A potentially iconic development in the heart of Santa Ana, featuring a 16-story apartment tower, a 10-story hotel and retail stores, got a green light from the city Tuesday night.
The City Council approved developer Mike Harrah’s $100-million plan to create “3rd and Broadway,” and agreed to give his company, Caribou Industries, both the land to build the project and another $13 million worth in public improvements.
Mayor Miguel Pulido hailed the mixed-use development as “absolutely monumental” and a future landmark for Orange County.
“It’s going to redefine the downtown,” Pulido said.
Supporters for the project include numerous union and business representatives, as well as some residents.
“Increased tax revenue, housing, jobs, new parking, more downtown business is a positive new venture for our city,” wrote Santa Ana Chamber of Commerce President David L. Elliott in support.
Resident Lisandro Orozco wrote: “I am excited to see a project with such ambition being proposed in downtown Santa Ana.”
But critics argue that the city is being irresponsible by giving away public land to a developer.
“Hold on to your public lands. They’re precious,” said resident Karla Juarez, who called in to the Tuesday meeting, which was held online due to the pandemic.
The 1.43 acre-site currently is a three-story public parking lot at 201 W. Third Street. In 2013, city officials estimated it would cost $8.6 million to repair the parking structure, which they said is valued at $3 million. Instead of repairing it, officials began talks with Harrah to develop a mixed-use project.
Harrah plans to build a 16-story residential building with 171 apartments, mostly studios and one-bedroom units, and include 19 “very-low income” apartments. That building will include 13,419 square feet of retail. A second building will feature a 10-story, 75 room boutique hotel with a rooftop lounge that will be open to the public. The plan calls for 196 residential parking spaces, 83 hotel spaces and 211 public parking spaces.
The developer will be responsible for designing and operating the hotel, which will have the option to convert to residential units after the second year of operation if revenue per room falls below $125 per night.
Some opponents who wrote the city said they thought it poor timing to talk about developing a hotel in the midst of a health and economic crisis. Most opponents decried the land giveaway. Some said they don’t want to see further gentrification of Santa Ana’s downtown.
“La Cuatro is not la Cuatro anymore,” resident Karla Juarez said, referring to Fourth Street, known as Calle Cuatro. In recent years, the strip that once catered to Mexican immigrants has seen a rise of trendy shops, restaurants and an artisan food hall that have replaced stores that once catered to a predominantly Latino crowd.
It’s unclear when the project might get underway. There’s no deadline to begin construction, but once dirt is turned Harrah has two years to complete it, according to city documents. Before he can start he also must show proof of financing and that he has a commitment from a hotel operator.
Harrah is a long-time Santa Ana developer who at one point owned more than 60 properties in the city. One of those developments, the long-awaited One Broadway Plaza has been in the works for some 20 years. If built, it would become Orange County’s tallest skyscraper.
Harrah’s new project received support from numerous unions, whose representatives said it will bring needed jobs to the area and transform downtown into a more vibrant area. One exception was Local 11 of Unite Here, which represents more than 25,000 workers in hotels, restaurants and other industries in Southern California and Arizona.
In a letter he wrote to Pulido, Gideon Kracov, an L.A.-based attorney for Local 11, argued that the project violates municipal codes, the city’s general plan, and the California Environmental Quality Act. The city, he wrote, “erred and abused its discretion” in how it calculated lot density.
“The project is receiving a free hotel and (extra space) on the residential parcel. This is unlawful,” Kracov said.
But Pulido, who next month is slated to end a 26-year run as Santa Ana’s mayor, argued that the project will be a net gain for the city.
“We’re giving nothing up,” Pulido said. “We’re giving up a piece of land that would be a burden …and we’re getting a developer through a public-private partnership to invest hundreds of millions of dollars” for a hotel, residences, retail and parking.
“If I could this 20 times over, I would,” he added.
The council voted 5-1 to approve the project, with Councilman David Penaloza voting against it. Councilman Vicente Sarmiento, the incoming mayor, abstained due a potential conflict of interest because his family owns property nearby.
Councilman Phil Bacerra, who joined Pulido and council members Nelida Mendoza, Jose Solorio and Juan Villegas in approving the project, said 3rd and Broadway “is going to be a great shot in the arm for downtown Santa Ana.”
One of the items that city officials said they are most excited about is reconstructing Sycamore Street, which will connect Third and Fourth streets and will serve as a promenade for special events.
The development also will gel nicely, Pulido said, with the planned OC Steetcar that will run through Santa Ana and with other planned projects, including the long awaited, One Broadway Plaza.
