200 S. Anaheim Blvd.
Suite 162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
ITEM NO. 4
PLANNING COMMISSION REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: NOVEMBER 17, 2025
SUBJECT: DEVELOPMENT APPLICATION NO. 2023-00043
LOCATION: 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.
APPLICANT/PROPERTY OWNER: The applicant is Sean Mc Eachern of Shea Properties Management Company, Inc. The property owner is OTR, an Ohio Partnership.
REQUEST: The applicant requests approval of a General Plan Amendment; Specific Plan Amendment, including amendments to the Zoning Code; Final Site Plan; and Development Agreement to establish a new Development Area (DA 5) within the existing boundaries of the Anaheim Hills Festival Specific Plan to accommodate residential uses in combination with the existing commercial development (“Project”). The Project includes the demolition of an approximately 62,676 -square-foot cinema within the proposed DA 5 to construct a 447-unit multiple -family residential community , with 10% of the units affordable to moderate-income households.
AUTHORITY: Section 18.68.040 (Approval Authority) of Chapter 18.68 (General Plan Amendments); Section 18.72.040 (Procedures) of Chapter 18.7 2 (Specific Plans) ; subsection 18. 108.030.030(b) (Final Site Plan for Other Phases ) of Chapter 18. 108 (Festival Specific Plan No. 90-1 Zoning and Development Standards) of Title 18 (Zoning) of the Anaheim Municipal Code (“Code”) . Development Agreements are authorized by City Council Resolution No. 82R-565 (Development Agreement Procedures Resolution).
RECOMMENDATION: Staff recommends that the Planning Commission take the following actions:
1. Approve the attached resolution (Attachment No. 1) recommending City Council approval and certification of Final Environmental Impact Report No. 358 (FEIR No. 358), adoption of Findings of Fact ( “FOF”) and a Statement of Overriding Considerations (“SOC”) and Mitigation Monitoring Program (“MMP”) No. 397, and that City Council 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 appropri ate environmental documentation for the Project and that no further environmental documentation need be prepared for CEQA for the Project;
200 S. Anaheim Blvd.
Suite 162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
2. Approve the attached resolution (Attachment No. 2) recommending City Council approval of an amendment to the General Plan Land Use Element;
3. By motion, recommend that the City Council introduce and adopt a draft ordinance (Attachment No. 3) approving 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);
4. Approve the attached resolution (Attachment No. 4) recommending City Council approval of the final site plan for the construction of the 447 -unit multiple-family community and associated improvements; and
5. Approve the attached resolution (Attachment No. 5) recommending City Council approval of Development Agreement No. 2025 -00001 between OTR, an Ohio Partnership , and the City of Anaheim.
BACKGROUND: The Anaheim Hills Festival Specific Plan (“Specific Plan”) was adopted by the City Council in March 1990 and is comprised of approximately 85.7 acres. The Specific Plan area is currently developed with the Festival commercial shopping center, a hotel, and a senior residential community. The property is zoned SP90-1 (Festival Specific Plan) and is located in the “SC” Scenic Corridor Overlay zone. The Specific Plan has been amended five times since adoption in 1990.
The existing Specific Plan includes four development areas (DAs), as shown in Figure 1, below, and described below:
• Development Area 1 (DA 1): This area fronts Santa Ana Canyon Road and consists of approximately 66,100 square feet of commercial uses on approximately 8.4 acres. DA 1 includes freestanding restaurants, a gas station, and general retail uses.
• Development Area 2 (DA 2): This is the primary commercial core of the site, consisting of approximately 48 acres and over 500,000 square feet of commercial uses. This area includes a mix of major retail tenants, restaurants, health studios, personal services, and a vacant cinema building.
• Development Area 3 (DA 3): This area includes approximately 77,200 square feet of visitor commercial uses on approximately 4.5 acres at the southwest corner of Festival Drive and Santa Ana Canyon Road. This area includes a restaurant and hotel.
• Development Area 4 (DA 4): This area includes 259 senior residential units on approximately
17.7 acres. Specific Plan Amendment No. 3 was approved in 1998 which allowed senior citizen housing in DA 4 with the approval of a conditional use permit.
Development Application No. 2023-00043
November 17, 2025
FIGURE 1. Existing Specific Plan Development Areas
The property is currently designated for Regional Commercial and Low -Medium Density Residential land uses in the General Plan . The 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.
The Vicinity Map and Aerial Map are provided as Attachment 6.
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November 17, 2025
FIGURE 2. Existing Zoning
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 the factors that influence fire likeli hood 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 3 below, identifies portions of the Project site as a Very High Fire Hazard Severity Zone (VHFHSZ), which is 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.
Development Application No. 2023-00043
November 17, 2025
FIGURE 3. CAL FIRE Fire Hazard Severity Zone Map
PROPOSAL: The applicant proposes to establish a new Development Area (DA 5) within the upper tier of the Festival commercial shopping center to accomm odate residential uses in combination with the site’s existing commercial development . The applicant’s Letter of Request is provided as Attachment 7.
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 477 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, with wrought iron, decorative tile, stone accents , decorative metal siding , clay tile roof , varied roof planes, and recessed windows. Sections of the multiple -family building closest to Festival Drive
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November 17, 2025
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 renderings of the proposed multi- family building are shown in Figures 4 and 5 below, and the Project plans are included as Attachment 8.
FIGURE 4. Multiple-Family Residential View from Festival Drive (facing northwest)
FIGURE 5. Multiple-Family Residential View From Entry Court
Open Space: The Project would include a variety of public and private recreation areas. Each apartment floor plan would include a private patio or balcony space. Common amenities for residents would include two indoor clubhouses, two swimming pools, a gym, indoor rideshare lounge, co-working space, and a courtyard. In addition to the amenities available for the exclusive
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November 17, 2025
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 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.
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 as-is.
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 DA5 , 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.
Development Application No. 2023-00043
November 17, 2025
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
Non-
Residential
78,144 sq.
ft.*
Restaurant 6,475 sq. ft. 10 spaces/1,000 sq. ft. 65
Office (<25,000
SF) 9,200 sq. ft. 4 spaces/1,000 sq. ft. 37
Fitness 38,160 sq. ft. 4 spaces/1,000 S sq. ft. 153
Day Care/Tutor
Time
(20 Employees,
max. 195
Children)
13,276 sq. ft.
1 space/ employee, plus
1 space/10 children or adult clients, plus 1 space for
loading and unloading children or adult clients onsite. 41 Medical Office 11,033 sq. ft. 6 spaces/1,000 sq. ft. 66 *Of the total non-residential square-footage., 20,584 sq. ft. are not located in DA5; however , they were included in this parking analysis due to the ir proximity to the referenced surface parking lot as a conservative approach in determining realistic parking demand.
Total Required Retail Parking Spaces 362
spaces
TOTAL REQUIRED PARKING 1,255
spaces
TOTAL PROVIDED PARKING 1,243
spaces
Shared Parking 12
spaces
TOTAL PROVIDED PARKING WITH SHARED PARKING 1,255
spaces
The applicant prepared a parking analysis (Attachment 9) 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 are 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 are lower. Based on the shared parking methodology, 407 parking spaces are available as shared parking in DA5 and the peak parking utilization for the combined uses has a demand of 305 shared parking spaces, resulting in a surplus of 102 share d parking spaces. As such, the deficiency of 12 parking spaces would be fully accommodated by the available shared parking supply. Additionally, 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.
Development Application No. 2023-00043
November 17, 2025
Very High Fire Hazard Severity Zone: The Project is located within a VHFHSZ and would be subject to additional building and construction requirements based on this designation. 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 requiring 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.
Discretionary Actions: To develop the Project described above, the following discretionary actions are requested:
• 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 .” T he 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 por tion 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 7.
Development Application No. 2023-00043
November 17, 2025
FIGURE 7. Proposed General Plan Land Use Plan
• Specific Plan Amendment (inclusive of Zoning Code Amendment):
Specific Plan Document
The applicant is proposing 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. 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 8.
Development Application No. 2023-00043
November 17, 2025
FIGURE 8. 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. The Specific Plan Amendment includes six sections, as described below:
o Section 1 – Introduction: Explains the purpose and intent of the Specific Plan; provides an overview of the site location, project overview, enabling legislation, project goals and objectives, and organization of the Specific Plan.
o Section 2 – Planning Context: Describes surrounding uses, existing site conditions, project background, history of approvals, and development vision and objectives.
o Section 3 – Development Plan: Describes the intent of each development area and provides an overview of the elements of the development plans, including public facilities, circulation, and infrastructure.
o Section 4 – Design Guidelines: Describes the purpose, intent, design objectives, guiding principles, and general design guidelines for future development within the Specific Plan area.
o Section 5 – Implementation: Describes the enforcement of the Specific Plan, applicability and interpretation, process for amendments and subsequent approvals, and methods and procedures for implementation.
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November 17, 2025
o Section 6 – Consistency with the General Plan : Provides a general statement for consistency with the City’s General Plan and references the appropriate section of the Environmental Impact Report that includes the full analysis of consistency of the Specific Plan with General Plan goals and policies.
In addition, various exhibits and tables would be updated in the Specific Plan document. The applicant is proposing 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
DA Use Type Acres Square Footage Dwelling
Units
Density
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
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 9. 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.
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November 17, 2025
Monument sign locations are depicted on Figure 4-1 in Section 4 of the proposed Specific Plan (Attachment 3a).
FIGURE 9. Conceptual Rendering Along Santa Ana Canyon
Zoning Code Chapter 18.108
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 of the sections 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), where needed. 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 Medium zones. However, the Specific Plan Amendment includes certain standards that would be tailored for the Project, as follows:
o 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.
o 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.
o 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.
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November 17, 2025
o 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 3a and 3b, 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 d evelopment 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 A greement is included as Attachment 5a and includes the following public benefits:
1. Development of a cohesive and coordinated renovation of the existing shopping center and integration of new multifamily residential units through a comprehensive planning strategy;
2. 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 maintained by the Developer and programmed in such a manner that residents of the surrounding community will be able to enjoy;
3. 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;
4. Revenues for the City in the form of one time and annual fees and exactions, increased property and sales tax and other fiscal benefits;
5. Contribution of $100,000 to Anaheim Fire and Rescue to fund wildfire prevention efforts;
6. 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
7. Assists the City meet its obligations under RHNA by providing a variety of needed housing, including 447 residential housing 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.
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November 17, 2025
The initial term of the proposed 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 5a).
FINDINGS AND ANALYSIS:
General Plan Amendment : Before the Planning Commission 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 do es 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 10), 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 11) 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 u ses, 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, t he 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 i nterest, health, safety, convenience or welfare of the City.
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3) The proposed amendment would maintain the balance of land uses within the City; and
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, t he 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 Planning Commission recommend approval of the General Plan Amendment to the City Council.
Specific Plan Amendment : Before the Planning Commission 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 10, 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 is compatible with the surrounding area.
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3) That the specific plan results in development of desirable character that will be compatible with existing and proposed development in the surrounding neighborhood;
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 mitigat ion 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 propose d development would outweigh such impact.
Concurrent with the Specific Plan Amendment, t he 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 7a), which is summarized below.
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November 17, 2025
• 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 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 spa ces 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 vi sible 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 with in 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 will serve to direct traffic throughout the commercial center, and will 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 Planning Commission recommend approval of the requested amendment to the Festival Specific Plan and Chapter 18.108 of the Municipal Code to the City Council.
Final Site Plan: Before the Planning Commission 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:
Development Application No. 2023-00043
November 17, 2025
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;
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 but would be less than significant based on the City’s deficiency criteria threshold. All study inter sections 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.
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 Development Application No. 2023-00043
November 17, 2025
building would be subject to the requirements in the California Building Code and 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 complianc e 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 Planning Commission recommend approval of the Final Site Plan to the City Council.
Development Agreement: In 1982, the City Council approved a resolution establishing procedures and requirements for the consideration of development agreements. The resolution identifies four items necessary for the Planning Commission to make a recommendation for approval to the City Council. These items are:
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 proj ect’s consistency with the General Plan is provided in EIR No. 358, Table 4.11-2, Consistency with General Plan (Attachment 10).
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
November 17, 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 propose 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 Planning Commission recommend approval of the Development Agreement to the City Council.
Environmental Impact Analysis: The C ity of A naheim, 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”). At the end of the public comment period, a total of 19 agencies and interested parties responded to 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 . At the end of the meeting, no written comment cards were submitted. 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 comments and five verbal comments.
• On October 23, 2025, the FEIR, which includes response to the D raft EIR comments, was released for public review.
Draft EIR Summary:
The Draft EIR 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
November 17, 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 1a) 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 A merican 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 1c.
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
November 17, 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) 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 Planning Commission recommend City Council certification of 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
November 17, 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 12).
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.
CONCLUSION: 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 Project is compatible with the surrounding area and would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Therefore, staff recommends that the Planning Commission recommend approval of the Project to the City Council.
Prepared by, Submitted by,
Amanda Lauffer Elaine Thienprasiddhi
Senior Planner Principal Planner
Attachments:
1. Draft CEQA Resolution
a. FEIR No. 358 (including Responses to Comments and Clarifications and Revisions to the Draft EIR)
b. Findings and Statement of Overriding Considerations
c. Mitigation Monitoring Program (MMP) No. 397
d. Draft Environmental Impact Report No. 358
2. Draft General Plan Amendment Resolution
3. Draft City Council Ordinance Approving Specific Plan Amendment a. Draft Festival Specific Plan No. 90-1
b. Draft Chapter 18.108 (Festival Specific Plan No. 90-1)
4. Draft Final Site Plan Resolution
5. Draft Development Agreement Resolution
a. Draft Development Agreement No. 2025-00001
6. Vicinity Map and Aerial Map
7. Applicant Letter of Request
a. Applicant Justification Letter
8. Project Plans
9. Parking Study Analysis
10. Table 4.11-2 (Consistency of the Project with the General Plan)
11. Evacuation Time Analysis
12. Public Correspondence