Item 178/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Niki Wetzel
Dept:
City Manager Dept: Community Development
Date: 6/9/2026
Subject: Adoption of a Resolution certify ing the Supplemental En vironmental Impact Report, adopting a Supplemental Mitigation Monitoring and Reporting Program, and adopt ing Findings of Fact, including a Statement of Overriding Considerations; Adoption of a Resolution approving m odifications to the Conditions of Approval for Site Plan No. SP-107-2022; and Introduction and First Reading of an Ordinance Reapproving Planned Unit Development No. PUD 141- 01(A). (Action Item)
OBJECTIVE
Pursuant to a Stipulated Writ of Mandate issued by the Orange County Superior Court in Marlene Perez, et al. v. City of Garden Grove, et al., O.C.S.C. Case No. 30-2022-01281816- CU-WM-CXC, the City Council will consider a recommendation to: (1) certify a Supplemental Environmental Impact Report (SEIR), adopt a Supplemental Mitigation Monitoring and Reporting Program, and adopt Findings of Fact, including a Statement of Overriding Considerations; (2) approve revisions to the Conditions of Approval for Site Pl an No.
SP-107-2022 (Rev. 2026) contingent upon the City Council’s action on PUD-141-01(A); and (3) reapprove Planned Unit Development No. PUD -141-01(A) with modifications limited to the Planned Unit Development Provisions and Development and Performance St andards to incorporate the mitigation measures and project design features identified in the SEIR for the previously approved Site B2 Project on 3.72 acres (Nickelodeon Hotel Resort).
BACKGROUND
The project site consists of 3.72 acres located on the northwest corner of Harbor Boulevard and Twintree Avenue. In total, the site is comprised of nineteen (19) parcels, the entirety of Thackery Drive, and a public alley. Thackery Drive and the alley ha ve previously been vacated by City Council, and are integrated into the project site. The project site has a General Plan Land Use designation of International West Mixed Use (IW). The entirety of the project site is currently zoned Planned Unit Developm ent No. PUD -141-01(A) pursuant to Ordinance No. 2938 (adopted September 13, 2022). Collectively, the project is referred to as the Site B2 Project. At this time, the project site is largely vacant.
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The Garden Grove Agency for Community Development and Palm Court Lodging, LLC, a California limited liability company entered into a Disposition and Development Agreement (DDA) on June 26, 2001 pursuant to which Palm Court was to acquire land from the Former Agency and develop two hotels. One hotel was compl eted. The subject applicant is the assignee of Palm Court with regard to the development of the second hotel under the DDA.
On September 13, 2022, the City Council approved a DDA to convey to the subject applicant approximately 1.5 acres of property owne d by the City, including the vacated alley and Thackery Drive. Due to the pending litigation, the property has not been transferred to the applicant.
Entitlement History
In 2022, the applicant requested approval to develop the hotel resort. Approvals requested by the applicant included: (1) an amendment to Planned Unit Development No. PUD-141-01 to create a new sub -area, PUD-141-01(A); (2) Site Plan No. SP -107-2022 to authorize the construction of the proposed 500-room hotel resort; (3) Street Vacation No. SV-002-2022 to vacate the entirety of Thackery Drive and the alley; and (4) an Initial Study / Mitigated Negative Declaration (IS/MND) and Mitigation Monitoring and Reporting Program to comply with the California Environmental Quality Act (CEQA).
On July 7, 2022, the Planning Commission adopted Resolution Nos. 6044 -22 and 6045-22, which: (1) recommended that the City Council adopt the IS/MND and Mitigation Monitoring and Reporting Program for the Project and approve Planned Unit Development No.
PUD-141-01(A); and (2) approved Site Plan No. SP-107-2022, subject to and contingent upon the effectiveness of a City Council resolution approving Street Vacation No. SV-002-2022 and an ordinance approving Planned Unit Development No. PUD-141-01(A).
On July 27, 2022, the Planning Commission’s actions were appealed to the City Council by Unite Here Local 11 on environmental grounds including the greenhouse gas (GHG) emissions and vehicle miles traveled (VMT) in the IS/MND. The appellant argued that an Environmental Impact Report (EIR) was required.
On August 23, 2022, the City Council (1) adopted (a) Resolution No. 9767-22 denying Unite Here Local 11’s appeal and upholding the Planning Commission’s approvals; (b) Resolution No. 9768-22 adopting the IS/MND and Mitigation Monitoring and Reporting Program for the Project; (c) Resolution No. 9769-22 for the approval of Site Plan No. SP -107-2022; and (d) Resolution No. 9766-22 to initiate Street Vacation No. SV-002-2022; and (2) conducted the first reading of Ordinanc e No. 2938 to approve Planned Unit Development No.
PUD-141-01(A).
On September 13, 2022, City Council adopted Resolution No. 9772 -22 approving Street Vacation No. SV -002-2022, and adopted Ordinance No. 2938 to approve Planned Unit Development No. PUD-141-01(A).
On September 22, 2022, Marlene Perez, Maria Guadalupe Ortiz, and Unite Here Local 11 (collectively, “Petitioners”) filed a Petition for Writ of Mandate, Complaint for Invalidation, Injunctive and Declaratory Relief in the Superior Court for the Sta te of California, County of Orange, challenging the City Council’s actions on CEQA and other grounds (the “Petition”).
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Petitioner VietRise later joined the litigation. Prior to trial, the parties reached a settlement, which the Court entered as a Stipula ted Writ of Mandate on February 13, 2024 (the “Stipulated Writ”).
Pursuant to Public Resources Code Section 21168.9(c), the Stipulated Writ left the City’s 2022 approvals in place, and did not direct the City to exercise its discretion in any particular way.
Instead, the Stipulated Writ requires the City, if it and the Real Parties in Interest decide to proceed with the Project, to: (a) prepare a focused CEQA review of the Project’s potentially significant VMT and GHG impacts; (b) assess whether modifications are needed to the prior approvals, including mitigation measures and conditions of approval, in light of that focused CEQA analysis; and (c) approve, approve with modifications, or deny the PUD at a publicly agendized City Council meeting. All other claims were waived, released, and dismissed with prejudice. Pending discharge of the Stipulated Writ, no physical changes to the project site may be made.
To comply with the Stipulated Writ, the City has prepared an SEIR providing the focused CEQA review of the Project’s VMT and GHG impacts. The City Council is now considering recommendations on certification of the SEIR , approval of revisions to the Conditions of Approval attached to Site Plan No. SP-107-2022 (now stylized as SP-107-2022 (Rev. 2026)) to incorporate the mitigation measures identified in the SEIR, and administrative updates, and reapproval of PUD-141-01(A) with modifications limited to the Planned Unit Development Provisions and Development and Performance Standards to incorporate the Mi tigation Measures and Project Design Features identified in the SEIR . The City is required to file a return to the Stipulated Writ in court summarizing the actions taken by the City to comply with the Stipulated Writ no later than ninety (90) days after taking those actions
The subject item was scheduled for a Planning Commission hearing on May 7th, 2026. Ninety- four (94) public comment letters were received opposing the project , and one (1) public comment letter was received in favor of the project. During the hearing, twelve (12) speakers from the public, in addition to the project applicant, came forward to speak on the item.
By a vote of 7-0, the Planning Commission adopted Resolution Nos. 6133-26, 6134-26, and 6135-26 recommending that the C ity Council adopt: (i) a Resolution certifying the SEIR, adopting a Supplemental Mitigation Monitoring and Reporting Program, and adopting Findings of Fact, including a Statement of Overriding Considerations, pursuant to Paragraph 1(a) of the Stipulated Wr it of Mandate ; (ii) a Resolution approving revisions to the Conditions of Approval for Site Plan No. SP-107-2022, contingent upon the City Council’s action on Planned Unit Development No. PUD-141-01(A) pursuant to Paragraph 1(b) of the Stipulated Writ of Mandate; and (iii) an Ordinance reapproving Planned Unit Development No. PUD-141-01(A) with modifications limited to the Planned Unit Development Provisions and Development and Performance Standards to incorporate the mitigation measures and project design features identified in the SEIR pursuant to Paragraph 1(c) of the Stipulated Writ of Mandate.
DISCUSSION
Site Plan No. SP-107-2022 (Rev. 2026):
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The envisioned build -out of the project site is based on the submitted project plan and environmental document. All construction plans for the hotel resort would be consistent with the PUD standards, the associated plans, environmental documentation, and conditions of approval. A summary of the project is provided below:
Primary vehicular access to the site would be from Harbor Boulevard, while secondary vehicular access would be from Twintree Avenue
The hotel would include multiple entertainment areas, restaurants, a pool with water slides, and ballrooms.
A total of 528 parking spaces would be provided across a five (5) level parking garage.
The first six (6) stories would be reserved for programming, levels seven (7) to twenty-two (22) would include the hotel rooms, and the top floor would house a restaurant.
The street frontages along Twintree Avenue and Harbor Boulevard would include a streetscape design consistent with the Grove District.
The building would be designed in a unique serpentine shap e, up to a maximum height of 335’-8” to the top of the parapet.
The building façade would be primarily clad in glass.
The approved project design is not changing. The building footprint, height, layout, parking configuration, and architectural design remain as previously approved in 2022. The narrow scope of the current Site Plan action recommended to the City Council is to update the Conditions of Approval to incorporate the revised PUD Performance Standards reflecting the mitigation measures identifie d in the SEIR and to include administrative updates . The stylization “SP-107-2022 (Rev. 2026)” refers to this Conditions-of-Approval update only, and does not reflect any change to the approved site plan drawings.
Planned Unit Development No. PUD-141-01(A):
The PUD is being returned to the City Council pursuant to Paragraph 1(c) of the Stipulated Writ of Mandate, which requires the Council to "approve, approve with modifications, or deny" the PUD in open session at a publicly agendized meeting after considering the focused VMT and GHG analysis set forth in the SEIR. The modifications recommended for City Council consideration are limited to revisions to the PUD Development Provisions and Development and Performance Standards to incorporate the mitigation measures and project design features identified in the SEIR. No other changes to PUD-141-01(A) are proposed.
ENVIRONMENTAL REVIEW
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In 2022, an Initial Study and Mitigated Negative Declaration (IS/MND) was prepared for the proposed project pursuant to CEQA, Public Resources Code Section 21000 et seq. and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.).
Subsequently in 2022, an action was filed in Orange County Superior Court challenging the IS/MND's vehicle miles traveled (VMT) and greenhouse gas (GHG) impact analyses, among other claims.
The parties reached a settlement resulting in a Stipulated Writ of Mandate entered by the Court on February 13, 2024. To comply with the Stipulated Writ's requirement to prepare a focused CEQA review of the Project's VMT and GHG impacts, the City has prepared the SEIR.
A 45-day public comment period on the SEIR occurred from September 22, 2025 to November 6, 2025. Three (3) comment letters were received during the public comment period. These letters were from the Law Office of Jordan R. Sisson on behalf of Unite Here Local 11, Lozeau Drury LLP on behalf of the Supporters Alliance for Environmental Responsibility (“SAFER”), and the California Department of Tran sportation (Caltrans). The City's responses to these letters are included in the Final SEIR for the Project. The City received further written comments after the close of the public comment period on the Draft SEIR on November 26, 2025. These comments included a letter from the Channel Law Group on behalf of Unite Here Local 11 dated May 7, 2026 that was submitted hours before the Planning Commission hearing on the Project (the “May 7th Letter”), attached.
As disclosed in the Final SEIR, the Project would result in less than significant VMT impacts with the incorporation of mitigation and a significant and unavoidable GHG emissions impact.
A Supplemental Mitigation Monitoring and Reporting Program has been prepar ed for the Project.
The significant and unavoidable impact finding does not preclude approval of the Project. In this situation, CEQA requires the City Council to balance the Project's benefits against its unavoidable environmental risks. If the econo mic, legal, social, technological or other benefits of the Project outweigh the Project’s unavoidable environmental impacts, those impacts may be considered acceptable for CEQA purposes. In doing so, the City Council must adopt a Statement of Overriding Considerations identifying the specific reasons that support its actions. The Statement of Overriding Considerations prepared for the proposed Project identifies multiple independent bases for approval, including fiscal and economic benefits, job creation, General Plan and International West designation consistency, support for increased tourism, and VMT reduction benefits from the Project's location near transit and major visitor destinations. In support of the fiscal and economic findings, Tierra West Ad visors prepared an Updated Economic Development Report and Analysis (April 2026) evaluating projected TOT, sales tax, and property tax revenues, as well as direct and indirect employment and total economic output.
FINANCIAL IMPACT
None.
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RECOMMENDATION
It is recommended that the City Council:
Conduct a Public Hearing;
Adopt a Resolution certifying the Supplemental Environmental Impact Report (SEIR), adopt ing a Supplemental Mitigation Monitoring and Reporting Program, and adopting Findings of Fact, including a Statement of Overriding Considerations, pursuant to Paragraph 1(a) of the Stipulated Writ of Mandate;
Adopt a Resolution approving revisions to the Conditions of Approval for Site Plan No. SP-107-2022, contingent upon the Ci ty Council’s action on Planned Unit Development No. PUD -141-01(A) pursuant to Paragraph 1(b) of the Stipulated Writ of Mandate; and
Introduce and conduct the first reading of an Ordinance reapproving Planned Unit Development No. PUD -141-01(A) with modif ications limited to the Planned Unit Development Provisions and Development and Performance Standards to incorporate the mitigation measures and project design features identified in the SEIR pursuant to Paragraph 1(c) of the Stipulated Writ of Mandate.
By: Priit Kaskla, Senior Planner
ATTACHMENT(S)
1. Draft City Council Resolution certifying the Supplemental Environmental Impact Report, adopting a Supplemental Mitigation Monitoring and Reporting Program, and adoption of Findings of Fact, including a Statement of Overriding Considerations
2. Draft City Council Resolution approving revisions to the Conditions of Approval for Site Plan No. SP-107-2022, with "Exhibit A" - Conditions of Approval
3. Draft City Council Ordinance reapproving Planned Unit Development No. PUD-141-01(A) with modifications limited to the Planned Unit Development Provisions and Development and Performance Standards
4. Planning Commission Staff Report dated May 7, 2026, with associated Resolutions and Minute Excerpt
5. May 7, 2026 Letter From Channel Law Group, LLP, on Behalf of Unite Here Local 11, to the Planning Commission
6. Project Plans