Hunter Withdraws Bid for Congressional Seat : Politics: The Anaheim mayor, noting that the city is at a critical stage of development, will instead seek a third local term.

With the city in the midst of major development projects and facing serious budget shortfalls, Mayor Fred Hunter has withdrawn his bid for U.S. Rep. William E. Dannemeyer’s congressional seat and will run for a third mayoral term in 1992.

“There is just too much going on here for me to leave now,” said Hunter, 49, after announcing his decision on Monday. “I could do the old Southern California cash-out and leave for Washington, but I think my announcement (of a congressional bid) was premature on my part.”

The mayor, who is leading the fight against Measure J, the half-cent sales-tax initiative for the construction of a new county jail, said he wants to be in Anaheim to see the new sports arena open as scheduled in 1993 and to preside over the planning for Walt Disney Co.’s new, $1-billion second attraction.

Hunter also said the City Council is considering an array of possible solutions to a projected $20-million budget deficit over the next two years, all of which include tax-increase proposals.

“The council has not had a ‘come to Jesus meeting’ on (the budget deficit) yet,” the mayor and former preacher said.

Hunter said he reached the decision to withdraw his congressional bid after meeting with state Sen. Edward R. Royce (R-Anaheim), who had also announced his intention to run for the 39th Congressional District seat.

“I’ve met with Sen. Royce and wished him well in his upcoming campaign,” Hunter said in a written statement released Monday. “I’m sure he’ll make a fine candidate for the Republican Party.”

The mayor announced his candidacy for higher office Feb. 19 at a news conference at the Celebrity Theatre.

At the time, Hunter said it was his intention to seek the Anaheim-area seat expected to be vacated by Dannemeyer (R-Fullerton) for the 1992 election. Dannemeyer is running for the U.S. Senate seat now held by John Seymour.

“In light of all that is going on down here right now, I did some soul-searching and decided that all my energies, all my efforts and all my concentration must be directed here,” Hunter said in his statement. “Anaheim is in a critical stage in its development and needs strong leadership. Now is not the time to leave.”

Currently, the City Council is managing a number of multimillion-dollar development projects--including the sports arena, a $200-million downtown redevelopment plan and a proposed enlargement of the city’s convention center complex--and planning for a “people-mover,” or monorail, system that would connect the city’s major tourist and entertainment attractions.

Plans for the Disney expansion are expected to be unveiled May 9, although Disney officials have said it will be at least six months to a year before the company decides whether it will build in Anaheim or in Long Beach. Disney has proposed a waterfront theme-park complex with five new hotels called “Port Disney” in Long Beach.

“There are going to be major decisions made about (acquiring professional) sports teams for the arena, Disney and (the Irvine Co.’s proposed housing development) Mountain Park in Gypsum Canyon coming down the pike,” Hunter said.

Another factor in his decision, he said, is that two of his four children still attend school in the area.

In addition, the city is wrestling with what Hunter described as “12 to 15 scenarios” to offset projected budget shortfalls, all of which call for some type or combination of tax increases.

One new tax the mayor and other council members say is being discussed is a tax on public parking throughout the city.

Details about how the new tax would be applied were not available, but the mayor said a parking tax has the potential of raising “well over $3 million” each year for the city.

He said a parking tax has been discussed in previous years but never applied.

“We should have done it years ago,” Hunter said.

Another proposal being considered is a 1% hike in the city’s hotel occupancy tax, from 11% to 12%. Hunter said the increase could add another $3 million a year to city coffers.

“We’re not saying we’re going to do that,” the mayor said, adding that all tax proposals being discussed are “options.”

Anaheim, like some other Orange County cities, has been hit hard by declining sales-tax revenues in an economy weakened by uncertainty over the Gulf War.

“Like Councilman Bob Simpson says, the council is going to have to stop waiting around, watching our ankles swell,” Hunter said.

Simpson, one of Hunter’s political allies, said he was not surprised by the mayor’s decision to remain on the council.

“There is a tremendous amount of work to do in this city,” Simpson said. “I am not disappointed that he is staying. His family is well-entrenched here, and he has a thriving business.”

The mayor maintains a law office across the street from City Hall where he primarily represents plaintiffs in personal-injury cases.