May 25, 2022 Breaking News, Latest News, and Videos

Disneyland Resort Gets Extended Tax Break In Exchange For $1B Expansion Commitment:

The Anaheim City Council announced today that it has voted to extend a nearly 20-year-old tax exemption scheme benefiting Walt Disney Parks and Resorts for another 30 years — with the possibility of 15 more after that — in exchange for a commitment to make a $1 billion investment in its Anaheim Resort operations.

The council spent Tuesday evening discussing a substantial expansion of Disneyland Resort that would add attractions and parking with one significant caveat — the company wanted to prohibit admission ticket taxes for another 30 years.

Mayor Tom Tait, who supported the tax exemption in 1996, has had a change of heart since then, citing a $500 million unfunded pension obligation. The Lincoln Club of Orange County endorsed the plan on Monday.

In Tuesday night’s meeting, the city council, approved the tax exemption extension by a 3-2 vote, with Tait and Councilman James Vanderbilt opposed, a city statement said early today. The extension policy was adopted as a resolution and agreement with Disney, it said.

“The entertainment tax policy adopted on Tuesday runs for 30 years with the possibility of a 15-year extension,” the statement said. “The agreement calls for Disney to invest a minimum of $1 billion in the Anaheim Resort by Dec. 31, 2024. If Disney invests an additional $500 million by Dec. 31, 2045, the agreement could be extended by 15 years.”

The city statement said the newly approved agreement coincides with Disney evaluating the addition of new attractions that would drive attendance and longer stays at the Anaheim Resort.

“Should an expansion occur, it would fall within the existing footprint of the Disneyland Resort and come under entitlements approved in 1996,” it said.

The city also said Disney also is considering “significant infrastructure improvements that would have a direct, positive impact on circulation and traffic flow along Harbor Boulevard and Ball Road.”

The policy approved Tuesday provides for Disney to  have until Dec. 31, 2017, to begin an expansion of its existing operations.

“The city of Anaheim will monitor key milestones and report on the status of the agreement in a public hearing within the first five years,” the statement said.

If Disney elects not to proceed with an investment, the agreement will be terminated, and “if the agreement remains active but terms are not met, the city of Anaheim can seek repayment of any entertainment tax rebate received, plus interest.”

“The Council adopted the entertainment tax policy in recognition of the important role Disney and the Anaheim Resort play in providing essential services for residents, businesses and visitors,” the statement said

“At 4 percent of Anaheim’s total acreage, the Anaheim Resort provides more than 50 percent of gross General Fund revenue — $147.8 million annually from hotel, sales, property and business license taxes,” it added, citing the city’s 2015-16 budget.

“After factoring in the cost of providing City services, the Anaheim Resort generates $67 million in surplus revenue annually, or nearly a quarter of Anaheim’s General Fund.” 

The city added that surplus revenue from the Anaheim Resort helps to fund the Anaheim Police Department, Anaheim Fire & Rescue, and the Public Works Department.

“Since Anaheim and Disney partnered to expand the Anaheim Resort in the late 1990s, the city’s revenue from hotel stays has nearly tripled to a budgeted $133 million for 2015-16,” it said

The city also said that a potential $1 billion investment by Disney could result in $17.9 million per year in additional hotel stay sales tax and indirect property tax revenue for Anaheim, according to study prepared for the city by Los Angeles-based Beacon Economics LLC. A $1.5 billion investment could generate $26.8 million per year in additional hotel stay and sales tax revenue for Anaheim, according to the study.

The new agreement with Disney requires no city bond financing and no city spending. It does not require a second reading.

in News
Related Posts

Santa Monica City Council Looks to Shorten Meetings

May 24, 2022

May 24, 2022

Council to consider changes at Tuesday meeting By Dolores Quintana Santa Monica lawmakers are considering taking steps to shorten City...

Landmark Theater Official Closes on Pico

May 24, 2022

May 24, 2022

Pico Boulevard location closes Sunday By Sam Catanzaro The Landmark Theater on Pico Boulevard in Westwood has officially closed.  The...

Road Closures Expected During Demolition Of Parking Structure Three: Santa Monica Beat – May 23rd, 2022

May 23, 2022

May 23, 2022

Local news and culture in under 5 minutes.* Free Donuts At Randy’s Donuts For National Doughnut Day* Road Closures Expected...

Los Angeles Metro Sees 15.9 Percent Increase in Median Rent

May 20, 2022

May 20, 2022

Median rent of $2,258, according to recent report By Dolores Quintana The ongoing pandemic has exacerbated the issues of housing...

New Renderings for Frank Gehry Hotel Development in Santa Monica

May 20, 2022

May 20, 2022

Project would include hotel, apartments, retail and a museum By Dolores Quintana Slowly but surely, plans for a  Frank Gehry-designed...

Shared Mobility Plummets in Santa Monica

May 20, 2022

May 20, 2022

Recent report also shows that nearly half of riders make over $100,000 By Sam Catanzaro Shared mobility use in Santa...

Christopher Dishlip Selected as Santa Monica’s New Assistant Director of Public Works

May 20, 2022

May 20, 2022

Public Works Director Rick Valte announced the selection of Christopher Dishlip as Santa Monica’s new Assistant Director of Public Works....

Letter to Editor: Response to Himmelrich’s “We Walk the Talk” Column

May 20, 2022

May 20, 2022

By Beau Marks As a Santa Monica resident, I am dismayed by Sue Himmelrich’s response (“We Walk the Talk,” Santa...

Motional And UberEats Launch Autonomous Deliveries In Santa Monica

May 18, 2022

May 18, 2022

There Are Plans For Expansion Into The Rest Of Los Angeles Motional, a global driverless technology leader, and Uber Technologies...

Winston Pies Opening Third Location In Santa Monica

May 18, 2022

May 18, 2022

The restaurant used to be known as ButterCrust Pies Winston Pies is staying in Santa Monica when opening their third...

Only 10 Vaquita Porpoises Survive, But The Species May Not Be Doomed

May 17, 2022

May 17, 2022

Hope remains for the porpoise species not only survive but thrive with human help. By Stuart Wolpert The vaquita porpoise,...

The American Cinematheque Brings “Bleak Week” To Santa Monica’s Aero Theatre And The Los Feliz Three Theatre

May 17, 2022

May 17, 2022

33 Films From 18 Countries In One Week. By Dolores Quintana Sometimes when things are tough and you’re feeling down,...

Man Who Murdered His Family Members Pleads Guilty To Five Other Killings

May 16, 2022

May 16, 2022

Escobar injured an additional seven other people as well.  By Dolores Quintana A man, Ramon Escobar, has pleaded guilty to...

The price of gasoline in Los Angeles County Has Experienced The Largest Increase Since February

May 16, 2022

May 16, 2022

Gasoline prices in Orange County Have Also Increased By Dolores Quintana Regular self-serve gasoline in the county of Los Angeles...

Santa Monica Travel Summit Of 2022 Returns To Take On Tomorrow

May 16, 2022

May 16, 2022

The Event Was Held At The Jonathan Club On Santa Monica Beach By Staff Writer The 2022 Santa Monica Tourism...