Gardenwalk Hotel II, LLC
333 City Boulevard West, Suite 2000, Orange, CA 92868
Tel: 714-399-9300
December 1, 2025
City of Anaheim City of Anaheim
200 South Anaheim Boulevard 200 South Anaheim Boulevard, Suite 356 Anaheim, CA 92805 Anaheim, CA 92805
Attention: City Clerk Attention: City Attorney
Re: Development Agreement No. 99-1/Annual Review Request by Hotel No. 2
Ladies and Gentlemen:
Pursuant to your request, we are writing to provide the City with a report on Hotel No. 2 under the Development Agreement.
Hotel No. 2
As previously reported, Hotel No. 2 was delayed by the pandemic and resulting governmental orders, as well as their continuing impacts. The current deadline for construction commencement for Hotel No. 2 is November 12, 2025, and the deadline for completion is May 12, 2028. Despite our current commitment to Hotel No. 2 and our strong belief in its long-term benefit to the Anaheim Resort area, a series of unforeseen challenges have made it impossible for Hotel No. 2 to meet the current deadlines. As such, we will not meet our construction milestones. However, we would like to request an extension of the milestones based on the following:
1. The current tariff wars have caused significant increases in the cost of key construction materials such as steel, aluminum, and other raw materials. These cost escalations have materially affected our construction budgets.
2. The construction financing market remains expensive and constrained. High interest rate spreads, continued inflation, and ongoing uncertainty regarding Federal Reserve policy have made securing financing for hotel projects extremely difficult.
3. National fiscal and economic policies have contributed to a slower recovery in international and domestic travel, especially in the Anaheim Resort area. The reduced pace of inbound tourism has affected hotel demand forecasts and required additional time to recalibrate project feasibility and timing.
4. Recent statewide building code updates have necessitated a temporary pause in our design process to assess the cost and compliance implications. These changes are significant enough to warrant design revisions before proceeding to construction documents.
5. The unexpected passing of Bill O’Connell Sr., our partner, requires more time for the family to work through estate planning.
Accordingly, we respectfully request that the City grant an extension of five (5) years to the current construction deadlines. If granted, the new deadline for construction commencement would be November 12, 2030, and the deadline for completion would be May 12, 2033. We appreciate the City’s understanding as we navigate these unprecedented challenges. We remain confident in the long-term viability of Hotel No. 2 and its future contribution to the Anaheim Resort area. If you have any questions, please don’t hesitate to contact us.
Very truly yours,
GARDENWALK HOTEL II, LLC,
a California limited liability company
By: Prospera Properties III, LLC,
a Delaware limited liability company
Its: Manager
By: Clementine Real Estate, LLC, a California limited liability company
Its: Sole Member and Manager
By: _______________________
Ajesh Patel
Its: Manager
By: ________________________
Bryan O’Connell
Its: Manager