Disney, City Facing Tense 30 Days of Possible Suits

During the next 30 days, city and Walt Disney Co. officials will be checking frequently with the Orange County Courthouse.

That’s how long opponents of the proposed $3-billion Disneyland Resort have to file lawsuits challenging the environmental documents approved Tuesday by the City Council.

Disney officials say they are alert for potential litigation, which they warn could kill the company’s commitment to the project.

“We’ve said all along the economics of this project are relatively marginal,” said Kerry Hunnewell, Disney’s project director. “With any action that increases the cost of the project through additional mitigation or substantial delays, it could further hurt the economics of the project and further undermine its feasibility.”

In the seven months since the draft environmental impact statement was released, dozens of citizens, businesses and public agencies have called it inadequate; a few have documented their opposition and may be in a position to sue the city in court.

Attorney Cynthia Wolcott, who represents several neighbors of the proposed resort, said some of her clients have told her to sue the city.

City officials, she said, have ignored her clients’ environmental concerns and catered to the wishes of the Walt Disney Co.

“Disney would want you to believe that we’re the bad guys because we would take away 28,000 jobs and millions of dollars in (city) revenue,” Wolcott said. “But that’s not true. We’re not out to kill the project. They just haven’t considered the impacts. . . . Disney has basically said, ‘If you don’t play by our rules, we’re going to take our ball and go home.’ ”

One of the most vocal critics has decided not to sue. Anaheim HOME members said that litigation is just too costly for them.

Instead, they plan to challenge any financial agreement between the city and Disney if it provides taxpayer support for the $3-billion project. HOME said it will petition to have any agreement put to a referendum of city voters.

Others who may also sue are two of Anaheim’s school districts and the city of Garden Grove. Those groups, however, are silent about their intentions.

“We’ll have to wait and see. We’ve evaluated the situation and are keeping all our legal options open,” said John E. Brown, who represents Anaheim City and Anaheim Union school districts.

School officials believe that the city’s environmental analysis severely underestimated the number of students that the project would bring to the school, he said. District officials estimate that the project will cost the districts about $91 million, far more than the $2.5 million Disney says it is required to pay under state law.

Michael Fenderson, assistant city manager for Garden Grove, said the decision on whether to sue Anaheim will be made by the City Council in the near future. Garden Grove officials are upset because, they say, the city and Disney did not fully consider the traffic and housing impacts on their city.