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RES-2026-010RESOLUTION NO. 2 0 2 6 - 010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING A PERFORMANCE TIME SCHEDULE FOR THE COMMENCEMENT AND COMPLETION OF CONSTRUCTION OF HOTEL 2 AS SET FORTH IN THE SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT NO. 99-01 BETWEEN THE CITY OF ANAHEIM AND GARDENWALK HOTEL II, LLC, 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 WHEREAS, Article 2.5 of Chapter 4 of Division 1 of Title 7 (commencing with Section 65864) of the Government Code of the State of California (herein referred to as the "Statute") authorizes a city to enter into a contract, which is called a development agreement, in order to establish with certainty what regulations will govern the construction of a development; and WHEREAS, on November 23, 1982, the City Council of the City of Anaheim (herein referred to as the "City Council") enacted Ordinance No. 4377 (the "Enabling Ordinance"), and pursuant to subdivision (c) of Section 65865 of the Statute, adopted Resolution No. 82R-565 (herein referred to as the "Procedures Resolution"), establishing procedures and requirements for consideration of development agreements upon receipt of an application by the City; and WHEREAS, in accordance with the statute, the Enabling Ordinance and the Procedures Resolution (herein referred to collectively as the "Development Agreement Law"), The City and Anaheim GW, LLC, a Delaware limited liability company, (the "Original Developer") entered into the Second Amended and Restated Development Agreement No. 99-01 dated as of April 11, 2006, and recorded in the Official Records of Orange County California on June 2, 2006, as Instrument No. 2006000373943 (the "Development Agreement') with respect to the real property depicted in Exhibit A attached hereto and incorporated by this reference; and WHEREAS, The Original Developer assigned the Development Agreement with respect to the Parking Structure No. 1, Retail No. 1 and Vacation Ownership Resort No. 1 to Anaheim GW II, LLC, a Delaware limited liability company ("Anaheim GW II") pursuant to the Partial Assignment of Second Amended and Restated Development Agreement No. 99-01 dated as of January 31, 2007, and recorded in the Official Records of Orange County California on February 7, 2007, as Instrument No. 2007000092571; and WHEREAS, Anaheim GW II assigned, and GardenWalk Hotel I, LLC, a California limited liability company ("Developer") assumed, the Development Agreement with respect to the Hotel Property and the Hotels pursuant to that certain Partial Assignment of Second Amended and Restated Development Agreement No. 99-01 dated as of July 19, 2007 and recorded in the Official Records of Orange County California on July 19, 2007, as Instrument No. 2007000453402; and WHEREAS, the Development Agreement addresses, among other things, Developer's construction of the Project in phases and requires Developer to commence construction of the various Project Elements within certain time frames; and WHEREAS, in 2010, Developer requested that the City amend the Development Agreement (i) to redefine Hotel No. 1, Hotel No. 2 and Hotel No. 3 as one (1) Project Element consisting of two (2) Hotels ("Hotels 1 and 2") totaling, approximately eight hundred sixty-six (866) Hotel Rooms in the aggregate, and (ii) to require the Commencement of Construction of Hotels 1 and 2 to occur on or before May 26, 2011. Accordingly, the Development Agreement was amended by that certain Amendment No. 1 to Second Amended and Restated Development Agreement No. 99-01 dated as of March 1, 2010, and recorded in the Official Records of Orange County California on July 19, 2010, as Instrument No. 2010000341657 ("Amendment No. 1"); and WHEREAS, Developer thereafter requested that the City further amend the Development Agreement, to require the Commencement of Construction of Hotels 1 and 2 to occur on or before May 26, 2013. In Amendment No. 2 to the Second Amended and Restated Development Agreement No. 99-01 dated as of July 1, 2010 and recorded in the Official Records of Orange County on August 17, 2011, as Instrument No. 2011000406499 ("Amendment No. 2"), the City and Developer amended the Second Amended and Restated Development Agreement No. 99-01 to require the Commencement of Construction of Hotels 1 and 2 to occur on or before May 26, 2013 and Completion of Construction and Opening for Business (as defined in Amendment No. 2) to occur no later than 36 months after the Commencement of Construction of the Hotels; and WHEREAS, Developer thereafter requested that the City further amend the Development Agreement, and thereafter Amendment No. 4 to the Second Amended and Restated Development Agreement No. 99-01 dated as of June 4, 2013 was recorded in the Official Records of Orange County on June 10, 2013, as Instrument No. 2013000350713 ("Amendment No. 4"), to require that the Commencement of Construction of the Hotels occur on or before May 26, 2015, unless Developer elects to phase the construction of the Hotels, in which event, Developer was allowed to commence construction of the first Hotel on or before May 26, 2015, and to commence construction of the second hotel if at all, no later than November 26, 2019; and WHEREAS, GardenWalk Hotel I, LLC, assigned, and GardenWalk Hotel II, LLC, a California limited liability company ("Developer") assumed, the Development Agreement with respect to Hotel 2 pursuant to that certain Partial Assignment of Second Amended and Restated Development Agreement No. 99-01 dated as of November 22, 2017; and WHEREAS, as a result of litigation challenging the City's approval of agreements related to the financing of the Hotels the time to commence construction of second hotel (Hotel 2) was extended to November 11, 2022; and WHEREAS, the Development Agreement inclusive of Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4 and Amendment No. 5 thereto shall hereinafter be -2- referred to as the "Development Agreement." Unless otherwise defined herein all capitalized terms shall have the meanings ascribed to such terms in the Development Agreement, as amended. Copies of the Development Agreement are available as a public record in the Office of the City Clerk located at 200 South Anaheim Boulevard, Anaheim, California; and WHEREAS, Developer commenced and completed construction of Hotel 1 consistent with the Development Agreement; and WHEREAS, in April 2020, Developer advised the City that commencement of construction of Hotel 2 was delayed by the pandemic and resulting government orders; and WHEREAS, as part of its 2021 annual review, the City Council extended the performance timeline for the commencement of construction of Hotel 2 by one year to November 11, 2023; and WHEREAS, as part of its 2023 review, the City Council determined that Developer was not in compliance with the terms and conditions of the Development Agreement for the 2023 review period and in accordance with the process set forth in Section 7 of the Procedures Resolution directed staff to notify Developer of its intent to establish new development timeframes for Hotel 2 as an alternative to modification or termination of the Development Agreement; and WHEREAS, on March 26, 2024, the City Council established the performance timeline for the commencement of construction of Hotel 2 to November 12, 2025 and the completion of construction of Hotel 2 to May 12, 2028; and WHEREAS, the construction commencement date for Hotel 2 set forth in the Development Agreement has now passed and Developer has requested that the City Council extend the date of commencement of construction of Hotel 2 to November 12, 2030 and extend the completion of construction of Hotel 2 date to May 12, 2033; and WHEREAS, on December 16, 2025, the City Council determined that Developer was not in compliance with the terms and conditions of the Development Agreement for the 2025 review period and in accordance with the process set forth in Section 7 of the Procedures Resolution directed staff to notify Developer of its intent to establish new development timeframes for Hotel 2 as an alternative to modification or termination of the Development Agreement; and WHEREAS, pursuant to the Procedures Resolution, compliance with the performance schedule established by City Council as an alternative to modification or termination of the Development Agreement shall be subject to periodic review in the manner set forth in Sections 6 and 7 of the Procedures Resolution and lack of good faith compliance therewith shall be a basis for termination or modification of the Development Agreement; and WHEREAS, pursuant to the California Environmental Quality Act (Public Resource Code Section 21000 et seq.; herein referred to as "CEQA") and the State of California Guidelines for Implementation of the California Environmental Quality Act (commencing with Section 15000 of Title 14 of the California Code of Regulations; herein referred to as the "CEQA Guidelines"), the City is the "lead agency" for the preparation and consideration of environmental documents for this resolution; and -3- WHEREAS, the City Council finds and determines that the previously approved Point Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the appropriate environmental documentation for this request because 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. NOW, THEREFORE, BE IT RESOLVED that the Anaheim City Council, does hereby establish the following performance timelines for Hotel 2: 1. Developer shall commence construction of Hotel 2 on or before November 12, 2030. 2. Developer shall complete construction of Hotel 2 no later than May 12, 2033. NOW THEREFORE BE IT FURTHER RESOLVED that except has expressly provided to the contrary herein, all provisions of the Development Agreement remain in full force and effect. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 24 day of February , 2026, by the following roll call vote: AYES: Mayor Aitken and Council Members Leon, Balius, Rubalcava, Kurtz, Maahs and Meeks NOES: None ABSENT: None ABSTAIN: None OF THE CITY OF ANAHEIM ' N. SWIM f0303 -4- EXHIBIT A APN: 082-551-01 082-551-02 082-551-03 082-551-04 082-551-05 082-551-06 082-551-07 082-551-11 W DISNEY WAY s N 208' LA L in LA W Z 195' z W W u LA N F-T- K: i1q�1� � tQ 4F1IFk I -_ i i F7) Source: Recorded Tract Maps and'or City GI& Please note the accuracy is +f- two to five feet. -5- CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2026-010 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 24th day of February, 2026 by the following vote of the members thereof: AYES: Mayor Aitken and Council Members Leon, Balius, Kurtz, Rubalcava Maahs and Meeks NOES: None ABSTAIN: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of February, 2026. K OF THE CITY OF ANAHEIM (SEAL)