Residents living near Beach Boulevard in West Anaheim could soon see another problematic motel be redeveloped into affordable housing in a move city officials hope will help curb crime issues plaguing the area.
On Tuesday, Anaheim City Council members voted to begin the eminent domain procedure against the Rainbow Inn motel, which city staff said has been draining city resources with its disproportionate high numbers of police calls.
Councilwoman Natalie Meeks called the move “a last resort and something we don’t take lightly” at the Tuesday meeting.
No representative from the Rainbow Inn showed up to Tuesday’s public hearing to weigh in on the move.
Anaheim’s Executive Director of Housing and Community Development, Grace Stepter, said the Rainbow Inn is a “source of significant calls for service and a lot of other nefarious activities.”
Council members voted 6-0 Tuesday night to begin the eminent domain process, with city staff noting the Rainbow Inn’s owner could still willingly accept the city’s buyout offer of nearly $7 million.
West Anaheim’s council representative, Councilman Jose Diaz, recused himself because he said he lives within 500 feet of the Rainbow Inn.
For years, city officials have grappled with drugs and prostitution along Beach Boulevard – especially on the stretch from Lincoln Avenue to Ball Road, where numerous motels sit.
[Read: What’s the Best Way For CA Metro Areas Like Orange County to Deal With Rundown, Seedy Motels?]
And residents have long raised concerns of crime in the area, where Anaheim police officers are a constant presence.
City officials are looking to reduce the area’s motel rooms by 50% and redevelop old, problematic motels and blighted stripmalls into housing and new commercial properties.
Stepter told city council members that the motel’s owner kept changing the price and terms of the city’s voluntary buyout offer.
“We thought that we had a deal, then the number changed, or the terms and number changed,” Stepter said during Tuesday’s meeting. “We did find ourselves in a place where it was necessary in order to advance plans to bring this forward for your consideration.”
The city has already bought the two properties – both former motels – that flank the Rainbow Inn in an effort to redevelop the roughly 2-acres of land into 120 affordable apartments and 15 townhomes.

But without acquiring the Rainbow Inn, that plan can’t move forward.
Meeks said that while she’s apprehensive about eminent domain, the motel’s owner hasn’t responded to community concerns for years.
“This property owner has had an opportunity to improve his property, to bring it into a state where it’s not a drain on our police resources, not have excessive calls for service,” Meeks said. “I’m not in favor of throwing millions of dollars more to a property owner who has not been a … good partner to the city.”
Councilwoman Natalie Rubalcava also expressed concerns about eminent domain, calling it a “point of contention,” but added she supported it as a last-ditch effort.
City officials said they’ll continue trying to negotiate a voluntary buyout with the owner.
Rubalcava also noted that her colleague, Diaz, has long pushed for measures to clean up Beach Boulevard.
“He has in his time, it’s been almost four years, he’s done a significant amount of work with your department,” Rubalcava told Stepter.
Councilwoman Norma Campos Kurtz also expressed concerns about eminent domain, but said it’s sometimes needed.
“I don’t view eminent domain as something the city should be quick to utilize. Having said that, we should utilize it when necessary. I support this request,” she said.
Stepter told council members the eminent domain move helps the city on two fronts: It adds to the city’s much-needed affordable housing and will help reduce crime.
“There is a significant revitalization attempt and a significant attempt to address some police issues in that corridor.”
Spencer Custodio is the civic editor. You can reach him at scustodio@voiceofoc.org. Follow him on Twitter @SpencerCustodio.


