...no new gate tax.
From the OC Register:
ANAHEIM - The Walt Disney Co. is seriously considering a $1 billion-plus expansion of the Disneyland Resort with new attractions, a new parking structure with at least 5,000 spots and other improvements to the massive theme park complex.
In exchange for the investment, Disney wants the city of Anaheim to forgo a tax on theme park admission tickets for another 30 years, according to a public notice published Thursday by the city.
Two members of the Anaheim City Council said they support Disney’s desire to expand without threat of a ticket tax. Two others said they were undecided, while Mayor Tom Tait said he opposed the plan.
On July 7, the City Council will hold a public hearing to consider extending the current entertainment tax exemption for Disney that started in 1996 and expires June 30, 2016.
“Anaheim has been an economic success story thanks to its policies and initiatives that allow businesses to invest and thrive,” said Michael Colglazier, president of Disneyland Resort.
“We are asking city leaders to continue with a policy set two decades ago that has driven unprecedented job creation, growth and prosperity and enabled the city to invest in vital services that benefit every Anaheim resident.”
Disney officials said Thursday they don’t know whether the expansion would be an addition to Disneyland, Disney California Adventure or, perhaps, both parks. They said there are no plans for a third theme park in Anaheim.
Any park expansion is contingent on approval of the ticket-tax exemption, Disney officials said. Under the proposal, the tentative ticket-tax ban could be extended another 15 years if Disney later embarks on a separate $500 million project.
Tait supported the current gate-tax ban for Disney during a previous stint on the City Council, but said Thursday he is “wiser” now. Unlike in 1996, Tait said, Anaheim currently faces an estimated $500 million unfunded pension obligation.
“As much as I’d like to see Disney expand, there are other ways to help them by streamlining the development process and speeding up approval times,” Tait said. “Chaining the hands of future residents on their ability to impose taxes will jeopardize the city’s financial health.”
Councilwoman Kris Murray offered a different take. “History has shown us that a $1 billion investment by Disney will create thousands of new jobs in Anaheim and millions in new revenue for our neighborhoods and vital city services, all without increasing taxes for our residents or creating costs for the city,” she said.
An expansion would not be outside the theme parks’ current attractions and parking lot areas, except for the new structure located just east of Harbor Boulevard. Disney already owns that property.
Disney officials said they don’t know potential rides, themed lands and other details yet, but said construction would begin by late 2017 and wrap up no later than December 2024. The company now owns the “Star Wars,” Marvel and Pixar franchises and has other options such as banking off its “Frozen” blockbuster.
Earlier this year, Disney Chairman Bob Iger told shareholders the company plans to expand the Disneyland Resort and that Disney Imagineers are working on “Star Wars” attractions for theme parks.
The expansion of Disney California Adventure, completed in 2012, cost $1 billion-plus and created an average of 1,700 jobs annually over the project’s half-decade. Upon completion, the company hired 5,000 new workers. Disney now has about 28,000 workers in Anaheim, making it the largest employer in Orange County.
The latest $1 billion-plus proposal would create another 1,400 jobs, according to a Disney-commissioned report by KPMG, an auditing firm.
Anaheim Interim Assistant City Manager Kristine Ridge said negotiations on how to frame a proposed theme park expansion began last month.
The city’s first tax pact dates back to when California Adventure was on the drawing board. As a condition of getting that park built, the City Council in 1996 unanimously agreed to pay up to $546 million for a new parking garage on Disney property, repaved streets, redid landscaping and renovated utilities. City officials also agreed not to levy an admission tax on tickets sold at either Disney park for 20 years.
Charging admission taxes to Disneyland has been debated for decades. A proposed 5 percent tax on Anaheim’s entertainment venues gained momentum in 1975, but the City Council changed course after heavy opposition from Disneyland and the Angels.
The idea came up again in 1991, when Anaheim officials suggested revenue generated by an admission tax could help pay for Disney’s second theme park. Disney officials threatened to kill the project if a tax was imposed.
No Disney park in the world currently has an admission tax.
“Disney is a global company and can choose any of their five other locations to make this type of capital enhancement, so we’re feeling lucky,” Ridge said.
Under the proposal, if the city did charge an admission tax, that amount would be refunded to Disney, essentially negating the charge. The Angels have a similar pact as part of their lease for the city-owned stadium, due to expire in 2029.
Disney has elbow room inside the two Anaheim parks. California Adventure has approval for 3 million square feet of theme-park space but has used only 900,000, according to Anaheim’s master-plan agreement with Disney. Disneyland already has used 2.6 million of its 3.5 million square feet available, city records show.
Steve Feicht, a former Disney Imagineer and current designer with Rethink Attractions, predicted Disney would create new lands bases on its new properties. “‘Star Wars’ Land is a slam dunk,” he said.
Jim Hill, a blogger who covers the entertainment industry, said he believes the company’s potential investment is in response to the revamping of Universal Studios Hollywood, which recently added a “Simpsons”-inspired land, Springfield U.S.A. Next year, that park unveils The Wizarding World of Harry Potter.
“This is the theme park equivalent of an arms race,” Hill said. “Disney is saying, ‘What’s going to make people come to Disneyland rather than Universal?’
“I think you’ll see an immersive land that will be an ambitious take on ‘Star Wars’ and Marvel, and in addition to refreshing their other retail, entertainment space and parking situation,” Hill said.
Robin Diedrich, a senior consumer analyst at Edward Jones, sees this as a win for the city, Disney and Disney stock shareholders. “With all of the intellectual properties they have, and ‘Star Wars’ and Marvel, it sets up a runway for potential growth.”
Staff writer Mark Eades contributed to this report.
I'm not bad. I'm just drawn that way.
More From The OC Register:
A Millennium Falcon ride? Going for a spin in an Iron Man suit? Disney executives have announced plans to spend $1 billion on new attractions in Disneyland and/or Disney California Adventure.
Here are some options:
'Star Wars'
More Yoda? Natural, it would be. The Star Tours ride has been running since 1987, and the stories and characters from “Star Wars” could generate even more rides, restaurants and maybe some stuff that hasn’t been invented yet. Plus, “Star Wars” movies are coming back.
Pixar
Consider this: To kids born in this century, Buzz and Woody mean more than Mickey and Goofy. Pretty soon, they’ll be buying their own tickets (and taking their kids) to Disneyland. But Pixar is more than two cool dudes – it’s a stream of iconic characters and stories. They’re already all over both parks but, as with many things Disney, more is more.
Marvel
With all the princesses and fairy dust in Anaheim, there’s probably room for some straight-up action. Iron Man, Captain America, Spiderman? Their movies already feel like thrill rides. Disney’s challenge would be to create an experience that keeps up.
'Frozen'
The top-grossing animated movie of all time? Yeah, that might work. Forget what we just said about princesses – this would simply rock. Plus, Anna and Elsa aren’t your grandmother’s royalty; they’re tough. And at Disney, tough equals fun.
MAPPING OUT POSSIBILITIES
Disney’s mum on what exactly it would do with a $1 billion investment at the Disneyland Resort, but Disney Chairman Bob Iger told shareholders earlier this year that the company’s Imagineers are already working on new “Star Wars” attractions for its theme parks. And Disney experts said Thursday it’s a “slam dunk” that a new land based on a galaxy far, far away is coming to Anaheim.
But where? Here are some possibilities
Big Thunder Ranch — LESS LIKELY
Mostly used for holiday events and private parties, the area includes a petting zoo and barbecue restaurant. The area is a money-maker for the resort, mostly because of these private events.
Mickey’s Toontown — LESS LIKELY
“Star Wars” Land has long been rumored to be going here, but because of the popularity of this area for families with children, and its closure each night for the fireworks show, it’s unlikely Disney would build a popular land here.
Tomorrowland — MORE LIKELY
The area covered by Autopia and Innoventions is a big footprint, making it prime real estate for any new land. It also includes the area covering the old Motorboat Cruise.
Hollywood Land — MORE LIKELY
The area encompassing Muppet*Vision 3D, Stage 17, Monsters, Inc. Mad Tea Party and another structure is currently underutilized. There is a lot of room in this area for attractions based on any of Disney’s intellectual properties, though more likely they would be either “Frozen” or Pixar-related.
Behind Cars Land — MORE LIKELY
This used to be a parking lot for visitors, and still is for employees — making it the easiest area to develop into a new land. As to whether it is Pixar-related, “Star Wars,” Marvel or something else … who knows?
Behind California Screamin’ roller coaster — LESS LIKELY
There is enough land here to support an attraction as large as Pirates of the Caribbean and New Orleans Square. But there are key backstage support buildings for things like the daily parades here. Thematically, this would probably be ideal for something additional based on the “Toy Story” movies.
world of color
THE LAST TIME DISNEY SPENT THIS MUCH
You don’t have to look too far in Mickey’s history book to see what a billion Disney Dollars will get you at the Happiest Place on Earth.
Disney California Adventure started on a five-year, $1 billion-plus makeover of the park beginning in 2007. For that amount of money, the park updated some rides, got new attractions, new restaurants and a new land.
Toy Story Midway Mania! — 2008
World of Color — 2010
The Little Mermaid: Ariel's Undersea Adventure — 2011
Buena Vista Street — 2012
Cars Land — 2012
NEW LANDS AND ATTRACTIONS
Disney experts say either “Star Wars” or Marvel is the most likely possibility, with a land based on the highly successful Disney film “Frozen” also in the running. Most observers agree that “Star Wars” is the most obvious. Another option: standalone attractions based on those movies.
MORE RESTAURANTS
Expansion means the need for more places to eat. Restaurants at both parks are always busy. The most obvious would be a restaurant or lounge based on the Mos Eisley Cantina from “Star Wars.”
parking disneyIMPROVED INFRASTRUCTURE
Parking — and lots more of it — is one of the most critical needs. It’s been proposed for a site near the Santa Ana Freeway on land Disney already owns. Crowd flow throughout Disneyland in areas, such as Adventureland and Tomorrowland, is a priority. And pedestrian traffic on Harbor Boulevard, particularly crossing the street to enter the Disneyland Resort, is a major issue.
I'm not bad. I'm just drawn that way.
While I'm always excited to see new things put into the parks I'm actually a little surprised about this. They just finished putting a ton of money into DCA - has the new Condor Flats/Grizzly Recreation area even opened yet? Just based on how it seems feet get dragged on projects in Florida it's interesting that they keep putting money into Anaheim.
Aryn
I am the rebel spy.
Grizzly Peak Airfield is open.
Disneyland is in dire need of more to do. With the amount of locals utilizing the park, there is little room left for tourists. We were directed to Convention parking on our last visit (I'll admit it was a peak time) as the Disneyland parking was already full at 10:00 am! Disneyland had shuttle buses which then took us back to the parks.. crazy! Disneyland is only getting busier and I can see how an expansion and more places to put people is a priority with them. It's incredibly crowded there when it fills up.
At least in Florida there are 4 parks to handle the crowds and many resorts and other activities such as boat rentals, horse back riding, trails, water parks, etc.. to spread out the crowds. Disneyland hasn't much aside from the resort pools for the quests staying there. Even their DTD is small in comparison.
All that being said, I still love Disneyland and would fight the crowd to get in! :mickey:
I'm not bad. I'm just drawn that way.
In regards to Grizzly Peak: Although the blending of the two "lands", Grizzly Peak & Condor Flats, in to one was basically just a facelift - no added attractions, stores, or eateries - it is much more pleasing to the eye now and more of a seamless move from the Buena Vista Street/Carthay Circle area. Also fits in better with the Grand Californian in the background. Good show, Disney.
Linda aka tinkwest
INTERCOT Staff ~ Disneyland Resort
Come On Everybody - Here We Go!!
“To all who come to this happy place: Welcome. ...”
Grizzly peak airfield is absolutely beautiful. I was there yesterday and think it was just what that area needed.
And I am ALL FOR any expansion at DL. The parks are crowded and the parking situation is getting serious. The Mickey and Friends structure can't even open at park opening anymore because of how badly thr traffic backs up coming off the freeway and on Ball Road. That is why they divert people to other lots in the morning hours. They open M&F later on.
And Disneyland knows how to build stuff quickly, unlike WDW.
Natalie
INTERCOT Staff: Disneyland Resort-California, The Water Cooler
BrerGnat;2462414 wrote:
And Disneyland knows how to build stuff quickly, unlike WDW.
Why do you think that is...what is different?
Rita (aka NJGIRL)
Disneyland depends on the locals primarily. They have to keep things fresh/new. Especially when they keep raising prices like they do.
Natalie
INTERCOT Staff: Disneyland Resort-California, The Water Cooler
Sorry, I'm late with this update!
OC Register:
The Walt Disney Co. is committed to starting construction by the end of 2017 on at least $1 billion for new attractions, a 5,000-space parking structure and other improvements at Disneyland and Disney California Adventure after the company secured a 30-year ban on a ticket tax with a 3-2 vote by the City Council.
Now, Disney fans and Anaheim residents must wait.
Potential concepts, rides and themed lands remain a secret, and Disney officials won’t say when they will unveil their plans. In a press release, Michael Colglazier, president of Disneyland Resort, said only that the company is “excited about what the future holds.”
Disney’s planned expansion may bank off the company’s recently acquired “Star Wars,” Marvel and Pixar franchises. Earlier this year, Disney Chairman Bob Iger told shareholders that Disney Imagineers are working on “Star Wars” attractions for unspecified theme parks.
Still, Disney’s expansion is expected to kick into gear following the city’s approval of the tax-for-construction swap in a vote taken pre-dawn Wednesday morning.
In that arrangement, Anaheim agrees to impose no taxes on theme park tickets for 30 years, extending a ban on ticket taxes that started in 1996 and was set to expire next year.
The deal isn’t expected to result in expansion beyond Disney’s existing properties.
New rides will be built be within the theme parks’ current attractions and parking areas, while the new parking structure will be built on a Disney-owned lot just east of Harbor Boulevard. Disney could focus on just one of the parks.
If Disney doesn’t hit the deadline or meet the spending threshold, the city could adopt a ticket tax. However, the ban could be extended another 15 years if Disney later embarks on a separate $500 million project.
Disney has 28,000 workers in Anaheim, making it the largest employer in Orange County. When completed, the project is expected to create 1,400 new jobs at the Disneyland Resort and an additional $15 million in annual tax revenues, according to a Disney-commissioned report completed by KPMG, an auditing firm.
I'm not bad. I'm just drawn that way.
