Orange County Business Journal

Judge’s Ruling Strikes Down Anaheim Hotel Subsidy

Kari Hamanaka Tuesday, December 11, 2012

A $158 million subsidy approved by the Anaheim City Council for the development of two hotels has been ruled unlawful.

An Orange County Superior Court judge ruled Monday that a subsidy, approved in January, is in violation of the Brown Act. The ruling noted that the City Council’s agenda for the meeting at which the subsidy was approved stated that council members would discuss and consider an existing economic assistance contract with no mention of action to be taken.

The subsidy, which is capped at $158 million, was approved for developer GardenWalk Hotel I LLC, which plans to build two four-star hotels at the Anaheim GardenWalk retail and entertainment center.

Plans call for a 466-room hotel and a second hotel totaling 400 rooms.

The estimated cost of the two projects, including a parking structure, is $238 million.