Anaheim, Developer Disagree on Costs of Improvements

A development firm seeking approval to build about 700 hotel rooms near Disneyland clashed Tuesday with city officials over how much it should pay for area improvements such as streets and sewers.

Frank Elfend, a consultant or Costa Mesa-based Tarsadia Inc., said the city has estimated the developers’ “fair share” contribution toward the improvements at $25 million.

“It’s unreasonable, “ Elfend said.

He said the entire project will cost $60 million, and such a contribution would make the project financially unfeasible. Elfend said the developer planned to pay its fair share, but disputed the city’s estimate.

The council tentatively approved the project late Tuesday, pending the resolution of the fair-share issue.

Tarsadia Inc. plans to build three hotels on about 6.8 acres north of Katella Avenue, between Anaheim Boulevard and Clementine Street.

During the hearing, Disney officials objected to the plans because they said the project, known as Hotel Circle, does not conform to new zoning and development standards recently adopted by the council. Additionally, they were concerned that all new developers contribute for the improvements of the area around Disneyland.

Many of the improvements slated for the area are aimed at benefiting Disney’s $3-billion project.

The Hotel Circle project is expected to be built over the next three years and will consist of the 150-room Atrium Court Hotel, the 250-room Katella Hotel and the 300-room Parkview Hotel.

The new hotels will be next to the 300-room Peacock Suites and 130-room Crystal Suites, which also are owned and operated by Tarsadia.

Two months ago, the Planning Commission approved the project.