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Anaheim Approves Shea Properties’ 447-Unit Housing Project

Another Edwards theater in Orange County is set to be torn down to make room for new housing.

On Tuesday, the Anaheim City Council gave final approval to redevelop the Anaheim Hills Festival shopping center. The council had earlier this month approved the project by a narrow 4-3 vote.

Aliso Viejo-based Shea Properties plans to demolish the roughly 62,000-square-foot Regal Edwards Anaheim Hills, which closed in 2022, and build a four-story 447-unit apartment community wrapped around a parking structure on the 85.7-acre retail site at 8020 E. Santa Ana Canyon Road.

The project comes as cities try to meet their Regional Housing Needs Allocation (RHNA) and as vacant and aging entertainment and commercial properties become prime for redevelopment amid rising housing demand.

Earlier this month, Newport Beach approved Related Companies’ plans to construct twin 22-story condominium towers on the site of the Regal Edwards Big Newport movie theater in Fashion Island.

Anaheim officials see the Shea project as a way to update a shopping center built in 1992 and help the city meet state housing requirements. The city’s RHNA target is 17,453 housing units.

Some critics say most new housing in the city is built outside District 6, which mostly covers Anaheim Hills. Shea officials say this will be the first apartment project in Anaheim Hills in 10 years.

“I really do feel strongly about the fact that Anaheim Hills does need to see a little more development, and we need to spread our multifamily units across the city,” said Councilmember Natalie Rubalcava, who voted in favor of the project.

Wildfire Risk

The development would add 447 units, including 45 set aside for moderate-income households, and upgrade what has historically been a retail-only center.

“This is really about reinvesting in an underutilized site,” city planners said in staff reports.
Shea Properties will serve as the main developer, manager and operator of the apartments.

Meanwhile, pension fund OTR, part of the State Teachers Retirement System of Ohio, owns the 567,000-square-foot retail center.

Mayor Ashleigh Aitken and some residents opposed the project, pointing to concerns about wildfire risk and traffic.

During the seven-hour public hearing, many concerns focused on evacuation safety and traffic in this hillside community, which is vulnerable to wildfires.

A city-commissioned study found the project might add about seven minutes to evacuation times during a worst-case wildfire, a key issue during the meeting.

“There are some positives in this project,” said Aitken during the March 3 city council meeting. “As a housing advocate, I appreciate that it adds much-needed housing to our city, and it has park space maintained by the developer…But for me, I’m just having a problem that none of these positives can really alleviate my concerns that I have around public safety.

“Wildfires in this area are not an abstract risk,” she said. “They are real… I cannot in good conscience endanger residents based on goats, know your way and one staff member in the city of Anaheim.”

In response, Shea Properties agreed to provide funding to Anaheim Fire & Rescue and the Anaheim Police Department to support public safety efforts, including wildfire preparedness and emergency response upgrades.

Amenities

The project would also reshape the shopping center’s layout.

Shea plans to create open spaces, including a public park and a dog park, as well as amenities for residents such as pools, spas, club rooms, co-working spaces and fitness centers.

The project includes about 103,000 square feet of open space that mixes private residential areas with public spaces.

City officials say this will help create a more community-focused environment.

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