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Is Disney Paying Its Share in Anaheim?

Los Angeles Times
09/24/17

Is Disney Paying Its Share in Anaheim?
The money battle outside the Happiest Place on Earth
By Daniel Miller

http://www.latimes.com/projects/la-fi-disney-anaheim-deals

 

A few hours after the gates swing open at Disneyland and Disney California Adventure, the cars are still pouring into the massive 10,241-space parking garage.

They zoom into the six-story concrete structure, carloads of costumed kids, foreign tourists and graying baby boomers sporting Mickey Mouse ears, “Frozen” dresses and “Star Wars” backpacks…

…Last year, Disney sought a tax rebate for a proposed hotel at its resort. Under a program started in 2015 to encourage the development of four-diamond properties, Anaheim offered hoteliers a 70% refund on the 15% bed tax collected from guests for 20 years. Without the incentive, Disney said it would not build the 700-room hotel, The Times reported last year.

Still, Alan Reay, president of Atlas Hospitality Group, a real estate firm that specializes in hotels, says it would be hard for Disney “to argue that they wouldn’t build that hotel without subsidies,” given the company’s financial position and the strong economy.

A city-commissioned study said that the new Disney hotel would create 5,050 construction jobs during the course of the project and 1,150 full- and part-time positions when it opens. The city projects Disney’s hotel to generate about $381 million in transient occupancy tax during the rebate period — and about $267 million would flow back to the company. The subsidy, along with rebates for two non-Disney hotels from another developer, was approved in July 2016…

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