership has unlocked new flexibility, allowing the City to move forward with streetscape improvements more quickly and with greater local control. As a result of no longer being required to navigate state- specific regulations or approval processes, the City can now directly shape the look and feel of Beach Boulevard to better reflect the community’s vision.
Work is already underway on Phase I landscaping in the median at Beach Boulevard and Ball Road. Phase II, which will bring additional landscaping enhancements to the area around Beach and Lincoln Avenue, is scheduled to begin in mid-2025. These upgrades Presentation on Rebuild Beach and 39 Commons
April 8, 2025
are designed to make the corridor not only more attractive, but more welcoming and cohesive as the area continues to evolve.
Through zoning changes and the adoption of a specific plan in 2019, the City is creating a vibrant and welcoming residential community. The new zoning paves the way for more than 5,000 homes, along with over 2 million square feet of retail and dining space, that will serve and enhance the neighborhood. To protect the character and quality of life for residents, the plan prohibits new liquor stores, motels, and hookah lounges, fostering a safer and more family-friendly environment. Additionally, design standards emphasize walkability and street-front engagement, ensuring that the area evolves into a thriving, connected, and community-focused neighborhood.
Crime Enforcement Progress
Public safety is a cornerstone of the Rebuild Beach effort, with the Anaheim Police Department (APD) leading an aggressive and sustained campaign to disrupt criminal activity along the corridor. The focus has been on addressing human trafficking, illegal drug activity, illegal firearms, gambling, and wage theft—issues that have historically plagued the area.
Several waves of targeted enforcement have been carried out, particularly between 2022 and this year, involving state and local coordination. High-visibility blue-light surveillance cameras and automated license plate readers have been deployed throughout Beach Boulevard, serving both as investigative tools and deterrents. To further support enforcement, a city attorney is dedicated to prosecuting violations in the area. These efforts have sent a clear message: crime and illicit business practices will not be tolerated. Additional patrol has also taken place by the department’s Mounted Patrol Unit, which provides high profile visibility in the community.
Motel Updates
A major element of Rebuild Beach has been a proactive approach to addressing the role of problem motels in enabling crime and poor living conditions. Since 2017, the number of motels along the corridor has dropped from 18 to 13. Several motels with long histories of violations have been purchased by the City’s Housing Authority, red-tagged, and demolished to make way for redevelopment. This includes the Silver Moon Motel (demolished in 2002), Americana Motel (demolished in 2021), Covered Wagon Motel (demolished in 2023), and Anaheim Lodge (demolished in 2024). Most recently, the city acquired the Rainbow Inn in 2024, with demolition planned for Spring 2025.
The sites of the former motels will be turned into housing. A Request for Proposal (RFP) was issued for the former sites of the Silver Moon Motel and Americana Motel, located on the southeast corner of Beach Boulevard and Lincoln Avenue. The RFP led to the selection of Brandywine/Innovative Housing Opportunities to develop the 3.59-acre site to include 47 affordable intergenerational rental housing units, 60 for-sale townhomes, and a commercial component. The development is fully funded and set to begin construction in Spring 2025. The former sites of the Covered Wagon, Anaheim Lodge, Presentation on Rebuild Beach and 39 Commons
April 8, 2025
and Rainbow Inn will be combined after the demolition of the Rainbow Inn and the three adjacent parcels will provide 2.7 acres for a future housing development.
Homeless Outreach
Additionally, Anaheim’s Community Care Response Team is out daily, offering social services and mental health support to those still living in motels and helping transition people out of unstable or unsafe housing conditions while APD and Code Enforcement hold motel operators accountable. Beach Boulevard and surrounding areas are a key target area for the City’s Homelessness Task Force.
39 Commons Overview
One of the most high-profile projects that is a part of Rebuild Beach is 39 Commons, a large-scale mixed-use development at the northeast corner of Beach Boulevard and Lincoln Avenue. This site, once home to a landfill and later vacant or underused commercial space, has undergone extensive remediation and soil work—over $35 million worth—to prepare it for redevelopment.
The residential portion of the project is already complete, with 65 modern townhomes built by Landsea Homes. The same developer purchased a site across the street from Nolin and is currently constructing a similar housing development, named Mason, with show models currently available to tour and purchase. Starting in late 2025, the retail portion of 39 Commons will begin phased construction. When complete, it will include 140,000 square feet of space featuring a specialty grocery store, In-N-Out Burger, Dave’s Hot Chicken, Dutch Bros Coffee, and other retail and service businesses. The project is being developed by 39 Commons LLC, a partnership between Zelman Development and Greenlaw Partners.
Development of 39 Commons is impacted by economic conditions and extraordinary development costs due to the former landfill environmental conditions. The city team is working with the Developer to explore development options and tenant mix that will allow for the development of future phases in a more expedited timeline.
Conclusion
The Rebuild Beach Initiative is a community revitalization effort that, in the absence of the former Redevelopment Agency, will require multi-year investment to ensure transformational change occurs and makes way for new investment, and improved quality of life.
The best practices and lessons learned by the Rebuild Beach team will be transferred and replicated in other problem corridors in the city, including State College Boulevard, Lincoln Avenue, and Brookhurst Street.
IMPACT ON BUDGET:
There is no budgetary impact.
Presentation on Rebuild Beach and 39 Commons
April 8, 2025
Respectfully Submitted,
Sergio M. Ramirez
Director of Economic Development