Disney Seeks Changes in Time-Share Law
Walt Disney Co. is seeking to change a state law regulating time-share resorts as part of a plan to develop time-share resort villas near its amusement parks throughout the world, including in Anaheim and possibly Long Beach.
At the request of the Burbank-based company, Sen. Frank Hill (R-Whittier) has introduced a bill to change the time-share law for Disney’s benefit. The bill would give Disney tight control over and the property rights to any time-share property it may build in California.
In addition, Disney’s lobbyist said the company wants an exemption from the law giving the Department of Real Estate control over how much the firm can charge California residents who purchase an out-of-state time-share contract.
Disney spokesman Erwin Okun said Disney is hoping to offer “a unique product in the time-share field that would require certain changes in California law.” He would not elaborate on plans for the time-share projects, dubbed the Disney Vacation Club.
But Disney’s Sacramento lobbyist, Doug Gillies, said the company is expected to open its first time-share resort development near Walt Disney World in Orlando by late 1991. Disney wants to begin selling time-shares to a 501-room complex of villas soon.
“There would be a hotel desk, which will be manned 24 hours a day, and there would be maintenance people, just like in a hotel,” said Gillies, saying he inspected the villas two weeks ago. “Obviously, the places would be furnished with everything you needed--including linens and dishes.”
Gillies said Disney eventually hopes to build an international chain of these time-share resorts that include recreational amenities such as tennis courts, volleyball nets, saunas, jogging paths and exercise clubs. They will be targeted for the EuroDisney resort being built near Paris and Tokyo Disneyland in Japan. It may also involve a new ski resort in Colorado, he said.
The lobbyist said the company is also interested in building one or more of the villa complexes in Southern California. Potential sites are the desert, near Disneyland in Anaheim and Long Beach, where the company has proposed building Port Disney--a marine theme park next to its Queen Mary tourist attraction.
State time-share laws allow a person to buy the right to use a piece of property on a periodic basis--for the same week each year for instance--either in perpetuity or for a specified number of years.
It is most popular in vacation and resort areas where people guarantee their right to use a condominium for one or two weeks a year. The industry has also been subject to widespread abuse, with hard-sell tactics used to market shoddy developments in undesirable vacation spots.
But Disney would bring an air of respectability to the business. The company wants to use the time-share concept to essentially become a one-stop shopping center for vacations, Gillies said.
“It is their intention, as part of the service that they will provide, if you have purchased one of these and want to go to Disneyworld in Florida . . . you call this 800 number and book your airline reservation, book your space at the Disney resort and also make reservations for Epcot or whatever else you want to do,” he said. Epcot Center is part of Walt Disney World.
Disney’s decision to build the villas in California hinges on whether it can change state law to its liking, the lobbyist said. “I am told Disney will not make a decision on locating one of these in California and will not attempt to option land until . . . we can find a niche in the law,” he said.
The immediate concern is how Disney can change regulations giving the state real estate commission the power to negotiate and approve prices for time-shares sold more than 200 miles outside of California.
The power comes from the “out-of-state land promotions law,” which was passed in 1963 after a series of scams involving Californians who were fooled into buying time at substandard resorts.
Another Disney concern is how state law may affect any future resort investment in California.
