The Cypress City Council has approved the sale of a 13-acre plot in front of the Los Alamitos Race Course, clearing the way for the development of a mixed-use megaproject.
The city last week approved the sale and development rights of the city-owned site to Shea Properties for $15.25M, and an additional $5.9M for park fees.
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Shea is proposing a 251-unit four-story apartment, a 120-room hotel and 64K SF of commercial retail and restaurant space, and a luxury cinema at the northwest corner of Katella Avenue and Winners Circle. The developer has dubbed the project the Cypress City Center.
City officials expect the site, when fully built out, to generate more than $750K annually in new ongoing revenue.
Councilman Jon Peat, who supported the project, said the new development will help the city's long-term financial goals and benefit the community.
"One of my objectives is to bring in more amenities and as we've heard from many [that] our community is a bit shy on amenities," Peat said, adding that the business community has asked for more additional housing options for their employees as well as entertainment and dining. "This is not only for the residents but for the very vibrant and critically important business community that we have."
This is the fourth time the city has tried to develop the site, which sits in front of a vacant lot next to the Los Alamitos Race Course.
The city acquired the property in 2006 from the owners of the race course and wanted to find a developer to develop it as a big-box shopping center, but the recession stalled the development.
Kosmont Realty Corp. and JLL served as advisers to the city.
With resident voters last year voting in favor of a mixed-use master-planned development once the 150-acre Los Alamitos Race Course closes, the Cypress City Center will complement that project, Peat said.
The race course is not slated to close anytime soon but does have about 10 years left because of a decline in the horse racing industry, the owner has previously said.
Shea Properties Vice President, Retail Acquisitions and Development Kevin McCook told the city council that this will be a first-class destination. McCook said the planned hotel will be a Hilton and that he has already received a letter of intent from Alamo Drafthouse to be an anchor tenant.
"We want people to come here as a destination and want people to enjoy [their surroundings]," McCook said. "That is how we attract first-class quality tenants."
Councilman Rob Johnson said this could be a place where people can gather on a Friday night and bring their family, friends and even a dog.
"It's nice to see something come forward where we can take pride in the city of Cypress," Johnson said.
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