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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: DECEMBER 16, 2025
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: THE ANAHEIM HILLS FESTIVAL PROJECT
DEVELOPMENT APPLICATION NO. 2023-00043
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council take the following actions:
1. By Resolution, certify Final Environmental Impact Report No. 358 (FEIR No. 358); adopt Findings of Fact, a Statement of Overriding Considerations and Mitigation Monitoring Program No. 397 (MMP No. 397); and, determine that FEIR No. 358 and MMP No. 397 have been prepared for the Project in compliance with the California Environmental Quality Act (CEQA), are adequate to serve as the appropriate environmental documentation for the Project and that no further environmental analysis is required (Attachment 1);
2. By Resolution, approve an amendment to General Plan Land Use Element (Attachment 2);
3. Introduce, by Ordinance, adoption of Amendment No. 6 to the Anaheim Hills Festival Specific Plan No. 90-1 and the Zoning and Development Standards (Chapter 18.108 of Title 18) (Attachment 3);
4. By Resolution, approve a Final Site Plan to permit the 447-unit multi-family residential building and associated improvements (Attachment 4); and
5. Introduce by Ordinance, approve and adopt Development Agreement No. 2025-00001 by and between OTR, an Ohio Partnership, and the City of Anaheim (Attachment 5).
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DISCUSSION:
Background
The project site includes the entirety of the existing 85.7-acre Anaheim Hills Festival Specific Plan, generally located south of Santa Ana Canyon Road, between Festival Drive and Roosevelt Road. The Specific Plan area is currently developed with the Anaheim Hills Festival (Festival) commercial shopping center, a hotel, and a senior residential community. The existing Specific Plan includes four development areas (DAs), as shown in Figure 1 below.
FIGURE 1. Existing Specific Plan Development Areas
The property is designated for Regional Commercial and Low-Medium Density Residential land uses in the General Plan. Surrounding land uses include a business park to the north across Santa Ana Canyon Road; a utility transmission corridor containing Southern California Edison (SCE) overhead power lines, undeveloped private parcels, and the Deer Canyon Park Preserve to the west; office and institutional uses to the east, across Roosevelt Road; and single-family residential to the south. As shown in Figure 2 below, existing zoning in the vicinity includes General Commercial (C-G) to the north, Transitional (T) and Open Space (OS) to the west, Low Intensity Office (O-L) to the east, and Single-Family Residential (RS-3) to the south. A Vicinity Map and Aerial Map are provided as Attachment 6.
FIGURE 2. Existing Zoning
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Planning Commission
On November 17, 2025, the Planning Commission recommended that City Council take the following actions on a 6-1 vote (Chairperson Walker and Commissioners Abdulrahman, Castro, Lieberman, Perez, and Tran-Martin voted yes; Commissioner Kelly voted no):
1. Approve and certify Final Environmental Impact Report No. 358 (FEIR No. 358), adopt of Findings of Fact (“FOF”), a Statement of Overriding Considerations (“SOC”) and Mitigation Monitoring Program (“MMP”) No. 397, and determine that FEIR No. 358 and MMP No. 397 have been prepared for the Project in compliance with the California Environmental Quality Act (CEQA), are adequate to serve as the appropriate environmental documentation for the Project and that no further environmental documentation is needed for the Project (Resolution No. PC2025-033);
2. Approve an amendment to the General Plan Land Use Element (Resolution No. PC2025- 034);
3. Introduce and adopt an ordinance approving Amendment No. 6 to the Anaheim Hills Festival Specific Plan No. 90-1 and associated the Zoning and Development Standards (Chapter 18.108 of Title 18);
4. Approve a final site plan for the construction of the 447-unit multiple-family community and associated improvements (Resolution No. PC2025-035); and Development Application No. 2023-00043
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5. Approve Development Agreement No. 2025-00001 between OTR, an Ohio Partnership, and the City of Anaheim (Resolution No. PC2025-036).
The Planning Commission, in its motion to approve the final site plan, added Condition of Approval No. 44 to Resolution No. PC2025-035, which requires the submittal of a Parking Management Plan for review and approval by the Planning Division and Traffic Engineering Division and the subsequent conditions of approval were renumbered. A copy of the Planning Commission staff report and draft minutes are attached as Attachments 7 and 8, respectively. Non- substantive modifications to the Final EIR and Development Agreement identified after the Planning Commission’s actions are summarized in Attachment 9.
Proposal
The applicant proposes establishing a new Development Area (DA 5) within the upper tier of the Festival commercial shopping center to accommodate residential uses in combination with the site’s existing commercial development. The applicant’s Letter of Request is provided as Attachment 10.
Multi-Family Residential Building: The Project proposes to demolish the 62,676-square-foot vacant cinema building and construct a 447-unit multiple-family residential community as shown in Table 1 below:
TABLE 1. Residential Unit Summary
Unit Type Number of Units Size
One-Bedroom 280 units 591 to 728 square feet
Two-Bedroom 131 units 1,058 to 1,087 square feet
Three-Bedroom 36 units 1,270 to 1,493 square feet
TOTAL 447 units*
*45 units (10% of the total units) would be designated as affordable housing for moderate-income households
The four-story multiple-family building would be wrapped around a six-level parking structure, including one subterranean level, for a total height of 57 feet. The proposed multiple-family building is consistent with the Mediterranean style architecture described in the Design Guidelines of the proposed Specific Plan Amendment. The building features smooth white stucco, wrought iron, decorative tile, stone accents, decorative metal siding, clay tile roof, varied roof planes, and recessed windows. Renderings are shown in Figures 3 and 4 below, and the Project plans are included as Attachment 11.
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FIGURE 3. Multiple-Family Residential View from Festival Drive (facing northwest)
FIGURE 4. Multiple-Family Residential View From Entry Court Sections of the multiple-family building closest to Festival Drive would be three stories to create additional variation in roof lines and building height, while the remainder of the residential building would be four stories. The Project site features varying topography and is generally at a lower grade than Festival Drive and the neighboring senior residential community to the west and south. The project plans include line-of-sight exhibits from various points on neighboring properties; Figure 5 below shows two cross sections through Festival Drive west and south of the Project site, which demonstrate that while the proposed building is taller than the existing vacant cinema building, the existing senior residential apartments are higher than the proposed building due to differences in grade.
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FIGURE 5. Cross Section Showing Grade and Height Comparison with Senior Residential Community Across Festival Drive
Open Space: As shown in Figure 6 below, the Project would include a variety of public and private recreation areas. Each apartment floor plan would include a private patio or balcony. Common amenities for residents would include two indoor clubhouses, two swimming pools, gym, indoor rideshare lounge, co-working space, and courtyard. In addition to the amenities available for the exclusive use of residents of the new community, the Project proposes a fenced dog park adjacent to Festival Drive and an open space area, called Bluff Park, along the northeast edge of the proposed DA 5. These areas would be privately maintained, but open for use by the general public.
The dog park would be fenced with decorative wrought iron and include a large grass area, shaded seating areas, dog fountain, and pet waste stations. Bluff Park would include a central lawn area and perimeter gardens, with seating areas and concrete walkways that would connect to the commercial area in DA 5. A total of 103,639 square feet of private and public open space is proposed.
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FIGURE 6. Proposed Residential Site Plan
Circulation: Primary access into proposed DA 5 would be provided from an existing driveway along Festival Drive, leading to a new entry court and roundabout near the multiple-family leasing office entrance. A new driveway would be provided along Festival Drive at the south end of the building, for gated, resident-only access into the parking structure. All other existing driveways for the shopping center would remain unchanged.
Parking: The proposed 954-space parking structure would provide gated resident parking on the subterranean and upper levels and guest and retail parking on the non-gated first level. In addition, the existing surface lot to the east of the proposed residential development would provide 289 parking spaces, for a total of 1,243 parking spaces in DA 5. As shown in Table 2 below, 1,255 parking spaces are required for DA 5, which is inclusive of 893 parking spaces required for the proposed multiple-family units, calculated at the rate proposed under the Specific Plan Amendment and 362 spaces required for the existing commercial uses.
TABLE 2. Parking Summary Table for Proposed DA 5
Use Units/Size Proposed Parking Rate Number of
Parking Spaces
Residential 447 units
One-Bedroom 280 units 1.75 spaces/unit* 490
Two-Bedroom 131 units 2.25 spaces/unit 295
Three-Bedroom 36 units 3.00 spaces/unit 108
Total Required Residential Parking 893 spaces
Total Non- 78,144 sq. 362 spaces
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Residential ft.**
*Proposed rate under Specific Plan Amendment; existing Code requires 2.0 spaces/one-bedroom unit. **Of the total non-residential square-footage., 20,584 sq. ft. are not located in DA 5; however, it was included in this parking analysis due to its proximity to the referenced surface parking lot as a conservative approach in determining realistic parking demand.
TOTAL REQUIRED PARKING 1,255 spaces
TOTAL PROVIDED PARKING 1,243 spaces
Shared Parking 12 spaces
The applicant prepared a parking analysis (Attachment 12) to demonstrate that adequate parking would be provided for the mix of uses. As described in the parking analysis, the peak demand for the combination of uses within DA 5 occurs on a weekday at 11 a.m., when the demand for the medical office, general office, and restaurant is high but the demand for the residential and health club uses are lower. The peak hours for the residential use occur in the evening between 7 p.m. and 12 a.m., when the demand for other commercial uses in DA 5 is lower. Based on the shared parking methodology, 407 parking spaces are available as shared parking in DA 5 and the peak parking utilization for the combined uses has a demand of 305 shared parking spaces, resulting in a surplus of 102 shared parking spaces. As such, the deficiency of 12 parking spaces would be fully accommodated by the available shared parking supply. As part of the Planning Commission’s motion for approval, a condition of approval was added which requires the applicant to submit a Parking Management Plan for review and approval by the Planning Division and Traffic Engineering Division to ensure a balance between parking for multiple-family residents, resident guests, and commercial patrons is provided. Lastly, reciprocal parking and access would be provided for DAs 1, 2, and 5, such that the surface parking lot on the lower tier of the shopping center would also be available to residents and patrons of the upper tier businesses.
Very High Fire Hazard Severity Zone: In March 2025, the Office of the State Fire Marshal released updated Fire Hazard Severity Zone (FHSZ) maps. The FHSZ maps are developed using a science-based and field-tested model that assigns a hazard score based on factors that influence fire likelihood and fire behavior. Such factors include fire history, existing and potential fuel (natural vegetation), predicted flame length, blowing embers, terrain, and fire weather for the area.
There are three levels of hazard in the State Responsibility Areas: Moderate, High, and Very High.
The updated map, provided as Figure 7 below, identifies portions of the Project site as a Very High Fire Hazard Severity Zone (VHFHSZ), which is identified as a location that is of the greatest risk of wildfire. A VHFHSZ designation does not mean that an area is not safe for development. Rather, it indicates that specific fire protection measures are required to minimize structure vulnerability, as specified in the California Building Code (CBC) and California Fire Code (CFC).
Approximately 8.26 acres of the proposed DA 5 is located within the VHFHSZ. The Project site is in a developed area and is approximately 0.15 miles east of Deer Canyon Park Preserve, which is the nearest open space area.
FIGURE 7. CAL FIRE Fire Hazard Severity Zone Map
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The residential building would be designed with enhanced ignition-resistant construction standards required by the CBC and CFC. The residential building would be protected with automatic fire sprinklers, and two new fire hydrants are proposed along the north side of the multiple-family building in Bluff Park to enhance firefighting efforts in DA 5.
Regional Housing Needs Assessment (RHNA): The Project would provide 402 units classified as above-moderate income levels, and 45 units classified as affordable housing for moderate income levels (pursuant to the California Department of Housing and Community Development). The Draft Development Agreement includes a provision to encourage the developer to obtain a building permit for the residential units before October 1, 2029, so that 402 units would count toward the City’s above-moderate-income allocation of 8,344 units and 45 units would count toward the City’s moderate-income allocation of 2,945 units within the current 2021-2019 RHNA cycle.
Required Project Entitlements
General Plan Amendment: The applicant requests an amendment to Figure LU-4 (Land Use Plan) of the General Plan Land Use Element to re-designate the proposed DA 5 from “Regional Commercial” to “Mixed-Use Medium.” The Mixed-Use Medium land use designation is intended to allow flexibility for parcels that could transition from strip commercial uses to residential or a mix of residential, commercial, and office development. This land use designation allows residential development in either a stand-alone or mixed-use configuration at a density of up to 36 dwelling units per acre, while the non-residential component of mixed-use development is permitted at a maximum floor area ratio (FAR) of 0.35. The proposed residential portion of the Project has a density of 27.4 dwelling units per acre, and the remaining commercial buildings would result in a FAR of 0.09. The proposed change to the Land Use Plan, showing the proposed Mixed-Use Medium designation in green cross-hatching, is included in Figure 8.
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FIGURE 8. Proposed General Plan Land Use Plan
Festival Specific Plan and Zoning Code Amendment: The applicant requests Amendment No. 6 to the Anaheim Hills Festival Specific Plan No. 90-1 to establish a new Development Area (DA 5) within the existing Specific Plan boundaries to accommodate residential uses in combination with existing commercial development. In conjunction with the updates to the Specific Plan, the applicant requests to amend Chapter 18.108 (Festival Specific Plan No. 90-1) of the Municipal Code, in its entirety, to update the formatting to be consistent with other Chapters of the Code and incorporate the proposed changes to the Specific Plan.
Specific Plan No. 90-1
The proposed DA 5 would be created by reallocating land from the existing DA 2, reducing its size from approximately 48 acres to 31.8 acres. The resulting 16.2-acre area would form the new DA 5, as shown in Figure 9.
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FIGURE 9. Proposed Specific Plan Development Areas
The Specific Plan Amendment would revise the document to be more user-friendly and consistent with the format of recently adopted specific plans. Various exhibits and tables would be updated in the Specific Plan document. The applicant proposes to demolish the 62,676 square-foot cinema building and retain 13,310 square feet of that building square footage for future commercial buildings in DA 2. As shown in Table 3, DA 5 would retain 57,560 square feet of commercial uses.
TABLE 3. Specific Plan Land Use Summary Table
Density
DA Use Type Acres Square
Footage
Dwelling
Units
Max Existing/Proposed
Developments
1 Scenic Commercial
(SC)
8.4 66,100 0 - -
2 Retail Commercial
and Entertainment
(RC/E)
31.8 397,918 0 - -
3 Visitor Commercial
(V) 4.5 77,200 0 - -
4 Business
Commercial/ Senior
Housing (BC)
17.7 240,000 259 18.0 15.0
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5 Mixed-Use (MU) 16.2 57,560 447 36.0 28.0
- Private Roads 7.1 - - - -
Total 85.7 838,778 706 -
Lastly, the Specific Plan Amendment incorporates new Design Guidelines for commercial and residential development within the Specific Plan area. These guidelines address architectural and landscape design for development in the Festival, and feature a Mediterranean-style design influence, as depicted in Figure 10. The Specific Plan Amendment includes conceptual renderings for potential commercial building improvements to the rest of the shopping center, as well as updates to the center monument sign design. The applicant proposes to increase the number of major tenant low monument signs, project identification monument signs, and directional signs within the shopping center. The existing theater marquee sign at the intersection of Santa Ana Canyon Road and Festival Drive would be modified to a major tenant identification sign to match the other tenant monument signs along the street frontage. Monument sign locations are depicted in Figure 4-1 in Section 4 of the proposed Specific Plan (Attachment 13).
FIGURE 10. Conceptual Rendering Along Santa Ana Canyon
Anaheim Municipal Code Chapter 18.108
The applicant requests to amend Chapter 18.108 (Festival Specific Plan No. 90-1), in its entirety, to update the formatting to mirror other Specific Plan chapters, create new development standards for DA 5, update signage requirements for the commercial and residential uses, and create permitted use tables for the Specific Plan development areas. The proposed Code chapter will continue to meet the intent of, and reference special provisions of the Scenic Corridor (SC) Overlay Zone (Chapter 18.18), as applicable. Site development standards, such as building setbacks, landscape setbacks, and maximum heights, for the existing development areas would not change as part of the Project.
As part of this update, new permitted use tables and development standards would be established that are generally consistent with the “C-R” Regional Commercial and “MU-MED” Mixed-Use
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Medium zones. However, the Specific Plan Amendment includes certain standards that would be tailored for the Project, as follows:
Multiple-Family Minimum Parking Requirements – Proposed parking requirement of 1.75 spaces per one-bedroom unit in DA 5. The MU-MED Zone requires 2.0 spaces per one- bedroom unit.
Minimum Floor Area – Proposed minimum floor area of 580 square feet for one-bedroom units. The MU-MED Zone requires a minimum of 700 square feet for one-bedroom units. Maximum Sign Area – Proposed 1.25 square feet of signage per lineal foot of tenant frontage for in-line tenant frontages of 38 feet or less. The C-R Zone allows for one square foot of signage per lineal foot of tenant frontage.
Permitted Uses – Proposed to allow automotive sales offices (retail and wholesale) by right if no cars are stored on-site; hotels, with full kitchen facilities as a conditionally permitted use in DAs 1-3 and 5; indoor commercial recreation as permitted by-right in all DAs; and outdoor retail sales permitted with a minor conditional use permit in DAs 1-3. The C-R Zone prohibits retail automotive sales offices; prohibits hotels, with full kitchen facilities; and requires a conditional use permit for indoor commercial recreation and outdoor retail sales.
The draft Specific Plan Amendment and draft Chapter 18.108 are included as Attachments 13 and 14, respectively.
Final Site Plan: The applicant requests approval of a final site plan for the proposed multiple- family residential development. The final site plan includes the site plan, floor plans, elevations, and landscape plan to demonstrate compliance with the guiding principles and standards in the Specific Plan Amendment and draft Chapter 18.108.
Development Agreement: The applicant requests approval of a development agreement between the City of Anaheim and OTR, an Ohio Partnership. A development agreement is a contract between the City and a property owner that provides certainty to the developer that the approved project will be exempt from future changes to zoning laws. In exchange for that certainty, a development agreement may require the developer to provide benefits to the City beyond what would otherwise be required by existing regulations and ordinances. The property owner would also be required to submit annual reports to the City demonstrating compliance with the terms of the Agreement. State law allows cities and project applicants to enter into a development agreement for their mutual benefit. The Draft Development Agreement is included as Attachment 15 and includes the following public benefits:
Development of a cohesive and coordinated renovation of the existing shopping center and integration of new multifamily residential units through a comprehensive planning strategy;
Enhanced outdoor gathering spaces within the commercial center, including certain common recreational spaces within the residential development (Bluff Park and Dog Park) that will be open and available for use by the general public. These spaces will be privately Development Application No. 2023-00043
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maintained by the Developer and programmed in such a manner that residents of the surrounding community will be able to enjoy;
Strengthening of the City’s economic base with a variety of high-quality construction jobs, as well as long-term retail and multifamily management jobs; Revenues for the City in the form of one-time and annual fees and exactions, increased property and sales tax and other fiscal benefits;
Contribution of $100,000 to Anaheim Fire and Rescue to fund wildfire prevention efforts; Funding and installation of CCTV system and Emergency Vehicle Preemption system on Santa Ana Canyon Road at four intersections to facilitate enhanced emergency response time in the area; and
Assists the City in meeting its obligations under RHNA by providing a variety of needed housing, including 447 residential units, of which 10% (approximately 45 units) shall be deed-restricted as affordable to Moderate-Income Households (those making up to 120% of Area Median Income) for 55 years.
The initial term of the development agreement is proposed as a period of five years. If a building permit for the residential building is issued by October 1, 2029, the Term could be extended by the City Manager for an additional five years.
The Draft Development Agreement includes a Construction Phasing Exhibit that addresses the proposed phasing for the residential project and commercial improvements to the Festival shopping center. The applicant would demolish the cinema building and begin construction of the multiple-family building and associated improvements to the pedestrian connection between DA 2 and DA 5 within the initial five-year term. Other cosmetic improvements to the Festival shopping center would be completed within five years of the commencement of construction of the residential building, as described in Exhibit C of the Draft Development Agreement (Attachment 15).
Changes to Development Agreement Provisions Since Planning Commission Action:
In response to community concerns expressed during the Planning Commission public hearing regarding the need for rapid and effective evacuation in the event of a wildfire, the applicant has offered to provide a monetary contribution in the amount of $100,000 to the Police Department.
These funds would be dedicated exclusively to enhancing wildfire evacuation training, planning, and related preparedness activities, as deemed appropriate by the Chief of Police. Therefore, Section 2.1 (Public Benefits) in the draft Development Agreement has been amended to include the following provision:
Provide a contribution of $100,000 to the Anaheim Police Department to fund wildfire evacuation training, planning, and related preparedness activities.
Additionally, Section 3.6 (Development Fees, Exactions, and Conditions) of the Development Agreement was amended to clarify that the monetary contributions to Anaheim Fire and Rescue and the Anaheim Police Department are subject to an annual inflationary increase if paid at least one year after the Agreement effective date. Related Condition of Approval No. 29 has been added to the Final Site Plan Resolution (Attachment 4) to note that the monetary contributions to Anaheim Fire and Rescue and the Anaheim Police Department are required to be paid prior to issuance of building permits, consistent with the other impact fees identified in Exhibit D.
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Lastly, the applicant requested a change to Exhibit D (Impact Fees) in the draft Development Agreement because the list of fees inadvertently included “Affordable Housing Fees.” Chapter
17.40 (Inclusionary Housing) is not applicable to the Project since a formal application for the project was submitted to the city approximately one year prior to the effective date of the said ordinance, which was October 8, 2024. And as previously discussed, the applicant is voluntarily proposing that 10 percent of the units be affordable to moderate income households. Therefore, Exhibit D (Impact Fees) has been amended to delete a reference to Affordable Housing Fees.
A summary of these changes is provided in Attachment 9.
Findings and Analysis:
General Plan Amendment: Before the City Council may approve a General Plan Amendment, it must make a finding of fact that the evidence presented shows that all of the following conditions exist:
1) The proposed amendment maintains the internal consistency of the General Plan; The proposed amendment to the General Plan does not create inconsistencies with applicable goals and policies. Applicable goals and policies, identified in Table 4.11-2 of the Environmental Impact Report for the project (Attachment 16), demonstrate that the proposed project is designed to create a cohesive mixed-use development with the introduction of multiple-family units in the place of a vacant commercial building, within a large retail center.
2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience or welfare of the City;
The proposed amendment would not be detrimental to the public interest, health, safety, convenience or welfare of the City and would be compatible with the surrounding residential and commercial uses. An Evacuation Time Analysis (Attachment 17) was prepared to analyze the project’s “worst-case scenario” wildfire event, with a wildfire erupting directly to the west of the site in Deer Canyon Preserve. The analysis reviewed the Project in conjunction with other projects in the area, the existing surrounding uses, and evacuation routes based on the City’s “Know Your Way” evacuation and emergency preparedness plan. Based on the analysis, the Project would increase total evacuation time for the surrounding area by seven minutes over the existing cinema use. However, the City has reviewed the analysis and determined that the slight increase in evacuation time is not a significant impact. In addition, the Project would not impede on existing evacuation routes, and the developer is required to draft and implement a Construction Fire Prevention Plan and a Wildfire Evacuation and Awareness Plan prior to construction activities and eventual certificate of occupancy for the residential building, respectively. Therefore, the Project would not be detrimental to the public interest, health, safety, convenience or welfare of the City.
3) The proposed amendment would maintain the balance of land uses within the City; and Development Application No. 2023-00043
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The Mixed-Use Medium designation allows for a mix of residential, commercial, and office uses within the same parcel. The proposed amendment would allow for another residential use to be introduced in the Festival shopping center, which is compatible with the neighboring senior residential community in DA 4, as well as the larger Anaheim Hills community.
4) If the amendment is to the General Plan Land Use Map, the subject property is physically suitable to accommodate the proposed modification, including but not limited to, access, physical constraints, topography, provision of utilities, and compatibility with surrounding land uses.
The site is physically suitable for the proposed development, and no off-site improvements are required, such as sewer or traffic signal improvements. The elevation of the site is lower than the adjacent Festival Drive. Therefore, the proposed four-story multiple-family building would not be out of scale as compared to the three-story senior residential buildings across Festival Drive and would be compatible with the residential and commercial uses within the Specific Plan area, as well as the larger Anaheim Hills community.
Therefore, staff recommends that the City Council approve the General Plan Amendment to the Land Use Element.
Specific Plan Amendment: Before the City Council may approve a Specific Plan Amendment, it must make a finding of fact that the evidence presented shows that all of the following conditions exist:
1) That the property proposed for the specific plan has unique site characteristics, such as topography, location or surroundings, that are enhanced by special land use and development standards;
The Festival Specific Plan encompasses approximately 85.7 acres, is divided into different development areas, and includes a mix of residential, commercial, office, and hospitality uses. The amended Specific Plan would create a new mixed-use development area, DA 5, within the existing boundaries of the Specific Plan. Varying topography between DA 2, DA 4, and DA 5 creates a unique separation from the main commercial development in DA 2 and the residential development in DA 4 and DA 5.
2) That the specific plan is consistent with the goals and policies of the General Plan, and with the purposes, standards and land use guidelines therein; As described in Attachment 16, the amended Specific Plan would remain consistent with the goals and policies of the General Plan by promoting mixed-use development in DA 5 that balances commercial, office, residential, and recreation uses that are compatible with the surrounding area.
3) That the specific plan results in development of desirable character that will be compatible with existing and proposed development in the surrounding neighborhood; Development Application No. 2023-00043
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The proposed amendment would allow for the introduction of residential uses in DA 5, and would be compatible with the existing residential uses in DA 4 and commercial uses in DAs 1, 2 and 3. The amended Specific Plan includes Design Guidelines that would help to create a cohesive appearance between the mix of uses and enhance the overall aesthetic of development within the Specific Plan area.
4) That the specific plan contributes to a balance of land uses throughout the City; and The amended Specific Plan would continue to contribute to the balance of land uses throughout the City by introducing a mixed-use development area within the existing boundaries of the Specific Plan. The Project would allow for the introduction of additional residential uses within the Festival shopping center, in conjunction with the existing mix of commercial and office uses in the center.
5) That the specific plan respects environmental, aesthetic and historic resources consistent with economic realities.
The Specific Plan Amendment would continue to respect environmental, aesthetic, and historic resources, as analyzed in the project’s Environmental Impact Report. As described in the environmental analysis section of the report, all potential impacts, with exception of VMT impacts, can be reduced to less than significant with the implementation of the proposed mitigation measures and project design features. Due to the Project’s location in a high VMT-generating area, there are no additional feasible mitigation measures that would reduce the VMT impact to less than significant; however, as further described under the Environmental Impact Analysis section of this report, the benefits of the proposed development would outweigh such impact.
Concurrent with the Specific Plan Amendment, the Project would amend the zoning and development standards in Chapter 18.108 (Festival Specific Plan No. 90-1) of the Zoning Code.
Pursuant to Section 18.76.020 (Zoning Amendments, Applicability), the Zoning Code may be amended if:
1) The action is necessary to implement the General Plan and will enhance and preserve the general welfare.
The proposed amendments to Chapter 18.108 are consistent with the proposed General Plan amendment and is required to implement the proposed project as described above.
The changes to the zoning standards are intended to implement the General Plan as proposed and to maintain consistency with other zoning regulations, including permitted uses and signage. As described under the project proposal, the applicant is proposing modifications to existing regulations through the Specific Plan Amendment. The applicant has provided a Letter of Justification describing the proposed modifications to existing Code requirements (Attachment 10a), which is summarized below:
Minimum parking requirements for one-bedroom units: As shown in the Project’s parking analysis, adequate parking would be provided for the mix of uses within DA
5. The proposed 0.25 space reduction in parking for one-bedroom units would result in 70 spaces less than what would be required by Code. Based on a survey of a similar Development Application No. 2023-00043
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residential product owned and operated by the developer, the proposed blended parking ratio per unit of 2.0 spaces exceeds the observed demand by more than 0.5 spaces per unit. In addition, the Project would be located within a large commercial center which allows for shared parking between DA 1, 2, and 5. Parking is not permitted on the neighboring streets and all parking associated with the Project will be provided on-site. Minimum square footage of one-bedroom units: The reduction in allowable floor area for one-bedroom units within DA 5 allows for a variety of one-bedroom options to be marketed for a variety of potential residents. The percentage of floor plans that are under the Code-required square footage of 700 square feet is less than 10% of the units proposed under the Project. Each unit has a private patio or balcony, allowing for a mix of interior and exterior space for residents to enjoy.
Square footage allowance for in-line tenant wall signs: The proposed allowance of 1.25 square feet of signage per lineal foot of tenant frontage would only be applicable to in- line tenants with less than 38 feet of tenant frontage. These tenant suites are located on the interior of the site and not directly visible to the public right-of-way along Santa Ana Canyon Road. The slight increase in square footage allowance would allow smaller tenants to maintain visibility to vehicular and pedestrian traffic within the shopping center and would not overwhelm the tenant frontages. Monument signs: The number of major monument signs along Santa Ana Canyon Road would not change. The applicant proposes additional smaller monument identification signs at existing driveway entrances and directional signs throughout the center, which would serve to direct traffic throughout the commercial center, and would not be directly visible from the main street frontage along Santa Ana Canyon Road. All signs would be located outside of the required sight clearance areas and would be consistent with the updated Mediterranean design shown in the Specific Plan Design Guidelines section.
Permitted uses: The applicant proposes that certain uses be permitted by-right, including auto retail sales offices and indoor commercial recreation, with the addition of special provisions that ensure the use would be compatible with the commercial center and would not negatively affect the surrounding uses. The applicant proposes to require a minor conditional use permit for outdoor retail sales, and conditional use permit for hotels with full kitchen facilities.
Therefore, staff recommends that the City Council introduce an ordinance to approve the requested amendment to the Festival Specific Plan No. 90-1 and Chapter 18.108 of the Municipal Code.
Final Site Plan: Before the City Council may approve a Final Site Plan, it must make a finding of fact that the evidence presented shows that all of the following must exist:
1) The design and layout of the proposed development are consistent with the General Plan, any applicable specific plan, the development standards of the applicable zoning district, and any special area guidelines or policies;
Development Application No. 2023-00043
December 16, 2025
The proposed multiple-family development would be consistent with the General Plan, the uses authorized and regulations prescribed for the proposed DA 5 of the Specific Plan Amendment, upon adoption. The proposed residential portion of the Project has a density of 27.4 dwelling units per acre, and the remaining commercial buildings would result in a FAR of 0.09, consistent with the Mixed-Use Medium designation. The multiple-family building would be consistent with the development standards proposed under the amended Specific Plan, including setbacks and height.
2) The design and layout of the proposed development will not create traffic or pedestrian hazards;
The design and layout of the proposed multiple-family development will not create traffic or pedestrian hazards. Full vehicular access to the proposed multiple-family development would be provided at the existing driveway along Festival Drive, and the new resident-only driveway would be designed in accordance to City standards. The proposed development will not introduce any hazardous design features and would not encroach on the required sight distance clearance for pedestrian and vehicular traffic.
A Traffic Impact Analysis (Appendix D of the Final EIR) was prepared for the Project and determined that no significant impacts would occur to the surrounding intersections with the addition of the Project. High volumes of vehicles currently utilize Santa Ana Canyon Road as a bypass for SR-91 during peak commute hours. The Project is anticipated to minimally increase the volume-to-capacity during peak hours, which would be less than significant based on the City’s deficiency criteria threshold. All study intersections are anticipated to continue to operate at an acceptable Level of Service (LOS) during the peak AM and PM hours, and no additional improvements are required. 3) The design of the proposed development is consistent with applicable objective design standards and will provide a desirable environment for its occupants, visiting public, its neighbors, and be appropriately maintained; and
The proposed multiple-family development would be consistent with the Design Guidelines in the amended Specific Plan and would allow for the construction of an aesthetically pleasing community in an underutilized area of the center. The amended Specific Plan includes Design Guidelines that provide guiding principles to establish a higher level of design for development within the center and introduce a Mediterranean architectural style, which the multiple-family development would be consistent with. The Project site is generally at a lower grade elevation than Festival Drive and the neighboring senior residential community. The proposed four-story multiple-family building is compatible with surrounding development in the Specific Plan area, including the three- story senior residential buildings and four-story hotel building across Festival Drive. 4) The proposed development will not be detrimental to the public health, safety or welfare, or materially injurious to the properties or improvements in the vicinity.
The proposed development would not be detrimental to the public health, safety or welfare, or materially injurious to the properties or improvements in the vicinity. The proposed building would be subject to the requirements in the California Building Code and Development Application No. 2023-00043
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California Fire Code, which require enhanced construction methods for very high fire hazard areas. These requirements would address roofs, eaves, exterior walls, vents, windows, doors, etc., which would result in hardened structures that have been proven to perform at high levels (resist ignition) during the typically short duration of exposure to burning vegetation from wildfires. Although there is no guarantee that compliance with these standards would prevent fire damage or destruction of the structure in all cases, implementation of these standards would provide a high level of protection to the structure.
Therefore, staff recommends that the City Council approve the Final Site Plan for the construction of a 447-unit multiple-family community and associated improvements.
Development Agreement: In 1982, the City Council approved a resolution establishing procedures and requirements for the consideration of development agreements. Before the City Council may approve an agreement, it must make a finding that all of the four following conditions exist:
1) The Proposed Agreement is consistent with the General Plan and with the goals, policies, programs and objectives specified in the General Plan;
The Development Agreement is consistent with the General Plan and its goals, policies, programs, and objectives. The proposed Mixed-Use Medium land use designation is intended to allow flexibility for parcels that could transition from strip commercial uses to residential or a mix of residential, commercial, and office development. The Project would provide for a mixed-use development in the existing Specific Plan area with residential, commercial, and office uses in DA 5. A detailed description of the project’s consistency with the General Plan is provided in EIR No. 358, Table 4.11-2, Consistency with General Plan (Attachment 16).
2) The Proposed Agreement is compatible with the uses authorized in, and the regulations prescribed for, the applicable zoning district(s) in which the Project is and will be located; The Development Agreement is compatible with the uses authorized and regulations prescribed for the proposed DA 5 of the Specific Plan upon adoption of the Specific Plan Amendment. The Development Agreement provides provisions for the construction of the new multiple-family development, in conjunction with improvements to the remainder of the commercial center and would meet the development standards in the amended Specific Plan.
3) The Proposed Agreement is compatible with the orderly development of property in the surrounding area; and
The Development Agreement would allow for the development of a multiple-family building within an existing commercial shopping center and would be compatible with the existing commercial, residential, and office land uses in the surrounding area. 4) The Proposed Agreement is not otherwise detrimental to the health and safety of the citizens of the City of Anaheim.
Development Application No. 2023-00043
December 16, 2025
The Development Agreement is not otherwise detrimental to the health and safety of the citizens of the City of Anaheim in that potential impacts were extensively analyzed in the Project EIR, which found that potential environmental impacts could be mitigated to a less than significant impact, with the exception of VMT; however, as further described under the Environmental Impact Analysis section of this report, the benefits of the proposed development outweigh such impact. Further, the Development Agreement constitutes a lawful, present exercise of the City’s police power and authority, is entered into pursuant to, and is in compliance with the City’s charter powers, the requirements of Section 65867 of California Government Code and the Procedures Resolution.
Therefore, staff recommends that the City Council approve a Development Agreement between the City and OTR, an Ohio Partnership.
Environmental Impact Analysis: The City of Anaheim, as the lead agency, prepared an Environmental Impact Report in accordance with CEQA and the State of California Guidelines for the Implementation of the California Environmental Quality Act (CEQA Guidelines).
EIR Timeline:
On January 26, 2024, a Notice of Preparation (“NOP”) was mailed and published in the Anaheim Bulletin, informing the public and Public Agencies of the preparation of a Draft Environmental Impact Report (“EIR”). A total of 19 agencies and interested parties responded to the NOP and provided written comments.
On February 12, 2024, a scoping meeting was held to solicit input from the public on the environmental topics to be studied during preparation of the Draft EIR. No written comment cards were submitted and no individuals completed the sign-in sheet for the in-person meeting; however, two members of the public were present for the meeting. On June 20, 2025, a Notice of Availability (“NOA”) was mailed and published in the Anaheim Bulletin informing the public and Public Agencies that the Draft EIR was to be circulated for review for a 45-day period, from June 20, 2025 to August 4, 2025. In addition, the City hosted a Planning Commission workshop on July 14, 2025, to provide an overview of the Draft EIR and to receive public comments. During the review period, the City received a total of 13 written and five verbal comments.
On October 23, 2025, the FEIR, which includes responses to the Draft EIR comments, was released for public review.
Draft EIR Summary:
The Draft EIR (Attachment 18) was prepared for the Project to analyze significant effects on the environment.
Environmental topics that were found to have no impact:
o Agricultural and Forestry Resources
o Mineral Resources
Development Application No. 2023-00043
December 16, 2025
Environmental topics that were found to be less than significant without mitigation measures:
o Aesthetics
o Air Quality
o Biological Resources
o Energy
o Hydrology and Water Quality
o Land Use and Planning
o Noise
o Population and Housing
o Public Services
o Recreation
o Utilities and Service Systems
Environmental topics that were found to be less than significant with mitigation measures incorporated:
o Cultural Resources
o Geology/Soils
o Greenhouse Gas Emissions
o Hazards/Hazardous Materials
o Tribal Cultural Resources
o Wildfire
Environmental topics that were found to be significant and unavoidable: If a topic is found to have impacts that cannot be mitigated to a level that is considered less than significant, the impacts are considered significant and unavoidable. The proposed project would have one area with significant and unavoidable impacts:
o Transportation, specifically Vehicle Miles Traveled (VMT) Final EIR:
FEIR No. 358 (Attachment 19) was prepared pursuant to Section 15132 of the CEQA Guidelines, and contains response to agency and public comments made on the Draft EIR and a summary of revisions to the Draft EIR resulting from comments. Along with the Final EIR, an MMP has been prepared, which memorializes the proposed mitigation measures intended to reduce potential impacts. Some of notable mitigation measures include monitoring by a qualified archaeologist, paleontologist, and a Native American monitor during grading activities; development and implementation of construction management plan, Construction Fire Prevention Plan and Wildfire Evacuation and Awareness Plan; provision of 45 affordable housing units at moderate-income level; and, reduced parking than the City’s Zoning Code standards to reduce the Project’s VMT impact. The full list is contained in MMP No. 397 included as Attachment 20.
There are no additional feasible mitigation measures that would reduce the Transportation VMT- related impacts to a less than significant level. The project site is located in a high VMT generating area. This is because the majority of Anaheim Hills consists primarily of residential development with limited proximity to job centers and public transit. As described in the Project proposal, the Project includes 10% affordable units and a reduction in the City’s parking requirements, both of which are identified as VMT reduction strategies. However, there are no additional VMT reduction Development Application No. 2023-00043
December 16, 2025
measures that would be feasible for the project that would reduce the VMT threshold to a less than significant impact.
As such, the Project would result in a significant and unavoidable impact related to Transportation.
Therefore, a Draft Findings of Fact and Statement of Overriding Considerations (“SOC”) (Attachment 21) to support certification of the Final EIR has been prepared for the Project. This document summarizes the significant impacts of the Project, describes how these impacts are to be mitigated, and discusses alternatives to the Project. The SOC presents the justification for the significant impact related to VMT that cannot be mitigated. It also states that the decision-making body has balanced the benefits of the Project against its unavoidable significant environmental effects and has determined that the benefits of the Project outweigh the adverse effects, and therefore, the adverse effects are considered to be acceptable. As stated in the Draft SOC, the Project includes several benefits that could be considered to override the significant and unavoidable VMT impact, which are as follows:
Increases the City’s housing supply by 447 new multiple-family units, including 45 affordable units, consistent with the City’s adopted Housing Element and State Housing Law. This supports the City’s objective to increase the housing inventory, provide new housing opportunities in a mixed-use setting, and offer affordable housing options. Provides 45 moderate-income affordable housing units, expanding housing opportunities for moderate-income households and supporting the City’s housing equity goals. Redevelops an underutilized and partially vacant site into a more vibrant and mixed-use community.
Generates construction-related employment, ongoing operational jobs, and increase property and sales tax revenues, thereby contributing to the City’s fiscal stability and economic vitality.
Supports the City’s long-term land use vision by implementing the goals of the General Plan and the Anaheim Hills Festival Specific Plan.
Provides on-site amenities such as landscaped open space, recreational facilities, and pedestrian connections to build a residential community with robust amenities that foster community interaction.
Complies with the latest California Green Building Standards Code (CALGreen) and would incorporate energy-efficient building systems and water-efficient landscaping. This would ensure high-quality design while reducing environmental impacts supporting the City’s climate action goals.
As described, the preceding benefits would outweigh the environmental impact of the Project; and therefore, staff recommends that the City Council certify Final EIR No. 358, including the adoption of FOF, SOC and MMP No. 397 for the Project.
Community Outreach and Correspondence: In addition to the outreach conducted as part of the EIR process, a project webpage was maintained at www.anaheim.net with project information, links to all environmental documents, and a link to subscribe to project notifications. All meetings, including the public hearing, were noticed in the Anaheim Bulletin, mailed to all properties and property owners within 1,000 feet of the project boundaries and interested parties, and emailed to those that subscribed to the project notification list.
Development Application No. 2023-00043
December 16, 2025
In addition to public comments incorporated into the Final EIR, all comments provided to the City that were received outside of the scoping and Draft EIR public review periods have been provided as attachments to this report (Attachment 22).
The applicant also conducted additional public outreach, which included digital engagement, one- on-one meetings, on-site meetings and tours, social media, and conducted a presentation at a 2024 District 6 Community Meeting.
On the day of the Planning Commission public hearing, the City received two letters from Lozeau Drury LLP (on behalf of Supporters Alliance for Environmental Responsibility (SAFER)) and Mitchel M. Tsai (on behalf of the Western States Regional Council of Carpenters (WSRCC)) generally stating that the environmental document prepared for the project is inadequate and fails to support its findings with substantial evidence. These letters included very similar comments and issues in letters that were submitted during the public review period and were responded to in FEIR No. 358. While not required under CEQA Guidelines, responses to these letters have been provided in Attachment 23.
CONCLUSION:
The Project, including the recommended project actions, has been designed to ensure compatibility with surrounding land uses, provide adequate circulation, and mitigate potential impacts to the greatest extent feasible. The Project would provide for additional residential uses, including affordable units, to be introduced in the Anaheim Hills Festival Specific Plan area, creating a mixed-use community in an underutilized portion of the large retail center.
The Planning Commission found the Project to be in conformance with the General Plan, Specific Plan, and Zoning Code, as amended. Staff recommends approval of this request.
IMPACT ON BUDGET:
There is no budgetary impact. The costs associated with this hearing will be incurred by the project applicant.
Respectfully submitted,
Heather Allen
Planning and Building Director
Attachments:
1. Resolution for FEIR No. 358
2. Resolution for General Plan Amendment
3. Ordinance for Specific Plan Amendment
4. Resolution for Final Plan
5. Ordinance for Development Agreement No. 2025-0001
Development Application No. 2023-00043
December 16, 2025
6. Vicinity and Aerial Maps
7. Planning Commission Staff Report dated November 17, 2025 (without attachments)
8. Draft November 17, 2025 Planning Commission Minutes
9. Summary of Additions and Amendments to Planning Commission Materials
10. Applicant Letter of Request
a. Applicant Justification Letter
11. Project Plans
12. Parking Study Analysis
13. Draft Festival Specific Plan No. 90-1
14. Draft Chapter 18.108 (Festival Specific Plan No. 90-1)
15. Draft Development Agreement No. 2025-00001
16. Table 4.11-2 (Consistency of the Project with the General Plan)
17. Evacuation Time Analysis
18. Draft Environmental Impact Report No. 358
19. FEIR No. 358 (including Responses to Comments and Clarifications and Revisions to the Draft EIR)
20. Mitigation Monitoring Program (MMP) No. 397
21. Findings of Fact and Statement of Overriding Considerations
22. Public Correspondence
23. Response to Lozeau Drury LLP and Mitchell M. Tsai Letters dated November 17, 2025