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Disney to Boost Minority Builders : Entertainment: The firm will award up to $450 million in construction contracts on its new resort to non-whites.

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TIMES STAFF WRITER

Walt Disney Co. plans to target minority-owned businesses for up to $450 million in labor and materials for its proposed $3-billion expansion project near Disneyland--expected to be one of the Southland’s largest construction projects in the 1990s.

The entertainment conglomerate has set what it calls an “aggressive” target of awarding 15% of the contracts for a 470-acre expansion of its original Anaheim theme park to minority businesses.

The issue of minority contracting has gained much attention in the wake of the Los Angeles riots. Some minority-owned companies in Los Angeles have said that they should be given a larger role in rebuilding riot-damaged businesses.

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“This represents one of the largest opportunities for minority business enterprises in Southern California,” said Kerry Hunnewell, project director. The company’s Disneyland Resort project will include a world’s fair-type attraction, three hotels and dozens of restaurants adjoining Disneyland.

While some government agencies have awarded more than 20% of their contracts to minorities, private companies such as Disney are not legally required to hire minority contractors. But a growing number of corporations, including Disney, have recognized the public relations value of such programs.

Although Disney is not expected to commit to building the expansion before early 1993, the Burbank-based company said it exceeded its minority contracting goal on its first major contract.

The company said that slightly more than 25% of the value of the contract for a 30,000-vehicle parking garage--one of the nation’s largest--has been divided among three minority subcontractors in Orange County.

Disney expects that percentage to drop as additional contracts are awarded. But Malek Ali, Disney’s corporate minority business manager, said, “I don’t think we’ll have any trouble meeting that (15%) goal.”

The Disneyland Resort will generate 48,000 construction jobs in Southern California, including 27,000 in Anaheim, according to a Disney-commissioned economic impact report. Once open, the resort will create 14,000 jobs. Disneyland and the Disneyland Hotel already employ 12,000 during the summer months.

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In the past, government agencies have been better known for requiring the hiring of minority businesses on big projects. For instance, the minority-contracting goal on the $877-million Los Angeles to Long Beach light-rail line was 23%. The goal was exceeded, with minority firms getting 26% of the work, the Los Angeles County Transportation Commission said.

Times staff writer Cristina Lee contributed to this article.

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