THE AURELA project, with Kimpton and LeMeridien hotels on Harbor Boulevard (City of Garden Grove).

By Jim Tortolano and Marilyn Tortolano
Orange County Tribune

In the modern world of city operation, fostering and managing development – stores, offices, housing, factories, etc – is crucial to balancing budgets, providing services and maintaining a good quality of life.

LISA KIM, Ursula Luna-Reynosa, and Niki Wetzel (Orange County Tribune photo).

For a look at how Garden Grove stands, we sat down with City Manager Lisa Kim,; assistant city manager/economic development and housing director Ursula Luna Reynolds’ and Niki Wetzel, community development director, for some updates.

This is an edited version of the conversation and some comments have been edited for length. First of several parts.

Question: What’s the status of the three major hotels planned for Harbor Boulevard which still stand on empty lots?

Ursula: In general, interest rates are a huge factor for investors. It’s not a great environment for borrowing and construction costs are getting higher and not just for commercial construction. We still see interest in building those hotels but they are multi-billion dollar investments.

How long do we hang on to them? They’re almost ready to pull building permits. There’s no better or higher use. I think we’re willing to hold on.

What are some developments pending for Garden Grove?

Ursula: Our first Dutch Bros. coffee will open on Brookhurst Street by the end of March. Lisa: It has a huge cult following …everybody’s waiting for Dutch Bros. to open. Ursala: The Office Depot building has been demolished and the Costco gas station will be moved to that spot [facing Garden Grove Boulevard] and replaced with parking [at the former gas station site].

Lisa: Many residents visit the Costco two or three times a week. One of my colleagues drives to the Garden Grove Costco because the gas here is less expensive.

What’s the status of retail and commercial development?

Lisa: Big retailers are not doing that well because of the Amazon effect. We’re focusing on independent operators. The Thirsty Cow [Korean BBQ under construction in Eastgate Plaza at Chapman Avenue and Valley View] is 9,000 square feet. It will generate income equivalent to a Cheesecake Factory.

Ever since COVID-19, people have been dining out more.

[Ursula] We have been over-retailed in the United States for some time. I am actually attending a conference in Los Angeles called Entertainment Expo and it’s this conference that focuses on developers who are interested in taking over, kind of defunct retail space and creating this experiential kind of retail-food entertainment kind of thing.

There have been studies that Garden Grove needs more entertainment. We are a destination right next to Disneyland. We have done really well but there really is a need for more entertainment.