As economic development efforts to promote tourism and investment in the Grove District continue, a key priority is building and strengthening relationships with key stakeholders in the Grove District. The partnership with SCG America began with the acquisition of the Hyatt Regency Orange County in November 2015, the purchase of 12361 Chapman Avenue in March 2016, and in June 2016, the City Council approved the assignment of the Grove District Resort Hotel Development Agreement, pertaining to Site C, from Land & Design, Inc., to Investel Garden Resorts, LLC (an entity of SCG America). SCG America and their continued commitment to invest locally in Garden Grove has expanded with the purchase of the former Fandango's restaurant site and selection of the world renowned architectural firm, Gensler, to design and reposition the restaurant use. SCG America is further evaluating opportunities to expand their presence in Garden Grove, and exploring the potential development of the Hyatt parking lot located west of the Hyatt Regency Orange County. To foster collaboration and strengthen relationships with Garden Grove, SCG America has invited a City delegation to meet with SCG officials in Shanghai in order to foster collaboration and strengthen its relationship with the City and to further explore tourism and development opportunities in the Grove District resort area.

SCG America is the U.S. entity of Shanghai Construction Group (“SCG”) that was established in 1991. As a world leader in the construction of high-rise developments, hotels and public infrastructure projects, SCG has extended an invitation to the City of Garden Grove officials and key staff to visit its corporate headquarters in Shanghai, meet members of the board of directors and the executive team, and tour signature SCG projects. SCG desires to continue to build relationships with City officials and understand the vision of the Grove District. Discussions will revolve around: 

• The Hyatt Regency Orange County expansion which is estimated to be a $500 million investment in the Grove District;
• Signing a License Agreement regarding the renting of four (4) homes on Choisser Avenue behind the Site C project;
• Establishment of SCG America’s Orange County headquarters in Garden Grove;
• Expediting and advancement of the existing Site C project;
• Presenting the key projects planned in the resort area, and the City's strategy for attracting and retaining businesses to the City; and
• Visiting the Orange County Visitor Association’s (OCVA), Shanghai office in which the City is a participant.

The Garden Grove Tourism Promotion Corporation (“GGTPC”) has determined that these meetings will benefit the visitor accommodation facilities within the GGTID. The GGTPC is in agreement with the use of the assessment funds to cover all travel, lodging, meal and related costs.

It is recommended that the City Council:

• Authorize travel related expenses for 5-6 City Council Members and staff to travel to Shanghai between December 2016 and June 2017, to meet with SCG America Board of Directors; and

• Require that a full report on the outcomes of the trip be reported to the City Council by the City Administration.