Tentative OK Reached on Disney Park : Development: Accord on $3-billion expansion of Disneyland comes after lengthy talks between Anaheim and firm, which remains noncommittal about building resort.

Capping a year of negotiations, city and Walt Disney Co. officials have reached a tentative agreement on the financing and timetable for development of a proposed $3-billion expansion of Disneyland, Anaheim officials said Monday.

While Disney remains noncommittal about whether it will build the resort, the tentative agreement was hailed as a substantial step forward.

“It’s been a long time coming,” said Anaheim Mayor Tom Daly.

Because the agreement still must be reviewed by lawyers for both sides, Daly and others declined to reveal details. But they sketched the broad outline of the pact hammered out last week. It includes:

* A to-be-announced increase in the 13% tax on hotel room stays, but no city tax increase to pay for project costs.

* A strict schedule detailing when Disney would build certain portions of the resort and when the city would complete public works projects, such as installing sewer lines, placing utilities underground and making street improvements.

* A commitment by Disney to build the project before the city makes any financial outlay.

* A plan to divert future tax revenue generated from the project to pay for bonds floated by the city.

* A guarantee by the city not to touch its general fund to pay for its share of the costs.

“The basic deal points have been resolved, and now it’s up to the attorneys to reduce our negotiations into writing,” said Deputy City Manager Tom Wood. “We’ve overcome some major hurdles and this is clearly a major hurdle.”

Kenneth P. Wong, senior vice president of Disney’s development division who is heading the project, would not confirm Monday that a tentative agreement had been reached, but acknowledged: “We are making progress.”

As planned, Disney wants to develop about 500 acres around Disneyland with more than 5,000 hotel rooms, a 5,000-seat amphitheater, two of the nation’s largest parking structures and a new theme park, called Westcot.

The final issues apparently were resolved late last week when Disney agreed to several remaining points.

Once attorneys have put the tentative agreement in writing, city officials said it would go through an extensive review. At least two public hearings--in front of the city Planning Commission and City Council--must take place before the deal is approved, they said. The entire review process could take several months.

City officials cautioned that further issues could arise during the legal review and drafting process, forcing additional negotiations.

Since Disney proposed building the project four years ago, it has maintained that about $800 million in financial support would be needed from city, county, state and federal agencies.

Recognizing the project’s potential economic and social benefits, including creation of nearly 28,000 new jobs, Gov. Pete Wilson has agreed to contribute $50 million worth of state transportation money for freeway off-ramps and for one of the parking structures. The federal government has earmarked at least $15.5 million and indicated it would provide a total of $131 million for the construction of a garage.

Last month, the Orange County Transportation Authority approved spending $32 million toward construction of a parking garage. The California Department of Transportation and the county also decided in February to go ahead with $50 million in new freeway off-ramps to support the proposed project.

Approval of the agreement is expected to go smoothly through the Planning Commission and City Council, but one group of homeowners has said it plans to try to stop the project.

Members of Anaheim Home Owners Maintaining Their Environment group said they will circulate a petition seeking to give Anaheim voters final say on any agreement between the city and Disney on the project’s financing.

To put such a referendum on a ballot, the group must gather signatures from 10% of the city’s registered voters within 30 days of the agreement’s approval by the council, said Anaheim City Atty. Jack L. White.