Serving the themed entertainment community

Latest News

  • LEGOLAND Florida Resort to kick off 10th Anniversary celebration with high wire walk by Nik Wallenda
  • Museum of Illusions added to ICON Park Play Pass
  • Panasonic providing specialized projection technology for Illuminarium experience centers
  • Christie introduce Pandoras Box Version 8 for real-time video processing and show control
  • SeaWorld San Diego introduces Sesame Street drive-thru experience
  • Anaheim: Disneyland steps up as mass COVID-19 vaccination site
  • Gorillas test positive for COVID-19 at San Diego Zoo Safari Park
  • Joint statement from museum associations on 1/6/21 events at US Capitol
  • Home
  • Opportunity Hub
    • Leads & Opportunities
    • Webinar Calendar
    • Submit a Webinar
  • News
    • COVID-19
  • Issues
    • 2020
      • #85 – Looking forward to the future
      • #84 – Everything the industry has to offer
      • #83 – Waterparks and more!
      • #82 – Solving Problems with Innovation
      • #81 COVID-19 and beyond
      • IPM guide to AV 2020
    • 2019
      • #80 – IAAPA 2019
      • #79.5 – IAAPA Expo 2019 Preview
      • #79 Europe and Waterparks
      • #78 – Asia/Tech
      • #77 – The Best in Themed Entertainment
    • 2018
      • #76 – Year End/Trade Show Round-up
      • #75 – IAAPA 2018
      • #74 – EME/Waterparks
      • #73 – Asia and Technology
      • #72 – Dubai/Museums
      • #71 – MENA/Entertainment
    • 2017
      • #70 – IAAPA 2017
      • #69 – Game Changers
      • #68 Going Global: Technology on the International Stage
      • #67 – Experience Design: Many Faces Many Places
      • #66 Theatrical Influence and Convergence
    • 2016
      • #65 IAAPA 2016
      • #64 Waterpark, Zoo & Aquarium 2016
      • #63 Technology 2016
      • #62 International
      • #61 Museums and Expanding Markets
    • 2015
      • #60 – IAAPA 2015
      • #59 – Zoos/Aquaria and Waterparks 2015
      • #58 – Technology 2015
      • #57 – International 2015
      • #56 – Museums 2015
    • 2014
      • #55 – IAAPA 2014 / Tenth Anniversary
      • #54 – Waterparks, Zoos and Aquariums 2014
      • #53 – Technology 2014
      • #52 – International 2014
      • #51 – Museums 2014
    • 2013
      • #46 – Museums 2013
      • #47 – International 2013
      • #48 – Technology 2013
      • #49 – Waterparks 2013
      • #50 – IAAPA 2013
      • 2013 Wrap-Up
    • 2012
      • #45 – IAAPA & WWA Wrap-Up
      • #44 – IAAPA
      • #43 – Waterparks
      • #42 – Technology
      • #41 – International
      • #40 – Museums
  • Subscribe
  • Advertise
  • About
    • About InPark
    • Privacy Policy
  • IPM books
    • Screens to scenes: Christie’s visual technology
    • Tales from the Expo
    • Themed entertainment in academia
  • follow
    • Facebook
    • Twitter
    • Linked
    • Youtube

City of Anaheim Approves Thirty Year Extension of Tax Policy for Disney in Exchange for at Least $1 Billion Investment in Disneyland Resort

Jul 09, 2015 Joe Kleiman Business, Features, News, Theme Parks Comments Off on City of Anaheim Approves Thirty Year Extension of Tax Policy for Disney in Exchange for at Least $1 Billion Investment in Disneyland Resort


City of Anaheim Approves Thirty Year Extension of Tax Policy for Disney in Exchange for at Least $1 Billion Investment in Disneyland Resort

ARTWORK COPYRIGHT DISNEY

Anaheim, CA, USA (July 8, 2015) – The Anaheim City Council approved an entertainment tax policy for the Disneyland Resort as Walt Disney Parks and Resorts evaluates a significant investment in its existing operations in the Anaheim Resort.

The policy, adopted as a resolution and agreement with Disney, was approved on a 3-2 vote, with Mayor Pro Tem Lucille Kring and Council Members Kris Murray and Jordan Brandman in support, and Mayor Tom Tait and Council Member James Vanderbilt in opposition.

The resolution extends a nearly 20-year agreement with Disney regarding entertainment tax policy.

The existing agreement was put in place in 1996 and runs through June 30, 2016. The 1996 agreement provided Disney a framework to undertake significant investment in the Anaheim Resort, including the opening of Disney California Adventure Park, Disney’s Grand Californian Hotel & Spa and the Downtown Disney District in 2001 and the addition of Cars Land to California Adventure in 2012.

The entertainment tax policy adopted early Wednesday morning runs for 30 years with the possibility of a 15-year extension. 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.

In the event an entertainment tax is adopted, the policy calls for the city of Anaheim to provide Disney with an incentive payment equal to any entertainment tax paid, in exchange for a minimum $1 billion investment by Disney

There are no proposals for an entertainment tax by the City of Anaheim, and any proposed tax would be subject to voter approval.

Potential Investment

The agreement comes as Disney is 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.

The company 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 agreement requires no City bond financing and no City spending, unless an entertainment tax is adopted.

What’s Next

Following the Council’s vote and direction, the city manager’s office is expected execute the agreement with Disney. Wednesday’s action does not require a second reading by the City Council.

Disney will 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.

Within six months of Dec. 31, 2024, Disney is required to submit to Anaheim an accountant’s opinion attesting to the value of improvements undertaken.

If Disney elects not to proceed with an investment, the agreement will be terminated. 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. A default of terms for a period of a year or more allows Anaheim to end the agreement

The Resort’s Role

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.

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, according to 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.

Surplus revenue from the Anaheim Resort is equal to 55 percent of the Anaheim Police Department’s General Fund allocation, 100 percent of that of Anaheim Fire & Rescue and more than triple that of 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.

A potential $1 billion investment could result in $17.9 million per year in additional hotel stay, sales tax and indirect property tax revenue for the city of 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 the city of Anaheim, according to the Beacon study.

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.

More than 5,000 of the Disneyland Resort’s current 28,000 workers are Anaheim residents.

 

Share this:

  • Tweet
  • Print

  • anaheim, disneyland resort, resort expansion, the walt disney company, walt disney parks and resorts
  • tweet
Related articles
  • Anaheim: Disneyland steps up as mass COVID-19 vaccination site
    Anaheim: Disneyland steps up as mass...

    Comments Off on Anaheim: Disneyland steps up as mass COVID-19 vaccination site

  • Government not to extend Hong Kong Disneyland option for purchasing expansion property
    Government not to extend Hong Kong...

    Comments Off on Government not to extend Hong Kong Disneyland option for purchasing expansion property

  • Anaheim closer to deal with SRB Management to purchase and develop Angel Stadium property
    Anaheim closer to deal with SRB...

    Comments Off on Anaheim closer to deal with SRB Management to purchase and develop Angel Stadium property

  • When will California’s theme parks reopen?
    When will California’s theme...

    Comments Off on When will California’s theme parks reopen?

More in this category
  • LEGOLAND Florida Resort to kick off 10th Anniversary celebration with high wire walk by Nik Wallenda
    LEGOLAND Florida Resort to kick off...

    Jan 15, 2021 Comments Off on LEGOLAND Florida Resort to kick off 10th Anniversary celebration with high wire walk by Nik Wallenda

  • Museum of Illusions added to ICON Park Play Pass
    Museum of Illusions added to ICON Park...

    Jan 15, 2021 Comments Off on Museum of Illusions added to ICON Park Play Pass

  • Panasonic providing specialized projection technology for Illuminarium experience centers
    Panasonic providing specialized...

    Jan 14, 2021 Comments Off on Panasonic providing specialized projection technology for Illuminarium experience centers

  • Christie introduce Pandoras Box Version 8 for real-time video processing and show control
    Christie introduce Pandoras Box Version...

    Jan 13, 2021 Comments Off on Christie introduce Pandoras Box Version 8 for real-time video processing and show control


Quick Takes

My Tweets

Latest Issue

Leads & Opportunities

  • Cedar Fair seeks Corporate Director, Communications
    Cedar Fair seeks Corporate Director, Communications

    Dec 29, 2020 Comments Off on Cedar Fair seeks Corporate Director, Communications

    The position will lead strategy development and execution...
  • Pursuit seeks Financial Analyst, FP&A
    Pursuit seeks Financial Analyst, FP&A

    Dec 28, 2020 Comments Off on Pursuit seeks Financial Analyst, FP&A

    This role will focus on all aspects of financial planning...
  • AOA seeks Show Set Designer
    AOA seeks Show Set Designer

    Dec 26, 2020 Comments Off on AOA seeks Show Set Designer

    There will be a great deal of freedom, which will be...
  • Visualization firm THE THIRD FLOOR has openings for a variety of positions
    Visualization firm THE THIRD FLOOR has openings for a...

    Dec 09, 2020 Comments Off on Visualization firm THE THIRD FLOOR has openings for a variety of positions

    THE THIRD FLOOR is currently seeking Postvis Generalists,...
  • CineVenture seeks 3D character animator
    CineVenture seeks 3D character animator

    Dec 09, 2020 Comments Off on CineVenture seeks 3D character animator

    CineVenture develops high-end content for the global...

Top Posts

  • LEGOLAND Florida Resort to kick off 10th Anniversary celebration with high wire walk by Nik Wallenda
    LEGOLAND Florida Resort to kick off 10th Anniversary celebration with high wire walk by Nik Wallenda
  • Sally Brings the Animal Animatronics of Five Nights at Freddy's to Life in New Attraction Concept
    Sally Brings the Animal Animatronics of Five Nights at Freddy's to Life in New Attraction Concept
  • Phase 3 expansion of Atlantis Aquaventure waterpark at Dubai's Atlantis The Palm to feature newly patented attractions from ProSlide
    Phase 3 expansion of Atlantis Aquaventure waterpark at Dubai's Atlantis The Palm to feature newly patented attractions from ProSlide
  • 3D Live Partners with NEC On High Resolution 3D LED Prototype
    3D Live Partners with NEC On High Resolution 3D LED Prototype
  • SeaWorld San Diego introduces Sesame Street drive-thru experience
    SeaWorld San Diego introduces Sesame Street drive-thru experience
  • Former Great Wolf Lodge CEO Kim Schaefer to Lead Two Bit Circus' LBE Business
    Former Great Wolf Lodge CEO Kim Schaefer to Lead Two Bit Circus' LBE Business
  • Panasonic providing specialized projection technology for Illuminarium experience centers
    Panasonic providing specialized projection technology for Illuminarium experience centers

  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram

Categories

  • IPM Interviews
  • Theme Parks
  • Museums
  • Water Parks
  • Attractions
    • Haunts
    • Zoos & Aquariums
  • World markets
    • Asia
    • Europe & Middle East
    • Latin America & Mexico
    • North America
  • Technology & Media
  • Business
    • Events
    • People
  • World Expos

InPark Magazine

2349 E Ohio Ave
Milwaukee, WI 53207 USA
262.412.7107
mpalicki@inparkmagazine.com

View our Privacy Policy

Copyright 2018 InPark Magazine / All rights reserved
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram