Four years after legal opposition tabled plans for a Nickelodeon-themed resort in Garden Grove, the project is again gaining momentum within City Hall.
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The City Council this week unanimously reapproved development plans for a 500-room, themed resort with water slides and a lazy river. Among its amenities, the resort would feature a 23-story hotel, a 600-seat theater, a spa, an arcade, a restaurant, retail and a five-level parking structure with more than 500 parking spaces.
There are currently three Nickelodeon resorts worldwide — in the Dominican Republic’s Punta Cana, Mexico’s Riviera Maya and Turkey’s Antalya, according to the Nickelodeon Hotel & Resorts website. Another themed resort, and the first in the United States, is planned for a 2028 opening in Orlando, according to the company. The family friendly cable television network is maybe best known for its roster of animated hits, such as “Dora the Explorer” and “SpongeBob SquarePants.”
In Garden Grove, officials are hoping the Kam Sang Company Inc., a real estate investment and development company headquartered in Arcadia, will build the approved Nickelodeon hotel atop a 3.72-acre site at Harbor Boulevard and Twintree Lane. The Kam Sang Company has developed around Garden Grove, including Brookhurst Place, a residential community in Koreatown, and the Sheraton Hotel that’s just north of where the proposed Nickelodeon resort would be.
The idea of a Nickelodeon resort first came to the dais for discussion in 2016 and elected officials later approved a scaled-down version in 2022. Community members who voiced opposition said they would have been better served by an affordable housing project.
Before construction could begin on the resort, UNITE HERE Local 11, a union representing hospitality workers, appealed the council’s decision, saying the city should have conducted an environmental impact report before green-lighting the project.
But the council denied the appeal and the union filed a complaint in the Orange County Superior Court, challenging the City Council’s actions on CEQA grounds. VietRISE, a local nonprofit and advocacy group, joined the litigation. Before the case went to trial, the city agreed to conduct an environmental impact report, and based on that analysis, to assess whether the project needed changes.
As its next step, the city will “return to the court and present the matter to the judge,” Garden Grove spokesperson Johnathan Garcia said.
“The court will need to determine whether the city has satisfied the requirements of the writ,” he said, adding if the court agrees, the developer would first have to get approval for necessary permits before work can begin on the resort.
Leading up to the council’s decision to approve development plans this week, members of UNITE HERE Local 11 and residents addressed the dais, saying the land should go toward building much-needed homes to fulfill state housing requirements.
“There’s not enough for residents in Garden Grove, and housing is getting more expensive,” VietRISE co-founder and Executive Director Tracy La said. “And in a situation where we have public land, our ideal would be that this land is used for projects directly meeting residents’ most important needs, like housing or a mixed-use development that would really benefit the community.”
“So we’re glad that they came back with the report we were asking for, but it’s always hard to see public land being used for private business as opposed to something that would have really improved the lives of local residents,” she said.
The city estimates the project would generate $323.2 million in revenue over a 30-year span, with the bulk coming from the city’s 14.5% tax on hotel stays.
“The city reinvests this revenue back into the community for the benefit of our residents,” spokesperson Garcia said.
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