The Anaheim City Council has approved a proposal for a four-story apartment building at the Anaheim Hills Festival shopping center. The project, which was passed in a 4-3 vote on Tuesday night, will bring 447 apartments to the western end of the shopping center where Regal Edwards Anaheim Hills movie theaters closed in 2022.
The proposal was first presented to the Council in December and underwent three postponements to allow time for consideration and public feedback. On Tuesday, more than 40 residents addressed the Council; about 30 voiced concerns over additional development in an area they consider at risk for fires, while roughly 10 supported the plan.
Anaheim Fire & Rescue Chief Pat Russell responded to questions from Council members regarding fire safety. “While there are always challenges, Anaheim has extensive fire response, mitigation and evacuation planning that can adapt to changes,” Russell said.
A development agreement includes $200,000 from the developer allocated to Anaheim Fire & Rescue and Anaheim Police Department for enhanced wildfire evacuation training and planning.
Council members who voted in favor cited a need for more housing across the city. Those opposed expressed ongoing concerns about fire risks and evacuation safety.
Shea Properties Management Co., based in Aliso Viejo, is developing the project with property owner OTR, part of State Teachers Retirement System of Ohio. The site is located off Santa Ana Canyon Road and Weir Canyon Road along the 91 Freeway.
Plans call for apartments built around a five-level parking structure with one underground level. Amenities include a clubhouse, swimming pools, courtyards, fitness center, mail area for residents, an outdoor dog park, and bluff park open to public use.
Adding residential units to retail centers is becoming common in cities such as Brea, Santa Ana, and Irvine as part of efforts to meet housing demand while supporting local businesses.
The rest of Anaheim Hills Festival’s shops—including Target, Nordstrom Rack, Petco, and others—will remain unchanged.
City studies indicate that construction plans comply with code requirements for access and evacuation routes. The project also meets state fire code standards applicable to high fire risk areas.
Approval requires a second vote scheduled for March 24. Residents opposed may request a rehearing within seven days if technical requirements are met; any rehearing would require Council approval.
Anaheim operates under a City Council/City Manager system designed to serve its residents and businesses (https://www.anaheim.net/173/City-Council). The city has grown into both a tourist destination—home to Disneyland—and an economic hub within Orange County (https://www.anaheim.net/156/The-1950s1980s), hosting major sports teams like the Angels (https://www.anaheim.net/2595/Convention-Sports-Entertainment) and facilities such as Angel Stadium (https://www.anaheim.net/2595/Convention-Sports-Entertainment). Its location supports regional tourism and transportation through sites like ARTIC (https://www.anaheim.net/2595/Convention-Sports-Entertainment).

