Disneyland Project Wins Key Vote : Recreation: Anaheim council approves environmental report for second park, hotels. Extent of public financing remains unresolved.

In a unanimous vote, City Council members Tuesday erased the most significant regulatory obstacle to the planned $3-billion Disneyland Resort, setting the stage for the biggest expansion of Disneyland since the theme park opened 38 years ago.

With little discussion, city leaders gave their approval to a report that assesses the environmental impact that a second theme park and resort next to Disneyland would have on surrounding neighborhoods.

What remains in question is how much financing public agencies will provide for the project and whether opponents will sue to challenge the city’s analysis of the sprawling development. Disney has asked city, state and federal authorities to pay about $800 million of the development costs.

The City Council still must give final approval to the zoning and planning documents covering the project. That vote is scheduled for next week.

“This is the first major milestone and there are bigger milestones ahead, but hopefully we’ll be breaking ground on this project within the next year,” said Mayor Tom Daly. “This project is important to Anaheim’s economy, Orange County’s economy and the state economy.”

The massive development would transform Disney’s enterprise here into a destination resort for millions of additional tourists, who would eat, sleep, shop and play at Disneyland and its new amusement park, whose theme would be the wonders of the world.

Disney officials say the project would overhaul the city’s ailing public infrastructure and revitalize a blighted urban environment. It is also expected to create tens of thousands of jobs and generate about $2.4 billion annually in economic activity statewide after completion in 1998.

The council vote Tuesday came after a 90-minute closed session. Disney and city officials applauded the acceptance of the environmental report, which took more than two years to compile, refine and present to the public.

“I get the feeling people believe this is a good project,” said a smiling Disneyland President Jack Lindquist. “In my heart of hearts I always believed this was going to be a go.”

But people who contend that the project would create too much traffic and pollution were less pleased.

“Our representatives have chosen to sell us down the river,” said Steve White, president of an opposition homeowners group. “Our neighborhoods have been sold out to benefit the Disney corporation and we are upset about that.”

Although the homeowners group has said it cannot afford to sue, other property owners said Tuesday they will go to court.

During earlier public discussions of the project, Disney officials said they are concerned that protracted legal battles could kill the project.

Another problem is financing. Disney officials say that they are still reviewing the resort’s “economic feasibility” and are waiting to see how much financing public agencies will provide to upgrade public works in the area and build the two massive parking structures that would serve the resort.

The proposed expansion contains an international-themed park called Westcot, a 5,000-seat open-air amphitheater, a shopping district, a garden district, hotels inside and outside the park and two of the nation’s largest parking garages. It would cover more than 490 acres. The existing park is 85 acres.

The new theme park would be built on the Disneyland parking lot, with other components of the resort surrounding it.

The expansion, together with Disneyland and its existing hotel, would be called the Disneyland Resort.

Disney chose Anaheim for its Southern California expansion plans in December, 1991, after a cutthroat competition with the city of Long Beach. Disney abandoned a proposed ocean theme park and resort in Long Beach because of community opposition and the additional regulatory hurdles accompanying a project in a coastal zone.

During the battle, Anaheim officials never wavered in their support for the company that has long called the city its home.

City economists predict that the expansion could generate $27 million a year in additional taxes for Anaheim. When the theme park and surrounding areas are fully developed, that revenue projection rises to $36 million a year.

The project is expected to create as many as 28,000 jobs in Southern California. Most of those positions, however, would be part-time, low-wage jobs.

Without the project, city officials argue that the area around Disneyland would develop at a much slower and less profitable pace.

On a statewide level, Disney and Anaheim officials say the project represents the sort of public-private partnership that is needed to revive a sagging California economy and encourage investment.

From the outset of the environmental review process, Disney consulted with many of the public agencies that had oversight or interest in the project. Through these efforts, Disney stemmed opposition from such powerful groups as the Southern California Assn. of Governments, the Orange County Transportation Authority, the South Coast Air Quality Management District and Caltrans.

Nevertheless, the report adopted Tuesday finds that there will be seven unavoidable short-term and long-term drawbacks. Traffic congestion, noise and air pollution will increase during construction, air quality will worsen, agricultural land will be eliminated and poor urban planning will result, according to the report.

Designing a New Disneyland

If Walt Disney Co.’s new Disneyland Resort is completed near the turn of the century, it will cover 490 acres and cost $3 billion. Moving sidewalks, monorails and a 45-minute boat ride will transport visitors through the resort featuring several deluxe hotels, shops and restaurants. The crowning attraction will be a new theme park that offers visitors a glimpse of the future and a journey to the four corners of the earth.

What’s What

Disneyland: The existing 35-year-old amusement park.

Westcot Center: Touted as the “next generation of theme parks,” Westcot will be built on the current 90-acre Disneyland parking lot and have an international theme.

Hotel district: Three new hotels and existing Disneyland Hotel.

Westcot Center: What’s Inside

Using Walt Disney World’s Epcot Center as a model, designers at Walt Disney Imagineering have worked for two years to create the Westcot Center theme park. Designs are still evolving. As things stand now:

A) The Americas

* Re-creates the ambience of countries from Canada through South America.

B) Future World

* A spire not to exceed 300 feet in height at Future World entrance is focal point for entire park; all hotels, restaurants, shops and rides will face it.

* Three pavilions feature interactive exhibits and shows exploring the wonders of living, science and nature.

C) Africa

* Exhibits about early farming cultures, dining and entertainment.

D) Asia

* Cultural entertainment, dining and exhibits are housed in a Taj Mahal-like complex.

E) Europe

* Renaissance Italy, London, Paris and Germany are featured.

F) Lake

* A 5,000-seat amphitheater is next to the lake.

G) Theme hotels

Total of 1,000 rooms in three resort hotels with European, Asian and African themes. It will be the world’s first theme park where guests can stay overnight inside the park.

Resort Hotel District

Three new theme hotels make up a second resort hotel district celebrating Southern California. Hotel architecture will be patterned after the Santa Barbara Mission and the Hotel del Coronado. A total of 5,600 rooms are spread among the seven hotels in the Disney Resort.

Construction Phases

Phase 1: 1993-95

* East parking structure

* Eastern portion of people-mover and moving sidewalk

* Roadway improvements along Katella Avenue east of Harbor Boulevard, Manchester Avenue, Freedman Way and Clementine Street

Phase 2: 1995-98

* Westcot Center

* Resort hotel district, landscaping

* West parking structure

* Roadway improvements include freeway access ramps from southbound Santa Ana Freeway to west parking area; realignment of West Street/Disneyland Drive, Katella Avenue west of Harbor Boulevard, Ball Road, Walnut Street and Harbor Boulevard

Sources: Walt Disney Co., city of Anaheim’s environmental impact report

Researched by CAROLINE LEMKE, MATT LAIT and CHRIS WOODYARD / Los Angeles Times