Hotel-retail project reaffirmed by GG council

By Fernando Alcantara/Garden Grove Journal

Garden Grove City Council reconsidered and reaffirmed several resolutions that would allow a new mixed-use hotel and retail project on Harbor Boulevar Tuesday night.

The approved resolutions go against the wishes of the state Department of Finance who had previously denied the city’s progress with such projects.

Governor Jerry Brown called for a state-wide shut-down of all redevelopment agencies earlier this year in an effort to curb spending at the expense of smaller cities ability to earn revenue.

Previous agreements with developers, however, preclude the city from walking away from such projects.  An agreement with developer Garden Grove MXD, who plans to build a large hotel-retail complex on Harbor Boulevard, being one of them.

According to an e-mail by the Department of Finance, the Successor Agency is prohibited from making new agreements regarding redevelopment projects.

The legal staff for Garden Grove argue that there is an “agreement to agree,” meaning that in order to comply with a previous contract that is in good standing, the city is obligated to make the purchases necessary to ensure previous contracts are upheld.

The financial impact of these approved projects represents nearly $100 million in revenue to the city for the next 20 years; over $10 million in annual income once the projects are completed and in full operation.

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