The five-member council is expected to vote on Tuesday on the company’s proposal to go ahead with its Disneyland Resort makeover in exchange for a continued waiver of any future admission tax the city might impose on entertainment venues.
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.
The resolution extends a almost 20-year agreement with Disney regarding entertainment tax policy.
According to reports, Walt Disney Co. has won an extension of 30 years of a moratorium on ticket taxes in Anaheim, California.
In a statement, the city of Anaheim said Disney “is evaluating the addition of new attractions that would drive attendance and longer stays” as well as potential traffic-infrastructure upgrades to two of the roads leading into the theme parks. According to an earlier statement from the city, Burbank, which is California-based Disney, would be getting tax relief for another 15 years, in case it is invested considerably over $1 billion. Anaheim has never had an entertainment tax.
Disney’s plan calls for breaking ground by the end of 2017 and finishing construction by 2024.
The new agreement with Disney requires no city bond financing and no city spending.
Many residents who are opposed to the exemption said the City of Anaheim needs the tax revenue. It does not require a second reading.
After factoring in the cost of providing City services, the Anaheim Resort generates $67 million in surplus revenue annually, or almost a quarter of Anaheim’s General Fund.
The three hotels Disney operates within its resort and surrounding hotels that cater to theme park visitors also generate roughly $110 million a year in “transient occupancy” tax revenues paid to Anaheim, according to the city.
An investment of the magnitude being considered by Disney could bring local economic activity of $565 million to $847 million per year and create 3,000 to 4,500 additional jobs, according to Beacon.