For decades, Disneyland has struggled to expand its resort in Anaheim because of the streets, highways and businesses surrounding the self-proclaimed “Happiest Place on Earth.”
But Disneyland hopes to get around those limits with a plan to spend up to $2.5 billion to reinvent the resort with new attractions, hotels and shops within its current 100-acre footprint, a proposal that would require taking over some surrounding city streets.
The plan already has critics who fear it will create more traffic problems for neighbors and won't provide enough tax revenue for the city.
The plan, presented Tuesday to the Anaheim City Council, would make the theme park an even more “immersive” experience by building new areas that would combine theme park attractions, hotels, restaurants and shops in the same spaces, the Vice President said. of Disney Global Development. President Rachel Alde during the presentation.
Dubbed DisneylandForward, the plan is not specific about what exactly would be built, but calls on Anaheim to relax zoning rules and give Disney flexibility to redesign the existing complex, which includes Disneyland, Disney California Adventure Park and the Downtown Disney shopping district.
“This will allow, for example, theme park attractions next to or even integrated into hotels, and vice versa,” Ted White, the city's planning and construction director, said during Tuesday's presentation.
Disneyland's footprint is not expected to expand. But Disney, a powerful and dominant middleman in Anaheim politics, is also asking the city to turn over some adjacent streets to the company. The move would give Disneyland control over Magic Way, Hotel Way and part of Clementine Street near the resort.
In exchange, Disney plans to propose paying $40 million for the roads, which city planners said was a fair market price. That payment would be part of a plan by Disney to spend $90 million on improvements to Anaheim streets near the theme park, including widening Katella Avenue.
Disney is also asking Anaheim to stop its previous plans to expand Clementine Street and Gene Autry Way.
Disney is offering the city tens of millions of dollars more in taxes and fees, earmarked for affordable housing, public parks and road improvements.
In total, Disney expects to invest up to $2.5 billion over the next decade on the project and is also committing to giving the city of Anaheim more than $100 million for street, park and affordable housing improvements.
The multibillion-dollar investment, Disney officials said, could mean thousands of jobs and millions of dollars in tax revenue for the city in what could be one of the most significant expansions of the historic theme park since it was first built in 1954.
Hotel tax revenue is already Anaheim's largest source of funding, said Mike Lyster, spokesman for the city of Anaheim. The city expects to collect $236.3 million from hotel taxes over the last 12 months through June, he said.
Dubbed DisneylandForward, the plan is not specific about what exactly Disneyland plans to build, but asks Anaheim to relax zoning rules and give Disney flexibility to build new attractions, hotels and shops side by side.
(DisneylandAdelante)
But the theme park expansion, as well as the proposal to privatize public roads, is already raising concerns among some Anaheim residents, who fear that the plan could mean worse traffic in their community, and that the resort's expansion could further increase plus rent and the cost of living.
“The 'happiest place on Earth' has the saddest communities next door,” one resident, who identified herself as Maricela, said in Spanish during Tuesday's meeting.
She and other residents of a nearby apartment building received notices telling them they had to leave their homes in December, she said, a decision she believes may have been motivated by the complex's expansion plan.
“The expansion has not started and some of us are already being pushed out,” he said.
Lyster, the city spokesman, said the eviction notices received by residents of the apartment buildings are not related to Disney's expansion plans.
“Our thoughts and concerns are with anyone facing relocation,” he said. “But it appears the owner is renovating the property within his rights with a 60-day notice and relocation assistance as required by state law.”
He said the city has reached out to residents for help in finding apartments.
Some residents have also created an online petition opposing the privatization of the streets, fearing that Disney's privatization of the streets will mean the public will no longer have access to them.
“Road closures mean that high-value real estate owned by taxpayers would be privatized for Disney's profitable use,” the petition reads. As of Friday, 230 people had signed the petition.
However, city officials say two of the roads that could be privatized (Hotel Way and Clementine Street) are now used as entrances to a Disney parking lot. Magic Way, Lyster said, would remain open to vehicles entering the complex.
Among planned construction, Disney is looking to expand the theme park along Disneyland Drive to Walnut Street, an area designated strictly for hotels under its original plan with the city.
DisneylandForward is asking the city to give the company more flexibility to renovate areas that were originally designated for hotels to also include rides, attractions and retail stores.
Disney is also looking to build a new 17,000-space parking lot, as well as three pedestrian bridges to cross Harbor Boulevard and two additional bridges over Disneyland Drive.
According to the plan, Disney promises to invest between $1.9 billion and $2.5 billion over the next 10 years. If Disney's investment does not reach the $2.5 billion mark, the company agrees to pay an additional $5 million payment to the city.
But the proposal, which has been in the works since 2021, comes in the wake of a corruption scandal at Anaheim City Hall. An internal report found a “potential criminal conspiracy” regarding COVID-19 relief funds and accused former Mayor Harry Sidhu and the former head of the Anaheim Chamber of Commerce of “influence peddling.”
The report came after an FBI affidavit accused Sidhu of crimes and being part of a self-styled “cabal” of public figures and influential figures in the city, including a powerful Disney agent.
The scandal underscored concerns among some residents and city officials that Disney has undue influence in Anaheim at a cost to its residents.
“Instead of enriching this franchise, I urge you to really invest in our communities that struggle to afford it every day despite working two or three jobs,” resident Yesenia Altamirano said during Tuesday's meeting.
During the meeting, Anaheim Mayor Pro Tem Norma Campos Kurtz said some residents have already approached her with concerns about the privatization of city roads and how this could lead to increased traffic on Walnut Street and Ball Road. .
City staff said a plan and funding is already in the works to improve traffic flow at the intersection of the two streets.
City Councilwoman Natalie Rubalcava said she would like to see Disney make a bigger commitment than the $30 million the company has promised to give the city for affordable housing.
“One of the things I would love to see Disney commit to in perpetuity is some additional financing for housing, whether it's a first-time homebuyer program or last-mile financing for affordable housing projects,” he said. “I'd love to see that too.”
But Disney has argued that its multibillion-dollar investment will translate into millions of dollars in revenue for the city.
According to a report cited by Disney, every billion dollars invested by Disneyland could generate $253 million in annual economic output for the city, as well as $15 million in tax revenue. According to the city, an average of 25 million visitors come to Anaheim each year, primarily to visit Disneyland.
