Anaheim Approves Expansion of Convention Center

Bolstered by the Walt Disney Co.’s recent decision to focus on Anaheim for its planned new resort, the City Council on Tuesday approved a $17-million expansion of the Anaheim Convention Center.

“I think the gloom and doom stuff about the economy has got to stop,” Mayor Fred Hunter said. “It’s time for elected officials to show some leadership. Now is the time to move forward.”

The project, which already has the overwhelming endorsement of the city’s business community, would be financed by a 2% hike in the hotel occupancy tax approved by the council last week.

The so called “Betterment IV” project would provide an additional 150,000 square feet of exhibit space and maintain the city’s position as operating one of the largest convention facilities on the West Coast.

The council’s decision comes less than a week after Disney chose Anaheim over Long Beach as the possible site for a $3-billion Disneyland Resort attraction. City officials said the entertainment company’s decision will be a key to future development in the city.

The council, which approved the expansion in a 4-1 vote, also plans to consider whether to spend a portion of hotel tax money to hire more police officers to patrol the Convention Center and Disneyland areas.

Casting the only dissenting vote, Councilman Tom Daly said a projected budget deficit in the current fiscal year prevented him from supporting the project. City officials have forecast that Anaheim will face a shortfall of $3 million to $6 million by next June.

“We can’t turn our back on a budget that’s not balanced,” Daly said. “The convention expansion makes sense, but it doesn’t make sense today.”

Opened in 1967, the Convention Center has been expanded three times at a cost of about $65 million and has more than doubled in size from its original 400,000 square feet.

Local leaders said the council’s vote was needed to keep Anaheim competitive with other West Coast cities, including Los Angeles, which rely heavily on conventions to attract tourist dollars.

“For present conventions to come back here, we needed additional space,” said Alan Hughes, executive director of the Anaheim Chamber of Commerce. “Not to go ahead with the expansion would probably mean that we lose the possibility of attracting larger conventions here. That’s money right out of Anaheim’s pocket.”

William Synder, president of the Anaheim Area Visitors and Convention Bureau, said some of the largest clients generate more than $1 million per visit in convention center rental costs, hotel tax, parking and food revenue.

Synder said the expansion was also needed so that facilities could host several events at a time and attract the larger groups that the facility cannot now accommodate.

City officials said the hotel tax increase could produce $680,000 this fiscal year and an additional $1.5 million in 1992-93 to cover the city’s debt.

Because of lower interest rates on revenue bond financing, Hunter said, the council was making a “responsible” decision.

“This city has to renew its commitment to intelligent growth,” Hunter added.

In a Dec. 13 letter to the council, Ned Snavely, general manager of the Anaheim Marriott Hotel, said the expansion was critical to the city’s tourist growth.

“Now that Disney has gone public with serious intentions for our city, this puts more pressure on us . . . to have proper facilities to accommodate” the needs of convention sponsors and other groups, Snavely said in the letter.