Disney will commit to investing at least $1.9 billion into the Disneyland Resort over the next decade, along with providing millions more for housing and parks, as part of a proposed agreement with Anaheim to pave the way for new development at its theme park properties.
The development agreement, presented Tuesday afternoon during a City Council workshop, would give Disney flexibility to choose where it builds new theme park areas, hotels and dining within its existing footprint, and in return would guarantee the city the continued investment into the resort, along with $30 million for affordable housing and $8 million for parks and money for nearby road improvements. It’s part of the theme park’s DisneylandForward proposal to update the resort over the coming years.
“We listened to Anaheim’s leaders and worked hard to address what is important for the city,” Ken Potrock, president of the Disneyland Resort, said in a statement. “We are proud that DisneylandForward will provide many important benefits directly to the residents of Anaheim.”
The development agreement would last until 2064.
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DisneylandForward could be one of the largest developments for Anaheim, city officials said. The presentation on Tuesday was a broad overview of its details, but the final document is yet to be released. There are no details on what Disney might build within its allowed allotments.
The expansion would allow for more integrated, immersive experiences at Disneyland, said Disney’s Global Development Vice President Rachel Alde, who gave examples of new lands at the company’s other theme parks around the world like Frozen and Zooptopia.
The City Council is expected to vote on the DisneylandForward project by spring. Anaheim spokesperson Mike Lyster said the city’s Planning Department has been the lead in negotiating the agreement for the past few months.
Lyster described Anaheim as a largely visitor economy. More than 25 million people visit Anaheim each year, driven largely by the Disneyland Resort. The city expects to take in more than $230 million this year from the local hotel taxes visitors pay.
New attractions at the Disneyland Resort should equate to more visitors to Anaheim, he said.
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Councilmembers didn’t give indications during the workshop on how they would vote on the project, though they asked questions about the proposal during the meeting.
Of the $30 million Disney proposed to give Anaheim for affordable housing, half would be paid in the first year and the rest in five years. City officials said it would be the largest corporate contribution to Anaheim for affordable housing.
Erin Ryan, a spokesperson for the city, said the money would be used to help Anaheim compete for housing grants because it would have some of its own money to bring to the table. There’s not a single project the money would be used for, but the city has several affordable housing developments in the pipeline, she said.
Last year the city opened Finamore Place, a 102-unit affordable housing apartment complex in the resort district that cost $61 million, which was backed in part by money from Disney.
Grace Ruiz-Stepter, the city’s housing director, told the council it costs about $550,000 to $600,000 a unit to build affordable housing. The initial $15 million from Disney could help fund two or three affordable housing projects, she said.
The $8 million for parks, if the development agreement is approved as is, would be for the city to use at its discretion. That money could be used to fund a 3-acre park with some amenities, according to the city, or up to five pocket parks within neighborhoods.
Councilmember Natalie Rubalcava wants more from Disney in the agreement, she said. She said $8 million is not a lot of money for parks and put forward the idea of Disney funding a few million dollars worth of affordable housing a year in perpetuity.
“This is really going to generate a lot of money for Disney as well, and we need to make sure all ships rise together,” Rubalcava said.
Disney also proposes to buy some streets from the city for $40 million, including Magic Way, Hotel Way and part of Clementine Street, which officials said is market rate. If Disney doesn’t invest more than the minimum $1.9 billion – at least $2.5 billion over 10 years – then the company would give the city an additional $5 million for street and transportation improvements.
Councilmember Norma Campos-Kurtz said residents were concerned about Magic Way possibly being closed once Disney acquired it, as they used it to avoid traffic in the area. Anaheim public works director Rudy Emami told the council that work will begin this summer to improve traffic flow at the intersection of Ball Road and Walnut Street, near Magic Way.
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The city would no longer have to pay to maintain the streets, Lyster said, adding that it’s too early to say if they would serve a purpose other than getting cars to parking spaces the streets serve.
Planning and Building Director Ted White said street abandonments by cities aren’t uncommon and was even done when Disnelyand was first built.
The $40 million to buy the streets is part of a $90 million investment Disney proposes to contribute toward funding street improvements, including widening Katella Avenue east and west of Harbor Boulevard. The city would decide how those streets are redesigned, which could include signal upgrades and bike lanes. Anaheim would not proceed with previously planned extensions of Clementine Street and Gene Autry Way.
Up to $10 million to expand a sewer main line along Katella Avenue near the parks would be paid for by Disney, according to the city.
A new 17,000-space parking garage and five pedestrian bridges, three over Harbor Boulevard and two over Disneyland Drive, could be built as part of the resort’s new development.
Once that parking garage is built, Disney would be required to build a pedestrian bridge over Harbor Boulevard.
“We know in the future we are going to need those bridges,” Emami said.
The minimum $1.9 billion investment by Disney would have to be for visitor attractions such as new theme park areas and hotels, per the proposal, and wouldn’t count spending on parking or infrastructure.
The city’s Planning Commission is expected to hold another workshop on DisneylandForward next month, which will include an overview of the development agreement. The City Council is expected to hold hearings on the DisneylandForward project in April and May.
