Suits Challenge Expansion by Disneyland

One day after the Disneyland Resort expansion received the endorsement of Gov. Pete Wilson and the pledge of $60 million in support from the state, several property and hotel owners Thursday sued the city of Anaheim and the Walt Disney Co. over the project’s environmental analysis.

But proponents of the massive resort plan received good news as well when several local school districts, which had threatened legal action, disclosed that they had decided not to file suit.

The developments occurred two days before the deadline to legally challenge the environmental impact report on Disney’s plan to build a 490-acre resort in the urban area surrounding Disneyland.

The two lawsuits filed in Orange County Superior Court on behalf of various property and hotel owners contend that city and Disney officials did not adequately review all the adverse impact the $3-billion project would have on the community.

“The environmental impact report is all gobbledygook,” said attorney Cynthia Wolcott, who is representing most of the plaintiffs.

Ken Wong, senior vice president for Disney Development Co., said the lawsuits cause Disney concern. “Any litigation places an additional burden on an already tenuous financial decision,” Wong said.

Disney has said repeatedly, and Wong reiterated Thursday, that protracted legal challenges could kill the project. As planned, the project includes a new theme park adjacent to Disneyland, along with 5,600 hotel rooms, an amphitheater and an expansive shopping district.

Officials from school districts confirmed that they had decided against taking legal action to address their concerns that the resort--which promises to employ 28,000 workers--would burden them with thousands of added students.

City officials were dismayed by the lawsuits.

“This is disappointing but not unexpected,” said Anaheim City Manager James D. Ruth.

Suing Disney are property owners Joan Schlund, Clyde Schlund, Mary Worthy, Laura Sprang, Bave Kaufman and the owners of Anaheim Plaza Hotel, Best Western Courtesy Inn, the Flamingo Motel and Anaheim Maingate Inn. Another suit was filed on behalf of Tiffy’s restaurant in Anaheim.