Garden Grove Officials Traveling to China in Effort to Boost Tourism Development

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Garden Grove officials will visit Shanghai, China next year as part of a business delegation to meet with a multinational construction and real estate firm with plans for more than $850 million in development in Garden Grove.

At their regular meeting Tuesday evening, City Council members voted 3-1-0, with Mayor Bao Nguyen voting no and Councilman Chris Phan abstaining, to approve $13,000 for a 5-to 6-member city delegation to travel to Shanghai between December 2016 and June 2017.

Nguyen and Phan didn’t explain their votes at the meeting and didn’t immediately respond to calls after the meeting.

The trip will be paid for with money from the Garden Grove Tourism Improvement District, which is privately funded through assessments to the businesses within the district.

The district agreed to pay for the trip because of the potential benefits to the Grove Resort, according to City Manager Scott Stiles.

The trip would include discussions of several ongoing development projects and establishing an Orange County headquarters for the company, Shanghai Construction Group (SCG) America, in Garden Grove.

In November 2015, SCG America purchased the Hyatt Regency Orange County in Garden Grove and has plans to spend $500 million to expand the hotel, according to a staff report.

SCG America is also involved in a joint venture with San Diego-based Land & Design Inc. to develop a hotel, restaurant and entertainment complex on a property originally acquired by the city’s redevelopment agency.

If built, the project would cost an estimated $350 million and consist of a 400-room hotel, 10,000 square feet of retail, restaurant and entertainment space, and at least 10,000 square feet of meeting space, according to the city website. The property could later add two more hotels with 125 to 200 rooms each.

The development is part of a surge of hotel and residential development by Chinese real estate and construction companies in the U.S. In neighboring Anaheim, the Hong Kong-based developer Wincome Group has plans for two four diamond hotels; and another Hong Kong developer, LT Global Development, has plans for a $450 million mixed-use mega-development in the Platinum Triangle.

Stiles said the Garden Grove delegation would likely include three city council members and two or three members of the city staff.

Contact Thy Vo at tvo@voiceofoc.org or follow her on Twitter @thyanhvo. 

  • RyanCantor

    Great.

    Now we can look forward to this travel disease spreading to Anaheim and points beyond.

  • Paul Lucas

    “If built, the project would cost an estimated $350 million and consist of a 400-room hotel, 10,000 square feet of retail, restaurant and entertainment space, and at least 10,000 square feet of meeting space,”
    Yo mean it will cost the residents of GG that much to give the Chinese a free hotel for 40 years. If Curt Pringle is involved you better hold onto your wallet. Whos got 5 bucks on this project being financed with ToT sales and parking fees being rebated to the developer?

  • No one will care

    I am so disgusted again with our politicians……Really! China???? AGAIN!!!! Just like how they are buying up Midway City…

  • David Zenger

    1) A point of clarification. The funding may be “private,” but only after it has been extracted from hotel guests in the form of a transit occupancy tax.

    2) Party in China!

    • Paul Lucas

      NO the residents are going pay for it via a ToT rebate to the chinese developer.

      • No one will care

        Yup

        • David Zenger

          Nup.

      • David Zenger

        No, the tax is paid by the guests. The residents were never going to get any of it.

        • Paul Lucas

          They are SUPPOSED to get it. Thus in my eyes they are paying for it our of future revenue degeneration.