Anaheim Shaken by Disney News : Theme park: Officials brace for the worst but hope for the best as company grapples with plans for its $3-billion resort.
The Walt Disney Co.’s bleak assessment about the feasibility of its $3-billion Disneyland Resort proposal and the resignation of the resort’s project director rattled city and community leaders Tuesday and prompted divergent opinions about the project’s future.
“I’ve spoken to Disney officials as recently as today and they are very enthusiastic and supportive of moving forward,” said Anaheim Mayor Tom Daly. “However, it’s clear that there are internal business decisions and a variety of competitive factors . . . which are influencing Disney’s decision to move forward with Westcot.”
But another official was less optimistic and feared that the project may be “crumbling.”
“They are dismantling the thing for right now,” the city official said. “The project is just dead, for now. If and when (Walt Disney Co. Chairman Michael) Eisner says so, this thing could start again tomorrow. But it won’t happen until Disney gets its financial woes taken care of.”
Earlier this week, Disney officials offered their gloomiest assessment yet on the proposal, saying they were seriously “troubled” that the project is too expensive to be a sound investment for the company.
Eisner, for instance, said, “I don’t even know if there is going to be a Westcot. We’re at a real crossroads.” Disney has been beset by rising costs on the project, extended negotiations that have pushed back preliminary construction schedules, uncertainty over Westcot’s economic feasibility and financial pressures arising from the troubled Euro Disney theme park complex in France.
Still, Disney officially denied that it has abandoned the project and said it continues attempts to bring the project to reality.
“I don’t see a loss of interest by anybody,” said Ron Dominguez, a Disney corporate vice president.
“I don’t sense any less interest or commitment or vision for Westcot, but the honest facts are we are behind our original schedule,” said Ken Wong, who has assumed the duties of Disneyland Resort project director Kerry Hunnewell, who resigned Monday.
The reasons for his departure were not disclosed, and Hunnewell has declined to comment. Through it all, however, company officials insist they have not given up hope on the venture.
On Tuesday, city officials said they were surprised that Hunnewell quit and were sorry to see him leave the project. Disney officials, they said, have told them that Hunnewell’s resignation should not be viewed as the company withdrawing support for the resort, which includes more than 5,000 new hotel rooms and a theme park next to Disneyland to be called Westcot.
Nonetheless, Hunnewell’s department and Disney’s economic reassessment have caused concern in a city anxious for the thousands of jobs and millions in tax revenue the project promises the region and state.
“If this is an exercise in futility then we want to know it,” said Anaheim City Manager James D. Ruth about Disney’s recent public statements.
But he was quick to add that Disney continues to move forward with its negotiations with the city, and as far he’s concerned, there is a “good-faith effort” by both parties to work out a deal that would make the project a reality.
“If I got excited over every Disney mood swing then I would never get anything done,” he said.
Ruth said Disney has repeatedly warned that the economics of the 10- to 12-year project are marginal.
Mayor Daly said Disney officials have not said anything to him to make him feel the project could soon be abandoned.
Ed Arnold, the KTLA-Channel 5 sportscaster who is co-chairman of an independently organized Disneyland Resort support group, said he senses that Disney is frustrated with the length of time need to acquire permits, get environmental approvals and arrange government financial assistance.
“They are tired of a lot of things,” he said. “They are disgusted with how long it is taking.”
Times staff writer Kevin Johnson contributed to this report.
