201 S. Anaheim Blvd.
Second Floor
Anaheim, CA 92805
Tel: (714) 765-4320
Fax: (714) 765-4331
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: MAY 12, 2026
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF A LEASE AGREEMENT BY AND BETWEEN
THE ANAHEIM HOUSING AUTHORITY AND LONG BEACH
ARTS DISTRICT LLC FOR USE OF THE OUTDOOR PARKING
SPACES LOCATED AT 145 W. SANTA ANA STREET
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve a Lease Agreement by and between the Anaheim Housing Authority and Long Beach Arts District LLC, for monthly rent in the amount of $2,000 including a 3% annual escalator, for a term commencing upon approval of the Housing Authority Governing Board and terminating after five (5) years, to provide temporary valet and employee parking for the Anaheim Packing District, and authorize the Executive Director, or her designee, to execute and implement the agreement, including the administrative approval of modifications necessary to reflect the formation and final legal name of a new entity wholly owned and operated by the principal members of the LAB Holding group established for purposes of managing the Lease Agreement, subject to approval as to form by legal counsel (145 W. Santa Ana Street).
DISCUSSION:
The Anaheim Housing Authority owns property located at 145 W. Santa Ana Street (Property), which is improved with an existing industrial building and adjacent parking area. The Property is ultimately intended for future affordable housing development; however, staff evaluated the Authority’s current development pipeline, funding availability, environmental review requirements, entitlement process, and overall development priorities, and determined that the site could accommodate an interim parking use for an estimated five-year period without materially impacting the Authority’s long-term affordable housing objectives.
The Anaheim Packing District is a historic food hall and entertainment destination in downtown Anaheim featuring restaurants, breweries, and event venues within restored historic structures. Businesses within the Packing District, including Villains Brewing Company and the MAKE Building, operate pursuant to approved Conditional Use Lease Agreement for temporary parking at 145 W. Santa Ana St.
May 12, 2026
Permits (CUPs) that include Parking Management Plans intended to address parking demand through a combination of on-site and off-site strategies, including shuttle- supported remote parking. Following the discontinuation of the FRAN shuttle service and in response to ongoing neighborhood concerns regarding street parking impacts, LAB Holding approached the City to explore potential interim parking solutions to support compliance with CUP parking requirements and alleviate parking impacts on nearby residential streets.
In response, Authority staff evaluated Authority-owned properties in close proximity to the Packing District and identified the subject Property as a suitable interim solution.
During the interim period, the Property will be utilized exclusively for valet and employee parking operations serving the Packing District, with no occupancy or operational use of the existing industrial building. The site can accommodate approximately 50 parking spaces and is located within walking distance of the Packing District, making it a practical short-term parking solution until permanent parking alternatives can be secured.
Should the Governing Board approve the proposed Lease Agreement (Lease), the initial term would commence upon approval of the Lease by the Governing Board, and expire after five (5) years, with month-to-month tenancy thereafter unless otherwise terminated in accordance with the Lease. Staff is recommending a monthly rental rate of $2,000, subject to an annual escalation of three percent (3%). The proposed rent is based on the City’s established off-site parking rate of $40 per parking space per month under the existing parking agreement with LAB Holding for downtown parking structures managed by the Economic Development Department.
The Property is well suited for the proposed off-site parking use and can accommodate operations without significant site modifications or tenant improvements. At this time, no improvements are proposed beyond the installation of adequate lighting to enhance safety and security. Overnight parking will be prohibited in order to minimize impacts to the surrounding neighborhood. Should any additional work or modifications to the parking area become necessary to support operations, such work would be undertaken as needed and all associated costs would be the sole responsibility of Long Beach Arts District LLC.
Additionally, the proposed Lease provides access rights to the Property for Authority staff and environmental consultants to allow for the completion of any necessary environmental investigation, testing, or remediation activities associated with the Property’s future affordable housing use.
To facilitate this temporary use, staff evaluated the proposed Lease under applicable State Surplus Land Act requirements. Senate Bill 747 (2023–2024 Session) amended the Surplus Land Act to clarify that leases with a term of 15 years or less, inclusive of extension options, are exempt from the Act’s disposition requirements. This exemption allows public agencies to lease underutilized property for interim community-serving uses while continuing to preserve and advance long-term affordable housing objectives.
Lease Agreement for temporary parking at 145 W. Santa Ana St.
May 12, 2026
It has also come to staff’s attention that the owners intend to establish a new legal entity wholly owned and operated by the principal members of the LAB Holding group for the purpose of managing and operating the Lease Agreement. As this entity has not yet been formally created, staff is requesting authority for the Executive Director, or her designee, to administratively approve modifications to the Lease necessary to reflect the finalized entity name and related organizational changes, subject to approval as to form by legal counsel.
Although the proposed use is temporary in nature, staff believes the additional parking capacity will assist in addressing neighborhood parking concerns, support compliance with approved CUP parking requirements, and provide operational support to downtown Anaheim businesses while preserving the Authority’s long-term plans for future affordable housing development on the Property. Accordingly, staff recommends approval of the proposed Lease Agreement.
IMPACT ON BUDGET:
The proposed Lease and associated rental revenue were not included in the Anaheim Housing Authority’s adopted budget, approval of the Lease will result in a corresponding budget adjustment to recognize the additional revenue and related property management expenditures.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director
Attachments:
1. Lease Agreement
2. Site Plan