Item 392/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Omar Sandoval
Dept: City Manager Dept: City Attorney
Date: 9/22/2026
Subject: Discussion and consideration of possible action to repeal Ordinance No. 2977, or submit the Ordinance to the voters pursuant to Elections Code sections 9237 and 9241. (Action Item)
OBJECTIVE
For the City Council to discuss and consider possible action to repeal Ordinance No. 2977 pertaining to the zoning of Site B2 for a Nickelodeon Hotel project or call an election pursuant to Elections Code sections 9237 and 9241 to submit the Ordinance to the voters for approval.
BACKGROUND AND DISCUSSION
On September 13, 2022, the City Council adopted Ordinance No. 2938 to approve Planned Unit Development No. PUD-141-01(A), a zoning designation of the mostly vacant property located at the corner of Twintree Lane and Harbor Blvd. (Site B2) approving the development of a Nickelodeon Hotel Resort . The project includes the construction of a 500 guest-room, five-star, luxury resort hotel with ancillary amenities (the “Project”).
Following the approvals, on September 22, 2022, Marlene Perez, Maria Guadalupe Ortiz, and Unite Here Local 11 filed a petition for writ of mandate in the Superior Court challenging the City Council’s approval of the Project under the California Environmental Quality Act (CEQA).
VietRise jointed the litigation afterwards. Prior to trial, the parties reached a settlement whereby if the City decided to proceed with the Project, it was required to: (a) prepare a focused CEQA review of the Project’s potentially significant Vehicle Miles Traveled (VMT) and Green House Gas (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.
To comply with the Stipulated Writ, the City prepared a Supplemental Environmental Impact Report (SEIR) providing the focused CEQA review of the Project’s VMT and GHG impacts. The Planning Commission reviewed the SEIR and revised conditions of approval for the Project at a public hearing held on May 7, 2026, and unanimously recommended approval of the Project entitlements to the City Council.
Item 392/2026
On June 9, 2026, the City Council held a public hearing and considered the Planning Commission’s 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 Mitigation Measures and Project Design Features identified in the SEIR. The City Council unanimously agreed with the Planning Commission recommendations, independently reviewed the SEIR and introduced Ordinance No. 2997 reapproving PUD-141-01(A). On June 23, 2026, the City Council approved and adopted Ordinance No. 2997.
On June 25, 2026, a referendum petition was submitted to the City Clerk protesting the adoption of Ordinance No. 2977, which reapproved PUD-141-01(A), the zoning designation for the Site B2 Project for the Project. The City Clerk contacted the Orange County Registrar of Voters to determine the number of registered voters in the City of Garden Grove as of its last report to the Secretary of State pursuant to Elections Code 9237, which the Registrar of Voters reported as of May 18, 2026, and the City Clerk determined that the number of registered voters in the City was 96,746. Based on this information, the City Clerk determined that the referendum petition would require at least 9,674 (10%) valid signatures to be sufficient to qualify the referendum for a regular or special election pursuant to Elections Code 9237.
On August 5, 2026, the City Clerk accepted the signed petitions on the referendum and submitted them to the Orange County Registrar of Voters on August 11, 2026, for verification of the signatures. The results of the signature verification conducted by the Orange County Registrar of Voters determined that a sufficient amount of qualified signatures were collected to require the City Council to reconsider the Ordinance. Pursuant to Elections Code section 9237, if the petition is signed by not less than 10 percent of registered voters in the City, the effective date of the Ordinance shall be suspended and the City Council shall reconsider the Ordinance. Elections Code section 9241 provides that if the City Council does not entirely repeal the Ordinance, the City Council shall submit the Ordinance to the voters, either at the next regular municipal election occurring not less than 88 days after the City Council calls the election, or at a special election not less than 88 days after the order of the City Council calling the special election.
Given the importance of the Nickelodeon Hotel Project for the long-term development, employment and tax base of the City, staff recommends that the City Council call a special election for June 8, 2027, to submit the rezoning Ordinance to the voters for approval.
FINANCIAL IMPACT
The cost of holding a special election is estimated at approximately $1,000,000. Accordingly, an additional appropriation of $1,000,000 from the General Fund is required to fund the special election.
Item 392/2026
RECOMMENDATION
It is recommended that the City Council:
Adopt the Resolution calling and giving notice of a special election to be held on Tuesday, June 8, 2027, submitting to the voters the referendum measure for approval of Ordinance No. 2977 approving the zoning of Site B2 for a Nickelodeon Hotel Resort Project at the corner of Twintree Lane and Harbor Boulevard.
Approve an additional appropriation in the amount of $1,000,000 in the General Fund.
ATTACHMENT(S)
1. Resolution