Garden Grove Seeks an Alternative to Casino Idea

Prospects for a Las Vegas-style hotel-casino in Garden Grove appear all but dead, but that doesn’t mean the 40-acre site near Disneyland isn’t still a hot property.

The Harbor Boulevard parcel of city-owned redevelopment land has drawn proposals for many uses, including a card club, outlet mall and mix of luxury hotels, shops and restaurants. Developers have also proposed a movie-themed complex with theaters, stores and a film academy.

The prime chunk of real estate nearly intersecting three freeways has long been envisioned as a solution to Garden Grove’s perpetual money problems. That’s why city leaders have considered the Indian casino, estimated to bring in tax revenue of $20 million a year.

But as Congress considers legislation to close the already small window for urban gambling, Councilwoman Janet Nguyen has said it’s time for city leaders to stop dreaming of a casino.

“It’s like we’re waiting for a winning lottery ticket,” Nguyen said. “This 40 acres gives Garden Grove a great opportunity to make a mark. We should allow the best project to come forward and stop waiting to hit the jackpot with a casino.”

The City Council first considered bringing Indian gambling to town two years ago, when city officials estimated that the budget deficit could balloon to $11 million in 2007. Last year, the idea was embraced by a committee of business and civic leaders given the task of finding new revenue sources and by three council members who favored exploring the concept.

But casino talk has died down, in part because a resurgent economy and explosion in hotel bed tax revenues from Disneyland’s 50th anniversary have wiped out the looming deficit. Another factor is a bill by U.S. Sen. John McCain (R-Ariz.) that would make new off-reservation gambling all but impossible.

Garden Grove City Manager Matthew Fertal said the threat of McCain’s bill becoming law had prompted the Mesa Grande band of Mission Indians in San Diego County to cool talks with city officials regarding the possibility of a casino near Disneyland. City officials have spoken to the tribe since 2004 about developing a gaming resort with Las Vegas casino mogul Steve Wynn.

City officials initially believed a card casino would be a less complicated alternative to an Indian casino, but later realized that there was a state moratorium on building card clubs until 2010.

In light of the new situation, Nguyen and Councilman Harry Krebs have said they are intrigued by the possibility of a factory outlet mall, similar to ones in Carlsbad and Cabazon. But Nguyen’s top choice for Garden Grove’s long-coveted downtown anchor hasn’t yet been formally discussed.

She favors a project of high-rise condos mixed with hotels and shops, similar to Anaheim’s emerging Platinum Triangle district.

“We could call it Platinum West in Garden Grove,” she said. “We need more residential, and the mix of hotels and entertainment would bring sales tax revenue to the city.”

Nguyen says she realizes her idea isn’t as sexy as a casino or even a card club.

“As much as I’d like to win the lottery, I’m more realistic,” she said. “Let’s do what’s best for the city.”

While city officials weigh their options for the 40 acres, they are also studying the feasibility of a theme park on a 139-acre site at Harbor Boulevard and Westminster Avenue and a 100-acre parcel on the city-owned Willowick Golf Course in Santa Ana. Any project there would be discussed with Santa Ana, officials said.

Before the City Council considers adding a theme park anywhere in town, Nguyen says, she hopes her colleagues will make a decision on the casino site.

“I don’t want to drive by there for the next five to 10 years wondering what we can do,” she said.