Disney proposal seems like good deal for Anaheim – Orange County Register
Whenever a city’s major corporate player proposes a development plan, it’s often hard to strike the right balance. This Editorial Board is adamantly opposed to public subsidies, but we’re also against cities shaking down companies for development fees and forcing them to fund unrelated public projects in exchange for city approvals. Our basic metric: All businesses should be free to develop as they choose on a pay-as-you-go model.
With that in mind, we’ll be looking closely at a new $1.9-billion proposal by Disneyland to expand its Anaheim resort. Disney recently presented the development agreement at a City Council workshop. The city will hold hearings on the agreement, which would last until 2064, in the spring. Everyone should be pleased that Disney continues to invest heavily in its prime California tourist attraction.
As reported by the Register, it gives Disney “flexibility to choose where it builds new theme park areas, hotels and dining within its existing footprint.” In exchange, the company would provide “$30 million for affordable housing and $8 million for parks and money for nearby road improvements.” Obviously, a thriving Disneyland complex is great for the city – for its workers, tax base, tourist-related businesses and overall economy. The city receives around $230 million annually from local hotel taxes.
The most controversial element in the proposal so far: The deal would let Disney buy a few streets from the city. There’s nothing wrong with that idea, as it will allow the company to manage resort-area traffic flows, given that it is paying the market rate. This isn’t an unusual request – and it would relieve the city from paying for maintenance.
This is the first major Disney proposal since Anaheim was shaken by a corruption scandal that, as this Editorial Board argued, was rooted in cozy deal-making between Resort Area interests and City Hall. The pendulum had swung too far in the crony capitalist direction, so we’re pleased – based on initial reports – that this proposal appears to avoid those pitfalls. Details will emerge in coming hearings, but we’re encouraged by the first draft.
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