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September 12, 2014 Page 2 The NHSP "Open Space" designation permits or conditionally permits a variety of uses on the Property. Specifically, the NHSP Open Space designation permits "commercial recreational facilities" with a conditional use permit. City of Santa Ana officials have previously represented to Garden Grove staff on multiple occasions that this would allow for a variety of commercial recreational uses to be developed on the Property with a conditional use permit, including, without limitation, a theme park that includes enclosed components. Based on these representations, and the permissive land use plans that have long governed the Property, for the last several years Garden Grove has expended resources to explore and market the Property for development of a commercial recreational facility such as a theme park that includes enclosed components, and Garden Grove's investment- backed expectation is to eventually develop, or sell the Property for development of, such a project on the Property. Pursuant to the above - referenced land use actions, the City of Santa Ana proposes to eliminate the NHSP and the land use and zoning provisions contained therein and to re-zone the Property "Open Space Land" (referred to as the "O District "), subject to the existing provisions of Chapter 41, Article III, Division 23 of the Santa Ana Municipal Code. The list of land uses permitted under the current O District regulations is not identical to the list of land uses permitted under the NHSP Open Space designation, and the terminology used is different. Specifically, the O District regulations permit "open -air recreational and entertainment uses," but do not contain provisions expressly permitting or conditionally permitting "commercial recreational facilities." City of Santa Ana staff has represented to Garden Grove staff that this re- zoning will not diminish the uses for which the Property is currently entitled. Because the term "open-air recreational and entertainment uses" is not precisely defined, however, Garden Grove is unsure whether this land use category will be interpreted in the future to include all of the same uses as are currently permitted or conditionally permitted under the NHSP Open Space designation, including a theme park that includes enclosed components. If, in fact, the City of Santa Ana were to now or in the future determine that a commercial recreational facility such as a theme park that includes enclosed components cannot be developed on the Property under the "O" District regulations, such a determination would result in a substantial, negative impact to the value of the Property and would materially interfere with Garden Grove's distinct, investment - backed expectations for use of the Property. Garden Grove takes the City of Santa Ana at its word that it does not intend to down - zone Garden Grove's Property through the proposed land use actions; however, this could nonetheless be the result. Therefore, in order to maintain the status quo and to ensure that Garden Grove's Property is not down -zoned as a result of the proposed land use actions, Garden Grove requests that the Santa Ana City Council modify the proposed Ordinance prior to its adoption to either (1) expressly state that the term "open -air recreational and entertainment uses" includes theme parks including enclosed components, or (2) expressly include "other commercial 1028652.1