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Disney officials informed Wednesday in Anaheim that they had canceled the project of a 700-room luxury hotel at Disneyland Resort, in light of the city's decision to spoil the tax incentive agreements for the project.
The Anaheim City Council voted on August 28 to cancel the tax incentive agreements, as the project had evolved over time, notably due to a new location.
Council members also expressed concern that the new location would close business doors and cause job losses.
Disney officials at the time denied making substantive changes to the project and said the location change was minor and that it was still in the same area.
Disney spokeswoman, Lisa Haines, told the Los Angeles Times that if the project's cancellation "is disappointing for many, the conditions and agreements that spurred this investment in Anaheim no longer exist and that we must therefore adjust our investment strategy in the long term ".
The tax agreements were originally intended to encourage Disney to build the resort's luxury hotel and spend millions of dollars to develop the company's two theme parks. Construction was scheduled to begin this summer, but development details have been put on hold.
The hotel was to open in 2021 and be the fourth of the company at Disneyland Resort.
"I can not imagine a better property for a hotel all over the country," said Mayor Tom Tait on Wednesday. "And Disney should be able to do it with his own money and not with ours."
Tait added, "If a hotel does not make sense, maybe it has something better in mind, or even more profitable."
Tait said that state law prevented the city from providing tax subsidies to the project after Disney had moved from a parking lot to another downtown Disney location.
"They got agreement with the old council and the law of a state requires an analysis of jobs before giving money to a city. Jobs then started from scratch as she was going to be on a parking lot and they have now moved on., "Tait said.
The more recent project "removes 130,000 square feet of retail space and 450 jobs," said Tait.
"And you can imagine that if these 450 people were aware of this when they asked for this agreement, they would all show up at City Hall to ask why we would encourage them to withdraw their jobs," said Tait.
At the Tuesday night council meeting, city lawyer announced that Anaheim had determined that the L measure, which aimed to raise the minimum wage in the city to 15 dollars per hour for workers assigned to projects subsidized by tax breaks, did not apply to Disneyland because it no longer worked. had the incentive agreements with the city.
Measure L was designed to target Disneyland Resort, but the company has reached an agreement to increase the salaries of most of its employees.
Copyright City News Service
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