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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: FEBRUARY 24, 2026
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: PERFORMANCE TIMELINES FOR DEVELOPMENT
AGREEMENT NO. 99-01 FOR THE ANAHEIM
GARDENWALK PROJECT
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council take the following actions:
1) By Resolution, establish new performance timelines for GardenWalk Hotel II, LLC to commence construction of Hotel 2 by November 12, 2030 and complete construction of Hotel 2 by May 12, 2033 and determine that the previously approved Pointe Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the appropriate environmental documentation for this request (Attachment 1); and 2) By Resolution, establish new performance timelines for Westgate Resorts Anaheim, LLC to commence construction by October 31, 2028 and complete construction of Vacation Ownership Resort No. 1 by October 31, 2030 and determine that the previously approved Pointe Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the appropriate environmental documentation for this request (Attachment 2).
DISCUSSION:
This item was originally noticed for the January 27, 2026, City Council meeting. At the January 27, 2026 meeting, Council continued the item to the February 24, 2026, meeting at the request of the project applicants.
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 June 1999, the City of Anaheim and Pointe Anaheim, LLC executed Development Agreement No. 99-01 (Agreement), which governs the development of the Anaheim GardenWalk Project (Project). A map of the property and the Agreement are included as Attachments 3 and 4, respectively.
Performance Timelines for Development Agreement No. 99-01 for the Anaheim GardenWalk Project February 24, 2026
The Project is a specialty retail, dining, and entertainment center integrated with multiple hotels and a transportation center on approximately 20.3-acres, located between Katella Avenue and Disney Way west of Clementine Street. At full build-out, the project would consist of up to 439,600 square feet of retail, dining, and entertainment uses; a 3,200-space parking structure and transportation center; three hotels with up to 1,266 hotel rooms (including up to 400 vacation ownership units); and up to 216,820 square feet of hotel accessory uses.
Following the execution of the Agreement, the original developer, Pointe Anaheim, LLC, and its successors in interest, subsequently assigned the Agreement to other responsible parties: STC GardenWalk LLC; GardenWalk Hotel I, LLC; and Westgate Resorts Anaheim, LLC. These three parties are each the property owner for their respective components of the Project. In addition, the City Council approved subsequent amendments to the Agreement in February 2002, December 2004, January 2006, April 2006, March 2010, July 2011, August 2011, June 2013, and June 2019. In general, the amendments included modifications to the scope of the development based on market realities and extended performance dates to reflect anticipated construction timetables.
Pursuant to the Agreement, the City Council is required to determine annually if the property owners have complied in good faith with the terms and conditions of the Agreement.
Demonstration of good faith compliance includes conformance with all terms and timing schedules set forth in the Agreement.
During the 2023 annual review, the City Council determined that the portions of the Project that are under the responsibilities of GardenWalk Hotel II, LLC and Westgate Resorts Anaheim, LLC were not in compliance with their respective terms and conditions of the Agreement and directed staff to provide notice to the applicant of the Council’s intent to establish new development timeframes. In March 2024, new timeframes were established for GardenWalk Hotel II, LLC and Westgate Resorts Anaheim, LLC for the construction of a hotel and vacation ownership resort on the site as follows:
GardenWalk Hotel II, LLC (Hotel 2):
o Required construction to begin by November 12, 2025
o Construction completion by May 12, 2028
Westgate Resorts Anaheim, LLC (Vacation Ownership Resort No. 1):
o Required building permit issuance by April 15, 2025
o Opening date of two years after the commencement of construction Similar to its 2023 action, at the December 16, 2025 City Council meeting, the City Council determined that the portions of the Project that are under the responsibilities of GardenWalk Hotel II, LLC (assigned from GardenWalk Hotel I, LLC) and Westgate Resorts Anaheim, LLC were not in compliance with the terms and conditions of the Agreement for the 2025 review period and directed staff to provide notice to the applicant of the Council’s intent to establish new development timeframes at a future public hearing. In compliance with the 45-day time limit established in Resolution No. 82R-565 that governs the consideration of development agreements, staff sent notices to GardenWalk Hotel II, LLC and Westgate Resorts Anaheim, Performance Timelines for Development Agreement No. 99-01 for the Anaheim GardenWalk Project February 24, 2026
LLC on December 23, 2025 informing the property owners of the City Council’s determination and that the public hearing would be scheduled for January 27, 2026. At the January 27, 2026 meeting, Council approved a continuance to the February 24, 2026 meeting at the request of the applicants.
GardenWalk Hotel II, LLC: GardenWalk Hotel I, LLC and GardenWalk Hotel II, LLC are responsible for the development of two hotels within the Anaheim GardenWalk Project.
Construction of the first hotel, the 466-room JW Marriott Anaheim Resort, was completed and opened by GardenWalk Hotel I, LLC in August 2020. GardenWalk Hotel II, LLC submitted a letter (Attachment 5) requesting that the timeframes associated with the second hotel be modified to include the following deadlines:
November 12, 2030: Commence construction
May 12, 2033: Complete construction
As GardenWalk Hotel II, LLC indicates in their letter of request, financing costs, updates to the Building Code, and unexpected passing of a partner in the joint venture have caused delays in development of the second hotel. GardenWalk Hotel II, LLC has a proven track record for completing projects in The Anaheim Resort, with both partners of the joint venture having developed several hotels in the general vicinity. The partners of GardenWalk Hotel II, LLC are familiar with the City’s entitlement process and the proposed timeframe extension would allow for adequate time to develop plans for the City’s review. Prior to commencing construction, approval of a Final Site Plan application and building permits are required. The extension, if approved, provides approximately 56 months from this Council action for these approvals to be obtained and for construction to be initiated.
Westgate Resorts Anaheim, LLC: Westgate Resorts Anaheim, LLC is responsible for the development of a 399-unit vacation ownership resort, which the developer would construct on top of the existing parking structure. Westgate Resorts Anaheim, LLC submitted a letter (Attachment 6) requesting that the timeframes be modified to include the following deadlines:
October 31, 2028: Commence construction
October 31, 2030: Complete construction
Westgate Resorts Anaheim, LLC indicates in their letter that they had previously secured an architect and hotel flag, but the deal they had with another development partner fell through due to circumstances beyond their control. The developer has indicated their intent to market the entitled project to potential investment partners and/or buyers and believes that the Agreement provides a level of certainty beneficial to potential investors that may be new to Anaheim.
Westgate Resorts Anaheim, LLC also states that the Agreement provides lenders clarity and predictability during ownership transition, reduces perceived regulatory risk, and improves the project’s ability to be underwritten, financed, and ultimately delivered. Prior to commencing construction, approval of a Final Site Plan application and building permits are required. The extension, if approved, provides the developer approximately 31 months from this Council action to market and sell the property or secure a development partner, and obtain required permit approvals to initiate construction.
Performance Timelines for Development Agreement No. 99-01 for the Anaheim GardenWalk Project February 24, 2026
Environmental Impact Analysis: An Initial Study in support of a Mitigated Negative Declaration (“IS/MND”) was previously prepared and adopted in June 1999 to evaluate the environmental impacts of the Project and to identify necessary mitigation pursuant to the requirements of the California Environmental Quality Act (“CEQA”). Addenda were previously prepared and adopted in 2001, 2006, 2011, 2013, and 2015. Since the adoption of the Pointe Anaheim IS/MND and associated Addenda, neither the Project nor the circumstances under which it will be undertaken have changed. Additionally, there is no new information of substantial importance that the city, as Lead Agency, did not know and could not have known previously. The establishment of new performance timelines will not increase the unit count, or otherwise increase the intensity of the project. Therefore, additional environmental review is not required pursuant to CEQA Guidelines Section 15162.
Conclusion: Staff believes that the requests for additional time are reasonable given the current market conditions and would assist both parties in providing high quality projects that would enhance the Anaheim GardenWalk and overall Resort area. The revised timeframes also place construction commencement after the conclusion of the Olympics in 2028 and allow for staggered construction of the two projects. Therefore, staff recommends approval of this request to establish new performance timelines for GardenWalk Hotel II, LLC and Westgate Resorts Anaheim, LLC.
IMPACT ON BUDGET:
There is no budgetary impact. The applicants are paying the costs associated with this hearing.
Respectfully submitted,
Heather Allen
Planning and Building Director
Attachments:
1. Resolution (GardenWalk Hotel II, LLC)
2. Resolution (Westgate Resorts Anaheim, LLC)
3. Location Map Exhibit
4. Development Agreement 99-01 and Amendments
5. GardenWalk Hotel II, LLC Letter of Request
6. Westgate Resorts Anaheim, LLC Letter of Request